There are many tax benefits built into home ownership. Here is a review of the most common. The home gain exclusion. When you sell an asset for a profit, it creates a taxable event. If the asset, though, is your primary residence, you can exclude up to $250,000 ($500,000 if married filing jointly) of these […]
Companies want to make it easy to buy their big ticket items, especially at times of economic uncertainty. A popular technique is to offer 0% financing when you buy furniture, electronics and other household items. You can also take matters into your own hands with a credit card that offers 0% APR on purchases, balances […]
If you’ve been feeling the pinch of higher auto insurance rates along with other rising costs, you should know some factors that impact these rates are well within your control. Consider these tips to pay less this year and beyond. Auto insurance rates may not be going down any time soon, but the steps you […]
Taxes can affect many areas of your life. Here are some common situations when you’ll want to schedule a tax review. 1. Something changed in your life. A change in your life could mean significant changes in your tax status. Some of these changes include: How your taxes may be different: Tax deductions and credits […]
The average credit card balance in America ballooned to $5,910 in 2022. This figure is up 13.2% from the year before according to Experian, and it spells out a worrisome (and costly) trend for consumers. After all, credit card interest rates were on rise throughout all last year and well into 2023, mostly due to […]
2023 is going to be a bit different than the last few years. There are two changes business owners should be aware of when it comes to allowable deductions for 2023. While deductions reduce taxable income tax credits reduce taxes dollar for dollar. Three credits to be aware of for 2023 are… Knowing the tax […]
Question: What if I fail to take my required IRA distribution on time? Answer: You’ll face a 50% penalty on the amount that should have been withdrawn. Fortunately your investment firm will typically send reminders and you can often ask for an abatement of the penalty. But why put yourself in that position. Develop a reminder system […]
Head of household tax filing status is available for unmarried taxpayers and certain separated taxpayers who provide a home for a qualifying person, such as a child or a parent. If you qualify, you’ll generally pay less tax as a head of household filer than as married filing separately or a single taxpayer. The head […]
While most of us know this area of the tax code as the nanny tax, the IRS refers to this as household employees. Definition. Basically the IRS believes individuals may unknowingly have employees that help them around their home. The nanny tax refers to three federal employment taxes (Social Security, Medicare, and federal unemployment tax) that […]
The federal tax law allows certain items to be deducted above-the-line to arrive at adjusted gross income (AGI). These deductions are now noted in Schedule 1 of the new form 1040. Above-the-line deductions include things like regular IRA contributions, student loan interest deduction, and educator expenses. Their main benefit? These deductions are allowed whether or […]