Planned Solutions

In this episode of the Planned Solutions Incorporated Podcast, the US tax system is complex with many moving pieces that can lead to tax surprises. Changes in income, deductions, credits, or tax withholding can all lead to a taxpayer owing more tax than expected. Some of these changes can be anticipated by taxpayers so that they can plan to increase their tax withholding, make estimated payments, or at least make sure to have the money set aside to pay the tax due at tax time. Also, The latest inflation report revealed that several repeat offenders’ categories continued to be sources of inflation, especially shelter prices. However, several smaller sources of inflation have been less obvious including auto insurance, food away from home, hospital services, and motor vehicle maintenance and repair. As well, The Personal Residence Exemption (Section 121) is one of the largest tax breaks in the tax code. It allows an individual to exclude up to $250,000 ($500,000 for a married couple where both spouses quali