- When and How to Report a 1031 Exchange on Your Tax Return
A 1031 exchange lets real estate investors defer capital gains taxes by selling one investment property and reinvesting the proceeds into another like-kind property. While this strategy can delay a significant tax bill, it doesn’t eliminate the tax obligation entirely. Investors must still follow IRS rules and deadlines carefully. Knowing how to report a 1031… read more…
- What Is the Tax Underpayment Penalty and How Can It Be Avoided?
The IRS imposes a tax underpayment penalty when taxpayers fail to pay enough of their tax liability during the year. This penalty applies if you don’t meet your obligations through withholding, estimated payments or a combination of both. And when it comes to your financial planning, it’s important to take into account how tax payments… read more…
- Available Education Tax Credits You Can Claim
For students and their parents, there are two tax credits that can help with the costs of higher education. The American opportunity tax credit is a partially refundable tax credit that you can receive for qualified educational spending. The lifetime learning tax credit is a non-refundable tax credit that you can receive based on tuition… read more…
- I’m Receiving $3,500 Per Month From Social Security. How Can I Reduce My Taxes?
Social Security can generate real income. The more you earned during your working life, up to each year’s income caps, the more you receive in benefits during your retirement. In 2025, someone with maximum credits who waits until age 70 will receive just over $61,000 per year in benefits. But, as always, more money means… read more…
- What Documents Do I Need to File My LLC Taxes?
If you are the owner of an LLC and want to file the correct tax return for your business, the job starts with gathering the right documents. You’ll need records to validate all your business’s income, deductions, expenses and other figures reported across various forms. The tax forms you’ll use vary depending on whether you… read more…
- My Tax Preparer Made a Mistake: What Can I Do?
By law, you are responsible for your own tax return, even if you hire someone else to complete it. Therein lies one of the major contradictions at the heart of the personal filing system. While lawyers and accountants dedicate their careers to understanding the tax code, even they sometimes get it wrong. However, Congress and… read more…
- How to Donate to Charity With Money From Your IRA
The IRS allows, and even encourages, charitable donations from tax-advantaged retirement accounts such as an IRA. Not only can this help you efficiently do some good, but you can take a solid tax deduction in the process. Here’s what you need to know. If you’re interested in making charitable donations, a financial advisor can help… read more…
- How Long You Have to Keep Tax Documents
Once tax season is over, it’s tempting to contemplate pushing every document into a shredder and going on your way until next year. However, prematurely disposing of your tax documents can have financial consequences because the IRS can audit you up to three years later. Likewise, it’s possible for taxpayers to claim a refund they… read more…
- IRA Early Withdrawal Rules and Penalties
When you deposit cash into your retirement account, it enters a new realm of rules and regulations. While your IRA contributions are still your money, they’re subject to withdrawal penalties, taxes and exceptions that allow you to withdraw money for specific expenses. As a result, withdrawing from your IRA for a surprise expense isn’t as… read more…
- What Is the Additional Child Tax Credit (ACTC)?
Tax breaks are the saving grace of every hard-working American come tax time. However, these credits don’t always translate to money in your pocket. For instance, the Child Tax Credit can lower the taxes you owe, but it won’t create a refund from the government if you wouldn’t otherwise get one. Fortunately, the Additional Child… read more…
- I’m Selling My House and Netting $640k to Downsize for Retirement. How Can I Avoid Capital Gains Taxes?
Selling your longtime home and downsizing in retirement is a common practice for people entering their golden years. While profits from a home sale are considered capital gains, the IRS typically allows you to exclude part of the profit – if not all of it – from your taxes. But what if you sold your… read more…
- When Is PMI Tax Deductible?
