Taxes

Nov 17, 2022 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 they differ from other common retirement savings plans, like a 401(k). Here's what you need to know about tax-sheltered annuities and whether they'll work for you. For more help, consider working with a financial advisor. Read More...

Mar 18, 2023 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 Joe Biden's promises to tackle inequality, they are smaller-scale in an effort to win over moderate Democrat support. The new plan proposes raising the top capital gains tax rate from 20% to 25% instead of nearly doubling it to 39.6% as Biden had initially proposed. And the corporate tax rate would only go up to 26.5% instead of 28%. Let's break down how these tax changes could affect you. A financial advisor may be able to help with tax planning. SmartAsset's free advisor matching tool can match you with financial advisors in your area. Read More...

Nov 15, 2022 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 you give it away or pass it down upon your death. Gift taxes and estate taxes are only applied if your bequeathed assets exceed a certain dollar amount. Here’s a look at what the unified tax credit is, how it relates to gift or estate taxes and who this credit impacts. Consider working with a financial advisor as you coordinate your estate planning and tax strategy. Read More...

Mar 02, 2023 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 addition, the dependent care tax credit can cut down your taxes due when you file. Here are the details on each and tips on using both simultaneously. A financial advisor can help you create a financial plan for your family's needs and goals. Read More...

Nov 04, 2022 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 lines of credit, but good news for people looking to make more money on their non-invested savings by lending money. Certificates of deposit (CDs) pay you an agreed-upon rate in exchange for lending your money to a bank for a set period of time. But the higher interest rates being paid by CDs is only part of equation. The other part is the taxes owed on those interest rates. Let's break down how CDs are taxed. A financial advisor can help you optimize your financial plan to lower your tax liability. Read More...

Nov 01, 2022 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 on savings bonds you inherit from someone else. The good news is that you may be able to defer taxes on inherited savings bonds or avoid it altogether in certain situations. A financial advisor can help you optimize your financial plan to lower your tax liability. Read More...

Oct 25, 2022 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 residency might have to pay taxes depending on how many days they have spent in the country over the past three years. You can work with a financial advisor who specializes in taxes to help you properly plan your finances and attempt to lower any potential tax liability. Read More...

Oct 20, 2022 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 getting through the day when we get older. Like most medical care in the United States, this can end up being very expensive. Many people invest in long-term care insurance early so that they will have an easier time paying for the help they need when they need it. This brings up many questions, but one that you may not consider right away is if there are any tax implications to buying long-term care insurance. In short: yes - under certain conditions. Long-term care insurance premiums can have a positive impact on your taxes. We’ll explain exactly how it works below. For more help with long-term care insurance, taxes or any other financial considerations, consider working with a financial advisor. Read More...

Oct 20, 2022 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 can actually make a significant difference with regard to how much you pay in taxes on your retirement pay. On top of the conventional ways state income tax schedules differ, many states have special policies in place specifically for military retirement pay. For those of you who are interested in expert guidance through every retirement prep decision, a financial advisor could be a great help. Read More...

Oct 19, 2022 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 spending power even as it increases some workers’ take home pay. As with all things taxes, this can raise some questions. Below, we'll provide answers. For more info on how these changes will affect your personal tax bill, consider matching with a financial advisor.  Read More...

Oct 19, 2022 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 downturn, there is still more relief coming through the pipeline. The IRS confirmed this week that inflation adjustments would be made for the 2023 tax year. This adjustment will affect 62 code sections laid out in revenue procedure 22-38. One major change to be aware of a 7% standard deduction increase. Here’s the breakdown and how this boost will affect your tax bill. For assistance with your finances for the upcoming tax season contact a local financial advisor to see where you can make the most significant reduction in your tax bill. Read More...

Oct 18, 2022 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 paying more taxes than you would if you filed separately. Below, we go over what the marriage tax penalty is, what it could mean for you and how you can avoid it. You can also work with a financial advisor who may be able to prepare your finances for any potential unexpected costs or possibly lower your potential tax bill.  Read More...

Mar 20, 2023 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 be expensive, so many investors wonder if assisted living is tax deductible. Depending on your income and how much you pay for assisted living, it could qualify as a medical deduction. Here's what you need to know about this potential tax deduction and who can qualify. A financial advisor can help you put a financial plan together to cover assisted living and other health costs.  Read More...

Oct 14, 2022 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 known as pass-through entities. Here's how pass-through income is taxed and what you need to know about it. A financial advisor can walk you through different tax strategies to lower your liability. Read More...

Oct 11, 2022 Earning a commission income is like the icing on the cake for a job well done. Whether you’re a sales manager that’s just closed a major deal or a real estate agent who’s recently sold a high-end home, your commission check serves as a lucrative supplement to your regular wages. But your commission earnings are taxable like regular earnings. Here’s how commissions are classified by the IRS and how they’re taxed. A financial advisor can walk you through different tax planning strategies to minimize your tax liability. Read More...

Oct 11, 2022 Claiming tax deductions can help to reduce your taxable income for the year. As a parent, there are a number of child-related expenses you might be able to write off to lower your tax liability. But is private school tuition tax-deductible? The answer is no for federal tax purposes but it’s possible that you may be able to claim other tax breaks for funding your child’s education. You can also hire a financial advisor who can provide help with all of your financial planning needs, from tax planning to investment management. Read More...

Oct 11, 2022 Day trading can be a fulfilling and lucrative career. If you know what you're doing, you can make a serious chunk of change. But with every financial success comes everyone's favorite consequence: taxes. So how do day traders avoid taxes, or at least reduce them? There are a few different methods that you can use if you're day trading to reduce your total tax bill. If you don't want to leave things to chance, or just don't want to worry about your tax obligations, consider hiring a financial advisor who can manage it for you.  Read More...

Oct 11, 2022 Collecting is a pastime to which a great many people are drawn. The satisfaction of having a complete set of old stamps or unearthing a rare bottle of wine is quite easy to understand. However, a less easy-to-understand aspect of collecting is how the purchase and sale of collectibles can affect your taxes. If you need help with tax planning, a financial advisor can guide you in optimizing your financial plan to lower your tax liability.  Read More...

Oct 07, 2022 Health insurance premiums can be tax-deductible under some circumstances. Taxpayers who itemize may be able to use this deduction to the extent that their total medical and dental expenses, including health insurance premiums, exceed 7.5% of adjusted gross income. Self-employed people may also be able to deduct premiums for dental, health and long-term care insurance for themselves, spouses and dependents. Premiums may also qualify for special tax treatment for those who get coverage from the Health Insurance Marketplace or COBRA continuation insurance. Consider asking a financial advisor for details on whether your health insurance premiums can be deducted at tax time. Read More...

Oct 06, 2022 When you move from one home to another, these expenses can add up quickly. For many households, moving costs can be thousands of dollars, even if you do most of the work yourself, and hiring a moving company can increase those costs dramatically. With such a big expense, many people wonder if moving expenses are tax-deductible. While moving expenses stopped being tax-deductible for most households in 2018, some states still allow this deduction. You can work with a financial advisor to properly plan for potential tax deductions to possibly limit your tax liability.  Read More...

Oct 06, 2022 Alimony has two important tax statuses. If you finalized your divorce before Jan. 1, 2019, the person who collects alimony pays taxes on this money. This means that the person who pays alimony can claim a full tax deduction for the payments, while the person who receives the alimony pays taxes on it as income. Congress changed this law in the 2017 tax cut act. For all divorces finalized on or after Jan. 1, 2019, the person who pays alimony pays taxes on this money. This means that the person who pays alimony cannot claim a tax deduction for the payments, while the person who receives the alimony does not pay any taxes on this income. You can work with a financial advisor to give you the peace of mind of managing your investments and overall finances. Read More...

Oct 06, 2022 America uses what is known as a self-reporting tax system. This means that at the end of each year, you calculate your income, assets and liabilities, then tell the government what you owe. The IRS then double-checks your work against its own records. The agency has several options if it disagrees with your filing. Most of the time, the IRS simply sends you a miscalculation notice. This is a letter saying that the IRS believes you did not pay the correct amount, but that it also believes the error was due to a mistake or otherwise made in good faith. If the IRS believes that your taxes deserve a closer look, it can conduct what is known as an audit. Here’s what it means when the IRS conducts a tax audit. You can work with a financial advisor to put you in the best position of preventing a future audit. Read More...

Oct 06, 2022 In the long run, if you sell an investment asset for a profit you will owe capital gains taxes. But for active investors, it’s important to understand that the IRS gives you a few ways to defer those taxes. This kind of tax planning can be particularly useful with more complicated products like a mutual fund. If you’re looking to avoid getting hit with a tax bill the next time you move money around, here are some ways to manage your assets. For proper tax planning to get ahead of any potential liability, you can also work with a financial advisor who specializes in tax.  Read More...

Oct 06, 2022 As a U.S. citizen or legal permanent resident, the IRS is in charge of collecting a cut of your income. Even if you work or live outside the U.S., Uncle Sam will want its rightful share of your earnings because you're a citizen. Taxpayers typically use a W-2 to declare earnings. While some foreign companies provide a W-2, others may not. If you work for a company that doesn’t provide this formal documentation, you might wonder how to report foreign income without a W-2. A financial advisor can help you determine what your tax obligations are, and they can be especially helpful if you have a complicated situation. Read More...

Oct 04, 2022 Sales tax on large purchases, like a car, is crucial to factor into the price. Depending on where you live and the price of your car, sales tax can cost you thousands of dollars. But did you know there are legal ways to get out of paying sales tax on a used car? Let's go over how sales tax affects your purchase and how to avoid paying sales tax on a used car. If you're looking to buy a car, a financial advisor can help you create a financial plan to reach your savings goals.  Read More...

Mar 20, 2023 Tax credits can save you money at tax time by reducing what you owe. If you purchase health insurance through the Health Insurance Marketplace, you may qualify for the Premium Tax Credit. Eligibility for the credit is based on income and household size. If you’re able to claim the premium tax credit, you can apply the credit to lower your monthly health insurance premiums. You can also work with a financial advisor that specializes in taxes to get a full understanding of what tax decisions might be best for you. Read More...

Mar 23, 2023 A trust is a legal entity that holds money and assets for future distribution or management. For example, you might create a trust for your children’s college education, putting money into it which they can withdraw when they go to school. Or you might put the family home into a trust, creating a legal entity that will own the property potentially indefinitely to ensure that it will always stay in the family. The intersection of trusts and taxes can be complicated, but working with a financial advisor can help you clarify relevant issues so you can make good decisions. Read More...

Mar 15, 2023 Investors must pay capital gains taxes on the income they make as a profit from selling investments or assets. The federal government taxes long-term capital gains at the rates of 0%, 15% and 20%, depending on filing status and income. And short-term capital gains are taxed as ordinary income. Some states will also tax capital gains. A financial advisor could help you figure out your tax liability and create a tax plan to maximize your investments. Read More...

Sep 14, 2022 Tax planning is central to financial planning for professional athletes who play in multiple states. In addition to the usual round of state and federal taxes, pro athletes may also be subject to the jock tax. The jock tax is a special tax that applies to income earned outside of their home state or municipality. However, you don’t need to be an NBA player or NFL star to be subject to the tax because it's based on where you earn income. It's best to be safe and make sure you know your full tax liability at all times. Working with a financial advisor can help you understand and prepare for your tax liability from earning income in multiple places. Read More...

Sep 08, 2022 There’s a lot to consider when selling a business and tax planning is at the top of the list. When you sell a business or business assets at a profit, the IRS expects to receive a cut in the form of capital gains tax. That could potentially result in a larger-than-expected tax bill. If you’re in the initial stages of planning your exit, it’s important to know how to avoid capital gains tax on a business sale. For more help managing capital gains taxes or any other financial issues, consider working with a financial advisor. Read More...

Feb 25, 2023 Capital gains taxes are a tax on the profits you make on investments, which you might owe if you are investing through a taxable brokerage account. The good news is that there are strategies investors can use to eliminate or minimize those taxes. The right ways for you will depend on your long-term financial goals. If you're not sure what path to take to avoid taxes you can work with a professional financial advisor who can help you create a financial plan and provide the right ways to avoid these taxes.  Read More...

Feb 24, 2023 Winning or settling your lawsuit can be exhilarating. After you've received the settlement money and paid attorney fees, most people assume that the rest is theirs to keep. However, some settlements are subject to taxes. And, unfortunately, many people don't realize it until tax time the following year, after much of the money has been spent. To avoid a nasty, unexpected tax bill, this article will show you how to reduce or eliminate the likelihood that you'll have to pay taxes on a lawsuit settlement. If you suddenly come into a large amount of money, work with a financial advisor to make the most wise of your windfall. Read More...

Mar 01, 2023 There's a lot of pride associated with owning property, whether it’s a primary home or a vacation bungalow. It's especially rewarding when real estate is properly compensated for. But while a high-selling price may be exciting in the moment, it typically comes with a potential drawback. As a capital asset, any gains you make on the sale of your real estate are taxable. It's important to understand how capital gains apply to a home and how you can lower their sting. A financial advisor can help you create a financial plan for your real estate needs and goals. Read More...

Sep 01, 2022 A Taxpayer Identification Number (TIN) is a unique nine-digit number the Internal Revenue Service uses to identify individual taxpayers. A TIN can come in different varieties, including Social Security Number (SSN), Employer Identification Number (EIN), Individual Taxpayer Identification Number (ITIN) and Preparer Taxpayer Identification Number (PTIN). TINs are required any time taxpayers file tax returns and may also serve other purposes, including identifying people applying for jobs, loans and credit. Filing, paying and managing taxes is a key part of a solid financial plan. For help with your taxes or any other financial considerations, consider working with a financial advisor. Read More...

Aug 30, 2022 Taxes can be complicated and frustrating to many people. Not only is there a risk of not filing them correctly, but many miss out on strategies that can save them money. Fortunately, Certified Public Accountants (CPAs) help millions of Americans accurately file their tax returns every year. CPAs are licensed professionals in taxes, accounting and business. Working with one can simplify the tax filing process and eliminate stress from all things tax related. Many financial advisors are CPAs and they can also help you create a full financial plan that goes far beyond tax services.  Read More...

Mar 23, 2023 A financial windfall is something to celebrate. But if you don't play your cards right, the government will expect a major portion of the cash. The good news is that smart tax planning strategies can help you minimize your tax burden. Let's explore how to avoid taxes on a large sum of money. The ideas below are a great way to get your wheels turning. But consider speaking to a financial advisor for customized advice about your unique situation. Read More...

Aug 25, 2022 You are required to report and pay federal taxes on any interest income you receive from a savings account. The income is taxed as unearned, which means you’ll escape payroll taxes, but you will owe federal income tax on it at your regular rate. Banks and other financial institutions report your interest income on a form 1099-INT if it’s over $10.  Consider talking to a financial advisor to understand how savings account interest income may be taxed. Read More...

Aug 10, 2022 With interest rates rising, it's increasingly important to make sure you're taking advantage of all interest deductions you're entitled to so you can avoid paying more in taxes than you need to. Three interest deductions are particularly important, according to J.P. Morgan, which explains how to use those deductions. The bank also describes how to preserve interest deductibility when switching from a floating-rate loan to a fixed-rate loan. Consider working with a financial advisor as you coordinate your borrowing and your tax planning. Read More...

Aug 09, 2022 To get the Inflation Reduction Act passed in the Senate, Democrats dropped their attempt to kill a controversial tax provision that's known as the carried interest loophole. Also called the carried interest income classification, it has long been a target of progressive tax advocates as well as a cherished perk for many in the financial community. Opponents of this quirk in the tax code argue that it’s an unfair subsidy for wealthy investors. Proponents argue that it is effectively a funding mechanism that helps large investors allocate capital more efficiently. Here's what they are talking about. A financial advisor can help you take advantage of every tax break you are entitled to. Read More...

Aug 05, 2022 If you use PayPal, Venmo and other third-party payment networks, then you might get a 1099-K form from the IRS. This form reports transactions from third-party payment networks. And depending on how big your payment is and what it's for, you may have to file it with your taxes. A financial advisor can help lower your tax liability with a tax planning strategy. Read More...

Aug 04, 2022 If you’re like most taxpayers, you may not need either a tax preparer or a certified public accountant (CPA). There are exceptions, though. Maybe you’re self-employed, own a small business or have lived in several jurisdictions. In these cases you might need some help. If so, here’s your rule of thumb: Hire a tax preparer if you generally understand your finances and just want to make sure your taxes get done right. Hire a CPA if your financial questions extend beyond simply preparing and filing tax forms. For help with both taxes and other financial considerations, consider working with a financial advisor. Read More...

Jul 27, 2022 Donating real estate to charity can come with a myriad of benefits. Not only will you help out a worthy cause, but also take advantage of tax benefits that can lower your overall personal tax burden. The largest benefit is, arguably, the opportunity to avoid the capital gains tax by holding the property for longer than a year and donating it to a qualified charity. If you need help navigating charitable giving, consider working with a financial advisor who can help you craft an efficient plan to donate real estate to charity. Read More...

Mar 25, 2023 Earning a higher income can mean paying more in taxes at both the federal and state levels. You might assume that you’re stuck with a bigger tax bill because you earn more but that’s not always the case. There are a number of tax-saving strategies for high-income earners that can help to reduce what you owe. The key is knowing which ones to implement, based on your specific financial situation. A financial advisor can help optimize your financial plan to mitigate your taxes. Read More...

