- New Jersey vs. New York: Which Is Better for Taxes?
Comparing New Jersey vs. New York taxes highlights differences in how income, property and sales taxes affect residents on both sides of the Hudson River. New York typically imposes higher income tax rates, especially on high earners, while New Jersey’s property taxes rank among the highest in the country. Sales tax rates are also different,… read more…
- California vs. Florida: Which Is Better for Taxes?
When comparing California vs. Florida for taxes, the absence of a state income tax in Florida often draws attention. However, this doesn’t mean Florida offers a lighter tax burden across the board. Many low- and middle-income families pay similar or even higher overall tax rates in Florida than in California. This is in large part… read more…
- Standard Mileage Deduction: Requirements, Rate and Examples
If you use your personal vehicle for business or other specific needs, you may be eligible to claim the standard mileage deduction on your federal tax return. This deduction allows taxpayers to write off vehicle-related expenses based on the number of miles driven, using IRS-approved rates. The standard mileage deduction can significantly reduce your taxable… read more…
- Section 83(b) Election for Stock Options: Deadline, Examples
An 83(b) election lets individuals who receive restricted stock or stock options pay taxes on the value at the time of grant, rather than when the shares vest. This election is only available within 30 days of receiving the stock and can affect the amount and timing of taxes owed. Understanding how the 83(b) election… read more…
- Form 8396: How to Claim Mortgage Interest Credit
Form 8396 is used to claim the mortgage interest credit. This is a nonrefundable federal tax credit available to certain homeowners who receive a mortgage credit certificate (MCC) through a state or local housing agency. The credit is designed to make homeownership more affordable for low- and moderate-income individuals by allowing a portion of the… read more…
- Form 8283: How to File for Noncash Charitable Contributions
When you donate noncash items—such as artwork, vehicles, clothing or other property to a qualified charitable organization, you must report those contributions using Form 8283: Noncash Charitable Contributions if the total value exceeds $500. This form helps document the nature of the donation, how the value was determined and whether an appraisal was conducted. While… read more…
- Puerto Rico Tax Benefits for Americans: What to Know
As a U.S. territory, Puerto Rico can offer tax incentives not available on the mainland. This status allows it to offer tax incentives for individuals and businesses that aren’t available on the mainland. The island’s tax advantages are primarily governed by Acts 20 and 22. These regulations aim to stimulate economic growth by attracting new… read more…
- What to Buy Before and After Trump Tariffs Go Into Effect
President Donald Trump is forging ahead in his second term with an ambitious and controversial plan to remake global trade through tariffs. This raises an important question for consumers: what to buy before the full effects of these tariffs take effect? Consumers may consider purchasing imported cars, electronics or household items now before the full… read more…
- What Is the Federal Corporate Income Tax Rate?
The federal corporate income tax rate in the U.S. is a flat 21% as of 2025. This rate applies to corporate profits and affects how much income a company keeps after taxes. In addition to the federal rate, businesses may also face state corporate taxes, which vary by state and increase the total tax cost.… read more…
- Tax-Exempt Interest on Form 1040: How to Report and Examples
Reporting tax-exempt interest on Form 1040 is required even though the interest is not taxed. This type of income often comes from municipal bonds and must be listed on your tax return to follow IRS rules. A financial advisor can help you track and report this income correctly as part of your overall tax strategy.… read more…
- How Are Bonuses Taxed in 2025?
Bonuses paid by employers get special tax treatment and could have a significant impact on an employee’s tax situation. In the United States, bonuses are typically considered supplemental wages, which means they are subject to different withholding rules than regular income. There are two ways bonuses can be taxed: the percentage method or the aggregate… read more…
- Straight Line Depreciation: Definition and How to Calculate
Understanding the financial health of a business involves a lot of accounting. One of the most popular methods for determining the value of a business is straight line depreciation. Investors often choose the straight line method for its simplicity and consistency. Straight line depreciation shows how an asset’s value declines over time. This method aids… read more…
- Form 6252: How to Report Installment Sale Income
Taxpayers use Form 6252 to report installment sales when at least one payment arrives after the tax year of the sale. Rather than recognizing the full gain upfront, sellers have the option to spread their tax liability over several years as they receive payments. Form 6252 helps calculate the gain portion of each payment and… read more…
- Form 2439: What Is It, Who Files It and Who Gets It?
