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Taxes

Apr 21, 2023 If you're like most people, you dread tax season. But if you're expecting a tax refund, you may have something to look forward to. Most people will get their tax refund within three weeks of filing, but it varies based on how you file and how you get your refund. If there's extra money coming your way from the IRS, you may be able to pay off some debt, build an emergency fund using a  high-interest savings account or work with a financial advisor to set investing and retirement goals. Here's when you can expect to get your possible refund. Read More...

Apr 20, 2023 The federal income tax rates remain unchanged for the 2022 and 2023 tax years are 10%, 12%, 22%, 24%, 32%, 35% and 37%. The income thresholds for each bracket, though, are adjusted slightly every year for inflation. Read on for more about the federal income tax brackets for both tax year 2022 (filed by April 17, 2023) and tax year 2023 (filed by April 15, 2024). You can also work with a financial advisor to build a tax plan within your overall financial plan. Read More...

Mar 18, 2023 President Trump signed the Tax Cuts and Jobs Act into law in December 2017. This bill largely didn't affect individual income taxes until the 2018 tax year, which you filed in early 2019. How exactly the Trump tax plan affects you depends on your income, your current filing status and the deductions you take. But because of tax code changes, you might want to work with a financial advisor to optimize your tax strategy for your financial goals. Read More...

Feb 01, 2023 The start of a new year means it’s time to file your federal tax return. Many people stress about filing taxes, but there are a number of tax filing services to make the process easier. Two of the most well-known services are H&R Block and TurboTax. Each is known for offering a friendly user experience. In fact, they both provide information along the way so you understand what you're doing and they offer affordable filing options. This makes them both viable tax filing options, though which is best for you will vary based on your needs. If you have questions about how to minimize your taxes, consider working with a financial advisor. Read More...

Feb 06, 2023 Filing taxes yourself has never been easier. As long as you have internet access, you can submit your tax return from the comfort of your couch. Before you get started, however, you'll have to choose which online tax software to trust with all your financial details. That's not always easy. A financial advisor can help you take an extra step to align your tax strategy with your overall financial goals. Read More...

Mar 10, 2023 There are a number of ways to decrease your tax burden. The two most popular ones, though, are likely tax credits and tax deductions. While these may seem like they are the same thing, they are actually two very different mechanisms. A tax credit gives you a dollar-for-dollar reduction of the tax you owe, while a tax deduction lowers your taxable income for the year. Both, though, can save you some cash. For help with your tax strategy, consider working with a financial advisor. Read More...

May 11, 2023 Most people's income comes as the direct result of work -- you get a job, show up, hopefully perform decently well and then money shows up in your bank account. Some people, though, look to set up streams of passive income -- money that flows into your account regularly that doesn't require any direct work. As with any income, though, there are tax implications for potential passive income streams. Here's how it works. If you would like professional help developing a comprehensive investment plan, consider working with a financial advisor. Read More...

Apr 14, 2023 Doing taxes by hand is often tedious and confusing, and it can open you up to making costly mistakes. Using commercially available tax software will ease tax preparation for many Americans. If you’re an individual looking to file your taxes online, you may be wondering whether one of the biggest products out there, Intuit’s TurboTax, is right for you. Here’s what you need to know about this software. A financial advisor can help you optimize a tax strategy for your financial needs and goals. Read More...

Apr 13, 2023 TurboTax and FreeTaxUSA are online tax preparation services that can be used by individuals and businesses. TurboTax is more full-featured and has lots of built-in guidance, as well as helpful support delivered by phone or chat. However, it's significantly more expensive. FreeTaxUSA charges nothing to file federal tax returns but it doesn’t provide users with support by phone or chat and also charges fees for filing state returns. If you need help at tax time, a financial advisor may be able to assist you with tax return preparation. Read More...

Apr 12, 2023 While taxes are inevitable for most Americans, the government doesn’t require those with sufficiently low incomes to file. However, choosing not to file usually means forfeiting profitable tax breaks and other financial advantages. Plus, you’ll be penalized if it turns out you owe taxes or made too much to avoid filing. Individuals under age 65 must file taxes if they make a minimum of $12,950 in 2023 ($25,900 for joint filers under age 65). However, your status can affect your obligation to file. Here’s what you need to know. For help with your own tax situation, consider working with a financial advisor. Read More...

Apr 11, 2023 As you prepare for Tax Day, you might be overwhelmed by the options available for filing your taxes online. You've probably heard of TaxAct and TurboTax, two of the most popular tax-filing services on the market. But which is right for you? Here's how they compare to each other and what to consider when using either platform. If you want expert help with your tax strategy, consider speaking with financial advisor. Read More...

Apr 10, 2023 When making an estate plan, using a trust is a way to make passing assets -- including both cash and physical assets -- a bit easier. In fact, when using a trust, you can often allow your family to avoid a lengthy probate process after you've died. Inheriting a trust comes with certain tax implications. The rules can be complex, but generally speaking, only the earnings of a trust are taxed, not the principal. A financial advisor can help you minimize inheritance tax by creating an estate plan for you and your family. Find a financial advisor today. Read More...

Apr 07, 2023 When tax time rolls around, one thing you’ll have to decide is whether you’ll do your taxes yourself or hire a pro. If you’re leaning toward letting someone else do your taxes, some of the top options include Jackson Hewitt and H&R Block. Both companies also offer a DIY option if you’d like to complete and file your tax return at home. It helps to know what to look for when comparing Jackson Hewitt vs. H&R Block. Consider working with a financial advisor as you engage in tax planning. Read More...