Mar 30, 2023 Working as an independent contractor or small business owner can bring tremendous freedom—but it can also bring headaches at tax time if you’re not careful. In addition to filing income taxes each April, you’re also required to set aside money for estimated quarterly taxes. That’s standard if you receive Form 1099s from clients versus a W-2 and expect to owe $1,000 or more in taxes for the year. You can work with a financial advisor who is also a CPA to help you figure out the right amount of taxes to set aside each year. Read More...

Jul 15, 2022 The IRS says that the average tax refund for returns filed in 2022 is $3,039. This is an increase of 7.5% when compared with 2021, which averaged $2,827. But for taxpayers expecting to get the same sizable refund next year, Jackson Hewitt urges them to do a midyear tax checkup to prepare for upcoming changes. Let's take a look at what a midyear tax checkup can do for you and four reasons why your tax refund in 2023 could be smaller. If you want to optimize your tax strategy, a financial advisor could help you lower your tax liability. Read More...

Jul 12, 2022 If incentive stock options (ISOs) are part of your compensation package, knowing what they are, what they can do for you and how their tax treatment is going to affect you in the future is important. At the very least, you have to determine how they will affect your federal income taxes when you exercise them. Otherwise, you could be in for a really serious surprise come tax time due to a possible trigger of the alternative minimum tax (AMT) when you exercise the ISOs. Consider working with a financial advisor to ensure you don't overpay on your investment taxes. Read More...

Jul 07, 2022 Backup withholding is money deducted for federal income taxes on some payments by banks and other payers. Backup withholding amounting to 24% of a payment may be required if a taxpayer who receives interest or dividend income provided an incorrect Social Security number to the bank or corporation that is paying the income. Money deducted from a payment as backup withholding can be credited to future income taxes. A financial advisor could help you optimize your investments to lower your taxes. Read More...

Sep 19, 2022 The gift tax is a tax levied on any unilateral transfer (a gift) from one person to another. The federal tax is aimed partially at making sure wealthy families don't use gifts to bypass the estate tax. The federal gift tax applies to any kind of taxable assets, including cash, securities and real estate. When the gift tax applies, it is the donor who pays, meaning that if you give a taxable gift you owe any applicable taxes. If you receive a gift, it is rare, if ever, that you owe taxes. It is exceedingly rare for someone to owe money due to the gift tax. This tends to apply only to the wealthiest of households due to the tax’s high exclusions. This is because the purpose of the gift tax is to prevent wealthy families from avoiding the estate tax by simply gifting all their money to each new set of heirs. Here’s what you need to know. Read More...

Mar 01, 2023 Investing is all about making your money work for you - getting money without having to actually perform labor.  But what some investors may initially neglect to take into account is the fact that investment gains mean investment income, and investment income means taxes on investment income. A financial advisor can help you create a tax plan to maximize your investments. Here's a breakdown the tax rates for your capital gains in 2022 and 2023. Read More...

Jul 06, 2022 Investors use irrevocable trusts to protect their assets from creditors, lawsuits and estate taxes. However, when you sell a home in an irrevocable trust, that can complicate your tax situation. This is a guide to how it works and whether you’ll have to pay capital gains tax on the sale of a home in an irrevocable trust. You can work with a financial advisor who can help you plan ahead and avoid unnecessary taxes.  Read More...

Jul 06, 2022 Filing taxes is one American pastime that many Americans dread. With so many complicated forms, rules and tax rates, most taxpayers need assistance to complete their returns. While some use software like TurboTax to file returns on their own, others turn to tax professionals to handle the process. We’re comparing the pros and cons of using TurboTax versus hiring a CPA, to help you decide which one is right for your taxes. If you need help tax planning or making the right financial decisions then you may want to speak with a financial advisor.  Read More...

Mar 21, 2023 A flexible spending account (FSA) allows you to save up money for medical expenses. You can use this tax-advantaged fund to pay for costs like copays, deductibles and pharmaceuticals. For the most part, you have to spend the money in your FSA by the end of each year. However, the IRS allows you to keep a certain amount from year to year. This is called your “carryover.” In 2023, this carryover is $610. For help with FSAs or any other financial planning concerns, consider working with a financial advisor. Read More...

Jun 15, 2022 One of the most popular and enduring government programs in U.S. history, Social Security has funded the lives of senior citizens for more than 80 years. As a result, today the senior poverty rate clocks in at a mere 9%. Yet research indicates that the trust funds providing Social Security benefits will deplete their reserves by 2034. In an effort to extend the program’s solvency, Democrats have recently introduced a new bill aiming to expand Social Security – at a cost. Read More...

Jun 01, 2022 Claiming one or more dependents on your taxes can yield some valuable tax benefits, including the ability to claim the child tax credit and the child and dependent care tax credit. Sharing equal custody of your child with someone else can add a wrinkle to your tax preparation plans. So who claims a child on taxes with 50/50 custody? The IRS has specific rules built into the tax code to determine which parent can claim a child as a dependent. Tax planning should be coordinated with financial and estate planning; that's where a financial advisor can offer valuable insight and guidance. Read More...

May 20, 2022 Tax alpha, sometimes called alpha tax, measures how much an investor can add to their financial plan by optimizing efficient tax strategies. Essentially, tax alpha boils down to the ability of an investor to outperform reasonable returns by implementing tax strategies that lead to savings. Let's break down how to calculate tax alpha. A financial advisor can help optimize your portfolio to mitigate your tax liability. Read More...

May 06, 2022 Anyone whose income is less than the tax filing threshold is not required to file an income tax form with the IRS. For most taxpayers, this threshold is usually set at or around the standard deduction. However, it’s a good idea to file your taxes anyway. Low-income Americans often qualify for tax credits and refunds that can help them with their finances. Here’s what you need to know. Consider working with a financial advisor as you prepare taxes and do tax planning. Read More...

May 04, 2022 What do onesies, binkies of every size and color, swaddles plastered with fluffy animals, and tax credits have in common? If you had a child in the last year, they all play a significant role in your life. As any new parent can attest, diapers and bottles aren’t cheap, particularly with inflation on the rise. Luckily, the newly enhanced Child Tax Credit can provide an influx of cash to help with the expenses of having a child. Whether you had a newborn in 2021 or are a seasoned parent looking for financial resources, you may be eligible to claim a child tax credit. Here’s what you need to know. A financial advisor could help you create a financial plan for your family's needs and goals.  Read More...

May 03, 2022 Remote work has become more popular in recent years and is among the many trends that have accelerated due to the COVID-19 pandemic. While remote work is nothing new, the rise in the number of people working remotely has become an issue when it comes to collecting taxes. As a result, some states have adopted the convenience of the employer rule or something similar, which could result in double taxation for some employees. While there are some exceptions to the rule, employees working for employers that adopt the rule could owe quite a bit more at tax time. We’ll cover everything you need to know about the convenience of the employer rule as it continues to take shape. A financial advisor could help you create a financial plan for your tax planning needs and goals.  Read More...

May 03, 2022 When you work for someone else, your employer reports your income for you. But when you work for yourself, it’s your responsibility to report your own income. However, that process can be a challenge when you don’t receive a 1099 from one or more of your clients. Even if you don’t receive a 1099 from a client, you’re still expected to report any income you received to the IRS. Regardless of the reason you didn’t receive the form, it isn’t a free pass to avoid paying income tax. A financial advisor could help you create a financial plan for your home buying needs and goals.  Read More...

Mar 21, 2023 Money spent to improve your home can save on taxes. However, the improvements have to be of a certain type, and you can’t claim the deduction until you sell your home. Capital improvement deductions usually aren’t important to sellers whose gains are less than the amount of the capital gains exclusion. But they can save thousands on taxes for people who spend a lot to improve a home and sell it for more than they paid. A financial advisor can help you figure out how to make capital improvements work within your financial situation. Read More...

Apr 28, 2022 If you're wondering whether you can deduct your rent on your taxes, the short answer is yes. You can deduct rent if you live in a state that allows it. However, only 22 states offer this type of deduction. Here's what you need to know. A  financial advisor can help you create a financial plan to minimize your tax liability for your needs and goals. Read More...

Dec 06, 2022 If you have debt that is canceled by a lender, you may receive IRS Form 1099-C. Although you are no longer liable to repay the debt, you can’t simply forget about it. The IRS may consider the forgiven amount as taxable income, which means you may owe tax on the full amount that was forgiven. It is your responsibility as the borrower to report debt that was forgiven, so if you receive a 1099-C, be sure you accurately report any forgiven debt. Failure to do so could result in penalties and fees, so it’s important to familiarize yourself with this form and what it means. Consider working with a financial advisor as you find the most efficient ways to handle your finances. Read More...

Apr 21, 2022 A loss carryforward lets a taxpayer use a loss incurred in one year to reduce tax obligations in a future year. Businesses and business owners can carry forward net operating losses when expenses exceed income. Individual investors can carry forward capital losses after selling investments for less than they paid. For help with taxes and all other financial planning questions, consider working with a financial advisor. Read More...

Apr 19, 2022 Foreign investment in property is common these days, both by Americans investing abroad and the other way around. If you are part of the former group, you may at some point find that you have to sell your foreign property. Generally speaking, that means paying capital gains tax. But can those taxes be avoided? Like most tax questions, the short answer is “maybe.” You may have to pay some tax, but with the right moves, you can significantly lessen your tax burden. However, there are certain rules you must follow to ensure the best possible scenario. This is a particularly complex problem, so consider getting help; you can find a financial advisor using SmartAsset's free financial advisor matching service. Read More...

Apr 13, 2022 When a homeowner defaults on property taxes, the county may place a tax lien on the property. This could end in a tax sale with an investor paying the taxes to get the home. While tax sales can be profitable, they take a lot of research. However, savvy investors eager to take bigger risks may invest in tax sale properties. A financial advisor who serves your area can help you build an investing strategy around real estate. Read More...

Apr 13, 2022 If you sell stocks at a profit, you will owe taxes on those gains. Depending on how long you’ve owned the stock, you may owe at your regular income tax rate or at the capital gains rate, which is usually lower than the former. To pay taxes you owe on stock sales, use IRS Form 8949 and Schedule D. A financial advisor who serves your area can help you with tax planning for your investments and retirement. Read More...

Mar 29, 2023 Owe back taxes? There are different reasons why you may not have filed your tax return on time. Regardless of what caused you to fall behind, it’s important to get caught up as soon as possible in order to minimize any IRS penalties and fees that may apply. The process for how to file back taxes might seem a little overwhelming but it doesn’t have to be stressful. Here's what you need to know. A financial advisor could help optimize your financial plan to reduce your tax liability. Read More...

Apr 13, 2022 Selling an investment property at a loss may not be ideal but it may be necessary if you need cash or you simply no longer wish to own the property. Before selling rental properties or other investment real estate at a loss, it’s important to consider the tax implications. For instance, you might be wondering when can you write off loss on sale of investment property. The short answer is yes, if you understand how deducting capital losses works. A financial advisor could help you create a financial plan for your investment property  needs and goals. Read More...

Apr 13, 2022 Do U.S. citizens have to pay taxes on foreign income? The short answer is yes. Even if you bring in foreign income, you'll need to include that on your required annual tax return. And all U.S. citizens are required to file a tax return each year, regardless of their location. Here's what you need to know about paying taxes on foreign income. A financial advisor could help optimize your investments to reduce your tax liability. Read More...

Apr 12, 2022 If you’re self-employed, you must file quarterly taxes every few months. These are your estimated tax payments, making up for the fact that you don’t have an employer to withhold your taxes over the course of the year. Quarterlies can be a hassle, but skip them and you'll face a massive tax bill come April. Consider working with a financial advisor as you plan out your taxes and manage your cash flow. Read More...

Apr 11, 2022 Annuities can provide lifetime income for retirees and they can continue paying out after the purchaser passes away. If you’re married, for example, you may name your spouse as a beneficiary. Or if you have adult children, you might like them to inherit your annuity later. Passing on an annuity can have some tax implications, however. The tax rate on an annuity can depend on who inherits it and how the annuity is structured.  A financial advisor can help you navigate this and other financial conundrums. Read More...

Apr 11, 2022 Owning a home can yield some benefits at tax time if you’re able to deduct mortgage interest. If you paid interest on a mortgage loan, your lender should provide you with a Form 1098 Mortgage Interest Statement at the beginning of the year. There are several key pieces of information on this form that you’ll need to file your taxes and claim a deduction for mortgage interest payments. For more help with Form 1098 or any other financial considerations, consider working with a financial advisor. Read More...

Mar 23, 2023 From flexible work hours to not reporting to a boss, being self-employed comes with a lot of perks. However, with the freedom of working for yourself also comes responsibilities such as paying quarterly taxes. Here's a checklist and basic steps to pay quarterly taxes in 2023. If you need more help with taxes, consider working with a financial advisor. Read More...

Mar 21, 2023 You might know a lot about geometry or grammar. But most of us weren't taught how to file taxes in high school. Since taxes are an unavoidable part of life, you'll have to learn how to do this at some point. Let's walk through how to file your taxes for the first time. When you have enough income, a  financial advisor can offer specialized tax planning services to help minimize your tax liability. Read More...

Mar 23, 2023 With tax season in full swing and the April 18 filing deadline rapidly approaching, many Americans are once again wondering whether they should take a standard deduction or consider itemizing their deduction. If you're considering itemizing your deductions and up against the clock to get your taxes filed, here's a guide with last-minute deductions you might consider. A financial advisor could help you with tax planning, as well as other financial planning needs. Read More...

Mar 24, 2022 If you invested in gold and sold it for a profit, you are probably looking for ways to minimize your taxes. Smart tax planning is crucial for the success of your investments. And there are definitely ways to minimize capital gains taxes overall. Let's break down three common strategies that investors use to minimize capital gains taxes on gold. A financial advisor could help you optimize your investments to minimize your tax liability.  Read More...

Mar 24, 2022 When a loved one passes away, most families hold a funeral to mourn, remember the deceased's life and pay last respects. While these events are a good way to gather family and friends to honor the deceased, funerals can be expensive. So, it's no wonder that many people ask if funeral expenses tax-deductible. The answer depends on who is paying and what kind of estate is left behind. Here's how it works. Consider working with a financial advisor as you make an estate plan or update an estate plan. Read More...

Mar 01, 2023 Divorce settlements can be extremely complicated. While it makes eminent sense to work with a financial advisor as you plan your finances for a divorce, there are several key areas that can hold promise of avoiding or at least minimizing taxes on a divorce settlement. Before diving into specifics, it helps to get an overview of how divorce is treated by federal tax policy. Consider working with a financial advisor if you're facing the prospect of a divorce or are currently in the middle of it. Read More...

Mar 21, 2022 The Hope Credit, which is the previous and perhaps better known name of the American Opportunity Tax Credit, is a federal tax break that can help people pay for college or trade school. This credit offers up to $10,000 in tax credits per student over four years to cover qualifying educational expenses. Students pursuing degrees at accredited institutions may be eligible for the tax break, subject to income restrictions and other qualifications. To find ways to pay for education and get help with tax questions, consider working with a financial advisor. Read More...

Mar 28, 2023 Whether you have access to a workplace retirement account or not, everyone with earned income can contribute to their own IRA. However, depending on your income, work situation and the type of IRA chosen, your contributions may or may not be tax-deductible. There are several types of IRAs available and it's important to know whether IRA contributions are tax-deductible. A financial advisor may also be able to help with some of these questions. Consider using SmartAsset's free advisor matching tool today to find advisors who serve your area. Read More...

Mar 14, 2022 As with all investment types, you'll have to pay taxes on your mutual fund returns. Depending on when you bought or sold the mutual fund, you will have to pay capital gains taxes or ordinary income taxes. If you didn't sell the fund, you'll still need to pay taxes on any dividends paid out to you. You may also want to work with a financial advisor to help map out the tax obligations on your investment horizon. Read More...

Mar 10, 2022 A home equity loan is a loan using your house as collateral -- a somewhat risky move, but useful in some circumstances. Furthermore, you may be able to deduct the interest you pay on a home equity loan as long as you meet some requirements. Taxpayers who itemize deductions on their returns, spend the proceeds of a home equity loan to buy, build or substantially improve the property and don’t have too much total mortgage debt may qualify for this deduction. If you want help managing your finances, consider finding a professional using SmartAsset's free financial advisor matching service. Read More...

Mar 02, 2022 Capital gains tax applies when you sell an asset for more than you paid for it. While the IRS typically offers an exclusion for capital gains from the sale of a primary home, the rules are a little different when selling a property that you don’t live in full-time. Before unloading a vacation or rental property, it’s important to understand how capital gains on the sale of a second home work. A financial advisor may be able to help if you're selling your second home. Try using SmartAsset's free advisor matching tool today to find advisors that serve your area. Read More...

Feb 28, 2022 If you gain wealth of any kind, you must pay taxes on it. This includes physical property, money and debt forgiveness. Likewise, winning a bet counts as gaining wealth, which means you must report it to the taxing authorities. In 2018 a Supreme Court ruling struck down federal legislation that banned the practice nationwide. Today the legality of sports betting is both a federal and a state matter. This has allowed states to set their own rules. Here’s what you need to know. A financial advisor can help you manage and invest your monetary assets. Read More...

Feb 24, 2023 Current tax law does not allow you to take a capital gains tax break based on age. In the past, the IRS allowed people over the age of 55 a tax exemption for home sales. However, this exclusion was closed in 1997 in favor of the expanded exemption for all homeowners. Beyond this, only retirement accounts allow for tax breaks related to age. Consider working with a financial advisor to develop a tax strategy for your financial plan. Read More...

