We must pay federal, state and local taxes, fees, and fines to live in a country and participate in modern society. However, we are not obligated to pay more than the law requires.
#3 of 13 Things People Can Do with Money | by WealthPhase
We must pay federal, state and local taxes, fees, and fines to live in a country and participate in modern society. However, we are not obligated to pay more than the law requires.
#3 of 13 Things People Can Do with Money | by WealthPhase
Traditional and Roth IRAs offer different benefits — but both can make sense. This is an advertorial from Fidelity, but they do a good job of comparing the two plans.
Strategies for dealing with investments with large embedded capital gains, including establishing a capital gains budget, upside/downside targets, and donate and replace!
Are you taking all the tax breaks you’re entitled to? Experts say you might be able to reduce your tax bill by taking advantage of the many exemptions, deductions, and credits built into the tax code.
Social Security is generally considered a tax-free benefit, but that is not always the case. Depending on the amount of alternate income that you have in retirement and your filing status, you could owe taxes on up to 85% of your Social Security benefits.
American taxpayers could be entitled to about $1.1 billion in unclaimed tax refunds from the 2014 tax year, according to a recent IRS newsletter. The agency estimates that 1 million taxpayers could potentially have a claim to some of this money, with a median unclaimed refund amount of ...
Health savings accounts (HSAs) can reduce adjusted gross income, grow earnings tax free, and help pay for qualified medical expenses.
Business taxpayers should never use withheld payroll taxes for other reasons. The IRS will look for "responsible persons."
An IRA account can be a surprisingly powerful tool as you save for retirement. Here's what you need to know about traditional and Roth IRAs.
Bruce Miller explains basic issues that retirement account owners investors must know potential tax issues with their IRA accounts.
Financial experts and writers often tout the Roth 401(k)’s main selling point: when the money is withdrawn in retirement, it won’t be taxed. That's true except for ...
You may owe taxes on your Social Security benefits under some circumstances.
Five million Americans file their income tax under the alternative minim tax (AMT) guidelines. Here’s how it works and who is impacted.
Everyone's heard of pension plans, but have you heard of a cash balance plan? It's a way to sock away large amounts of cash for retirement on a tax-deductible basis.
Health savings accounts (HSAs) can reduce adjusted gross income, grow earnings tax free, and help pay for qualified medical expenses.
The last day to take your RMDs from your retirement accounts this year is Friday.
The IRS standard deduction is a portion of income that is not subject to tax and that can be used to reduce a taxpayer's tax bill in lieu of itemizing deductions.
The GOP tax reform bill changes the tax treatment of alimony (or spousal support) payments in one important way.
As Republicans sprint to pass their tax plan, the one question on everyone's mind is: Will this help or hurt me?
Taxes can be particularly tricky for high-income earners, who often don’t qualify for certain credits, deductions and tax-advantaged accounts. That said, there are a number of steps all investors may be able to take now to help minimize their tax bills in both the short and long terms.
Nobody enjoys paying taxes, but if you had to pick one tax that is almost universally disliked it’s the alternative minimum tax (AMT). If your household income is over $200,000 per year, there’s 56% chance that AMT will show up on your tax return, based on information provided by the IRS.
Some extra saving, some stock moves, some charitable giving—these strategies all can add up to tax savings for many people. But the clock is ticking.
Can you file taxes separately if married? You can, but it’s not always the best choice. Here’s how to decide whether to file taxes jointly or separately.
Tax-loss selling is often touted as a worthwhile year-end tax planning strategy. But as 2017 winds down, most investors who go out looking for meaningful losing positions in their taxable portfolios will come up empty-handed.
Want to squeeze in some last-minute tax breaks? Here are a few simple tricks to employ.
Kiplinger provides a state-by-state guide that shows how each state taxes retirees, complete with a color-coded map showing most- and least-friendly states.
You may have zero interest in agriculture, but the Retirement Researcher says that anyone with a taxable investment account should be thinking about harvesting – gain/loss harvesting, that is.
