- A Guide to Prenuptial Agreements in California
As you prepare for marriage, you’re probably thinking about everything but a prenuptial agreement, otherwise known as a prenup. However, even people in rock-solid relationships sometimes choose to sign a prenup. Every state, including California, has laws that pertain to… read more…
- 5 States With No Sales Tax
Just as there are several states with no income taxes, there are also multiple states forgoing sales taxes. These states don’t impose state-level sales taxes, meaning you won’t be assessed an additional fee when purchasing a retail good or service.… read more…
- Prenup vs. Postnup: What’s the Difference?
Prenuptial and postnuptial agreements are both legal documents that address what will happen to marital assets if a married couple divorces or one of them dies. Both agreements describe similar matters, including division of financial assets and payment of alimony.… read more…
- How to Choose a Filing Status on Your Tax Return
Filing taxes may not be your favorite chore, but it’s a necessary one to ensure that you stay in the good graces of the IRS. Deciding which tax filing status to choose matters for determining which tax breaks you might be eligible for and ensuring that you’re paying the right amount in taxes. There are… read more…
- What Is a Tax Exemption?
Tax exemptions let individuals and organizations avoid paying taxes on some or all of their income. Exemptions were once available to almost all tax filers in the form of personal exemptions. However, in 2017 the personal tax exemption was eliminated… read more…
- The Most Valuable Tax Exemptions
The U.S. government offers American taxpayers hundreds of tax exemptions, credits, deductions and reduced rates. State and local governments also offer tax breaks. These tax breaks are available to people of all income levels, so it literally pays to understand… read more…
- What Is a Proportional Tax?
A proportional tax, also known as a flat tax, is a type of tax system that levies the same tax rate on everyone, no matter their income level. This system is in contrast to the progressive or marginal tax system… read more…
- What Is IRS Form 1099-MISC?
If you’re a contractor, freelancer or another type of self-employed individual, you’ll likely need to file IRS Form 1099-MISC. This form is used to report non-employee compensation, and it is part of the 1099 family of IRS tax forms. In… read more…
- How Do Social Security Survivor Benefits Work?
Social Security benefits can serve as an additional income stream for retirement, but they can also be paid out under other circumstances. For instance, Social Security survivor benefits can be paid to the widows, widowers and dependents of eligible workers… read more…
- Can Your Social Security Benefits Be Garnished?
Social Security benefits can be garnished depending on the type of payments and debt you owe. These deductions are usually carried out for financial liabilities such as back taxes, student loans, child support payments and more. But there are limitations… read more…
- What Is a Regressive Tax System?
If you’re paying less in taxes as your taxable income increases, you’re likely following a regressive tax system. Regressive taxes offer an inverse relationship between income levels and tax rates; that is, a lower income will typically earn you a… read more…
- Small Business Investment Company (SBIC): Definition and Usage
A Small Business Investment Company (SBIC) is a specialized investment entity licensed and regulated by the Small Business Administration (SBA) to provide critical funding to small businesses in specific industries. These companies play a vital role in fueling the growth of emerging enterprises by leveraging a combination of private capital and government-backed funds. However, to… read more…
- What Is a Progressive Tax System?
The idea of a progressive tax system helps ensure that there is some standard equity in the taxes that individuals with various levels of income incur. At its core, this means you’ll pay more in taxes as your taxable income… read more…
- What Is Per Diem, and How Is It Taxed?
If you’re traveling for business reasons, you’ll probably incur lodging, meal and incidental expenses. This is where per diem payments come in. Your employer provides these as reimbursement for such expenses, and the payments usually aren’t taxable. But the rate… read more…
- Is Child Support Taxable Income?
Any child support payments you’ve received won’t be counted as taxable income. And if you’re the one making the child support payments, the income you used to do so won’t be tax-deductible. But there are ways to save on taxes… read more…
- How a 1031 Exchange Works
Investing in real estate can offer a hedge against inflation while helping you create a diversified portfolio. If at some point you decide you want to shift your real estate investment dollars, you may consider a 1031 exchange. This type… read more…
- Using a Tax Deed to Invest in Real Estate
A tax deed is a legal document that gives a government body the right to sell a piece of real estate for non-payment of taxes. When a real estate owner gets behind on property taxes, the city or county may place… read more…
- Blue Sky Laws: Definition and Examples
Every American state has its own securities laws that aim to protect investors against fraud. These laws, called blue sky laws, also oversee the licensing and reporting requirements placed on broker-dealer firms, individual brokers and financial advisors. Here’s what you… read more…
- What is a Tax Cliff?
A tax cliff happens when a small increase to your income triggers an increase in your tax bill. Personal income taxes increase gradually as a proportion of income; even if your income increases to the point that you enter a new… read more…
- What Happens If You Default on a Business Loan?
Taking out a business loan can be a powerful tool to launch your startup or scale an existing business to new heights. However, failing to meet repayment obligations can lead to significant financial and legal challenges. This includes a potential hit to your credit score and difficulty securing future financing. Defaulting on a business loan… read more…
- Intestate: Definition, Risks and State Laws
Intestate refers to the situation where an individual passes away without a valid will in place, leaving their estate distribution subject to state intestacy laws. These laws dictate how assets are allocated among surviving family members, often favoring spouses and children, but varying widely depending on the state. Without a will, the probate court steps… read more…
- Tax-Free Student Loan Repayment Benefits
The Coronavirus Aid, Relief and Economic Security (CARES) Act offers a slew of benefits for Americans, including benefits related to student loan repayment. In addition to allowing borrowers to take a temporary break from making payments on federal loans, the act also provides tax-free student loan repayment benefits for both employers and employees. If you… read more…
- Guide to the Business Tax Provisions in the CARES Act
The federal government has launched a wide-ranging set of initiatives to help individuals and businesses dealing with the coronavirus pandemic. A number of these initiatives, found in the $2 trillion stimulus bill known as the CARES Act, focus on aid to businesses. While many, such as the Paycheck Protection Program, involve grants and loans to struggling businesses,… read more…
- How the Employee Retention Tax Credit Works
The Employee Retention Tax Credit (ERTC) is a provision in the Coronavirus Aid, Relief, and Economic Security (CARES) Act intended to help workplaces keep employees on their payroll during the downturn caused by the COVID-19 pandemic. More specifically, the ERTC is a… read more…
- Payroll Tax Delay for Coronavirus-Impacted Businesses
This year, September represents more than just the start of the school year and the unofficial end of summer — it’s also the beginning of President Donald Trump’s program to allow employers to stop deducting payroll taxes from most workers, through the end of 2020. This plan was announced in August as a response to… read more…