Apr 06, 2023 If you borrow money to buy investment assets, the IRS will sometimes allow you to deduct the loan's interest from the taxable income the investments generate. This is called the investment interest expense deduction. While it applies only to income  – not long-term capital gains – it can help lower your taxes under the right circumstances. Consider talking with a financial advisor with tax expertise if you need help optimizing your tax strategy. Read More...

Mar 24, 2023 Private letter rulings, commonly known as “guidances,” are the bane of tax attorneys everywhere. They are very specific, vast in number and essential to understanding how tax law works. In brief, it's a written answer issued by the IRS to a specific taxpayer question. It gives the agency’s position on this particular filing but is also considered an official statement by the IRS on how tax law works on this and related areas.  Though not considered a binding precedent for future decisions, it is a strong indication of how the IRS will rule in similar situations. Here’s what you need to know. A financial advisor can help you optimize your tax plan. Find a fiduciary advisor today.  Read More...

Mar 23, 2023 When tax season rolls around, your mailbox might fill up with W-2s and other forms that you’ll need to file your return. An Internal Revenue Service (IRS) Form 1099-R might be in the mix if you received certain types of income during the year. Knowing what a 1099-R form is for and when you might receive one can help ensure that your tax filing goes off without a hitch. A financial advisor can help you optimize a tax strategy for your financial needs and goals.  Read More...

Apr 18, 2023 Contributing to a flexible spending account (FSA) could save you several hundred dollars in taxes. FSAs do this by exempting contributions from federal and state income taxes, as well as payroll taxes. FSAs do have some limitations, including a cap on contributions, a restriction to spending funds on qualified medical expenses and a use-it-or-lose-it provision. Plus, not every employer offers these accounts as benefits. For devising ways to pay for your medical expenses, consider talking to a financial advisor. Read More...

Mar 15, 2023 Incentive stock options, or ISOs, can be a lucrative employee benefit. This is particularly true at startup companies, which frequently offer stock options as a form of alternative compensation to make up for under-market salaries. However, when you exercise your stock options, the IRS may treat the difference between the shares’ fair market price and your strike price as taxable income. While this will not apply to your income taxes, if the resulting gain is large enough it can trigger the alternative minimum tax (AMT), driving up your tax bill for the year. We'll discuss the full details. A financial advisor can assist you in creating a tax strategy to minimize your taxes. Read More...

Mar 14, 2023 Dividends are payments that some companies make to shareholders to reward them for investing in them. Dividends can provide regular, predictable income to investors who also preserve the chance of profiting from price appreciation. Dividends can qualify for advantageous capital gains tax treatment if stocks are owned long enough. Avoiding all income taxes on dividends is more complicated. Options include owning dividend-paying stocks in a tax-advantaged retirement account or 529 plan. You can also avoid paying capital gains tax altogether on certain dividend-paying stocks if your income is low enough. A financial advisor can help you employ dividend investing in your portfolio. Read More...

Mar 14, 2023 If you're nearing the age for Medicare eligibility, there are some things you should know about Medicare. One of those things is whether Medicare premiums are tax-deductible. You want to ensure you file your taxes correctly, but you also want to be certain you take advantage of every deduction available to you. Let's break down what Medicare tax deductions you can take, what expenses aren't deductible and other things you should consider for your taxes. A financial advisor can help you create a financial plan to pay for your medical expenses in retirement. Read More...

May 22, 2023 Planning for retirement requires us to consider not only how to build wealth but how to protect it. Employers offer 401(k)s to address the first need, but careful planning can help us ensure our money stays with us. While you can’t get a 401(k) tax deduction, 401(k) plans make it possible to lower your taxable income. A  financial advisor could help you put a tax strategy together for your investments and retirement savings. Read More...

Mar 18, 2023 There comes a time in all of our lives when we have to say goodbye to a family member or friend. If you were close with the person who passed away, you might discover that they've left you something in their last will and testament. Before you officially take over your mother's house or claim her jewelry, there's one more thing you might have to worry about: an inheritance tax on your new assets. A financial advisor can help you minimize inheritance tax by creating an estate plan for you and your family. Find a financial advisor today. Read More...

Mar 13, 2023 When you're filing your taxes, there's a whole lot to consider. From figuring out who counts as a dependent to organizing your income streams, you may find the process a bit overwhelming. And if you're a new homeowner tackling mortgage payments, there's another key question you'll want to know the answer to this tax season as you try to lower your tax liability: Are closing costs deductible on your recent home purchase? A financial advisor can help you optimize your tax strategy for your property and family needs. Below, we give you the rundown. Read More...

Mar 13, 2023 A tax loophole is a tax law provision or a shortcoming of legislation that allows individuals and companies to lower tax liability. Loopholes are legal and allow income or assets to be moved with the purpose of avoiding taxes. This is different than lesser known tax deductions or strategies that are intentionally available for taxpayers to save money. Let's break down how loopholes work, common examples and how they differ from intended tax-saving strategies. A financial advisor can help you optimize a tax strategy to lower your tax liability and reach your investment and retirement goals. Find a financial advisor today. Read More...

Apr 01, 2023 With Form 8962, you are reconciling the tax credit you are entitled to with any advance credit payments (or subsidies) for the tax year. The size of your tax credit depends on the cost of available health insurance, your family size, where you live and your address. A financial advisor can help you optimize a tax strategy for your financial needs and goals. Read on for more essential information about Form 8962. Read More...

