2017 was a banner year for the markets and the statement above is one said to me recently by two clients. I cannot take total credit for their capital gains being as large as they were in 2017, but I will take some. My clients are having to re-adjust the withholding tax applied to the areas of income they are receiving due to the increase in capital gains credited to them. Will you have to also?
One client said he was “crying with two loaves of bread in his arms.” Things could be worse.
As you work on your 2017 tax returns, see if you need to adjust your withholding tax for a possible repeat of the markets in 2018.