Feb 24, 2023 A 401(k) plan is a powerful tax-advantaged tool for retirement savers. Employer matches offered by some plans make them even more potent. However, except in special cases you can’t withdraw from your 401(k) before age 59.5 Even then you’ll usually pay a 10% penalty. It’s even harder to tap 401(k) funds without paying regular income tax. However, there are strategies for getting some access to funds without triggering distribution taxes and penalties. If you're curious about your 401(k) withdrawals, it may also be a good idea to talk to a financial advisor. Try using SmartAsset's free advisor matching tool to find advisors who can help you with 401(k) tax issues. Read More...

Mar 23, 2023 The standard tax rules on individual retirement accounts (IRAs) change when you're dealing with inherited IRAs. Some differences are positive. For instance, someone who inherits an IRA doesn’t pay a penalty for early withdrawal before age 59.5. On the negative side, special rules for inherited IRAs may force beneficiaries to take the money out sooner than they’d like. That can trigger an unwanted income tax obligation and even increase taxes on other income by pushing the beneficiary into a higher tax bracket. Fortunately, there are ways to avoid or reduce the potential tax bite on an inherited IRA. A financial advisor may be helpful in walking you through your options. Read More...

Feb 28, 2023 An annuity is an insurance company product that sometimes appeals to investors who are risk-averse or who have contributed the maximum to their retirement accounts. One advantage of an annuity is that there is no maximum contribution like 401(k)s or individual retirement accounts (IRAs) have. The earnings from an annuity also grow tax deferred. If you're thinking about using an annuity in retirement or just to generate extra income, you may want to work with a financial advisor first. SmartAsset's free advisor matching tool can match you with advisors that serve your area after you answer just a few questions. Read More...

Feb 23, 2022 A home equity line of credit (HELOC) and a home equity loan both free up cash by accessing the equity you have in your home. In both cases, the interest charges may be tax-deductible. The HELOC is a line of credit, usually with an adjustable interest rate, which will turn your equity into cash. It normally has a 10-year time period during which you can make draws up to your credit limit; the second 10-year period is the repayment period. A home equity loan also uses your home equity, with the loan amount distributed to you as a lump sum instead of a line of credit and typically has a fixed interest rate. A financial advisor help you decide if a HELOC is right for you. To find one quickly, use SmartAsset's free advisor matching tool today. Read More...

Mar 29, 2023 Taxpayers preparing their federal returns for 2023 will be able to reduce what they owe by taking advantage of some significant credits, deductions and other tax breaks. Here are some of the most popular tax breaks you can potentially use on your 2023 return. A financial advisor can help you optimize a tax strategy for your investment needs and goals. Read More...

Feb 17, 2022 Most people use the terms real estate taxes and property taxes interchangeably. However, while both terms cover taxes paid on real estate, property taxes include other types of assets as well. Let's compare the differences between real estate tax vs. property tax, break down how they're calculated and explain when they qualify for a tax deduction. A financial advisor can help you optimize a tax strategy for your real estate investments and goals. Read More...

Feb 24, 2023 Real estate continues to be an appealing asset class for investors as property values rise. While many investors choose to invest in homes or apartment buildings, others prefer to invest in raw land. There are fewer maintenance costs with no tenants to deal with, but there is typically no rent being collected either. If you're looking to sell your land, you may owe capital gains taxes on the appreciation. Here's how to avoid capital gains taxes on a land sale. A financial advisor can help you optimize a tax strategy for your investments. Read More...

Feb 16, 2022 An inter vivos gift occurs when you give someone assets without receiving anything in return. To be considered an inter vivos gift, you must give them this property while alive. If you give them this property after you die, it is considered a testamentary or post-mortem transfer. Let's break down key differences and what you need to know about gift taxes. A  financial advisor can help you figure out what your tax liability could be if you plan to give money or property to another person. Read More...

Feb 16, 2022 Accountants and certified public accountants (CPAs) are two types of financial professionals that both individuals and businesses may need. Even though their titles are often used interchangeably, they perform different services. CPAs can do everything accountants do, but accountants can't do everything CPAs do. CPAs can perform audits while accountants cannot. CPAs are professionally licensed, but accountants are not. If you're considering working with a CPA or an accountant, you may want to consult with a financial advisor first. Try using SmartAsset's free advisor matching tool to find advisors that serve your area. Read More...

Feb 16, 2022 If you own a home, you have paid an ad valorem tax. If you own a car, same thing. In fact, if you’ve ever bought anything in the United States, you have paid an ad valorem tax. These taxes are based on the value of some underlying asset. They are a very common form of taxation and long predate taxes on income or other earned wealth. Let's break down the basics. A financial advisor could help you put a tax strategy together for your investments and estate. Read More...

Feb 14, 2022 IRS Form 6251, titled Alternative Minimum Tax—Individuals, determines how much alternative minimum tax (AMT) you could owe. In order for wealthy individuals to pay their fair share of income tax, Congress mandated an alternative minimum tax in 1969. You have to pay the alternative minimum tax if you report taxable income greater than certain income threshold exclusions. If this applies to you, then your taxes are run through both the AMT and the traditional tax system, leaving you to pay whichever is higher. A financial advisor can assist you in creating a tax strategy to minimize your taxes. Read More...

Feb 14, 2022 The alternative minimum tax (AMT) was created to close loopholes and ensure that all U.S. taxpayers pay their fair share of taxes. When you pay an AMT, some or all of that additional tax is for future income that is being taxed due to differences in the rules. For those payments, a credit is issued that you can then use to cover future tax liabilities. For help designing an appropriate asset allocation and managing your portfolio's taxes, consider working with a financial advisor. Read More...

Feb 09, 2022 Privacy advocates can breathe at least a little bit easier: the IRS has backtracked its decision to require all IRS website users to register with third-party identification platform ID.me. Originally announced in November 2021 to take effect the next year, the IRS faced significant backlash from critics for its planned use of facial recognition software. As a result, taxpayers will no longer need to verify their identities through ID.me in order to use the IRS website portal, potentially lengthening what may prove to be an already long tax filing season. A financial advisor could help you formulate a solid tax plan that aligns with your long-term goals. Find a trusted advisor today. Read More...

Feb 03, 2022 Home prices have nearly doubled in the last 10 years - and that could mean you owe some serious taxes if you are selling your home. After bottoming out around $259,000 in 2011, the average sale price of a house has marched steadily upward to more than $453,000 at time of writing. Like many trends, the pandemic may have accelerated this but housing prices had already been rising for years. This has come as great news for homeowners looking to sell. They stand to make some real money. Unfortunately, with real money comes real taxes. If you sell real estate for a profit you will owe capital gains taxes on the money. Unfortunately, unlike the taxes held from wages, the IRS doesn’t take that money up front. You’ll have to calculate it and cut a check. There are ways to make that hurt less though. If you want help minimizing your tax bill from a home sale, consider working with a financial advisor. Read More...

Feb 02, 2022 The Earned Income Tax Credit and the Child Tax Credit are both programs designed to help alleviate poverty, but there are key differences. The EITC is a credit available to employed, low-income households. It is intended to boost the effective income of people who are employed. The CTC is a credit available to employed households with children. This credit is intended to help offset the costs of raising children. Both can be very valuable for qualifying taxpayers. If you want help navigating taxes, consider working with a financial advisor. Read More...

Jan 11, 2022 On Monday, Jan. 10, the Treasury Department announced that the IRS is facing significant challenges this year due to budget concerns and issues caused by the COVID-19 pandemic. Officials are warning that many taxpayers could see significant delays in receiving their tax refunds this year. There are millions of tax returns that the agency has yet to process and taxpayers may also find it difficult to get the support they need from the IRS, should they need it. With tax filing season just around the corner, it's important to make sure you're on top of your taxes and finances to put yourself in the best position to get a speedy refund. A financial advisor may be able to help. Check out SmartAsset's free advisor matching tool to find advisors in your area today. Read More...

Dec 17, 2021 In addition to paying sales tax on the things you buy, you may also be required to pay taxes on its perceived fair market value later on. These personal and business taxes are assessed on certain tangible personal property items, depending on where you live and what you own. Here’s a look at what tangible personal property is and how it can affect your tax bill. Consider working with a financial advisor as you develop a tax strategy. Read More...

Aug 26, 2022 If you are an employee of a business, you are required by the Internal Revenue Service (IRS) to fill out payroll tax forms that tell your employer how much tax to deduct from your income. This is the W-4. Your employer is also required to fill out a tax form in order to report your income and deductions to the IRS. That is the W-2. Let's look at these forms, the W-2 and the W-4, their similarities and differences and how and when you complete them. Consider working with a financial advisor as you seek to pay only what you actually owe and not a penny more. Read More...

Aug 19, 2022 Capital gains taxes can take a major bite out of your investment earnings if you don't manage your portfolio specifically for them. The strategies that allow you to minimize the capital gains tax include holding investments for the long term, using tax-deferred accounts and more. By becoming a tax-conscious investor, you can maximize your long-term returns for retirement or other financial goals. You may also want to consult with a financial advisor about your overall tax situation. Read More...

Mar 21, 2023 With the April 2023 tax deadline just around the corner, it's not too soon to acquaint yourself with the relevant  federal tax brackets. The Internal Revenue Service (IRS) adjusts them annually for changes in the cost of living. Those changes may impact your tax payment strategy. With that in mind, here are the marginal tax rates for the 2022 tax year.  A financial advisor can help you with tax planning to best protect your assets. Read More...

Nov 17, 2021 Inheriting a 401(k) can add a wrinkle to your financial plan from a tax perspective. Under 401(k) inheritance tax rules, any assets passed on from one person to another are taxable. The rules for inheriting retirement plans, including workplace plans and Individual Retirement Accounts, aren’t necessarily the same as the rules for inheriting real estate or other assets. If you anticipate inheriting a 401(k) from a parent, a spouse or someone else, it’s important to know your options for minimizing tax liability. A financial advisor can help you sort through those options so you make a good decision. Read More...

Nov 16, 2022 Earned income is generally recorded in two ways for federal tax purposes. There is W-2 income and 1099-MISC income. The former is for employees, either full- or part-time; the latter is for contract workers, sometimes known as a freelancers. Here's what you need to know to minimize your tax liability if you file a 1099-MISC. If you're unsure about filing taxes, engage the services of a financial advisor. Read More...

Nov 16, 2021 When investors want to diversify their portfolios, they often consider real estate. But if you’re interested in real property, you need to know the ins and outs of purchasing and selling. One method many investors rely on is called a 1031 exchange. By following the rules for this type of exchange, investors can defer their capital gains tax while working towards better and bigger properties. Understanding how a 1031 exchange works is crucial to its success, though. Here are a few example scenarios to help you get familiar with it. Read More...

Oct 18, 2021 Value-added taxes (VAT), which are a type of consumption tax, are major sources of revenue for countries in the Organization for Economic Co-operation and Development (OECD), among other regions. According to the Tax Foundation, VAT actually contributed to one-third of the OECD countries’ tax revenue in 2019. In contrast, the U.S. relies more heavily on property and individual income taxes, with only approximately 17.6% of revenue coming from consumption taxes. Here’s what you should know about the VAT. Read More...

Oct 17, 2022 One of the major pieces of the COVID-19 relief package passed on March 11 by the Biden administration was an expansion of the Child Tax Credit. This included increasing the credit amount from $2,000 to $3,600 and creating monthly direct cash payments to those who qualified. This was a temporary increase that expired in 2022 and it aimed to help families deal with financial hardships stemming from the COVID-19 pandemic. However, not everyone benefited from taking those payments. Let's break down why some taxpayers may have wanted to opt out and how to do it. For more help with the Child Tax Credit, or with general financial planning for your family, consider finding a financial advisor with SmartAsset’s free financial advisor matching service. Read More...

Sep 23, 2021 A carbon tax is a tax levied on the emission of carbon dioxide into the atmosphere. Carbon taxes are seen as a way to reduce carbon emissions by encouraging businesses and consumers to switch to less carbon-intensive products and services, and also to encourage investors to pursue ESG strategies. Revenue raised by carbon taxes can be used to reduce other taxes, fund infrastructure improvements, pay for alternative energy research and provide cash dividends to citizens. Many countries, states and cities around the world have implemented carbon taxes and the practice is growing, although so far no nationwide carbon tax has been implemented in the United States. Read More...

Mar 24, 2023 The student loan interest tax deduction is for students and their parents who are repaying federal student financial aid. It's the "above the line" adjustment to your adjusted gross income (AGI) if you have paid interest to a qualified loan program during 2023. It can be taken whether you itemize deductions or take the standard deduction. Here's what you need to know about this deduction, when it can be applied and how to calculate your deduction. A financial advisor can provide guidance as you seek to build out a comprehensive tax plan. Read More...

Sep 02, 2021 In some circumstances you can get a deduction or credit on your federal income taxes for taxes that you’ve paid to other non-U.S. governments. The foreign tax credit is one of these cases. If you live overseas, work overseas or otherwise do business outside of the U.S., it’s an important part of the tax code to know about. To understand your options for reducing your tax liabilities, whether your income is generated domestically or not, speak with a financial advisor. Read More...

Mar 21, 2023 Expat taxes aren’t easy. They depend on what you do for a living. They depend on where you do it, what taxes the local government charges, where you hold investments, which passports you hold and much more. For Americans who live overseas, however, the foreign earned income exclusion is a critical part of your annual filings. Here’s how it works. Given the complexity of expat taxes, it's only prudent to work with a financial advisor on your taxes. Read More...

Sep 01, 2022 The Section 121 Exclusion is an IRS rule that allows you to exclude from taxable income a gain of up to $250,000 from the sale of your principal residence. A couple filing a joint return gets to exclude up to $500,000. The exclusion gets its name from the part of the Internal Revenue Code allowing it. To get the exclusion a taxpayer must own and use the home as their main residence for a period adding up to two years out of the five years before it is sold. Consider working with a financial advisor to ensure you're getting all the credits, exemptions and deductions you're entitled to. Read More...

Jun 28, 2021 Seismic changes could be coming to the way America’s wealthiest investors are taxed. Under President Joe Biden’s $1.8 trillion American Families Plan, taxpayers whose incomes exceed $1 million would pay nearly twice the current long-term capital gains tax rate. While Biden’s tax proposal may have you looking to sell positions to stave off a hefty tax bill, a financial advisor can help you make sense of the potential changes and preserve your capital. Read More...

Jun 23, 2021 Investment tax must be paid on interest income and rent from investment property. You also pay investment tax on dividend and capital gains income from stocks, mutual funds and exchange-traded funds. Holding stocks and bonds in taxable accounts allows for a larger tax liability than if you hold the securities inside a retirement account with tax-deferred provisions. You may want to work with a financial advisor to determine the best mix of taxable and retirement accounts for your needs. Read More...

Sep 14, 2022 Dividends can be an important part of your income from investments, especially if you have significant fixed-income holdings. Internal Revenue Service Form 1099-DIV supplies you with all the information on your dividend income that you will use when you file your income taxes. Here are some instructions to assist you in preparing the dividend income portion of your federal tax return. Dividend reporting, though, can be tricky so consider working with a financial advisor as you create and maintain a tax-efficient portfolio. Read More...

Jun 21, 2021 Tax efficient investing allows investors to reduce, delay and otherwise manage taxes generated by investment activities, potentially improving after-tax returns. Investors can use a variety of methods to manage taxes efficiently, including selecting tax-advantaged investments, practicing tax-aware strategies and using IRAs, 401(k)s and other tax-deferring accounts. Sorting through the various ways to boost the tax efficiency of your investing can be confusing, which is why working with a financial advisor can help cut down on your tax bill. Read More...

May 21, 2021 The Internal Revenue Service (IRS) sends U.S. investors a myriad of tax forms every year. While the number and complexity of these forms can be off-putting and confusing, it's important that you understand them and what your responsibilities regarding these are. Here's an overview of common IRS investment tax forms and what you need to know about them. If you're uncertain about taxes on your investment consider working with a financial advisor. Read More...

Aug 25, 2022 Filing taxes may not be your favorite financial chore but it is a necessary one to stay in the good graces of the IRS. Why do I owe state taxes is a question you might have if filing your return has resulted in a tax bill rather than a refund. There are different reasons why you might owe state income taxes this year. Knowing what’s behind your state tax bill can help you plan ahead for next year so you don’t end up owing again. A financial advisor can help you avoid paying more than you need to the state and federal governments. Read More...

Mar 10, 2023 The 2017 tax reform law ended the ability for most taxpayers to deduct expenses for working from home just in time for millions more people to begin working from in response to the Covid pandemic. Nowadays only a few select groups of salaried home-based workers can still deduct relevant expenses. However, even if you’re not one of these, there are still a few possible ways for you to get tax deductions from your expense for working from home. A financial advisor can help you find every deduction and credit you are entitled to. Read More...

Sep 02, 2022 President Joe Biden proposed doubling capital gains taxes for investors making over $1 million to fund his $1.8 trillion American Families Plan. This could compel some high-income investors to sell off assets before the tax hike takes effect. Others will look into alternative strategies to lower their taxes. Whether you're thinking about selling off investments or holding them, a financial advisor can help you optimize your tax strategy. Read More...

Mar 31, 2021 The Trump tax bill - formally known as the Tax Cuts and Jobs Act (TCJA) - nearly doubled the standard deduction while also limiting some itemized deductions. From 2017 to 2018, the standard deduction rose from $6,350 to $12,000 for singles, from $12,700 to $24,000 for married couples filing jointly and from $9,350 to $18,000 for heads of household. Additionally, the bill capped state and local tax deductions at $10,000, lowered the mortgage interest deduction and eliminated deductions for casualty losses and miscellaneous expenses. Read More...

