Our weekly roundup of tax-related investment strategies and news your clients may be thinking about.
The millennial marriage penalty is partly to blame for the relatively low number of young people getting married, according to Forbes. It's because remaining single allows them to claim up to $2,500 in student loan interest deduction. When they get married and file joint returns, the total deduction for the couple will still be $2,500, so if they both have student loans, one of them will lose the tax break. -- Forbes
A Roth 401(k) conversion, early tax payments on restricted stock, contributions to a self-employed retirement account are all possible tax-saving strategies for clients, according to Kiplinger. Other ways include clients employing their own children, picking the right type of business and using a part of the home for work-related purposes. -- Kiplinger
Taking advantage of 401(k) and other tax-advantaged retirement accounts is a strategy that clients can use to save on taxes, according to The Motley Fool. Clients can also reduce their tax bill by contributing to 529 and other college savings plans and choosing more tax-efficient ETFs over actively managed mutual funds. Clients are advised to hold on to their investments for at least 10 years so they will face the long-term capital gains tax, which is lower than the capital gains tax rates for investments kept in less than a year. --The Motley Fool
As people start preparing to file their tax returns, they are advised to maximize the tax breaks that qualify to claim to save on taxes, according to Money. There are 50 tax breaks they may be eligible to claim, such as deductions on mortgage interest, childcare costs, charitable donations and moving expenses. Get to know the new deductions for 2016 as well as those that are available again this tax-filing season. --Money
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