- Tax Deductions: Are Job Hunting Expenses Deductible?
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… read more…
- Where Homeowners Save the Most on Taxes in 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… read more…
- What Are Above-the-Line Deductions?
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.… read more…
- How Trump’s Estate Tax Affects the Wealthy
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… read more…
- 9 Expenses You Can’t Deduct on Your Tax Return
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… read more…
- The New Tax Filer’s Guide to Itemized Deductions
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… read more…
- 9 States With No Income Tax
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 and Wyoming, they are off the hook for state-level personal income taxes. While avoiding state… read more…
- What Is a Personal Exemption?
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… read more…
- What Do NFL Players Pay in Taxes? – 2017 Edition
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… read more…
- What Is Taxable Income?
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… read more…
- Differences of Tax Credits vs. Tax Deductions
There are a number of ways to decrease your tax burden. The two most popular ones, though, are likely tax credits and tax deductions. While these may seem like they are the same thing, they are actually two very different… read more…
- Filing Taxes for the First Time? You’ll Need These Documents
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… read more…
- Top 3 Tax Tips for Self-Employed Workers
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…
- How the Trump Tax Plan Will Affect You
President Trump signed the Tax Cuts and Jobs Act into law in December 2017. This bill largely didn’t affect individual income taxes until the 2018 tax year, which you filed in early 2019. How exactly the Trump tax plan affects you depends… read more…
- Do Sin Taxes Affect Cigarette and Alcohol Consumption?
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… read more…
- What Is Tax Increment Financing?
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… read more…
- 15 Things to Know Before Moving to Tennessee
Moving to Tennessee offers a unique blend of Southern charm, stunning natural landscapes, and vibrant city life, but there are a few things you should know before making the move. From the state’s low cost of living and no income tax to its unpredictable weather and deep-rooted country music culture, Tennessee has plenty to offer… read more…
- What Is the Homestead Tax Exemption?
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… read more…
- Understanding Agricultural Tax Exemptions
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… read more…
- What Is a Tax Amnesty?
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… read more…
- Tax Avoidance vs. Tax Evasion
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… read more…
- All About IRS Form 8863
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… read more…
- All About IRS Form 1040X
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… read more…
- All About IRS Form 1041: Tax Return for Estates and Trusts
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,… read more…
- All About IRS Form 2848
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… read more…