Mar 18, 2023 Hiring someone to care for your loved one so you can continue working is a common practice in the U.S. If a child, spouse or other household member requires care and you can't provide the care without quitting your job, you're not alone. A financial advisor can help you optimize your tax strategy to meet your household needs and financial goals. Depending on your eligibility, you may be eligible to claim a tax credit to defray the expenses associated with that care.  Read More...

Apr 17, 2023 If you're self-employed or a freelancer, you likely get paid as an independent contractor rather than an employee. The IRS defines an independent contractor as someone who performs work for someone else, while controlling the way in which the work is done. In other words, someone pays you to perform a service or deliver a product, but they only have a say in the final outcome. As an independent contractor, there are some unique responsibilities where taxes are concerned. Understanding the guidelines for filing and paying taxes as an independent contractor can help you avoid issues with the IRS. A financial advisor can also help you optimize your tax strategy for your financial goals and needs. Read More...

Mar 13, 2023 As an employee, you may have noticed that your paycheck never matches your full salary. This is because your employer has to withhold certain payroll taxes. You might think that you don't have to worry about those payroll taxes if you work for yourself. But that's not the case - you'd still have to pay a 15.3% self-employment tax. Below, we'll explore this tax and why you have to pay it. If you need help with this or any other tax issue, consider working with a financial advisor. Read More...

May 29, 2023 When you sell a depreciated capital asset, you may be able to earn a "realized gain" if the asset's sale price is higher than its value after deduction expenses. You'll then be able to recapture the difference between the two figures after you report it as income. Depreciation recapture is popular among taxpayers because it allows them to save when it comes to taxes. Instead of accounting for your asset's entire value at the date of your purchase, you can spread out its cost over time, allowing you to earn tax deductions for its duration. If you want hands-on guidance when it comes to lowering your tax liability on your investments, consider enlisting the help of a trusted financial advisor in your area. Read More...

Mar 13, 2023 Once you've gone through the burdensome process of filing your taxes, your sigh of relief might be short-lived. That's because you'll likely be wondering, "How long does it take to get a tax refund?" But as excited as you may be to get that refund check from your federal income tax return, you may be disappointed with IRS processing times. So as you plan your budget for the year, you should know how long it will take to get your federal tax refund. If you want to go beyond taxes and build a comprehensive financial plan for your future, a  financial advisor can help you put a financial plan together. Read More...

Apr 21, 2023 Prior to 2020, one of the biggest things you could do to affect the size of your paycheck was to adjust the number of allowances claimed on your W-4. The ideal number of allowances for you would depend on your individual situation. However, now that the allowances section of the W-4 has been eliminated, filling out the form has become somewhat streamlined. But if you need help figuring out your taxes, a financial advisor could help you optimize a strategy for your finances. Read More...

May 22, 2023 Before you see a dollar of lottery winnings, the IRS will take 25%. Up to an additional 13% could be withheld in state and local taxes, depending on where you live. Still, you’ll probably owe more when taxes are due since the top federal tax rate is 37%. So a good first step a lottery winner could take is to work with a financial advisor who can help with tax and investment strategies. Read More...

May 22, 2023 The satisfaction of receiving a year-end bonus may soon be tempered by the realization that income taxes will have to be paid on the extra money. Bonuses are treated as income and thus subject to taxation, but there are ways to manage and reduce the amount of taxes that will be owed. And as is the case with other income from an employer, the employer is required to withhold taxes from a bonus, reducing your take-home pay from the windfall. A financial advisor can help you optimize a tax strategy for a bonus. Read More...

Apr 19, 2023 When you sell your home, the IRS allows one major form of capital gains break. It's called the home sale exclusion, and it allows you to deduct a significant amount of the profit from your home sale to minimize or avoid capital gains taxes. If you're selling an investment property, you can use the process known as a “like-kind” exchange to lower your tax burden, but this process only applies to investment and rental properties. Here’s what you need to know. Matching with a vetted financial advisor for free could help you optimize your investment and estate planning strategies to lower your tax liability. Read More...

Mar 13, 2023 When you file a federal income  tax return, you have the choice between taking the standard deduction or itemizing your deductions. The option that you pick should depend on which strategy will maximize your tax benefits. Your calculations may also have changed in recent years following the passage of President Donald Trump's  Tax Cuts and Jobs Act in 2017. Here’s a look at who should itemize under the new tax plan. Working with a  financial advisor can help you optimize a tax strategy for your financial goals and needs. Read More...

Mar 13, 2023 The state and local tax (SALT) deduction allows taxpayers of high-tax states to deduct local tax payments on their federal tax returns. The tax plan signed by President Trump in 2017, called the Tax Cuts and Jobs Act, instituted a cap on the SALT deduction. Starting with the 2018 tax year, the maximum SALT deduction available was $10,000. Previously, there was no limit. We take a closer look at what the reduced deduction has meant for residents of high-tax states like California, New York and New Jersey. If you're concerned about the impact of these changes, consider working with a financial advisor to manage the impact of taxes on your financial plan. Read More...

May 22, 2023 Inheriting a home or other property can increase the value of your estate, but it can also result in tax consequences. If the property you inherit has appreciated in value since the original owner purchased it, you could be on the hook for capital gains tax should you choose to sell it. That could result in a large tax bill if there’s a sizable gap between the original purchase price and the price you’re able to sell the property for. Here are some possibilities for how to avoid paying capital gains tax on inherited property, which are worth considering if you’re the beneficiary of an estate or trust. A financial advisor can help you create a tax strategy for your estate. Read More...

