- Definition of Net Unrealized Appreciation (NUA)
As part of your employee benefits package, you may have the option to own stock in the company you work for. You can own company shares inside your 401(k) but once you start taking distributions, those investments would be subject… read more…
- Can Capital Losses Offset Dividend Income?
Capital losses realized when selling securities for less than you paid can be used to reduce income received from dividend-paying stocks — but only up to a point. The IRS will let you use up to $3,000 in net capital… read more…
- What Is a Write-Off and How Do You Take One?
A tax write-off is how businesses account for expenses, losses and liabilities on their taxes. Write-offs are a specialized form of tax deduction. When a business spends money on equipment or operating expenses, it can deduct that spending from its taxes.… read more…
- When Is Debt Cancellation Tax-Free?
Usually, if you have a debt canceled, you will owe taxes on the amount of the canceled debt. The Internal Revenue Service does not consider debt as income unless the debt is canceled. Then the canceled debt is regarded as… read more…
- How to Deduct Stock Losses on Your Taxes
Capital gains and capital losses both have tax implications. When you sell stocks for a profit, you owe taxes on those gains. These taxes are calculated based on capital gains rates. However, when it comes to investments, the IRS taxes… read more…
- Dependent Tax Deduction Rules
The American Rescue Plan boosted 2021 tax returns for millions of working families. However, the 2022 tax year will be a return to the norm, and dependent tax deduction rules are no exception. A dependent tax deduction can lower your… read more…
- LLC Tax Rates and Rules
If you’re self-employed or own a small business, chances are high that your business is an LLC or could benefit from becoming one. It’s not always straightforward how an LLC works and what it means for you, however. Here we’ll… read more…
- Qualified Small Business Stock (QSBS) Tax Rules
Investors holding qualified small business stock (QSBS) may be confused about what the tax rules are but they should know that they can qualify for tax benefits. This can encourage small business investment while providing a benefit for investors. There… read more…
- Do You Get Tax Forms for Your Roth IRA?
As a contributor to a Roth IRA, you’re likely looking forward to a retirement chock full of tax-free income from your account. However, paying income taxes now and eliminating them later doesn’t mean you won’t submit and receive tax forms… read more…
- Are Education Expenses Tax Deductible?
The tax code has changed a lot recently, and there may be some confusion among filers about whether or not education expenses are tax-deductible. Though the standard tuition and fees deduction expired at the end of 2020, you may be… read more…
- How to Reach a Tax Debt Settlement With the IRS
Having a large debt balance is never good but it can be incredibly nerve-wracking when your creditor is the Internal Revenue Service (IRS). Luckily, you may be able to reach a tax debt settlement with the IRS, depending on your personal situation.… read more…
- What Is a Tax-Sheltered Annuity?
When it comes to saving for your retirement, you may have different options depending on where you’re employed. One of those options could be a tax-sheltered annuity (TSA). Here we’ll answer what tax-sheltered annuities are, how they work and how… read more…
- Tax the Rich: Biden to End Trump Tax Cuts on the Wealthy
House Democrats have proposed legislation that could end Trump tax cuts for the wealthy and corporations. If passed, this could implement some of the biggest tax increases in decades. But while these tax changes aim to make good on President… read more…
- Understanding the Unified Credit and Gift Tax Exclusions
Typically, you can expect to pay taxes when you earn your money when you spend your money and even when your money grows. However, you and your loved ones may also be expected to pay taxes on your money when… read more…
- Dependent Care FSA vs. Dependent Care Tax Credit
It’s natural to want the best care for your children and dependents. Fortunately, you can save money on daycare expenses without sacrificing quality. If your employer offers a dependent care FSA plan, your contributions can lower your taxable income. In… read more…
- How CDs Are Taxed: Tax Planning Guide
Since the Federal Reserve has raised its federal funds effective rate to the highest since December 2007, interest rates on various types of loans have also increased. That’s bad news for anyone trying to take out new loans like mortgages or… read more…
- Do I Have to Pay Tax on Inherited Savings Bonds?
Inheriting savings bonds can provide you with an unexpected windfall. However, there’s one important question to ask: Do I have to pay tax on inherited savings bonds? The short answer is yes, you generally will be responsible for taxes owed… read more…
- IRS Substantial Presence Test for U.S. Residents
Many people believe they only have to pay taxes to a foreign government if they are legal citizens or permanent residents, but this isn’t always the case. According to the IRS substantial presence test, workers without U.S. citizenship or permanent… read more…
- Is Long-Term Care Insurance Tax Deductible?
Long-term care insurance can be an important part of planning for the twilight of your life. Despite everyone hoping they’ll be healthy and active until the end of their days, most of us end up needing a bit of help… read more…
- States That Do Not Tax Military Retirement
When deciding where to spend your golden years, it’s crucial for many of us to consider how the taxes of any prospective location will affect the income we’ll be living on. For retired service members, the state you live in… read more…
- Inflation Tax Adjustments For 2024: What You Need to Know
On Tuesday the IRS announced its annual adjustments to the standard deduction and tax brackets for the 2023 tax year. They are a considerable increase over 2022. This is a response to ongoing inflation, which has the effect of eroding… read more…
- The IRS Boosts Standard Deduction by 7% — What It Means For You
In the past year Americans have seen multiple interest rate hikes, a Social Security cost of living adjustment and the introduction of a $740 Billion inflation reduction act. Amid all the government effort being put forth to compensate for the economic… read more…
- What the Marriage Tax Penalty Is and How to Avoid It
Marriage is what brings us together, but along with the matrimonial duties come legal and financial responsibilities. That includes taxes, and more specifically, a potential for a marriage tax penalty. This means that as a married couple you end up… read more…
- Is Assisted Living Tax Deductible?
As people age, it can be more challenging to live by yourself and handle your basic needs. Assisted living facilities and care workers provide additional help for seniors to live independently in a safe environment. Paying for assisted living can… read more…
- How Is Pass-Through Income Taxed?
When you own or invest in a business, you may receive distributions from its profits. Depending on how the business is structured, the company may not have paid taxes on these profits before distributing them to you. These businesses are… read more…