As the year-end approaches, it‘s a good time for you to review your tax planning strategy with a professional advisor.
Self-employment tax is a harsh wake-up call for new entrepreneurs. Student Loan Hero offers five ways to soften the sting.
Here are some traditional and under-the-radar ways to earn more on investments after taxes.
The proposed Tax Cuts and Jobs Act is out. It would eliminate the state and local tax deduction. If you pay high state income taxes--think California, New York, and many other places--you'll care about this.
By the time you're ready to leave the working world for good, you may have quite a balance saved up in your 401(k). So what exactly should you do with all that money to help guarantee a well-funded retirement? Here are a couple of possibilities you might pursue (plus one you definitely shouldn't).
The standard deduction, unified credit, gift tax exclusion, and other tax numbers for 2018.
IRS Code allows employees a special election to distribute appreciated employer stock out of an employer retirement plan, and have the “Net Unrealized Appreciation” taxed at favorable capital gains rates outside of the account.
The concept of cost basis is basically straightforward, but it can become complicated in many ways. Tracking cost basis is required for tax purposes but also is needed to help track and determine investment success. The key to success...
The rules for calculating RMDs cause much confusion for clients and advisors alike, and the penalty for errors is stiff.
In an S-Corporation, only earnings paid to an owner as salary is subject to payroll taxes. Any money left in the business for reinvestment or distributed to the shareholder as a dividend is not subject to self-employment tax.
A tax-efficient portfolio can save enough on your tax bill to nicely compliment your investment returns. Take a look at your own portfolio to see if you've implemented the following tax-shrinking tips.
With a spousal IRA—technically named the Kay Bailey Hutchison Spousal IRA—a spouse who has zero earned income can contribute to his or her own IRA based on the other spouse's earned income.
You can invest IRA funds in non-conventional assets, including real estate, closely held stock, equipment leasing, farming interests, private equity investments and virtual currency. However, there are risks involved.
Your employer offers both a traditional and Roth 401(k). Which one is best for you? Morningstar provides some insight.
In Morningstar's inaugural report evaluating health savings account plans, they looked at 10 of the largest through two separate lenses: as a spending vehicle to cover current medical costs, and as an investment.
How much to put where, and when, varies for everyone, of course, but this three-step primer can get you started on a smart retirement tax strategy.
They'll get their money one way or another. Don't plan your move without calculating all of a state's taxes. Generally speaking, a move is typically beneficial only for high-income earners.
It has become common for people to continue working and earning income in some capacity well into their retirement years. This results in a new issue: How will this earned income impact the tax liability for the retiree who is also claiming Social Security benefits while working?
Nobody is obligated to more taxes than the law requires. The law allows you to take advantage of these five tax-savings opportunities.
A Spousal Individual Retirement Account (IRA) is a special type of IRA that is designed to benefit a non-working spouse and allows a married couple to each have an IRA to help fund their retirement.
Looking at the 70% Overlap Rule. Tax-loss harvesting (TLH) is a common practice used to improve after-tax returns by realizing losses to either offset realized capital gains or to defer capital gains into the future. Be sure to avoid wash sales.
Many 401(k) plans have a unique feature that can either create a world of opportunity for your retirement plans or create a tax and retirement planning nightmare. This 401(k) plan feature is known as an in-service withdrawal.
Reporting 1099 income is important. But asking for a missing on can be a mistake.
Maximize the benefits of an IRA early in your career.
When a tax-deferred account is part of an estate, failure to follow the tax rules correctly can result in a financial disaster.
Are your earnings too high to a Roth IRA? Try the backdoor approach.
An S corporation can reduce FICA taxes, but may not a good option for you.
In addition to federal debt, state and local per capita debt can reach as high as $11,000.
If you're not convinced, consider moving to Chile or New Zealand.
Approaching age 70½? Avoid unwanted surprises from money in your IRA.