Feb 10, 2023 Losing a loved one is a tragedy that requires space to grieve, and the last thing a family needs at that time is to deal with unexpected costs. However, there are federal and state-level taxes that need to be handled if the decedent had an estate or property to pass on. Knowing the differences between estate tax and  inheritance tax can help you plan ahead of time and navigate the process more smoothly. Most importantly, there may be responsibilities both the estate and the beneficiary have to manage. So, to understand these crucial “ death taxes” and your possible role in them, let’s compare both. A financial advisor can help you minimize inheritance taxes by creating an estate plan for you and your family. Find a financial advisor today. Read More...

Apr 26, 2021 The White House and the U.S. Treasury Department have outlined the goals of President Joe Biden's tax plan, which include provisions to raise corporate taxes and eliminate incentives that allow companies to move profits overseas. These moves would mark the first major tax hike since the early 1990s. As a presidential candidate in 2020, Biden had also called for raising taxes on those earning more than $400,000, while benefiting lower-income families with tax credits for health insurance, childcare, long-term elderly care and first-homebuyers. Let's break down what the various tax proposals of the Biden administration could mean for American corporations and you. Note:  This is a developing story, and we will continue to update the article as more information becomes available. Read More...

Feb 15, 2022 The U.S. is a federal republic, meaning that power is held by both the central federal government, located in Washington, D.C., and by the governments of every state and territory that make up the union. But the “division of powers” isn’t as simple as it seems - and neither is the division of finances, since states rely on the federal government for money and various programs to help them operate. With all this in mind, SmartAsset crunched the numbers to see which states are the most dependent on the federal government. Read More...

Jan 23, 2023 Many foreign countries have higher income tax rates than the U.S., and others impose value added tax (VAT) charges that the U.S. does not. These foreign assessments can produce significantly higher tax bills for American individuals and companies that do business overseas. However, there is a way to have profits earned outside the U.S. taxed at the regular IRS rates rather than the other country’s rates. To qualify for these savings, U.S. citizens and businesses can submit IRS Form 6166 to the other country’s taxing authorities. If you're earning money outside the U.S., you should consult a financial advisor with relevant experience to make sure you don't overpay. Read More...

Jan 30, 2023 Social Security benefits can provide an additional income stream in retirement alongside withdrawals from a 401(k), individual retirement account or brokerage account. Part of shaping a retirement plan around Social Security income means planning ahead for taxes. Social Security benefits are considered taxable for some retirees, though whether yours are can depend on your income. If you’re wondering, how you can avoid paying taxes on Social Security, there are some strategies you can try. Do you have questions about your overall tax situation? Speak with a financial advisor today. Read More...

Feb 24, 2023 Savings bonds can be a safe way to save money for the long term while earning interest. You might use savings bonds to help pay for your child’s college, for example, or to set aside money for your grandchildren. Once you redeem them, you can collect the face value of the bond along with any interest earned. It’s important to realize, however, that interest on savings bonds can be taxed. If you’re wondering, how you can avoid paying taxes on savings bonds there are a few things to keep in mind. Of course, one key thing to keep in mind is that a financial advisor can be immensely helpful in minimizing your taxes. Read More...

May 19, 2022 Owning  a rental property can help you to grow wealth long-term and diversify your income streams. Receiving regular rental income can help supplement withdrawals you might make from a 401(k) or an individual retirement account (IRA) in retirement or give you an extra cushion in addition to your regular paychecks if you’re still working. But rental income isn’t tax-free money; you do have to pay the IRS taxes on the income you earn. Capital gains tax can also apply when you sell a rental property. If you have questions about the taxes surrounding your real estate investments, a financial advisor may be able to help. Read More...

Dec 01, 2020 Taxes can take a big bite out of your income, especially if you’re in a higher income tax bracket. And even with careful planning, it’s possible that you could still be hit with an unexpected tax bill. The good news is, there are things you can do to keep more of your hard-earned dollars in your pocket instead of handing them over to the IRS. If you’re interested in how to avoid paying taxes legally or at the very least, minimize your tax liability each year, these tips and strategies can help. Read More...

May 02, 2022 Social Security disability benefits (SSDI) are taxable but most people do not end up paying taxes on the money they receive because they don't have much more income. There are some scenarios where you may have to pay taxes on Social Security disability benefits, especially if your family has additional income that pushes you over the limit. It may also behoove you to consult with a financial advisor as you navigate the complicated terrain of taxes on Social Security disability benefits. Read More...

Apr 01, 2023 Every year, people's lives change in ways that affect their taxes. They may start a higher education program or have a child, and others take on elderly parents as dependents. These situations can change their eligibility for tax credits. In addition, federal, state and local governments sometimes adjust rules about credits, so it is crucial to understand what credits you can take. Navigating the world of tax credits and deductions can be confusing. That is why a  trusted financial advisor can help you find every tax credit that you're entitled to. Here's a roundup of common tax credits that you could be eligible for in 2023. Read More...

Apr 14, 2022 Simply put, political contributions are not tax-deductible. Americans are encouraged to donate to political campaigns, political parties and other groups that influence the political landscape. When it comes time to file taxes, though, many people may not fully understand what qualifies as a tax deduction. So if you support your favorite candidate, you might be wondering if your political contributions are tax-deductible. Though your political contributions may not lower your tax liability, it pays to have a nuanced understanding of where else in your donations and spending you can secure tax deductions. Do you have complex tax planning questions? Speak with a financial advisor today. Read More...

Feb 09, 2023 A wealth tax is a type of tax that's imposed on the net wealth of an individual. This is different from income tax, which is the type of tax you're likely most used to paying. The U.S. currently doesn't have a wealth tax, though the idea has been proposed more than once by lawmakers. Instituting a wealth tax could help generate revenue for the government but only a handful of countries actually impose one. A financial advisor will help you optimize your financial plan to mitigate your tax liability. Read More...

Feb 16, 2023 The question of tax dodging has been in the news a lot lately - namely because of the New York Times Report that President Donald Trump, despite his claimed billions of dollars in wealth, paid only between $0 and $750 in taxes for the past several years. While rich people paying very little in taxes compared to their wealth isn’t exactly news for anyone who understands the American tax system, this has attracted attention, partially because the mystery of Trump’s tax returns has intrigued many since he entered the race in 2015. While there are still plenty of details to be worked out regarding Trump’s taxes, it is worth taking the time to consider the difference between tax evasion and tax avoidance, the latter of which can come in the form of tax credits, deductions and exemptions. If you want help with your own taxes to make sure you are legally lowering your tax liability, consider finding a financial advisor to guide you. Read More...

Dec 09, 2022 A financial transactions tax is exactly what it sounds like -- a tax levied on each transaction an investor makes in the financial markets. The U.S. does not have a significant financial transaction tax, but it has become a favorite cause of many progressives and left-leaning politicians - including Senator Elizabeth Warren, who made a financial transactions tax a major part of her platform when she was running for the Democratic presidential nomination over the past few years. As the financial transactions tax continues to be a topic of national debate, it is worthwhile to understand how it works so you can be part of an informed discussion and so that you know what to expect if it ever becomes law in a substantial way. For help with tax and investing questions, consider working with a financial advisor. Read More...

Feb 03, 2023 Healthcare was already one of the most high-profile and contentious political issues in America, but since the COVID-19 pandemic began it has become even more of a pressing topic. Donald Trump tried and failed to repeal the Affordable Care Act (commonly known as Obamacare) in the first year of his presidency but has mostly abandoned healthcare as an area of potential reform -- especially since the Republicans lost the House of Representatives in 2018. Democratic challenger Joe Biden, though, has a series of healthcare proposals that he hopes to enact if he wins in November. If you have questions about healthcare coverage or any other financial issue, consider finding a financial advisor with SmartAsset’s free financial advisor matching service. Read More...

Sep 07, 2022 President Trump's 2017 Tax Cuts and Jobs Act made big changes to the tax code, specifically in deductions and tax brackets. President Biden has sense become President and tried to reverse different aspects of the 2017 tax overhaul, calling for higher taxes on capital gains and high net worth individuals. Let's break down the differences between both tax philosphies and plans below. Regardless of the current political situation, it's important to be prepared with proper tax planning. A financial advisor can help you keep up with tax code changes and optimize a tax strategy for your financial needs and goals. Read More...

May 19, 2022 Tax policy is one of the more inscrutable parts of American politics, yet it's one of the areas that impact the most people on a day-to-day basis. President Joe Biden has released a number of proposed tax policies, but it's understandable if you aren’t sure exactly what they mean for you, your family, and your business. This article breaks down the key points of Biden’s tax and financial policies and explains exactly how they could impact you if Biden is able to implement them. No matter what policies are enacted, it's important to prepare. A  financial advisor can help you make the most out of your money and help you maximize your retirement potential. Read More...

May 27, 2020 Though it may not always be apparent to the average citizen, the federal government is responsible for many of the everyday conveniences that help the country operate. Even some state programs are ultimately paid for by federal government money through intergovernmental aid. SmartAsset wanted to see which states are ultimately most reliant on the federal government for their operations, so we crunched the numbers to find out. Read More...

Aug 04, 2022 A tax deadline extension is an automatic 6-month extension that gives you more time to file your taxes if you're unable to meet the, typically, mid-April deadline. For 2022, the tax deadline for individuals was on April 18th and for 2023 the date falls on April 17th. You can file Form 4868 before the deadline to receive the automatic extension, which pushes your tax deadline to October. This extension applies to filing but not for any payments that are due. Penalties and interest will be incurred if you don't pay any owed monies on time. You can speak with a financial advisor who can help you find the best time to file your taxes. Read More...

Feb 17, 2023 A charitable gift annuity allows you to donate money to a non-profit, such as your alma mater. Planned giving can include charitable gift annuities. You can give back and get tax benefits. Meanwhile, you'll receive an additional stream of income for the rest of your life. Here's how to set it up and benefit from it. A financial advisor can help you create a financial plan for your charitable needs and goals. Read More...

Aug 19, 2022 When you sell something, you’re likely looking to profit from it. Capital gains are profits from an asset sale, like your home, business, or stocks. Capital gains come in two different forms: long-term and short-term. Each faces a different tax consequence. Short-term gains are taxed as ordinary income while long-term gains are taxed at a lower rate. To understand how these capital gains might impact your assets and personal tax situation, consider working with a financial advisor who specializes in taxes.  Read More...

Aug 17, 2022 While death and taxes may both be certain, taxation is the only one of the two that can happen twice. If you own a business, the last thing you want is to get taxed on your income more than once. Double taxation occurs when a corporation pays taxes on its profits and then its shareholders pay personal taxes on dividends or capital gains received from the corporation. If you have questions about how to plan your taxes to avoid double taxation, consider speaking with a financial advisor. Read More...

Mar 20, 2023 Excise taxes apply to specific goods and services. Businesses that make or sell chosen goods and services pay most of these taxes. As a consumer, you generally won’t get a bill for excise tax. If you purchase a good or service subject to an excise tax, though, you’ll pay it nonetheless. Businesses generally include the cost of the tax in the prices they charge. For help with taxes and other financial issues, consider working with a financial advisor. An advisor can help you create the right financial and tax plan for your situation. Read More...

Feb 17, 2023 Maintaining a home office for your business can yield a benefit at tax time if you're able to claim a deduction for your expenses. The IRS lays out the rules for deducting home office costs in Publication 587. There's a common myth about this deduction triggering an audit. But that shouldn't stop you from claiming it if you're eligible. Here's more on how this deduction works and what it covers. Do you have questions about tax planning? Speak with a financial advisor today. Read More...

Jan 07, 2020 A taxpayer advocate is an employee of the Office of the Taxpayer Advocate, also known as the Taxpayer Advocate Service (TAS). Working closely with, but independent of, the IRS, a taxpayer advocate can help you resolve tax disputes you might have with the IRS. While there's no guarantee that you'll see the result you want, working with a taxpayer advocate is the first step towards working out a tax issue. Best of all, the service is free if they agree to take on your case. A CPA or tax attorney can also be a big help in dealing with tax issues. If you'd like to take a more holistic view of your financial plan and long-term tax planning, consider working with a financial advisor. Read More...

Nov 03, 2022 The Lifetime Learning credit is a tax credit for college expenses, though it can also be claimed for tuition paid for graduate courses, vocational schools and continuing education courses. The credit is worth up to 20% of the first $10,000 in qualifying expenses, for a maximum credit of $2,000. To qualify, you must have made tuition and fee payments to the educational institution in question during the tax year. However, if your income is too high during the year, you may not be able to claim the Lifetime Learning credit. We'll walk through what expenses do and don't qualify, and how to claim them on your taxes. You can also work with a financial advisor who specializes in tax planning to map out potential tax savings for your individual situation. Read More...

Mar 20, 2023 There are two key education tax benefits that can help families who are paying for college: the Lifetime Learning Credit and the American Opportunity Tax Credit (AOTC). In general, it may be wise to take the American Opportunity Tax Credit if you qualify. It could provide a larger credit, and you may not have to spend as much in order to get it. Here's how to know if you qualify for the American Opportunity Tax Credit, plus how it works. For help with all types of tax and other financial questions, consider working with a financial advisor. Read More...

Aug 25, 2022 When filing your taxes, it's important to make sure you're reporting all of your income correctly. That includes making note of early distributions from qualified retirement plans or other tax-favored accounts that may be subject to a 10% early withdrawal penalty. Failing to report those distributions could result in a major tax headache if the IRS determines you owe additional taxes or penalties later. In turn, if you've taken a withdrawal from an individual retirement account (IRA), 401(k) or another account with a tax-advantaged status, you may need to file IRS Form 5329 with your regular income tax return. If you need some hands-on advice as you navigate your retirement withdrawals, consider enlisting the help of a financial advisor. Read More...

Feb 03, 2023 For individuals, gross income is the total pay you earn from employers or clients before taxes and other deductions. This is not limited to income received as cash, as it can also include property or services received. On the other hand, net income refers to your income after taxes and deductions are taken into account. For companies, gross income is revenue after cost of goods sold (COGS) has been subtracted. That makes a business' net income equal to profit, or net earnings. A long-term financial plan should account for your income taxes. Speak with a local financial advisor about your financial plan. Read More...

Jan 05, 2023 In the world of accounting, finance and taxes, there's more than one type of year. In addition to regular years, there are a number of different fiscal years. A fiscal year is the 12-month period a company uses for accounting purposes. Here's how it works and why it's important in business and taxes. A financial advisor can help you create a financial plan for your business needs and goals. Find a financial advisor today. Read More...

Mar 20, 2023 If you're considering buying a new home, a tax abatement may provide an incentive that's hard to pass up. These beneficial tax programs allow for a long-term break on your  property tax bill. Savings like that will undoubtedly impact your bottom line in a positive way. However, tax abatements are only available in specific areas of certain cities, so you may need to do some digging. Taxes can be complicated, and mistakes handling them can be costly. Consider working with a financial advisor to ensure that you make tax efficient moves with your money.  Read More...

Jan 05, 2023 Doing your taxes is never considered to be an easy task and for small business owners there are typically even more layers of complexity. Schedule C is a tax form that some small business proprietors use to file their tax returns each year. For those using it, command over Schedule C is an important part of making sure they are compliant with federal regulations and not paying more in taxes than they need to be. If you want help with your small business taxes, consider working directly with an experienced financial advisor who specializes in tax planning and preparation.  Read More...

Feb 09, 2023 Net income refers to a company’s earnings minus business and operating expenses. An individual’s net income is equal to total income minus applicable deductions and taxes paid. Net income helps you understand how profitable your business is. If you’re an investor, it can help you analyze a company’s stock. And as an individual, it can help you understand your actual take-home pay. If you want hands-on guidance as a business owner or investor with net income, check out our free financial advisor matching tool to link up with up to three advisors in your area best suited to your particular needs. Read More...

Feb 02, 2023 Adjusted gross income, or AGI, is extremely important for filing your annual income taxes. More specifically, it appears on your Form 1040 and helps determine which deductions and credits you are eligible for. Based on the amount of your AGI, you can then figure out how much you'll owe in income taxes. For tax year 2022, you can find your AGI on page 1, line 11 of the  IRS Form 1040. As you take care of your taxes, make sure you have an adequate financial plan in place.  Talk to a financial advisor today. Read More...

Mar 26, 2019 A large majority (75%) of taxpayers overpay on taxes and receive a tax refund, according to IRS data. A smaller proportion (19%) see the opposite: They will have overestimated their withholdings and learn they still owe the IRS some money. Apart from overpaying and underpaying, there is another small, exclusive group of savvy Americans who manage the Goldilocks fantasy: withholding just the right amount so, come tax time, the tax balance between them and the IRS reads an even zero. Read More...

Feb 01, 2023 For many employees in America, especially those at tech companies and other startups, stock options are a part of compensation packages. While the right to buy stock in a company at a set price is an attractive form of compensation, stock options have more complex tax implications than straight cash. Many taxpayers will use a  financial advisor to help them develop the best tax strategy for their investments. Let's take a look at how your tax return will change depending on whether you have incentive stock options (ISOs) or non-qualified stock options (NQSOs). Read More...