Mortgage lenders generally require private mortgage insurance (PMI) when borrowers cannot put down at least 20% on a home loan. PMI premiums can add significant amounts to monthly mortgage payments, but the pain was partially alleviated by a tax deduction for PMI policies issued after 2006. However, the deduction was allowed to expire starting in… read more…
- Deciding Between Married Filing Jointly Versus Separately With Your Taxes
When tax return season rolls around, married couples have to decide whether to file their taxes jointly or separately. Filing jointly is far more common and usually results in a lower tax bill. However, there are certain situations where filing separately makes good financial sense. Couples with student loans, self-employment income or high medical expenses… read more…
- Tax Filing: Head of Household Versus Single
The choice between single and head of household tax filing status can have a sizable impact on the taxes you owe or the refund you receive. These two filing statuses, while seemingly straightforward, come with distinct qualifications and benefits that can influence your tax liability. Many don’t realize they may qualify for the more beneficial… read more…
- Important Tax Changes to Know Before You File in 2026
Tax rules rarely stay the same, with exemptions, deductions and thresholds often changing from year to year. This year is no exception, as several updates apply to 2025 taxes filed by April 2026. Before gathering documents and preparing your return, it’s important to review the current tax rules to ensure you remain compliant and take… read more…
- What Is the California Earned Income Tax Credit?
California is one of the most expensive states to live in – but numerous tax credits can lighten the load for working individuals and families. Specifically, the California Earned Income Tax Credit (CalEITC) can enhance your tax refund from the state. In addition, taxpayers who qualify for this credit often can claim a host of… read more…
- I’m 65 and a High Earner. I Don’t Plan on Retiring Soon – Is It a Bad Idea to Use My Roth IRA for Home Renovations?
Should you cash out your retirement fund to upgrade your house? While there are some people for whom this will be a good idea, other households will be better off if they let their retirement fund keep growing. Ultimately, the decision will depend on your net worth, expected retirement expenses and tax strategy. Using Roth… read more…
- I Want to Give Money to My Daughter and Son-in-Law. How Much Can I Give Without Triggering Taxes?
Perhaps your daughter recently got married and you want to help her and her husband start their new life. Or maybe they suddenly find themselves in need of financial assistance and turn to you for help. Fortunately, the IRS allows you to give away a certain amount of assets – from real estate and stocks… read more…
- What Happens If You File Your Taxes Late?
While dreading tax season is a near-universal experience, there’s something that can make it far worse – not filing or paying your taxes. Filing your taxes late puts you further in the hole if you owe a balance because of the fees and interest the IRS adds to your bill. You can end up paying… read more…
- 2026 IRS Tax Changes: What You Need to Know
The new year brings new tax brackets, deductions and limits that will impact your 2026 federal income tax return. Changes to the IRS tax code affect taxpayers across income levels and will change how much you owe or your refund amount. For 2026, the agency has announced annual inflation adjustments, which could impact income tax… read more…
- What Tax Rules Apply to an IRA Rollover?
Rolling over a 401(k) or other workplace retirement plan into an Individual Retirement Account (IRA) is very common when people change jobs or retire. Among other potential benefits, a rollover lets savers combine multiple accounts to keep better track of everything. But if the rollover isn’t done right, you could end up facing a big… read more…
- How the 10-Year RMD Rules Work for Inherited IRAs
Inheriting an IRA as a beneficiary can increase your financial security. But since inherited IRAs typically must be distributed within 10 years, the account can generate more taxable income than many beneficiaries expect. However, exceptions to this timeline are available. Here’s how distributions work and how to prepare yourself for anticipated taxes. A financial advisor… read more…
- Can Capital Losses Offset Ordinary Income?
Long-term capital losses can be used to offset ordinary income, but only up to a set amount. After they are applied against any capital gains, up to $3,000 of remaining losses each year may be deducted from ordinary income, or $1,500 for those married filing separately. Any unused losses carry forward to future years with… read more…
- Strategies for Protecting Income From Taxes
While you can’t avoid taxes, the IRS allows you to lower your tax burden by combining tax deductions and credits. Here are nine common tax-saving strategies to protect your wealth. A financial advisor can help optimize your investment portfolio to lower your taxes. Aim For Long-Term Capital Gains Long-term capital gains are profits from the… read more…
- Can You Have Two Primary Residences If Married Filing Jointly?
Getting married and having multiple homes are blessings to enjoy – unfortunately, a tax exemption for two primary residences isn’t among the benefits of such a situation. While it would be wonderful if two people filing taxes meant twice the benefits and exemptions, U.S. tax laws require married couples filing jointly to claim just one… read more…