Mar 13, 2023 If you're filling out a Form W-4, you probably just started a new job. Or maybe you recently got married or had a baby. The W-4, also called the Employee's Withholding Certificate, tells your employer how much federal income tax to withhold from your paycheck. The form was redesigned for 2020, which is why it looks different if you've filled one out before then. The biggest change is that it no longer talks about "allowances," which many people found confusing. Instead, if you want an additional amount withheld, you simply state the amount per pay period. Go beyond taxes to build a comprehensive financial plan. Find a local financial advisor today. Read More...

Apr 19, 2023 An inheritance is a windfall that can absolutely help someone's financial situation - but it can make your taxes tricky. If you inherit property or assets, as opposed to cash, you generally don’t owe taxes until you sell those assets. These capital gains taxes are then calculated using what’s known as a stepped-up cost basis. This means that you pay taxes only on the appreciation that occurs after you inherit the property. A financial advisor can help ensure that you are filing your returns correctly. Read More...

Mar 13, 2023 If you give someone cash or property valued at more than the 2023 annual exclusion limit of $17,000 ($34,000 for married joint filers), you’ll have to fill out Form 709 for gift tax purposes. But don’t fret. This doesn’t always mean you’ll owe an actual tax. The government requires this to keep track of your lifetime gift and estate tax exemption. Only once you use up that large exemption would you owe an out-of-pocket tax. Still, filling out Form 709 can get complicated. This article will walk you through the process step-by step. It'll also help you determine if you need to fill out a Form 709 in the first place. We can also help you work with a financial advisor who can guide you through the process so you won't get in trouble with the IRS. Read More...

Mar 18, 2023 If you're part of the roughly 60% of Americans who pay someone else to prepare their tax return, then there's a good chance that you've had to make more than one visit to the preparer's office because you forgot something. Since preparing taxes happens only once a year, we've put together a checklist with five items to help you gather all the documents you need beforehand. A financial advisor can also help you optimize your tax strategy to reach investing and retirement goals.  Read More...

Mar 10, 2023 When filing federal income taxes, everyone has to choose a filing status. There are five filing statuses: single, married filing jointly, married filing separately, head of household and qualifying widow/er with dependent child. Most people are only eligible for one or two of the statuses and your status is likely to change at some point in your life. One common change is going from filing single to filing married. In this article, let's look at how your tax situation could change when your filing status changes from single to married. Planning your family’s finances goes beyond just taxes. Find a local financial advisor today. Read More...

Mar 10, 2023 Knowing what you can deduct when you're doing your taxes each year is important if you want to reduce your tax liability. Some common deductions, like the mortgage interest tax deduction, are well known, but if you're going to do itemized deductions, you should know all the details. For help on your taxes and other financial questions, consider working with a financial advisor. Read More...

Mar 07, 2023 When you file a federal income  tax return, you have the choice between taking the standard deduction and itemizing your deductions. But after the 2017 Trump tax changes, which nearly doubled the standard deduction, many taxpayers who lowered their tax bill by itemizing deductions could no longer take the same tax breaks. Because of all the tax code changes, many people work with a  financial advisor to optimize a tax strategy for their financial goals. Let's take a look at deductions that you can take without itemizing. Read More...

Apr 20, 2023 An estate tax is most notably levied at the federal level, and it's charged to a decedent's estate when their assets pass on to their beneficiaries. Most estates won't trigger the federal estate tax though, as it only applies to estates worth $12.92 million ($25.84 million for couples) in 2023, minus any applicable gifts. Because this tax can have a significant effect on your beneficiaries, it's best to plan ahead for it in your estate plan if you think your estate may trigger it. Some people work with a financial advisor to maximize an estate plan for their loved ones. Read More...

Mar 18, 2023 If you were unhappy with last year's income tax bill, there are several ways to reduce your overall 2022 tax burden before the April 18, 2023, filing deadline arrives. You can try to qualify for as many tax deductions and exemptions as possible. Or, you can find out if you're eligible to receive a tax credit. Taxpayers often work with  a financial advisor to guide them through claiming different types of credits. Let's take a look at the credits that you could be eligible for and how they work. Read More...

Mar 07, 2023 Paying for health insurance and medical bills can get expensive. Luckily, you can recoup some of those costs when you file your taxes by taking a deduction for medical expenses. To do so, the expenses in question must meet the qualifications outlined by the IRS. We'll show you how to figure out whether your expenses qualify, and how to calculate and take your deductions. And once you've figured out your deductions, a financial advisor could help you connect your tax strategies with your overall financial goals. Read More...

May 22, 2023 If you’re getting a divorce, the tax implications probably are not the most pressing issue on your mind. The specifics of filing taxes after divorce and how you draw up your divorce agreement could make a big difference when it comes to  your tax refund. Many couples consult a financial advisor to help them divide assets and plan for a financial future after divorce. As you prepare for your divorce needs, here are some important things to think about so you can stay on top of your taxes.  Read More...

Mar 02, 2023 Limited liability companies (LLCs) are what’s called “pass-through entities.” This means that the business does not pay corporate income taxes. Instead, the individual owners or members of the LLC collect its proceeds as income and then pay personal income taxes on the results. Here’s how the LLC pass-through tax works. A financial advisor with tax expertise can help you optimize your tax strategy and potentially save you money. Find an advisor today. Read More...

Mar 31, 2023 Small business owners can identify tax advisors by asking for recommendations from other professionals such as accountants, seeking personal referrals, checking out professional directories and following leads from advertisements. Before seeking help from a tax advisor, business owners will want to decide what kind of help they need and how much they’re willing to pay. After picking some candidates, interviews and background checks can help whittle the list. The help of a knowledgeable and attentive tax advisor can significantly affect a business’s financial performance.  Read More...