Dec 10, 2019 The U.S. experienced a partial government shutdown from Dec. 22, 2018 to Jan. 25, 2019. This 35-day shutdown was the longest in U.S. history and disrupted the service of multiple federal agencies, such as the National Park Service. However, the IRS did not stop work entirely, and never does during a shutdown. Many of its employees were furloughed (temporarily laid off) and some services experienced interruptions or delays, but others didn’t. What does this mean for your tax return? Read More...

Feb 09, 2023 Donating your car to charity is a thoughtful and generous act. It's also one that can save you some money on taxes. Many non-profit organizations that take automobile donations advertise it heavily, but doing research is necessary before you hand over your keys. Here's what you should know if you want to find the best charities to donate your vehicle. Read More...

Feb 22, 2019 Filling out your taxes can be a real headache. It’s no surprise, then, that online software like TurboTax has been growing in recent years to meet the demands of taxpayers in need of expert advice. But there are more resources available to you beyond tax software. Many states have programs to help taxpayers fill out their forms, and some states have an abundance of high-skilled accountants ready to work for those willing to pay. And, given the potentially severe consequences of a tax-filing mistake, the cost may well be worth it. Of course, not all states are equally equipped to help you stay in good standing with the IRS. Below, we look at the best states to get help completing your taxes. Read More...

Feb 22, 2019 About 75% of American taxpayers overpaid on taxes in tax year 2016, according to IRS data. And though they may have been overjoyed to get a handsome tax refund, this scenario means they are simply being reimbursed for money they've lent the government. This tax season, whether or not an individual has a windfall on the way depends on his or her tax-planning savvy, but residents of certain states overpay more on their taxes and thus get higher refunds.   Read More...

Mar 13, 2023 One of the most popular ways to organize a business is as a limited liability company, otherwise known as an LLC. The true advantage of an LLC over other business entity types comes in the form of tax benefits. LLCs, give business owners significantly greater federal income tax flexibility than a sole proprietorship, partnership and other popular forms of business organization. If you own a small business or are starting one, it's important to make sure your tax planning is done right. You can  talk to a financial advisor to help you through the entire process and determine which business formation is right for you. Read More...

Mar 10, 2023 California does not levy a gift tax, however, the federal government does. That tax rate can climb to as high as 40%. Still, there are plenty of ways you can minimize the hit or avoid it all together. For the 2022 tax year, you can give up to $16,000 to any individual without triggering a gift tax, or up to $17,000 for the 2023 tax year. But even if you go over the limit, you may just need to file some extra paperwork come tax time. You won’t owe an actual tax until you exceed your lifetime gift and estate tax exemption. We’ll explain how that works, and how you can give without ever setting off a gift tax. But first, let’s define what a gift really is in the eyes of the IRS. We can also help you find a financial advisor to develop a personalized gift-tax strategy. Read More...

Jan 25, 2019 It can be difficult to look at your paycheck and see upwards of 15% of it sent to the government. Of course, those taxes pay for worthwhile causes, a fact that doesn’t always lessen the initial sting of seeing your money disappear. Thanks to local and state taxes, though, residents in some places have it much worse than others. Below, we look at data from the 25 largest cities to estimate how much the average full-time worker pays in income taxes. Read More...

Apr 25, 2022 An annuity can provide you with income that is guaranteed for as long as you live.  These retirement savings vehicles do provide some tax benefits by letting earnings grow tax-deferred. However, at least part of your annuity payments may be subject to federal income taxes. Throughout this guide, we highlight the different ways the IRS taxes annuities. Consider working with a financial advisor as you do tax and retirement planning. Read More...

Mar 10, 2023 North Carolina does not have a gift tax. However, you may trigger a gift tax at the federal level depending on the value of the gifts you provide. But you won’t owe a gift tax until you breach your lifetime gift and estate tax exemption. The Tax Cuts and Jobs Act signed by President Donald Trump raised that threshold. For individuals it is $12.92 million for 2023. Nonetheless, you may still have to report some gifts that fall far below that value in order to avoid trouble with the IRS. A financial advisor can help you with tax issues and estate planning. Let's break down how the gift tax works and which steps you can take to avoid triggering it. Read More...

Mar 10, 2023 Florida does not have a gift tax. However, you may trigger a gift tax at the federal level depending on the value of the gifts you provide, but you won’t owe a gift tax until you breach your lifetime gift and estate tax exemption. The Tax Cuts and Jobs Act signed by President Trump raised that threshold. For individuals, it is $12.92 million for 2023. Regardless, you may still have to report some gifts that fall far below that value in order to avoid trouble with the IRS. A financial advisor can help you with estate planning and tax-related matters. Let's break down how the gift tax works and what you can do to avoid triggering it. Read More...

Mar 10, 2023 New Jersey doesn’t have a gift tax. However, you may still owe a federal gift tax if the value of the gifts you provide exceed a certain amount. Following the passing of the Tax Cuts and Jobs Act, the federal gift tax exclusion rose to $16,000 for 2022 and $17,000 for 2023. So you can give someone $16,000 or $17,000 worth of cash, assets or property (depending on which year it is) annually without worrying about a gift tax. You would have to report it if you breach that threshold. But you won't owe anything out of pocket until you exceed your lifetime exclusion limit. This article will cover everything you need to know about the gift tax as well as steps you can take to avoid or minimize your tax payment obligations. Read More...

Mar 10, 2023 Minnesota no longer has its own gift tax but it does have an estate tax. You may still owe a gift tax at the federal level if you exceed your lifetime gift and estate tax exemption. The Tax Cuts and Jobs Act signed into law by President Trump raised that limit. We’ll explain exactly how gift taxes work and what you need to watch out for. We’ll also explain how to make non-taxable gifts and steer clear of a potential gift tax. Consider working with a  financial advisor who can guide you through the entire estate planning and charitable giving process. Read More...

Feb 03, 2023 Connecticut increased its lifetime gift tax exemption to $9.1 million for the tax year 2022, with the plan to rise in subsequent years. This means you won't owe a Connecticut gift tax unless the gifts you provide in those years exceed their corresponding exemption levels. But even if you do, there are plenty of steps you can take to protect your assets and your estate from taxes. This article will explain everything you need to know about Connecticut and federal gift taxes, as well as ways you can steer clear of these taxes. We can also help you find a financial advisor to guide you through the entire estate planning process. Read More...

Feb 03, 2023 If you recently received a sizable gift from Mom and Dad, don’t fret about the gift tax. The IRS generally holds the giver liable for taxes. And unless the person is handing over a small fortune, he or she won’t owe any gift taxes either. But if your parents are being generous, you might want to fill them in on how the IRS views the transfer of money. This article will help you understand all about the gift tax, but since rules behind calculating gift tax can be complex, your parents should find a financial advisor if their gift might trigger a tax bill. Read More...

Mar 19, 2021 If you run your own business, you need a way to identify it to the government when it comes time to do your taxes. The same is also true if you're the executor of an estate, the creator of a trust or the founder of a non-profit. The way entities accomplish this is with an Employer Identification Number (EIN). If you don’t yet have an EIN, you can apply to receive one with IRS Form SS-4. Read More...

Feb 03, 2023 Selling a home is a major life change. But before you can concentrate on buying a new house, you'll need to figure out how to properly report any profits related to the sale of your house. Such profit is known as capital gains. This has the potential to affect your financial plan, as you may experience a large windfall of cash and extra taxes. Things to know include tax breaks, reduced exclusions, how to report your house sale on a tax return and how to determine the total profit of your home sale. It may be helpful to talk to a financial advisor before you sell your house. Read More...

Mar 08, 2023 If you have a traditional IRA, you will need to start taking  required minimum distributions (RMDs) when you reach age 70.5. As traditional IRAs are tax-deferred, you will need to pay federal income tax on these distributions, but you can avoid those taxes if you donate your RMD directly to a qualified charity. Here's what you need to know about IRA charitable rollovers. And if you need hands-on help navigating IRA charitable rollovers, consider enlisting the help of a trusted financial advisor. Read More...

Apr 01, 2023 Being a landlord can significantly bolster your savings, but it's also a lot of work. On top of the finances and responsibilities of your own living space, you have to find tenants, secure insurance and pay a mortgage and property taxes. Renting a home can also complicate your personal tax situation. Luckily, the government allows you to deduct some expenses associated with running a rental property. The IRS stipulates that deductible expenses must be ordinary and generally accepted in the rental business, along with being necessary for managing and maintaining the property. You can also work with a financial advisor who can help manage the tax and financial impact of your real estate holdings. Read More...

Mar 08, 2023 There are a lot of reasons to give to charity. The most obvious is that you're giving money to a cause or group that you believe in. However, there is a common reason beyond that to make a donation: the charity tax deduction. When you give money to charity, you can use the gift to reduce the amount of money on which you must pay taxes. This guide will take you through how to get your charity tax deduction, what qualifies as a charity tax deduction and other questions about the process. Consider working with a financial advisor as you decide how much to donate to charity. Read More...

Mar 18, 2023 The Social Security tax is one reason your take-home pay is less than your income. The tax of 6.2% (on income up to $147,000 in 2022 and $160,200 in 2023) is deducted from your pay and appears on your paycheck stub either as FICA or Fed OASDI/EE. Your employer also pays 6.2%, making for a total  Social Security tax of 12.4% per employee. Read on to learn what the pay-stub acronyms stand for, whether the self-employed have to pay the tax and if there's any way to avoid paying it. A financial advisor can help you optimize your financial plan for your tax planning needs. Read More...

Mar 10, 2023 The first-time homebuyer tax credit emerged during the 2008 financial crisis to help make buying a home more affordable for Americans. Though various other mortgage programs and loans exist, the tax provision here was strictly for first-time homebuyers. Simply put, it offered homebuyers a significant tax credit for the year in which they purchased their home. Unfortunately, this credit no longer exists. However, legislation to create a new refundable tax credit of up to $15,000 for first-time homebuyers was introduced in April 2021. But as of March 2023, the legislation still has not passed in Congress. Below, we discuss what the tax credit program did, and explore additional mortgage programs that can still help you save on your first home. A financial advisor can help you plan for buying a home, as well as other financial goals. Read More...

Jul 19, 2018 State and local taxes (SALT) are a frustrating part of living in a high-tax locale. Before the passing of the Tax Cuts and Jobs Act at the end of 2017, which ushered in sweeping tax legislation overhaul, Americans could deduct state and local taxes, including income and property taxes, from their federal income taxes. Under the new tax law, that deduction has been capped at $10,000. This change will disproportionately affect residents who pay high state and local taxes. Read More...

Dec 30, 2022 IRS Form W-4 tells your employer how much federal income tax to withhold from your paycheck. You'll be asked to fill one out when you start a new job. You can also submit a new W-4 to your HR or payroll department when you have a life event that affects your taxes - e.g., getting married or divorced or having a baby - or if you paid too little or too much in taxes. The form used to be a bit complicated, but the IRS simplified it for 2020 and beyond. Now there are only five steps, three of which you can skip if you are the only breadwinner in your family, have only one job and have no dependents. The two mandatory steps involve providing your name, address, Social Security number, filing status and signature. A financial advisor can help optimize your financial plan to lower your tax liability.  Read More...

Mar 10, 2023 Earning dividends is a great incentive for investing in certain companies and mutual funds. Dividends are particularly useful for people who want to supplement their retirement income. However, like all income, you'll need to pay taxes on any dividends you receive. Which dividend tax rates you pay depend on how long you've held your investments, the size of your dividends and how much other income you have. It can also be helpful to consult a financial advisor to learn more about taxes owed on dividends. Read More...

Mar 07, 2023 President Donald Trump signed a law that dramatically overhauled the U.S. tax code in December 2017. The law created new income tax brackets that changed what many Americans pay in taxes. Most changes went into effect on Jan. 1, 2018, and did not affect your  tax return until the 2018 tax year, which you filed in 2019. Let's take a look at the 2023 tax brackets, and compare them to the 2022 and 2017 brackets to see how the Trump tax plan could have affected your tax return. And depending on these changes, you might want to work with a financia l advisor to help formulate a tax strategy for your finances. Read More...

Jan 07, 2022 There are many reasons your tax refund could be delayed. Perhaps your numbers and your employer's numbers didn't match. Or you accidentally skipped a line—or an entire form. Or maybe you claimed a credit that the IRS takes longer to check. This year, however, the mostly likely reason your tax refund is delayed is that you filed a paper return.There was an additional backlog of tax returns created by the COVID-19 pandemic. While IRS workers have been back at work for a while, there is always a chance this is still impacting your return. Of course, the reasons for a delayed tax refund before the coronavirus crisis may still apply. Read on for more reasons and how to prevent future delays. Go beyond taxes to build a comprehensive financial plan. Find a local financial advisor today. Read More...

Mar 17, 2023 If you're investing in cryptocurrency, it's important to know how these currencies - and any gains you earn from buying and selling them - are taxed. The IRS has issued guidance about reporting cryptocurrency transactions, which the agency refers to as "digital assets," on income tax returns. Here's what you need to know about filing taxes for cryptocurrency. If you're unclear about reporting cryptocurrency income, gains or losses, you may want to consult a financial advisor with cryptocurrency expertise. Read More...

Mar 31, 2023 When you file your federal income tax return, you can check the status of your tax refund by visiting the IRS website or its mobile app. However, each state has its own process for handling state income taxes. If you expect a refund, your state may take only a few days to process it or the state may take a few months. There is no hard-and-fast rule but you can expect paper returns taking significantly longer to process than e-filed returns. In the meantime, you can work with a financial advisor to create a plan for the money you expect to receive. Read More...

Mar 18, 2023 Circle Tuesday, April 18, 2023, on your calendar, because that's the one general date by which most filers need to get returns into the IRS. However, you may have a different deadline if you filed for an extension or if you are a corporation. Here's a rundown of all the deadlines you need to keep track of. Given fluid tax filing rules it's important to ensure your investments are protected. A financial advisor can help you make sure your tax filings don't unnecessarily hurt your assets.  Read More...

Mar 31, 2023 Want to get a big tax refund this tax filing season? You can minimize your tax liability and potentially snag a larger refund by taking advantage of every possible tax break. In this article, we'll discuss a few strategies to keep in mind as you look to get the biggest refund possible. But remember, if you want to go beyond this year's tax refund and minimize taxes on your long-term financial plan, your best bet is to find a financial advisor.  Read More...

Feb 01, 2023 If you own an investment property and collect rent from your tenants, it's important to declare that rental income on your taxes. You can, however, deduct expenses you incur to maintain your rental property. In other words, becoming a landlord for the first time will make filing your taxes more complex. Planning ahead for these taxes can have many benefits. If you need help with taxes, a financial advisor can help you create a tax strategy. Read More...

Mar 13, 2023 When you start a new job, there's a lot of paperwork to fill out, from direct deposit documents and benefits enrollments to your W-4 form. But when you're a contractor or self-employed person, income taxes work a little differently. You will still have to report your earnings to the IRS, and the companies that use your services will have to report those earnings, too. That’s where the W-9 form comes in. Planning out your taxes is just one aspect of your financial plan. Talk to a financial advisor in your area today. Read More...

Mar 18, 2021 Hollywood and New York City probably come to mind when you think about the places with the most million-dollar earners. While location plays a part in how much money you earn, there are other factors that can help you reach millionaire status. Plenty of patient saving is most likely required. Many people seek professional advice from a financial advisor to help them make the best decisions about their finances. Below, we looked at the unique economic profiles of each state through IRS data to find the states with the most million-dollar earners. Read More...

Feb 02, 2023 With the new year starting, it’s just about the time to file your federal tax return. But there’s no need to get stressed out. Tax filing services are making it easier than ever to file your taxes. You will, of course, need to choose between those filing services. Let's compare two of the largest tax filers: TurboTax vs. TaxSlayer. If you prefer more of a hands-on approach to finance, a financial advisor can help you create a financial plan for your needs and goals. Read More...

Jan 31, 2018 For most people, the only fun part of doing your taxes is getting your tax refund. Not everyone receives a refund. Technically speaking, tax refund is money you overpaid in taxes, meaning it was always your money and the government was just "borrowing" it for a while. Regardless, it always feels good to get a large check. Below we look at this topic at a state level, to determine which states have the largest average income tax refund. Read More...

Dec 08, 2022 In December 2017, President Trump signed the new tax plan into law. While most of the changes from the plan went into effect on Jan. 1, 2018, they did not affect taxpayers when they filed their federal income taxes in 2018 for the 2017 tax year. However, some parts of the tax plan applied retroactively. A small number of taxpayers saw changes to their 2017 taxes as a result. As of 2019, all changes in the tax law were in effect. These changes are currently scheduled to expire after the 2025 tax year. If you need help planning out your tax situation, consider working with a financial advisor.  Read More...

Jan 17, 2018 Many taxpayers fret over where their hard-earned money goes once they've paid their share of taxes. This is true for residents of all states. But some states get a better deal when it comes to income taxes paid and benefits received. These states, and their economies, rely on the federal government for support to a greater extent than other states. Below we rank the states most dependent on the federal government. Read More...

Jan 10, 2018 Many Americans try to reduce the stress of filing taxes by using online tax software or hiring an accountant. In some states getting this tax help is easier than others due to more affordable rates for accountants and better internet access. Below we look at the states where it's easiest to get help during tax season. Read More...

Jan 06, 2023 The majority of U.S. states charge a sales tax on retail goods and services. New York state is no different. The state's sales tax is relatively low but once you add on taxes from individual counties and cities, it can add up to a substantial chunk of change. Read on as we explain what New York sales tax is and how it differs across the state. A financial advisor could help optimize your tax strategy for your financial needs and goals. Find a financial advisor today. Read More...

