By Rebecca Watts, Payroll Manager, People & Culture

It is not too early to begin thinking about your 2018 tax return, so here are some tips from The Motley Fool to help lower your tax bill for 2018.

Adjust Your Withholding
There have been major changes to the US tax code this year. The standard deduction has increased and the personal exemption has been eliminated. The Child Tax Credit has been expanded. All of these could affect your withholding.

The goal in setting your withholding amount is accurately estimate your tax liability. No one wants to end up owing the government come April. And, while a big refund check may seem nice, you are really giving the government an interest-free loan instead of seeing that in your paycheck all year.

Maximize Your Pre-tax Retirement Contributions
Contributions to your retirement account can substantially reduce your taxable income. For 2018, you can defer up to $18,500 of income into your 401(k) and if you are over 50, that amount increases to $24,500.

Save Your Medical Receipts
The Tax Cut and Jobs Act has temporarily lowered the threshold for medical expense deductions from 10% of Adjusted Gross Income (AGI) to 7.5%. Keep all of your receipts for out of pocket medical expenses – co-pays, prescriptions, amounts that went towards your deductible. Most doctors and pharmacies will print an account statement for you. You might be surprised by how much you actually spent.

For more tips, see the full article here: https://www.fool.com/taxes/2018/09/16/5-tax-tips-for-2018-and-beyond.aspx

401(k) Contribution Limits for 2019 Announced

The IRS has announced the contribution limits for 401(k) plans for 2019. The limit increased by $500 to $19,000. The catch-up limit for those over 50 remains the same at $6,000.

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