Form 2439 is a tax document that a regulated investment company (RIC) or real estate investment trust (REIT) issues when it retains capital gains and pays taxes on behalf of its shareholders. Instead of distributing the gains, the fund provides Form 2439 to shareholders, allowing them to report the income and claim a tax credit.… read more…
- Noncash Charitable Contributions: Rules and Examples
Charitable donations are not just limited to cash contributions. Many individuals and businesses choose to make noncash charitable contributions for anything from clothing and household items to real estate and stocks. Noncash donations must be made to qualified organizations, and, in many cases, donors may need to determine and document the fair market value of… read more…
- Form 4952: How to Claim Investment Interest Expense Deduction
Form 4952 helps investors who borrow money to finance their investments deduct the interest paid on those loans. This tax deduction can offset investment interest costs but comes with specific limitations and eligibility criteria. The deduction can only be applied to interest expenses related to investments in taxable income-generating assets, such as stocks and bonds.… read more…
- Where to Find Tax-Exempt Interest Income on Your Taxes
Tax-exempt interest income is an important part of many investors’ portfolios, and knowing where to find it on your tax forms is essential when it comes to preparing your tax return. While this type of income— commonly earned from municipal bonds, certain U.S. savings bonds and other qualifying investments—is not subject to federal income tax,… read more…
- Tax-Exempt Interest Income: What It Is, How It Works, Examples
Tax-exempt interest income is earned primarily from municipal bonds and other qualifying investments that are exempt from federal, and sometimes state, income taxes. By holding these investments, taxpayers can reduce their taxable income while still earning passive returns. However, tax-exempt interest income may still be subject to other tax considerations, such as the alternative minimum… read more…
- Is There a Tax Break for Paying Your Child’s College Tuition?
Covering the cost of a child’s college tuition can be a significant financial burden. However, several tax breaks can help you reduce your overall tax liability. These include credits, deductions and tax-advantaged savings accounts, which could offset some expenses associated with higher education. Working with a financial advisor can also help you identify other tax… read more…
- 8 Tax Breaks for Independent Contractors
As an independent contractor, you have more flexibility and control over your work, but you also face specific tax obligations. Unlike traditional employees, independent contractors are responsible for self-employment taxes, income taxes and business expenses, which can add up quickly. Fortunately, here are eight tax breaks that can help you lower your taxable income and… read more…
- How Do States Tax Exempt-Interest Dividends?
Exempt-interest dividends, often paid by municipal bond funds, are generally free from federal taxes. However, they may still be taxed at the state level. How states tax exempt-interest dividends depends on factors like the investor’s residency and where the bonds were issued. Some states exclude dividends from in-state municipal bonds while taxing those from out-of-state… read more…
- Alternative Minimum Tax (AMT) Rules and Exclusions for 2025
The alternative minimum tax (AMT) is a separate way to calculate taxes that makes sure high-income earners pay at least a minimum amount, even if they claim many deductions or credits. In 2025, the AMT exemption is $88,100 for single filers and $137,000 for married couples filing jointly. These amounts start to phase out if… read more…
- Alternative Minimum Tax (AMT): What It Is and How It Works
The alternative minimum tax (AMT) is a separate tax system that makes sure people with high incomes still pay some tax, even if they have a lot of deductions. It removes some common deductions, like state and local taxes, and uses different rules to figure out what you owe. It mostly affects people with high… read more…
- Form 8379: How to File an Injured Spouse Allocation
When a married couple files a joint tax return, both spouses typically share responsibility for any tax liabilities. However, if one spouse has past-due debts — such as unpaid federal taxes, state taxes, child support or student loans — the IRS may seize the entire tax refund to satisfy those obligations. Form 8379, also known… read more…
- Form 4684: How to Claim a Casualty and Theft Loss Deduction
Form 4684 allows individuals, businesses and estates to claim deductions against any unexpected losses due to theft or disasters. These deductions can help reduce taxable income, but they come with specific eligibility requirements and limitations. In most cases, only losses caused by federally declared disasters or qualified thefts can be deducted. A financial advisor can… read more…