Dec 01, 2022 President Trump signed sweeping tax legislation in 2017 that capped  property taxes and other state and local taxes (SALT) deductions at $10,000. This change went into effect in January 2018, which impacted 2018 taxes that were filed in April 2019, and continues to impact taxes today. The SALT deduction became a major worry for many homeowners in high-tax states. To lessen the impact, some homeowners can prepay property taxes for the next calendar year before the end of this year in order to deduct them from their current tax bill. Let's take a look at the tax advantages of paying your taxes before January 1. Consider working with a financial advisor to help you manage your finances and create a tax plan that works for your situation.  Read More...

Sep 14, 2022 Governments, at all levels, may charge sales tax for goods and services. Retailers collect sales tax on their goods at the point of sale and then send their collections to the government. Currently, 45 states charge sales tax with some counties and cities charging their own taxes. No state has quite perfected the art of sales tax like California. Read More...

Nov 16, 2017 The United States is the second-most generous country in the world, according to 2016 data from the Charities Aid Foundation. But not all states in the United States are equally generous. Residents in some states give more to charity or volunteer more free time to causes near and dear to their hearts. Below we rank the America's most charitable states using those and other metrics. Read More...

Sep 27, 2017 For many Americans, being your own boss is a long-held aspiration. But striking out on your own can be challenging and risky. There are many factors that can add potential roadblocks to people hoping to start their own businesses. Income tax rates, for example, come into play, as well as local costs of living. Below we analyze data on these and other metrics to find the best cities to be self-employed. Read More...

Feb 01, 2023 If you earn a wage or a salary, you're likely subject to Federal Insurance Contributions Act taxes. Not to be confused with the federal income tax, FICA taxes fund the Social Security and Medicare programs. Also known as payroll taxes, FICA taxes are automatically deducted from your paycheck. Your company sends the money, along with its match (an additional 7.65% of your pay), to the government. In this article, we'll discuss what FICA taxes are, how they're applied and who's responsible for paying them. Planning your finances goes beyond just taxes. Find a local financial advisor today. Read More...

Dec 06, 2022 Tax-loss harvesting is a way to use investment losses to lower your taxes on any capital gains you have in a year. If you've only invested in your future by contributing to a retirement account, tax-loss harvesting won't likely help you. However, if you have some taxable investment accounts, tax-loss harvesting may lower your tax liability and potentially save you money. A financial advisor can help you with any tax-loss harvesting questions you have and help you maximize your tax savings through proper planning. Read More...

Mar 09, 2023 No matter how hard you try to keep your debt under control, sometimes it piles up. Depending on your situation, you may be able to cancel some of your debt. That would probably lift a huge weight off your shoulders. But even if your creditor lets you ditch some of your debt, there might be a catch. In some cases, canceled debt can increase your tax bill. A financial advisor can help you answer questions about debt cancelation and optimize your financial plan to manage debt. Read More...

Jan 08, 2020 Paying taxes is never fun. Fortunately, you may be able to reduce how much you owe in federal income taxes by claiming certain tax deductions. There are exclusive tax breaks for self-employed Americans. But the key to taking advantage of these benefits is knowing what's tax-deductible. Check out the following seven self-employed tax deductions you might qualify for this season. Read More...

Jan 05, 2023 When it comes to investing, you can expect to experience both gains and losses. You might even incur a capital loss on purpose to get rid of an investment that’s making your portfolio look bad. And while selling an asset at a loss may not seem ideal, it can benefit you at tax time. Besides lowering your taxable income, a capital loss may also help you snag a deduction. A financial advisor can help you optimize a tax strategy to reach your investing goals. Find a financial advisor today. Read More...

Mar 19, 2021 Many studies seem to suggest that millennials are in a financial pickle. For starters they earn less than their parents did when they were young adults. Plus, the average millennial has over $30,000 in student debt. For millennials who are struggling to boost their net worth and make the leap to homeownership, the last thing they likely want to face is a large tax bill. But unfortunately, high tax rates are a reality for many millennials across the country. Read More...

Mar 22, 2017 Businesses and individual consumers have something in common. Both groups have to file taxes. Some groups, however, are automatically tax-exempt, meaning that they're not required to pay federal income taxes. Others must apply for tax-exempt status. If you want your organization to be exempt from federal taxation, you may need to file IRS Form 1023. Here's everything you need to know about it. Read More...

Jan 05, 2023 Owning a home can be expensive. Paying for property taxes, repairs and homeowners insurance can significantly reduce what you can spend on luxury items and discretionary goods and services. Fortunately, homeowners may be able to recoup some of the money they've lost by claiming tax deductions and credits. A financial advisor can help you optimize your tax strategy for your property goals and needs. Read More...

Feb 03, 2023 Going to college seems to get more expensive every year. Tuition, fees, room and board for an out-of-state student attending a four-year public institution cost $28,240 for the 2022-2023 school year (on average). About a decade ago, an in-state student would've paid an average of $15,180 (in 2016 dollars) for the same expenses. There's not much you can do about rising college costs, but there are a few tax breaks you can use to help offset the cost of college. A financial advisor can help you optimize a tax strategy for your education needs and goals. Read More...

Mar 18, 2023 The IRS knows that some taxpayers provide their children and relatives with financial support. That's why the government offers folks with dependents the opportunity to reduce their tax burden. Being able to claim someone as a dependent may significantly lower your tax bill. If you're struggling to determine your eligibility, a  financial advisor who specializes in taxes can help. Read More...

Mar 09, 2023 Making sense of the U.S. tax code can be a daunting feat. That's why many taxpayers turn to professionals when they need to file their tax returns. Regardless of whether you're working with a tax accountant or completing your own return at home, it's important to know which tax breaks you're eligible for. After all, claiming tax credits and deductions is one of the easiest ways to reduce your tax burden. If you have questions about claiming miscellaneous expenses, read on for the lowdown on what's deductible. A financial advisor can help you optimize your financial plan to minimize your taxes. Read More...

Mar 09, 2023 Looking for a new job can seem like a job in itself. And after a while, the expenses associated with finding a new gig start to add up. Even if you put effort into writing a resume and going on interviews, there's no guarantee that you'll be able to lock down the position that you want. But at the very least, some of your job hunting expenses may be deductible. Let's take a look at some of the costs that you may be able to write off on your income tax return. Consider working with a financial advisor as you seek employment in the most tax-efficient way. Read More...

Jan 26, 2017 Few tax breaks have been more controversial than the mortgage interest deduction. Proponents of the tax benefit contend that it encourages Americans to buy homes. Opponents, on the other hand, argue that it reduces tax revenue and leaves lower-income individuals at a disadvantage. For the second year in a row, SmartAsset assessed how the mortgage interest deduction and the property tax deduction could affect homeowners across the country during tax season. Read More...

Oct 17, 2022 If you're planning on using a tax break to minimize your tax bite, keep in mind that deductions come in different shapes and sizes. There's the standard deduction that any taxpayer can claim every tax year just for filing taxes. And there are itemized deductions that you can write off instead of taking the standard deduction. There are also above-the-line deductions. Here's everything you need to know about above-the-line deductions, including how they work and who can take advantage of them. A financial advisor can walk you through different tax strategies for your financial plan. Read More...

Mar 19, 2021 The Trump tax law doubled the federal  estate tax exemption for estates and gifts, allowing wealthy investors to pass on their financial legacy with big tax savings for their heirs. Many families work with a  financial advisor to maximize an estate plan for their loved ones. Let’s take a look at how the estate tax could affect affluent investors and their beneficiaries.   Read More...

Jan 11, 2023 If you want to shrink your tax bill or beef up your refund, claiming all the deductions you're eligible for can be a smart strategy. Deductions reduce your taxable income. That's a plus if you want to hang on to as many of your hard-earned dollars as possible. But there are limits on what you can deduct. A financial advisor can help you figure out exactly what you should do with your taxes. Here's a look at some expenses you can't deduct in most cases. Read More...

Mar 18, 2023 Filing federal income taxes can be stressful. Making sure you plug in all the right numbers and snag every tax break you qualify for can make your head spin. If you're relatively new to tax filing, you may not know the difference between taking the standard deduction and itemizing your deductions. Itemizing isn't right for everyone, so before you file, keep reading to find out whether it makes sense for you. Read More...

Aug 31, 2022 In one way or another, taxes are a part of every American's financial life. But for residents of Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming, they are off the hook for state-level personal income taxes. Additionally, only New Hampshire taxes dividends and investment income, but not wages. While avoiding state income taxes may seem appealing, there's often a catch, like high sales taxes. A financial advisor can help you optimize a tax planning strategy. Read More...

Mar 31, 2023 Under the tax reform bill that passed into law at the end of 2017, the personal exemption was eliminated. This means you cannot claim it on your taxes starting with the tax year 2019. So the following information on the personal exemption only applies if you are filing a return for a tax year that was 2017 or earlier. Let's break down how a personal exemption is defined and whether you can claim one on your tax return. A financial advisor can help optimize your financial plan to lower your tax liability.  Read More...

Mar 18, 2021 The NFL salary cap (which limits how much teams can spend on players) has risen from $40 million in 1996 to $155 million in 2016. This means NFL salaries have increased by almost 400% over the past 20 years. To put that in perspective, median incomes in the U.S. rose 12.5% from $24,500 in 2005 to $27,600 in 2015, according to Census Bureau data. While the pay packages are available for public viewing, most people probably don't know how much NFL players pay in taxes. SmartAsset used our income tax calculator to investigate how much the highest-paid players in the NFL pay in taxes. Read More...

Oct 01, 2022 Paying taxes is a fact of life for most Americans. Whether you work for a business from 9 to 5 or you're self-employed, you're expected to turn over a portion of your pay to Uncle Sam. There are many different kinds of income, but not all of them can be taxed. Read on for an explanation of what taxable income is and a rundown of what's taxable and what's not. Read More...

Dec 12, 2019 Filing taxes for the first time can be nerve-racking. But being organized can relieve some of your stress. Knowing what paperwork and materials you'll need is a good place to start, especially if you're concerned about leaving out a key piece of information. If you're preparing to fill out your tax return, here's a breakdown of the documents you'll need to gather. Read More...

Mar 26, 2018 It's tax time and if you're self-employed, you'll need to plan ahead. What you do between now and the April tax filing deadline can have a significant impact on the amount of income tax you owe. If you work for yourself, here are some important moves that you'll need to make to reduce your tax bill. Read More...

Mar 09, 2017 Smoking is the leading cause of preventable death in the United States, according to the Centers for Disease Control and Prevention. An estimated 480,000 people die each year from smoking-related deaths, costing an estimated $300 billion in healthcare costs and lost productivity. The National Institute on Alcohol Abuse estimates that 88,000 people die per year in the U.S. from alcohol-related causes. In order to limit consumption of these two leading causes of death, state and federal governments place taxes on them. Read on for more on the effect of these so-called " sin taxes." Read More...

Dec 12, 2019 Have you ever wondered how city governments pay for big infrastructure projects? One method is called tax increment financing. Essentially, it means banking on the increase in property tax revenue that will result when the project is finished. The government can "fund" a project by pointing to the revenue the project will generate once it's complete. Read More...

Apr 20, 2022 Thinking of moving to Tennessee? You can head to a vibrant city like Memphis or Nashville, or opt for a quiet life in the Appalachian Mountains. Tennessee offers a rich culture, natural beauty and a low cost of living. Are you convinced? Here are 15 things to know before moving to Tennessee. Consider working with a financial advisor as you make decisions about where to move and when to move. Read More...

Mar 18, 2023 The homestead tax exemption applies to property taxes. It's generally a dollar amount or percentage of the property value that is excluded when calculating property taxes. The amount or percentage depends on the state, as does who is eligible for the exemption. In some states, every homeowner gets the tax exemption, while in other states, eligibility depends on income level, property value, your age or if you're disabled or a veteran. One thing that is true in every state that has a homestead tax exemption, however, is that the home has to be a primary residence. Most states offer the homestead tax exemption. Taxes are one of many factors to keep in mind when you become a homeowner. Consider working with a financial advisor who can help you manage the financial aspects of homeownership. Read More...

Apr 12, 2022 If you own a home, you're no stranger to property taxes. There are property tax breaks for seniors, people with disabilities and other protected classes, but did you know that there are agricultural tax exemptions, too? If some of your land can be classified as farmland, you could reap significant tax savings. If you're looking for a professional to help guide you through the ins and outs of agricultural tax exemptions, SmartAsset's free financial advisor matching tool can pair you with advisors who serve your area.  Read More...

Feb 01, 2023 A tax amnesty is an opportunity for people who owe back taxes to pay some or all of what they owe, often with some penalties and interest waived. In the U.S., tax amnesty often takes the form of a certain window during which state governments allow delinquent taxpayers to come in from the cold. At the federal level, the government may offer tax amnesty for U.S. companies repatriating profits. For help with tax amnesty or any other financial issues, consider working with a financial advisor. Read More...

Nov 10, 2016 What's the difference between tax avoidance and tax evasion? One is legal and the other is not. Tax avoidance means using the legal means available to you to decrease your tax liability. Those means include deductions, credits and tax-advantage accounts. Tax evasion, on the other hand, means taking illegal steps to shrink or eliminate your tax liability.  Read More...

Feb 03, 2023 Taking higher education classes, whether in pursuit of a degree or to acquire additional professional skills, is something the government wants to encourage. To that end, the IRS offers tax credits for post-secondary education expenses. Two of those credits, the American Opportunity Credit and the Lifetime Learning Credit, can be claimed on IRS Form 8863. A financial advisor could help optimize your tax strategy for your financial needs and goals. Find a financial advisor today. Read More...

Mar 10, 2023 Did you make a mistake on your income tax return? Don't sweat it - it happens. Whether you forgot about a tax deduction or credit or you need to include additional sources of income, you can fix those errors by filing an amended tax return. You’ll do this by completing IRS Form 1040X. A financial advisor can also help you avoid mistakes and optimize your tax strategy for your financial goals. Here’s our guide to understanding and filling out the form. Read More...

Mar 10, 2023 If you're designated the executor of someone's estate, you may need to file Form 1041 to declare the income from that person's estate (or hire someone to file the form for you). Form 1041 isn't a substitute for Form 1040, though. Confused? We don't blame you. A financial advisor can help you maximize an estate plan for your loved ones. Let us walk you through IRS Form 1041, the U.S. Income Tax Return for Estates and Trusts.   Read More...

Mar 19, 2021 If you ever need ton resolve an issue with the IRS, whether or not it's related to your federal income taxes, you will need to contact the IRS. That can be intimidating. You may not feel like you know enough about the U.S. tax code to file a complaint or challenge a penalty. Luckily, if you feel this way, there's something you can do about it. If you'd rather have a lawyer or a tax preparer talk to the IRS, you can complete Form 2848. Here's our guide to understanding that form. Read More...

Feb 01, 2023 Many businesses don't make any money, particularly during their first year of operation. When this happens, the IRS provides business owners with some tax relief in the form of something called a net operating loss (NOL). What follows is a summary of the basics that you need to know about it. If you need help making sense of any financial concepts for your business, consider finding a financial advisor, some of whom help family businesses. Read More...

Jan 05, 2023 Thanks to advances in technology, filing taxes isn't nearly as complicated as it once was. Today, many tax filers complete their tax returns online or through apps. The IRS released its own mobile app in 2011. While you can't use it to submit your tax forms, the IRS2Go app can make the tax-filing process easier to navigate. A financial advisor can help you optimize your tax strategy to save money for investing and retirement goals. Read More...

Feb 03, 2023 Starting a business can be expensive. You'll likely have to cover the cost of a building or office space, equipment, utilities and legal and accounting fees. Fortunately, business owners can recoup some of the money they've spent by deducting expenses on their federal income tax returns. While you can't write off the total cost of any property you've invested in (at least after your first year of operation), you can get an annual tax break for depreciation and amortization by filing Form 4562. Read More...

Feb 03, 2023 When you don't have access to an employer-sponsored retirement account - like a 401(k) or a 403(b) - you can save for retirement by opening an IRA. Your contributions may be tax-deductible, meaning you can use them to lower your income tax bill. If you want are getting a tax break for IRA contributions, you will receive IRS Form 5498. Never heard of it? Here's what you need to know. A financial advisor could help optimize your tax strategy for your financial needs and goals. Find a financial advisor today. Read More...

Mar 13, 2023 We all know that the cost of higher education is steep and getting steeper. If you're not relying solely on student loans or grants and are instead paying some of your own money toward tuition and fees, you may be able to deduct those expenses from your income taxes. To do so, you would use IRS Form 8917. A financial advisor could help you optimize your tax strategy for your education goals.  Read More...

Mar 20, 2023 Meeting deadlines can be tough, especially when you have a lot on your plate. If you won't have time to file your federal 2022  income taxes by April 18, 2023, deadline, don't worry. You can get a six-month extension to file, though you must send in the estimated balance due by the deadline. Here's our guide to Form 4868, the tax document you'll need to file for an automatic extension. Read More...

Jan 05, 2023 Representation in civil lawsuits doesn't come cheap. In the best-case scenario, you'll be awarded money at the end of either a trial or a settlement process. But before you blow your settlement, keep in mind that it may be taxable income in the eyes of the IRS. Here's what you should know about taxes on lawsuit settlements. A financial advisor can help you optimize a tax strategy for your lawsuit settlement. Speak with a financial advisor today. Read More...