Feb 28, 2023 Tax havens offer very low tax rates to foreign and domestic investors. While we often think about the business implications of tax havens, there can also be implications for individuals. Here are common examples, benefits and legal requirements you must be aware of. For advice or a closer look at your situation, consider working with a financial advisor. Read More...

Feb 28, 2023 When it comes to a company's  taxes, there are two important categories to understand: assets and liabilities. Tax liability is anything that a person or company owes taxes on, such as income or revenue. Tax assets are anything that can be used to lower a person or company's tax liability. Let's take a look at what is a deferred tax asset, what causes them and how they work. If you need help optimizing your tax strategy, consider working with a financial advisor. Read More...

Feb 23, 2023 Historically, options contracts have been a niche market occupied by professional investors. All that changed in recent years with the rise of no-fee online brokers. Now, retail investors trade options contracts regularly, and this means paying taxes on those trades. Trading options is risky, so having a financial advisor in your corner can help. Find a fiduciary advisor today. Read More...

Feb 17, 2023 If you’ve glanced at your pay stub or W-2 from your employer, you may be dismayed at the rundown of tax items dinging your take-home pay. The Old Age, Survivors, and Disability Insurance program (OASDI) is one such tax. Fortunately, the government intends payment of OASDI taxes to mean retirement income for you in the future. This tax supports retirees, their families, and Americans who are disabled. The 2023 rate for employees and employers is set at 6.2%. Here are the details on paying it, acquiring an exemption, and how it fits into your retirement plan. Consider working with a financial advisor as you assess your taxes. Read More...

Feb 15, 2023 Tax diversification is an investment strategy that uses tax-advantaged, fully taxable and tax-free investment accounts to help lower taxes. Diversification is the name of the game when it comes to investing. This even applies to taxes. When you invest in accounts with different tax structures, you can save significantly on your tax bill both now and into retirement. But first, you need to understand how different investment accounts are taxed. Here’s how it works. A financial advisor can help you optimize a tax strategy for your financial needs and goals. Read More...

Feb 15, 2023 Property taxes can make or break your budget as a homebuyer. That's especially true if you live in one of the higher property tax states in the U.S. New Jersey, for example, has the the highest property tax rate in the nation at 2.26%, while Hawaii has the lowest at 0.27%. There are 20 states with property tax rates above the national average of 0.99%. If you want to see which states have the lowest property taxes, here's a breakdown of the 10 states with the lowest property taxes in the U.S. If you are a homeowner, a financial advisor can help optimize your tax planning. Read More...

Mar 31, 2023 If you have formed a limited liability company that is being taxed as an S corporation, also called an S Corp, you will at some point need to become acquainted with form 1120-S. The IRS Form 1120-S is a tax document that you will use to furnish financial information to the Internal Revenue Service. You’ll need the 1120-S form to report your company’s yearly financial activity, including your business’s gains, losses, credits and dividends. In other words, your S corporation’s annual corporate tax return is Form 1120-S. That said, you will still need to file your own personal federal income tax return. If you need help with this or other financial matters, consider working with a financial advisor who focuses on tax planning. Read More...

Mar 20, 2023 For many Americans, filing federal income taxes means getting a refund. The IRS says that the average tax refund in 2022 was $3,039, a 7.5% uptick from the previous year. Taxpayers often rely on this money to boost their  retirement savings or save for a home. But what happens when you need the money before the IRS sends your refund? You may want to consider a tax refund loan. It functions like other short-term loans, but the loan amount is based on your refund amount. Refund advances are also a popular alternative. A financial advisor can help you budget for unexpected expenses and offer advice on dealing with them when they arise. Read More...

Apr 17, 2023 The IRS uses your modified adjusted gross income (MAGI) to determine whether you qualify for important tax benefits like deducting contributions from your individual retirement account (IRA) and making contributions to your Roth IRA. Many taxpayers consult a  financial advisor to maximize their tax strategy for their retirement goals. Let's take a look at your modified adjusted gross income and break down how it may impact your tax bill. Read More...

Mar 18, 2023 The Earned Income Tax Credit (EITC) reduces tax bills for low-to-moderate-income working families. It's a tax credit that ranges from $560 to $6,935 for the 2022 tax year depending on your filing status, number of children and earned income. Taxpayers often work with  a financial advisor to guide them through claiming different types of credits. Let's take a look at how the EITC works, as well as how you can qualify and file for it. Read More...

Feb 01, 2023 Operating a business on the side can give you valuable tax deductions as well as extra income. However, the Internal Revenue Service (IRS) decides if the business is actually a hobby or not. If the IRS says it is, you could lose the ability to deduct expenses from your income. The primary rule for determining whether an activity is a business or a hobby is if it produced a profit in at least three out of five years. Other considerations could come into play. However, that’s not definitive. We'll discuss how turning your hobby into a business can affect your taxes and what the IRS looks for. Talk to a financial advisor for help managing your tax liability. Read More...

Mar 31, 2023 Real estate investments can be lucrative assets. However, they can also incur capital gains taxes that weaken your profits. Fortunately, you can implement tactics that reduce capital gains taxes so you can keep more of your money. Although the IRS taxes short-term and long-term gains differently, you can combat high tax rates on both. We'll explain short-term and long-term capital gains and how to keep the associated taxes from costing you an arm and a leg. A financial advisor can help you tax-optimize your investment portfolio. Find a financial advisor today. Read More...

