The Denver Post

Tips for th et ax season.

- By Suzanne Woolley

Eight ways to prepare for the looming changes.

The federal tax overhaul put in place by Republican­s has produced an unusual show of bipartisan­ship now that tax season is here: We are a nation united in befuddleme­nt. Neverthele­ss, there is some consensus as to what you can do now. Below are some early thoughts from wealth managers on strategies taxpayers can start thinking about to avoid unpleasant surprises a year from now.

1. Preview your 2018 taxes: Advisers suggest having an accountant run mock 2018 returns after this year’s forms are finished. Turbotax’s Taxcaster tool was just updated to be able to forecast a 2018 tax refund based on the new law. Users enter their basic 2017 tax informatio­n, and it will spit out a 2017 estimated refund and a forecast for 2018 side by side, according to the company. Running those future numbers can flag potential issues.

2. Rework your withholdin­g: The new law means that the W-4 you filled out however many years ago may need to be recalibrat­ed. If workers leave their W-4 as is, they could wind up withholdin­g too little, which can bring penalties, or they may get a smaller-than-expected refund next year.

3. Watch for SALT workaround­s: A big change that could affect many taxpayers is the tax overhaul’s controvers­ial cap on state and local income tax (SALT) deductions, a provision Democrats have labeled a war on blue state Americans. The deduction, which used to be unlimited, will be capped at $10,000 next year.

4. Bunch up your donations:

To try and get around that new SALT limit, one strategy advisers suggest for people who regularly donate to charity is to bunch up into one year what they would have given over multiple years.

5. Home equity loan deductions: The deductibil­ity of interest on home equity loans and lines of credit (HELOCS) is a big area of confusion, said Tim Steffen, director of advanced planning for Baird Private Wealth Management. The new tax law lowered the amount on which interest expense on socalled “acquisitio­n indebtedne­ss” could be deducted — from $1 million to $750,000 for new loans made after Dec. 14, 2017.

6. New college savings plan uses: The new tax law expands the allowable use of tax-exempt 529 college savings plans for education costs that accrue while your child is between kindergart­en and high school graduation.

7. Run your retirement numbers: For those retiring before age 70½, the age when withdrawal­s from tax-deferred retirement savings plans such as 401(k)s become mandatory and thus raise your taxable income, lower tax rates could present a reason to convert a standard pre-tax IRA into a Roth IRA, which consists of after-tax money.

8. Finally, just breathe: “You can get your knickers in a knot and worry about something no one knows enough about yet, or you can chill and prepare your questions and concerns for when the answers surface,” said Jon Ten Haagen, of Ten Haagen Financial Group in Huntington, N.Y. “Breathe in, breathe out, and repeat as necessary until your heart rate is back down to normal.”

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