Nov 17, 2022 If you have a pension, you're one of the lucky ones. Defined benefit retirement plans like pensions are increasingly rare, having been largely replaced by defined contribution plans like the 401(k). However, drawing on your pension income when you hit retirement isn't a free ride. Some or all of that pension will be taxable and it's important to know what potential tax you'll need to pay so you can plan for retirement. A financial advisor could help you optimize your tax strategy to benefit your retirement.  Read More...

Mar 31, 2023 The idea of the estate tax, or death tax as it's sometimes known, is scary for many Americans. However, the real truth is that the vast majority of people will never encounter it. That's because the federal estate tax has an extremely high exemption amount, which is $12.92 million. So if your estate is worth less than that 2023 exemption amount, you won't owe any federal estate taxes. There are taxes levied by some states to contend with in certain parts of the country, though. For help with your estate plan, consider working with a financial advisor. Read More...

Mar 18, 2021 Sin taxes are meant to dissuade people from participating in activities considered harmful to their health and well-being. Places around the country tax consumers for buying things like tobacco and alcohol and many people have debated whether it's necessary to levy a tax on soft drinks, too. If you're not sure how you feel about soda taxes, read on to learn more about this controversial issue. Read More...

Oct 21, 2022 If you've ever taken a look at your pay stubs you've probably noticed your employer's tax withholding. Based on the W-4 form that you submit when you start a new job or your tax situation changes, your employer will withhold federal and state (if applicable) income taxes from your pay. But if you start a job half-way through the year, you might benefit from the part-year tax withholding method. Consider working with a financial advisor as you manage your taxes. Read More...

Apr 01, 2023 Filing taxes can be stressful. When the IRS opts to take a closer look at your tax return, that can only increase your anxiety level. Getting your return flagged for review doesn't mean you'll be audited, but it can raise the odds that Uncle Sam will conclude that the numbers don't add up. It helps to understand why returns are flagged and what reviews involve. If you've got a complicated tax situation, it may be wise to work with a financial advisor with tax expertise. Read More...

Mar 19, 2021 The Affordable Care Act requires most Americans to have healthcare coverage. Unless you don't have to file taxes or you qualify for an exemption, you'll likely get stuck paying a penalty called the individual shared responsibility payment if you don't have health insurance. You could also be on the hook for paying the fine if your health insurance isn't considered minimum essential coverage. We'll explain what this government standard means and how you can meet it. Read More...

Jan 05, 2023 Having a hobby can be a great way to unwind, but a hobby can take on an entirely new dimension if you can make money while you're working at it. That's because any money your side hustle brings in may be considered taxable income. If you're thinking of turning a part-time passion into a full-time business, here's how it might change your tax filing status and your income tax bill. A financial advisor can help you optimize your tax strategy to save money for investing and retirement goals. Find a financial advisor today. Read More...

Sep 07, 2022 Zoos are incredibly unique businesses, as they typically feature unique animals that have very distinct rules and regulations surrounding their captivity. For this reason, the economics of zoos is heavily muddied, as they involve major costs like park upkeep, national fees and more. Read More...

Mar 10, 2023 Tax considerations should be front-of-mind when you're paying off your student loan debt. Whether you have a standard repayment plan or you've signed up for an income-based repayment program, there are certain tax rules that affect student loan borrowers, including some tax breaks that can provide relief come tax-filing season. A financial advisor can help you figure out what to do with your taxes. Here are five important IRS rules that every student loan debt holder should know. Read More...

Feb 03, 2023 Form 1095-A is a tax document Americans need to file if they buy health insurance through the government health insurance marketplaces established by the Affordable Care Act (commonly known as Obamacare). This is not a form you will actually fill out yourself. Rather, you will get it from the healthcare exchange you use after your purchase is complete, and from there you will file it as part of your federal income taxes. If you want help with taxes and other financial issues, consider working with a financial advisor. Read More...

Feb 03, 2023 If you're claiming an exemption from healthcare coverage, you'll need to fill out IRS form 8965 when you do your federal income taxes. This form helps you comply with Affordable Care Act rules that require health insurance coverage for just about everyone in the country. Here's everything you need to know about the 8965 tax form and who's qualified to use it. A financial advisor could help optimize your tax strategy for your financial needs and goals. Find a financial advisor today. Read More...

Mar 10, 2023 A tax refund can come in handy when you need to pay down student debt or you want to pad your emergency savings. But waiting for the money to hit your bank account can be nerve-wracking. According to the IRS, most refunds are processed within 21 days. For some unlucky taxpayers, the wait can be much longer. If you find yourself relying on your refund year after year, you might need to work with a financial advisor to put a proper financial plan together. Here are eight reasons why its arrival could be delayed. Read More...

Feb 01, 2023 For IRS purposes, a head of household is generally an unmarried taxpayer who has dependents and paid for more than half the costs of the home. This tax filing status commonly includes single parents and divorced or legally separated parents (by the last day of the year) with custody. It can also be an adult who is supporting a parent or other relative under certain circumstances. It can be difficult to know if it makes sense for you to file your taxes this way. For more help with your tax planning, consider consulting with a financial advisor. Read More...

Mar 14, 2017 Millennials, now the largest age cohort in America, are different than prior generations in a number of ways. They are less likely to get married, for instance. 65% of present day 18-to-35-year-olds have never been married, compared to the 40% of young adults who had never said “I do” in 1980. Another key difference between millennials and prior generations is housing. Whereas in 1980 almost 44% of adults under age 35 owned their home, today that rate is just 35% (likely in part because millennials simply cannot afford to buy in many cities). Read More...

Mar 10, 2023 Payroll tax deductions are a part of the way income taxes are collected in the U.S.. When you work at a job, a part of your income is taken each pay period, based on a number of factors including your total pay, how often you get checks and how many allowances you take when you fill out your W-4 at the beginning of your time at the job. Payroll taxes can be complicated, but there are people who specialize in them and other financial issues. To get this help, consider finding a financial advisor with SmartAsset's free matching tool. Read More...

Oct 01, 2022 If you're reading this, chances are slim that you've ever won a lottery because the odds of winning are just so low. In 2021, Americans spent $105.26 billion on lottery tickets, making it the most popular form of gambling. That's more than the total spending on music, books, sports teams, movies and video games combined. What do we get for all that money spent on the lottery and why do so many play if the odds are so low? We analyze the economics behind playing the lottery below.  Read More...

Jan 26, 2017 The home mortgage interest tax deduction is one of the most common deductions claimed on federal income tax returns, but that doesn’t mean most taxpayers are taking advantage of it. In fact, according to data from the Tax Foundation, only about 27% of all taxpayers deduct mortgage interest paid from their income when filing their taxes. Read More...

Sep 14, 2022 Paying taxes is one of the most burdensome parts of being self-employed and one of the trickiest parts is figuring out just how much you need to pay. Instead of having an employer taking taxes out of your paycheck, you're responsible for making estimated tax payments four times a year. If you pay less than what you owe to the IRS, you could get hit with a penalty when it's time to file your return. If you miscalculated, below is what you can do to get back on Uncle Sam's good side. To make sure this doesn't happen again, consider working with a financial advisor who can help prepare you with all your tax planning needs.  Read More...

Feb 01, 2023 While everyone hopes to come out even or get some money back when they file their taxes each year, sometimes people do end up owing money – and there is a smart way to go about dealing with that. Owing any amount of money to the IRS – large or small – is a scary prospect, but ignoring the debt won't make it go away any faster. If you've completed your income tax return for the tax year and you're looking at a huge tax bill, it's best to take care of it right away. A financial advisor can help you figure out what to do with your taxes. Here's a look at what you don't want to do if you're trying to avoid making the situation worse in the long run.  Read More...

Dec 30, 2022 Think your landlord has it made? Just wait until you find out about the tax breaks she's eligible for. Owning a rental property certainly comes with its fair share of frustrations. When you consider what landlords stand to save on their income tax bills, however, you might want to give the job a second thought. A financial advisor can help you create a financial plan for your real estate goals. Let's break down five ways property owners save during tax season. Read More...

Mar 28, 2023 If you have children or other dependents under the age of 17, you likely qualify for the Child Tax Credit. In 2021, it was temporarily expanded as part of the  American Rescue Plan, which was signed by President Biden in March of that year to help families deal with the financial hardships stemming from the COVID-19 pandemic. There are a number of income limits you should know about when planning how much you'll receive. Planning for your family's finances goes beyond taxes. A financial advisor can help you create a long-term financial plan. Read More...

Jan 20, 2016 Renewable energy has been gaining steam in recent years. Windmills are popping up on ridges and in fields throughout the country, and solar panels are covering more roofs every day. From 2008 to 2013, the total energy produced by renewable sources increased by more than 25%, according to data from the Energy Information Administration. Read More...

Feb 02, 2023 A tax deduction is a type of tax break that reduces the amount of money you owe the government. Tax deductions decrease your tax burden by lowering your taxable income and you can either claim the standard deduction or itemize your deductions when you file. Prior to the 2018 tax year, the standard deductions were about half as much as they are now. Below, we cover the standard deductions for the tax years 2022 and 2023, which will be filed respectively in early 2023 and early 2024. If you think you may be better off itemizing deductions then you'll likely benefit from working with a financial advisor who specializes in taxes. Read More...

Jan 13, 2016 Tax season is upon us. While we all dread doing our taxes, for many Americans there is a light at the end of that dark tunnel: a tax refund. Not everyone gets one, and the refund itself is money that you as a taxpayer have technically overpaid during the course of the year. Nonetheless, it feels good to receive that check and many people make big plans for their refund money.  Read More...

Jan 25, 2023 There are several good reasons to consider filing your own tax return. It can be cheaper than putting everything in the hands of a professional. You'll learn how to lower your tax bill and you'll be able to crunch the numbers in the comfort of your own home. If you'd prefer a DIY approach at tax time, taking the following steps can make the process go more smoothly. If you want professional help, a financial advisor can help build a tax planning strategy.  Read More...

Mar 19, 2021 Before you know it, tax season will be here again. If you've made a couple of mistakes on your tax forms in previous years or you've had to file for an extension on more than one occasion, this is the perfect time to right those wrongs. A financial advisor can help you optimize a tax planning strategy for your investments and retirement goals. Let's break down what you need to do (and avoid) before the April 15 tax filing deadline (extended to May 17 in 2021).  Read More...

Sep 16, 2022 We all know that the salary we negotiate is not the same as our take-home pay. Between benefits, retirement contributions and taxes, the difference can be quite substantial. In the U.S., federal and often state and local governments collect income taxes. Understanding which factors affect how much income tax you have to pay at every level can help you make more informed decisions. For tax planning, you can work with a financial advisor who can help you prepare for potential liability and who might be able to save you some money.  Read More...

Oct 20, 2022 On March 1, 1872 Congress voted to establish Yellowstone National Park, the first national park. Today, there are over 400 national parks and over 20,000 National Park Service employees. Want to know more about these parks, how they're funded and how the economics of national parks affects local communities? You're in the right place. If you're saving up for travel and other savings milestones, a financial advisor can help you create a financial plan to reach your goals. Read More...

Dec 02, 2015 Shopping season is upon us. For some holiday shopping is a chore and a headache, synonymous with long lines and baffling return policies. Well good news for the Grinches: the rise of online retailers like Amazon and Jet.com means you can take care of your gift purchases from the comfort of your couch, with a credit card and a computer. Read More...

Nov 06, 2015 Did you know that there's a way to deduct up to half of your income at tax time? But there's a catch: You have to make a cash donation to a qualified charity. If you donate shares or other non-cash assets, you can deduct up to 30% of your income. If you have plenty of money to spare and you're worried about getting a hefty tax bill, you may want to consider a donor-advised fund. Read More...

Jan 23, 2017 Professional football players lead enviable lives. The pro athletes on an NFL roster make a minimum of $435,000 per year, approximately 10 times the U.S. median income. The top earners get paid over $20 million per year. While that income guarantees a certain level of financial security and material comfort, there’s at least one day of the year that NFL players don’t get to enjoy: tax day. Read More...

Jan 12, 2016 Every year at tax time you'll pay federal income taxes, state taxes and local taxes. Some states are known for being more tax-friendly than others. Maybe you don't mind paying higher taxes if it means safer streets, better schools and more modern infrastructure. Still, if you're planning to move or buy a home, consider the impact of state taxes.  Read More...

Mar 07, 2023 Tax season can be stressful. But for many taxpayers, there is a light at the end of the tunnel in the form of a tax refund. Indeed, many people even depend on their annual refund, using the windfall for everything from  saving for retirement to working with a financial advisor to invest the money. If you've ever had serious questions about how tax refunds work, we'll fill you in on what you might not know. Read More...

Mar 18, 2023 Every April we have to go through filing federal income taxes, on our own or with the help of a tax accountant. Unless you happen to be a tax policy wonk, you probably don't dwell too much on the theory and practice of taxation. But while America's tax code is notoriously complex, taxes break down into discrete categories that are easy to understand. However, to minimize how much taxes affect your finances, you may want to work with a financial advisor. Read More...

Mar 18, 2023 Form 1040 is the tax form you will fill out every year when you do your federal income taxes. Prior to the 2018 tax year, there were multiple versions of the 1040 form, but for 2019 and beyond, the form has been consolidated into a single version. While people with more complicated tax situations may need more forms and schedules, everyone filing taxes will need to fill out Form 1040 in order to file their taxes. For help with taxes and other financial issues consider working with a financial advisor. Read More...

Jan 20, 2023 Update for the Current Tax Laws: President Trump signed a new tax plan into law in December 2017. The new law consolidated forms 1040, 1040A and 1040EZ into one redesigned  Form 1040 that all filers can use. For your 2019 taxes, which you file in early 2020, you will use this new 1040. That means you can no longer use the 1040A unless you are filing a return for the tax year 2017 or earlier. If you have any tax questions you may want to refer them to your financial advisor. Read More...

Jan 25, 2023 With a  limited liability company (LLC), a single person usually isn't fully responsible for company debts. Like other business categorizations, you'll have to pay taxes if you're a member of this type of entity. However, LLCs are also taxed differently depending on whether they're classified as partnerships, sole proprietorships or corporations. Do you have questions about tax planning? Speak with a financial advisor today. Read More...

Mar 18, 2023 Filing your taxes on an annual basis is a major part of everyone's financial life. While the idea of filing might seem intimidating at first, there are many services and methods available to make doing so much easier. For instance, services like TurboTax and TaxSlayer walk you step by step through the filing process. For more help with your taxes and to start tax planning, consider working with a financial advisor. Read More...

Mar 18, 2023 In late 2017, President Trump signed a new tax plan into law. This law consolidated the forms 1040, 1040A and 1040EZ into a single redesigned  Form 1040 that all filers can use. For your 2022 taxes, which you file in 2023, and beyond you will continue to use this new Form 1040. If you have questions about filing your taxes, a financial advisor can help you optimize your tax strategy for your financial needs and goals. Find a financial advisor today. Read More...

Jan 30, 2023 Along with the independence of owning your own business comes a greater level of responsibility. One of those responsibilities is paying business taxes. The business taxes you file will depend on whether the business is a sole proprietorship or whether it has corporation status. Many business owners find that hiring tax help is a worthwhile investment, and work with financial advisors to align their tax strategies to manage financial assets and maximize income. Let's break down your tax obligations, and walk through the tax deductions and credits that can help you save money for your business. Read More...

Dec 30, 2022 One of the most important tax forms is the W-2. Unlike many tax forms, most individuals taxpayers won't need to fill this one out themselves. Rather, employers fill out W-2 forms for their employees. If you're an employer who doesn't know how to fill out a W-2 form, or you're not sure whether your employees need one, we've got the lowdown on everything you need to know. A financial advisor can help you optimize your tax strategy to help you reach your financial goals. Find a financial advisor today.  Read More...

Feb 01, 2023 Given the complicated nature of income taxes and the popularity of convenient but not foolproof DIY tax filing software, it's understandable that you may make a mistake on your taxes at some point. When this happens, you'll need to file an amended tax return by filling out Form 1040-X. This may be needed if you've made mistakes ranging from under-reporting your income to missing out on tax credits and deductions. For help with fixing tax return issues or any other major financial consideration, think about finding a financial advisor to help you. Read More...

Mar 01, 2018 If your income is particularly low one year, you may not need to file federal income taxes at all. You can save yourself the time and hassle of filling out your tax returns. The income threshold for determining whether you need to file taxes varies based on several factors, such as whether someone claims you as their dependent, whether the income you received is earned or unearned and whether you are blind.  Read More...

Oct 01, 2022 These days, the government works to lift folks out of poverty by means of subsidized housing, grants, tax deductions, tax credits and hundreds of programs targeting different needs. Some economists and tax policy wonks have questioned the need - and the efficacy - of all these targeted efforts. Why not just give money to people who need it, they ask. One way of doing so would be to implement a Negative Income Tax.  Read More...

Feb 01, 2023 The first thing you should know about the different types of 1099 forms is that if you're a worker, you don't need to fill them out yourself. Instead, the entity who is administering your investment account will send you a 1099. It's a relatively simple form to understand, meaning that incorporating one into your tax return process shouldn't be too difficult. You can expect to receive all 1099s that apply to you by early February. And a  financial advisor can help you take an additional step to figure out how 1099 taxes fit into your overall financial goals. Your financial plan isn't complete until you account for annual income tax payments and refunds. Talk to a financial advisor. Read More...

Jan 28, 2016 Failure to keep up with your tax liabilities can lead to what's called a tax levy. With a tax levy, the IRS confiscates assets of yours such as the money in your savings account or a portion of your wages. Of course, an IRS levy doesn't happen overnight. You'll get notices of overdue taxes and have a chance to prevent a levy.  Read More...