Jan 31, 2023 Taxes are an unavoidable part of life for most people. You could, however, get out of paying income tax if you’re deemed tax-exempt by the Internal Revenue Service (IRS). But what does tax-exempt mean exactly? In simple terms, if you have tax-exempt status, then you’re not obligated to pay tax on income. It’s a little different from claiming a tax exemption when you file your return. The terms can be confusing so we'll give a rundown to understand how the IRS defines tax-exempt. A financial advisor can help you optimize a tax strategy for your financial needs and goals.  Read More...

Feb 01, 2023 There are three main ways to maximize your  tax return. You can file your taxes on your own to save on tax preparation fees. You can work with a financial advisor to develop a tax strategy for your financial goals. Lastly, you can use online tax preparation software to save costs. While online filing is certainly more affordable than many in-person tax services, in many cases, you don't even have to pay for the basic level. That means you have several excellent options for free online tax software. Read More...

Jan 30, 2023 Real estate investing can produce robust returns, but higher income doesn't always equal more taxes. While it’s rare to eliminate taxes completely, the tax benefits of real estate investing can reduce your tax burden. As a result, you can rent out apartments or sell real estate holdings without giving up most of your profits. Real estate investors can qualify for tax write-offs, pass-through deductions, incentive programs and other tax benefits. Consider working with a financial advisor as you decide whether real estate is a good investment for you. Read More...

Mar 31, 2023 Optimizing your return is often one of the most important things you can do during tax season. One way to make the most of your tax situation is by using deductions to lower your tax burden. The mitigating factors to your taxable income are known as tax shields. A tax shield is a reduction in taxable income by claiming allowable deductions. Here is how it works and what you might be able to claim. For full tax planning help, consider working with a financial advisor. Read More...

Jan 24, 2023 Whether you're a business owner who relies on independent contractors or you make your living as a freelancer, understanding the difference between Form 1099-MISC and 1099-NEC is critical to ensuring  tax season runs smoothly. While Form 1099-MISC is used to report payments that aren't subject to self-employment tax, 1099-NEC reports non-employee compensation. A financial advisor may be able to help optimize your tax strategy as part of a comprehensive financial plan. Read More...

Jan 24, 2023 When you're starting with any investment, it's always good to be aware of the tax implications. This is especially true when investing in real estate. Because the government wants to encourage real estate investment, there are several real estate investing tax strategies that investors can take advantage of. Let's go over five of the major tax strategies and how you can make them work for you. A financial advisor can help you optimize a tax strategy for your real estate investments and goals. Read More...

Mar 20, 2023 For most Americans, tax day comes once per year. That’s not the case for businesses though. If you own a business, you have to file tax forms on a regular basis. There are deadlines you must stay on top of from quarterly income taxes to paying payroll taxes. Below are the deadlines that small businesses need to worry about and when they will occur in 2023. If you're looking for tax automation for your small business, consider working with a financial advisor. Read More...

Jan 11, 2023 Trust fund taxes are a common form of tax withholding. These are the taxes that W-2 employers withhold from their employees’ paychecks for Medicare, Social Security and income tax programs. They are otherwise known as payroll taxes. Let's break down how they are taxed. A financial advisor can help you optimize your financial plan to lower your tax liability. Read More...

Jan 05, 2023 When you're saving for retirement, there are a variety of accounts you could use. The Roth IRA, or individual retirement account, is one of those options. Roth IRAs offer more investment flexibility, as well as their own tax benefits. Understanding how a Roth IRA is taxed is essential to taking full advantage of it. It's important to understand how Roth IRAs are taxed, especially when it comes to gains and withdrawals. You can work with a financial advisor who can help set your retirement and tax planning strategies up in ways that can benefit you.  Read More...

Jan 05, 2023 After losing a loved one, responsibilities can quickly pile up during a time when you’d like to focus on grieving. Unfortunately, taxes don’t disappear when someone passes. If you’re the executor of your loved one’s estate, you’ll be responsible for filing a tax return and paying any balance due to the Internal Revenue Service. If their estate is valued over a certain threshold, you’ll be responsible for filing a regular return and a complex return called an estate tax return. Here’s what you need to know about who needs to file these returns and how to file them. A financial advisor can walk you through the tax requirements of an estate plan. Read More...

Jan 04, 2023 Contrary to general belief, you cannot file your taxes on Jan. 1. Although April 15 is the standard deadline for the latest day you can file your taxes, the IRS also has deadlines for the earliest it begins accepting returns each year. You also can't file your returns until you've received the necessary tax documents from employers or other parties you've worked with. They typically have until the end of January to send these out to you. If you need help with filing your taxes then you may want to consider working with an experienced financial advisorRead More...

Jan 03, 2023 Getting divorced can have financial implications for how you file taxes. One question you might have is whether both of you can claim head of household if you maintain separate residences but share children. The IRS allows legally separated or divorced parents to claim head of household for a dependent child, but there are some requirements you’ll need to meet first. A financial advisor can help you optimize your financial plan to lower your tax liability. Read More...

Jan 03, 2023 Flipping houses can be a lucrative business. But don't let the idealized house-flipping TV shows affect your view of how it works. You need to be experienced, funded and knowledgeable about what you're doing. That's especially true when it comes to flipping houses and taxes. This real estate guide breaks down what to expect with house flipping taxes. A financial advisor can help you create a financial plan for your real estate investment goals and help protect your business from financial mistakes. Read More...

