Tax Strategies Scan: A Millennial Marriage Tax?

Our weekly roundup of tax-related investment strategies and news your clients may be thinking about.

Millennial marriage tax penalty: The student loan interest tax deduction has a gotcha for the hitched: 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

Tax savings for affluent families: A Roth 401(k) conversion, early tax payments on restricted stock, and 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

5 smart tax moves for 2016: 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

50 tax deductions your clients didn’t know about: 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. This article covers 50 tax breaks they may be eligible to claim, such as deductions on mortgage interest, childcare costs, charitable donations and moving expenses. -- Money