Aug 05, 2022 The term "tax liability" describes the amount of money owed to the Internal Revenue Service (IRS) at the end of each tax year. Many Americans make reducing their tax liability a goal by chasing deductions and tweaking their filing strategy. If you want to know the answer to the question "Do I have tax liability?" you'll have to compare your income to the deductions, exemptions and credits for which you're eligible. A financial advisor could help reduce your tax liability by creating a full financial plan for your goals. Read More...

Mar 10, 2023 If you are an independent contractor or business owner, you are responsible for making sure that you get the correct tax payments to the government -- unlike people who work as employees of a company which withdraws payments from each paycheck. Estimated taxes are what you expect to pay on any salary you earn that isn't subject to withholding, along with other income like interest, dividends and capital gains. For help figuring out your estimated taxes and make sure you don't make any costly mistakes, consider working with a financial advisor. Read More...

Feb 01, 2023 If you've ever looked at your earnings statement from a job, you have likely noticed some tax withholding. As part of your overall payroll taxes, the federal government requires employers to collect the FICA (Federal Insurance Contributions Act) tax. The FICA tax includes two separate taxes. Social Security taxes fund Social Security benefits and the Medicare tax goes to pay for the Medicare Hospital Insurance (HI) that you'll get when you're a senior. Below we'll take a closer look at what Medicare taxes are and how they benefit you. And if you'd like the help of an expert one-on-one, head over to SmartAsset's financial advisor matching tool to get paired up with a financial professional who can provide guidance tailored to your particular needs. Read More...

Dec 02, 2022 A tax shelter is a place to put your money where it will be safe from the long arm of the Tax Man. Many people think of tax shelters negatively, but they are completely legal and legitimate ways to decrease your taxable income. Common examples of tax shelters are home equity and 401(k) accounts. A tax shelter is different from a tax haven, which is a place outside of the country where people can stash money in order to avoid paying U.S. taxes. Consider working with a financial advisor to help with your full tax planning strategy.  Read More...

Feb 01, 2023 A health savings account (HSA) is a way to set aside some money, tax-free, to use for possible medical situations you can't see coming. If you don't end up needing the money, can also be used as a vehicle for saving for retirement. Using an HSA is also a way to lower your tax burden each year, and their are a variety ways this can happen. If you want help with medical planning or any other financial considerations, consider working with a financial advisor. Read More...

Mar 18, 2023 Paying a federal income tax now seems so routine that it's hard to imagine a time when income taxes were controversial. The federal income tax as we know it is actually only a little over one hundred years old. That's a whole lot of money. Let's break down how income taxes work. A financial advisor can help you optimize a tax strategy for your financial needs and goals.  Find a financial advisor today. Read More...

Mar 18, 2023 According to the U.S. Department of the Treasury, payroll taxes made up approximately 30.6% of federal tax revenue in fiscal year 2022. That's $1.5 trillion out of $4.9 trillion. These taxes come from the wages, salaries, and tips that are paid to employees, and the government uses them to finance Social Security and Medicare. Employers withhold payroll tax on behalf of their employees and pay it directly to the government. If you take a close look at your earnings statement, you'll see that payroll taxes take a serious bite out your paycheck. But a  financial advisor can look at your tax situation and help you reach your financial goals. Read More...

Mar 18, 2023 A sales tax is a form of consumption tax that is collected by merchants who sell goods. The merchants then pass those taxes on to the government. Most states impose a sales tax, expressed as a percentage of the price of the taxed item. The good news is that sales tax revenue funds a lot of the stuff that makes our states tick. Plus, you can deduct the money you pay in state sales taxes from your federal income taxes.  Read More...

Jan 05, 2022 Schools, roads, parks, hospitals, and other public works and services rely on you and your neighbors, businesses, organizations, and estates to pay taxes that will help fund their budgets. Understanding how taxation works can give you a big picture idea about the ways your money gets taxed and empower you to take greater control of your finances. And a  financial advisor can also help you align your tax strategies to reach your financial goals. Read More...

Mar 18, 2023 Property taxes got you down? It's worth investigating exemptions, deductions and credits in your area. Even if you don't live in a property that came with a tax abatement, you might qualify for a property tax break through your local or state authorities. And who doesn't want a tax break? Read More...

Mar 18, 2021 According to the non-profit Tax Foundation, the average effective income tax rate for all U.S. households is 18.1%. That is lower than the highest marginal rate paid by most year-round workers, (at least 25% for any individual with an adjusted gross income of more than $36,901)—but it also doesn’t capture the full picture. For the typical tax payer, state and local taxes on income, purchases and real estate can be almost as burdensome as federal income tax. Read More...

Mar 10, 2023 As a general rule, you shouldn't wait until the last second to file your tax return. It helps to plan and make certain decisions ahead of time to speed up the process. For one, if you're married, you'll need to decide whether you will file a joint or separate return. Typically, a joint return is the smartest move, since you can cash in on some valuable tax breaks. But sometimes it makes more sense to file on your own. A financial advisor can help you optimize the best tax strategy for your financial goals. Read More...

Mar 18, 2023 A Refund Anticipation Loan (RAL) gives you early access to a sum roughly equivalent to your IRS tax refund. Sounds great, right? Well, the problem with these loans is that they come with significant fees and high interest rates. Another early refund option, the Refund Anticipation Check (RAC), isn't fee-free either. Read More...

Feb 03, 2023 The deadline to file your 2022 taxes is April 18, 2023 (April 15, 2024 for tax year 2023). But you may need even more extra time. If you think you'll need more time to get your taxes done, filing a tax extension is a must. When you file a tax extension form, the IRS gives you an additional six months to get your return in. A financial advisor could help you create a tax plan to meet important deadlines and reach financial goals. Let's break down what you need to know about getting a tax extension. Read More...

Mar 18, 2023 You don't have to be a die-hard hippie to see the sense in adding renewable energy to your home. What stops homeowners from installing these money-saving features is often the up-front cost or a lack of awareness of how going solar can help you tax-wise. However, an energy tax credit can indeed help take the sting out of that initial investment. Consider working with a financial advisor as you look to reduce your taxes as well as your carbon footprint. Read More...

Mar 23, 2023 Financial experts recommend saving for retirement. According to one rule of thumb, you should have twice your salary saved by the time you're 40, and eight times your salary by the time you're 65. Unfortunately, the average American paces well behind that recommendation, and  half of all Americans have no retirement savings at all. To incentivize low- and moderate-income Americans to save more, the U.S. government created the Saver's Credit. This credit provides a tax deduction for some of your IRA or ABLE account contributions, as long your income falls below a certain threshold. A financial advisor can help you develop and a financial plan for the future. Read More...

Mar 18, 2023 If you're expecting to get a big refund, tax season is probably something you look forward to each year. On the other hand, if you always end up owing Uncle Sam, then the April deadline may be a date you dread. Waiting until the last minute to file only adds to your stress, though, especially if you've got a balance due. But not filing at all can be even more problematic. There are both immediate and long-term consequences for failing to file, so if there's a chance you won't get your return in on time, here's what you can expect. Read More...

Dec 31, 2014 Estate planning requires interdisciplinary knowledge of law, tax and accounting issues. Yet the answer to the question  What makes a professional estate planner a professional? is that they get paid. This answer is not only snarky, but it also exposes a rather disturbing issue: the lack of regulation. In most places, anyone can hang a sign outside their door that says they're an estate planner, because no official license is required. There are, however, several certifications and accreditations that can help provide some legitimacy. Read More...

Mar 10, 2023 While it may be tempting to save some money and plan your estate by yourself, it is likely not a good idea. Estate planning is full of small details that the average person just doesn't know about, but which someone trained in estate planning will. For this reason, it almost always makes sense to get professional help from a lawyer or financial advisor for all your estate planning needs -- otherwise, mistakes are likely. While everyone can benefit from estate planning, DIY estate planning is an especially bad idea if the estate in question is going to be worth more than the estate tax exemption, which sat at $12.06 million in 2022 and has risen to $12.92 million for 2023. For help finding someone to help you with estate planning, consider finding a financial advisor with SmartAsset's free matching tool. Read More...

Mar 20, 2023 The title of this article is actually a serious question that is too often ignored. For many, the idea of estate planning means having millions of dollars in assets that will need to be distributed. The reality, though, is that estate planning is for anyone and everyone, as each of us, regardless of how much we have, is inevitably going to die. What happens to your assets--which includes more than just your money--is what estate planning is. Read More...

Dec 14, 2021 It's tax time! No, it's not April 15 th and you are not the subject of a time travel experiment gone wrong. But if you are one of the millions of taxpayers who expects to owe and wants to minimize your tax bill, or you want to maximize your refund, the time to think about taxes is before the end of the year. The fact of the matter is that once January 1 st rolls around, your accountant's hands are pretty much tied in terms of finding ways to lower your tax burden. The good news is there are things you can do now that can save you money when it's time to file. If you want help with end-of-year taxes or any other financial issues, consider working with a financial advisor. Read More...

Mar 10, 2023 No matter the time of year, it's never too early to start working on your tax strategy. For 20-somethings who are struggling to get a grip on their finances, the whole process can seem overwhelming. And if you're not sure what you're doing, it's easy to overlook a key tax deduction or credit that could be worth big bucks when it's time to file. A financial advisor can help you figure out what to do with your taxes. There are certain things millennials need to keep in mind when prepping their returns. Let's break down the most important. Read More...

Dec 21, 2017 One of the toughest things you will do as an adult is watch as your parents deteriorate with age. Emotionally, it is taxing to watch the very people or person who cared for you as a child slowly become more and more dependent on you for support. The emotional strain can be difficult enough, but other factors, such as medical costs, deciding the best way to care for them and how their assets will be utilized in aiding with this care, can cause even more frustration. Read More...

Mar 18, 2023 Taxpayers who can't get their paperwork in order by the extended May 17 filing deadline for their 2020 taxes can buy themselves a little more time by requesting an extension. This gives you an additional six months to complete your return and send it off to the IRS. Oct. 15, 2021 is the cutoff date for filing if you requested an extension and it'll be here before you know it. With the tax extension deadline drawing closer, here's what you need to be aware of when you're getting your documents together. Read More...

Apr 18, 2017 Estate planning is something people tend to put off for one reason or another but it's important that you have certain documents in place to protect your interests. At the very least, you need to draft a last will and testament to spell out what should be done with your assets after you're gone. Writing a will can be pretty straightforward if you have a relatively small estate but things can get complicated if you've built up a significant amount of wealth. If you haven't gotten started on yours yet, here are the top five mistakes you'll want to avoid. Read More...

Mar 10, 2023 When people think about planning their financial future, they tend to focus on things like retirement, paying down debt or saving for their child's education. Planning your estate is one of the things that often gets pushed to the backburner. There are lots of misconceptions about estate planning and if you don't have a clear understanding of how it works, you leave yourself open to some potentially expensive errors. We've put together a list of some of the most common estate planning mistakes you should avoid at all costs. Estate planning can be challenging, but a financial advisor can make the process smoother and more successful. Find one today. Read More...

Dec 06, 2022 Planning for the future means more than just saving for retirement or adding a few bucks to your child's college fund. While it's probably the last thing you want to think about, making sure your family is financially prepared for your death is just as important. There are several elements that go into forming a solid estate plan but a last will and testament is the most basic. If you don't have a will, here are a few key points to keep in mind when making one. Consider working with a financial advisor as you create or update your estate plans. Read More...

Sep 01, 2022 Taking on a summer job is a rite of passage for many teens. It's also a great way for kids to learn some financial responsibility while earning their own money. It's even provides an opportunity for young adults to get acquainted with what it means to have to pay taxes. In most cases, any money your teenager earns from working (from a year-round or summer job) is considered taxable income by the IRS. Whether or not they'll have to fork over any cash to Uncle Sam depends on how much money they make and what kind of work they do. Do you and your family want help with long-term tax planning? Speak with a financial advisor today. Read More...

Jan 05, 2023 After the April showers come May flowers, which means the summer wedding season will soon be in full swing. Tying the knot is an exhilarating experience but planning your nuptials can leave you feeling frazzled, especially if you're worried about going over your budget. With the average cost of a wedding hovering over $20,000 nationwide, it pays to look for ways to keep your costs down. A financial advisor can help you create a financial plan to help you pay for weddings, buying a home, raising a family, retiring, and other financial goals. Find a financial advisor today. Read More...

Jan 13, 2023 Benjamin Franklin once said that nothing was certain in this world except death and taxes. Even though it may be unpleasant, preparing for both of these events is important to your overall financial health. When it comes to making decisions about how you want your finances to be handled after you're gone, you can't afford to put it off. If you haven't put much thought into end-of-life planning, here are some steps you may want to take to ensure that your family is protected. You can also work with a financial advisor who can help you think through all the aspects of an estate plan.  Read More...

Oct 01, 2022 The pandemic is complicating many people's efforts to file their 2020 taxes by the deadline. But the good news is that the IRS has extended until May 17, 2021, the amount of time filers have to turn in their 2020 returns. But even if the extra month is not time enough to complete your returns, don't worry. Missing the cutoff date isn't necessarily the end of the world, although you could end up getting hit with some hefty penalties if you don't get your return in on time. If you already owe a sizable tax bill you may find yourself digging an even deeper hole the longer you wait. Here's what you can do to minimize penalties and interest if you end up filing your taxes late. Read More...

Feb 01, 2023 Your death is probably the last thing you want to think about, but you can’t afford not to - especially when you have a family that you will be leaving behind. A wise person once said that the only thing you can count on is death and taxes and they were right. It could be right around the corner or a few decades in the future, but it is something that will get here eventually. Prep your family now for your passing and you will save them the headache and heartache later on. Read More...

Mar 20, 2023 Established in 1969, the Alternative Minimum Tax was originally intended to prevent wealthy Americans from shortchanging the federal government at tax time. Generally, taxpayers can take advantage of credits and deductions to reduce their tax liability and lower their taxable income. The Alternative Minimum Tax comes into play once your income reaches a certain limit. While the tax was permanently indexed for inflation in 2013, millions of Americans may still find themselves getting hit with the AMT this year. If you're worried you may have to pay, here's what you need to know. Read More...

Mar 10, 2023 Making sense of the federal tax code is no easy task and with so many new changes taking effect, figuring out what you owe may be even more difficult. Tackling the job yourself can save you money on tax preparation fees but it could end up costing you if you make a mistake. Hiring a professional may mean shelling out serious cash but it could be worth if you're able to lower your tax bill or fatten up your refund. It helps to understand the advantages and disadvantages of either option before you make a decision. Read More...

Mar 10, 2023 Tax season is underway and the IRS is hard at work processing the millions of returns being filed. While most returns will be accepted without a second glance, a select group of taxpayers will find themselves subject to closer scrutiny in the form of an audit. A financial advisor can help you figure out what you should do with your taxes. Let's break down the most common IRS audit triggers. Read More...

Dec 23, 2014 When you are first starting out in your career, you tend to think of retirement as something far off.  In the days of our grandparents, and even some of our parents, retirement savings wasn't even an issue - many employers took care of that with company pension plans. Read More...

Oct 17, 2017 Let’s start with the good news: your house has most likely increased in value over the last couple of years. While the recession knocked most property values down to early 2000s levels, most of the country has recovered and home values have increased each year. The bad news is that your property taxes probably jumped upwards as well. Fortunately, there are some actions you can take to limit the pain of rising property taxes. Read More...

Mar 10, 2023 A living trust is a financial instrument used to make sure your money goes to the right people when you die. No one likes to think about dying but when it comes to managing your finances, you have to be prepared for the inevitable. Having a solid estate plan in place can ensure that your family is taken care of after you're gone. A last will and testament and a living trust are two useful tools you can use to form your estate plan. If you don't have a lot of assets or you plan to leave everything to your spouse, a will may be enough. A living trust lets you dictate how your assets are handled before and after you die, but whether or not you need one depends on several factors. A financial advisor can help you with all manner of estate planning issues. Read More...

Jan 05, 2016 In all the hubbub around getting married you might not have thought about how the change in your marital status would affect your tax bill. Once you’ve written your thank-you notes and returned from your honeymoon, you can turn your mind to practical considerations like taxes. The good news is that you've earned some new tax privileges. The bad news is that you might owe more at tax time. Here are five ways getting married affects your tax bill. Read More...

Jan 20, 2016 You may be planning to do your taxes as close to the April 18th deadline as possible. This year, the usual April 15th deadline has been pushed back to April 18th. But that's no reason to procrastinate. Here are the 5 best reasons to do your taxes early. Read More...

Jan 19, 2017 SmartAsset ran income data for players like Cam Newton and Eli Manning through our income tax calculator to estimate the tax bills paid by the NFL’s stars. Read on to find out which NFL stars are taking the biggest hit. Read More...

Feb 16, 2016 Everyone likes a nice fat tax refund check. A big tax refund can seem like a just reward for 12 months of tax withholding, not to mention taking a few hours to fill out an income tax return. But pulling out all the stops in pursuit of a bigger tax refund is probably not the best idea. Here are 5 things you shouldn’t do just to get a bigger tax refund. Read More...

Feb 23, 2016 When it comes time to elect the next president, Americans will mark their ballots after careful consideration on a range of issues. For many voters, a candidate's tax plan will be a deciding factor. Will your tax bill be higher or lower under your candidate of choice? Here’s where the candidates for the Democratic and Republican nominations stand on the issue of taxes. Read More...