Jan 03, 2023 Giving money to a good cause can lift our spirits, but can it also lift our tax burden? What about if we’re not donating to a charity, but to a church? Church, synagogue and mosque donations are tax-deductible, as long as your church meets the 501(c)(3) regulations set by the Internal Revenue Service. Whether or not you actually benefit from a deduction depends on your record keeping and if you itemize your deductions. If you intend to make a charitable donation, a financial advisor can help you figure out whether it is tax-deductible and how it impacts your taxes.  Read More...

Jan 03, 2023 Although swaths of the economy grounded to a halt in 2020 because of the COVID-19 pandemic, governments across the world worked to keep businesses afloat. In the United States, the Employee Retention Credit was part of these efforts. The Employee Retention Credit is a refundable tax credit for qualifying employee wages. Here’s what you need to know. Consider working with a financial advisor on preparing your taxes. Read More...

May 09, 2023 As a general rule, you cannot deduct the interest that you pay on a personal or family loan. The IRS considers these standard lending products, with the same rules whether you borrow from a family member or the bank. However, there are some exceptions. For certain types of loans, like student loans or business-related loans, the IRS may allow you to deduct your interest payments. If you use a personal loan for that kind of qualifying expense, you may be able to deduct your interest. You can work with a financial advisor who can advise you about getting a loan, repaying your loans and how you can build wealth long-term. Read More...

Dec 20, 2022 Owning a home can offer some unique financial benefits, including appreciation and a potentially lower monthly cost compared to renting. But you might be wondering: Does buying a house help with taxes? The short answer is yes, there are numerous tax benefits associated with homeownership. The tax breaks you’re able to take advantage of can depend on how you file. A financial advisor can help you create a financial plan for your home buying and tax planning goals. Read More...

Dec 20, 2022 Most businesses can get an extension of six months to file a federal income tax return by filing Form 7004. No explanation for making the request is necessary and the extension is automatic. However, filing Form 7004 only grants more time to file the return. It doesn’t extend the time allowed to pay the tax. Filers sending in Form 7004 have to calculate how much they’ll owe and send payment in with the form or risk being subjected to penalties and interest on the unpaid amount. Also, the form has to be filed in most cases by the original due date for the business return. Consider talking to a financial advisor for help with your business taxes. Read More...

Dec 20, 2022 There are two main ways to give significant amounts of money to a family member: gifts and loans. Each has its own tax consequences and advantages. In the case of a loan, if you want this not to count as a gift you have to actually structure the transaction as a loan. If you don’t have a written contract with fixed repayments and a minimum interest rate, the IRS will likely treat this as a gift. If you do meet those standards, the loan will typically have few tax consequences. You can work with a financial advisor whenever you're considering a big financial move like this, though, to see how it might impact your long-term financial plans. Read More...

Mar 18, 2023 Owners of home-based businesses can take advantage of a slew of tax deductions that will help them reduce their taxable income and save on income taxes. The home office deduction is a tax break, especially for home-based businesses. Other deductions are similar to those that other small businesses get to take. Making full use of tax deductions can help improve the after-tax profitability of home-based businesses and solidify your financial position. To get help with your home-based business taxes and other financial matters, consider talking to a financial advisor. Read More...

Mar 20, 2023 If you’ve spent a sizable amount of money improving your residence, you may understandably be looking for ways to offset those costs and find yourself wondering if your home improvements are tax deductible. Alas, in most cases, the answer is a clear-cut no. But there are a few exceptions where you may get a tax break that you can further investigate. Let’s take a look at what those exceptions are and what it means for you. You may want to also work with a financial advisor who can help you with all of your tax planning and filing needs as well as help you build your wealth.  Read More...

May 09, 2023 Claiming tax deductions you’re eligible for is an effective way to reduce your tax burden. But identifying all the deductions available to you can be challenging and you can’t claim deductions if you don’t know they exist. You may be surprised to find out that certain costs related to your insurance and healthcare may actually lower your tax bill. In some instances, you might be able to deduct your insurance premiums, medical expenses and other health-related costs on your taxes. Here’s what to know about potential deductions, when they apply and how much they can reduce your tax bill. You can also work with a financial advisor to help you plan out all of your tax options to find the right strategy for your situation.  Read More...

Dec 20, 2022 While persevering in sickness and health is a familiar concept during a wedding, you’ll rarely hear about tax breaks at the altar. However, married couples can take advantage of a slew of tax benefits, especially when they file jointly. Here is a list of tax benefits of marriage and how to maximize your refund as a couple. You may also want to consider working with a financial advisor to help you with your full tax planning strategies, especially if you're planning a big life event. Read More...

May 29, 2023 Marginal taxation systems like the U.S. federal income tax system increase the percentage of income owed to taxes as a taxpayer’s income increases. There are seven income brackets. Your marginal tax rate will also be affected by your filing status, which could be single, married filing jointly or head of household. Only the amount of income within a particular bracket is subject to the corresponding marginal tax rate. To calculate your marginal tax rate, apply the percentage of tax charged to the amount of income in each bracket according to your filing status and add up the totals. A financial advisor can help you determine your tax situation. Read More...

Dec 16, 2022 It can pay to be a responsible rental property owner. For instance, if you’re always investing in your rental property and making improvements, not only will your tenants appreciate it and remain tenants longer, you can get a depreciation deduction on your taxes. Unfortunately, upon selling the property, depreciation sometimes becomes a migraine for landlords in the form of a depreciation recapture tax. You have options, however, to avoid depreciation recapture tax. Here's how. If you need help with taxes, a financial advisor can help you create a tax strategy. Read More...

Dec 15, 2022 The IRS has many different payment options for taxpayers who owe money. The important thing is to reach out and arrange a payment plan. As long as you address it, tax debt is almost always manageable. If you ignore it, though, tax debt can grow out of control. Here’s what you should know. For help managing tax debt and other financial matters, consider matching with a vetted financial advisor for free. Read More...

Dec 14, 2022 The world of investing is vast, exciting and often expensive for individual traders. Occasionally, you’ll encounter an investment opportunity you don’t want to pass up but can’t quite afford. Fortunately, you can borrow the funds necessary from your broker to acquire the asset and pay margin interest for the loan. Furthermore, you can deduct the cost of trading on margin from your taxes, allowing you to reduce your tax burden while trading assets you don’t have the financial capacity to purchase on your own. Here are the details on margin interest and how to deduct the costs from your taxes. Consider working with a vetted financial advisor to discuss whether the investment makes sense for you and, if so, how you can deduct margin interest from your taxes. Read More...

Dec 13, 2022 The gig economy pads the budgets of millions of Americans  -- but there are tax implications from taking a side job. Fortunately, you can reduce the taxes on your side jobs, depending on your situation. For help figuring out how a side job will impact your taxes, consider working with a financial advisor. Read More...

Dec 08, 2022 When you earn interest income on your investments or other financial endeavors, then you'll likely need to pay taxes on all or part of that income. Earned interest is considered the same as any other ordinary income and must be included as part of your federal and state tax returns. The tax rate is the same rate you would pay on any other income that you declare on your tax return. Basically any interest-bearing account will require you to pay tax on the earned income. Any exceptions, which can include municipal bonds, tax earned income as a capital gains tax. If you're looking for guidance on taxes, you may want to consider  working with a financial advisor. Read More...

Dec 07, 2022 Selling investments for more than what you paid for them could lead to a tidy profit. It could also trigger capital gains tax, potentially resulting in a larger tax bill. The good news is that you may be able to minimize what you owe through tax-loss harvesting. Knowing how to net short- and long-term capital gains and losses is an important step. You can also work with a financial advisor who can advise you on a good tax planning strategy for your investments. Read More...

Dec 07, 2022 The link between IRA contributions and your adjusted gross income (AGI) can get complicated because not all contributions to IRAs lower your AGI. Generally, this is one of those situations where you’ll be pleased to file a tax return with a smaller AGI because those IRA contributions will go to your retirement while also reducing your tax bill. If you're looking for smarter tax strategies to help you with your investments and long-term retirement planning, consider working with a financial advisorRead More...

Dec 06, 2022 Sitting down to file taxes can sometimes bring an unpleasant surprise of taxes owed or a pleasant relief of a hefty refund. After filing taxes for years, you might wonder how the government calculates your taxes. Understanding effective and marginal tax rates can clarify how you end up paying a specific amount in taxes and how to lower your overall taxable income. An effective tax rate is an average rate you pay in taxes, while the marginal tax rate is the rate paid on the last dollar of income. For proper tax planning, you may want to consider working with a financial advisor. Read More...

Dec 01, 2022 A long-term capital loss refers to money that you lose on investments held for more than 12 months. The alternative is a short-term capital loss, money lost on investments that you held for less than a year. When you do your taxes, each category of capital loss offsets its equivalent capital gains first. This can have very real consequences when it comes to determining your overall tax liability so it’s important to get right. You may want to consider working with a financial advisor who specializes in tax planning in order to help you make the best overall tax strategy.  Read More...

Nov 30, 2022 Even the savviest investors pick assets that turn out to be duds. But fortunately, your capital losses can become tax deductions. While you don’t have to sell an asset whose value has nosedived, ridding your portfolio of dead weight can help you at tax time. In addition, federal tax law requires you to report capital losses when filing. Here’s how to comply with IRS regulations for capital losses and ensure you reap a tax benefit. A financial advisor can help optimize your financial plan to lower your tax liability.   Read More...

Nov 29, 2022 Normally when you hear the word tax haven, the typical places spring to mind. The Cayman Islands, Switzerland, Panama and the Bahamas are all tax havens, but over the course of the past decade South Dakota has joined their ranks as one of the world's top destinations for stashing assets and avoiding taxes. There are currently hundreds of billions of dollars worth of assets squirreled away in South Dakotan trusts that generate no tax revenue for the state or federal government, and these assets are functionally untouchable by anyone who may have a legitimate claim to them, such as creditors or ex-spouses. The state has been thrust into the spotlight recently with the leaks of the Pandora Papers that revealed a great deal about who actually uses these South Dakotan trusts. While tax havens like Switzerland may seem like a tool for the ultra wealthy, there are ways you can potentially take advantage of the Mount Rushmore State's auspices yourself -- even without being based there. If you're looking for help with tax planning, whether by taking advantage of South Dakotan trusts or otherwise, it may also be a good idea to speak with a financial advisor. Read More...

Feb 10, 2023 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 to capital gains tax. Applying net unrealized appreciation (NUA) to those distributions could help you to lock in a lower capital gains rate on the sale of company shares. If you have company stock in your retirement plan at work, NUA could help you save money on investment taxes. Working with a financial advisor can disclose a number of ways to save on your taxes. Read More...

May 29, 2023 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 losses to offset income from dividends. Within this limit, you also can use capital losses to shelter other income, such as wages and salaries. Have a conversation with a financial advisor before making investing decisions. Read More...

Mar 20, 2023 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. The same is true when a business loses money on uncollected debts and lost assets. With write-offs, businesses can lower their tax burden and help make their operations more affordable. Here’s how it works. For more help with how you could use write-offs, consider working with a financial advisor. Read More...

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