- I’m Selling My House and Netting $640k to Downsize for Retirement. How Can I Avoid Capital Gains Taxes?
Selling your longtime home and downsizing in retirement is a common practice for people entering their golden years. While profits from a home sale are considered capital gains, the IRS typically allows you to exclude part of the profit – if not all of it – from your taxes. But what if you sold your… read more…
- When Is PMI Tax Deductible?
Mortgage lenders generally require private mortgage insurance (PMI) when borrowers cannot put down at least 20% on a home loan. PMI premiums can add significant amounts to monthly mortgage payments. However, the pain was partially alleviated by a tax deduction for PMI policies issued after 2006. That deduction expired in the 2022 tax year. However,… read more…
- Deciding Between Married Filing Jointly Versus Separately With Your Taxes
When tax return season rolls around, married couples have to decide whether to file their taxes jointly or separately. Filing jointly is far more common and usually results in a lower tax bill. However, there are certain situations where filing separately makes good financial sense. Couples with student loans, self-employment income or high medical expenses… read more…
- Tax Filing: Head of Household Versus Single
The choice between single and head of household tax filing status can have a sizable impact on the taxes you owe or the refund you receive. These two filing statuses, while seemingly straightforward, come with distinct qualifications and benefits that can influence your tax liability. Many don’t realize they may qualify for the more beneficial… read more…
- Important Tax Changes to Know Before You File in 2026
Tax rules rarely stay the same, with exemptions, deductions and thresholds often changing from year to year. This year is no exception, as several updates apply to 2025 taxes filed by April 2026. Before gathering documents and preparing your return, it’s important to review the current tax rules to ensure you remain compliant and take… read more…
- What Is the California Earned Income Tax Credit?
California is one of the most expensive states to live in – but numerous tax credits can lighten the load for working individuals and families. Specifically, the California Earned Income Tax Credit (CalEITC) can enhance your tax refund from the state. In addition, taxpayers who qualify for this credit often can claim a host of… read more…
- I’m 65 and a High Earner. I Don’t Plan on Retiring Soon – Is It a Bad Idea to Use My Roth IRA for Home Renovations?
Should you cash out your retirement fund to upgrade your house? While there are some people for whom this will be a good idea, other households will be better off if they let their retirement fund keep growing. Ultimately, the decision will depend on your net worth, expected retirement expenses and tax strategy. Using Roth… read more…
- I Want to Give Money to My Daughter and Son-in-Law. How Much Can I Give Without Triggering Taxes?
Perhaps your daughter recently got married and you want to help her and her husband start their new life. Or maybe they suddenly find themselves in need of financial assistance and turn to you for help. Fortunately, the IRS allows you to give away a certain amount of assets – from real estate and stocks… read more…
- What Happens If You File Your Taxes Late?
While dreading tax season is a near-universal experience, there’s something that can make it far worse – not filing or paying your taxes. Filing your taxes late puts you further in the hole if you owe a balance because of the fees and interest the IRS adds to your bill. You can end up paying… read more…
- 2026 IRS Tax Changes: What You Need to Know
The new year brings new tax brackets, deductions and limits that will impact your 2026 federal income tax return. Changes to the IRS tax code affect taxpayers across income levels and will change how much you owe or your refund amount. For 2026, the agency has announced annual inflation adjustments, which could impact income tax… read more…
- What Tax Rules Apply to an IRA Rollover?
Moving retirement savings from one account to another can allow you to keep the money invested without immediately recognizing taxable income. This often comes up after leaving an employer, when you may decide to move money from a workplace retirement plan into an IRA. The tax treatment depends on the accounts involved and how the… read more…
- How the 10-Year Rule Works for Inherited IRAs
Inheriting an IRA as a beneficiary can increase your financial security. But since inherited IRAs typically must be distributed within 10 years, the account can generate more taxable income than many beneficiaries expect. However, exceptions to this timeline are available. Here’s how distributions work and how to prepare yourself for anticipated taxes. A financial advisor… read more…
- Can Capital Losses Offset Ordinary Income?
Long-term capital losses can be used to offset ordinary income, but only up to a set amount. After they are applied against any capital gains, up to $3,000 of remaining losses each year may be deducted from ordinary income, or $1,500 for those married filing separately. Any unused losses carry forward to future years with… read more…
- Strategies for Protecting Income From Taxes
While you can’t avoid taxes, the IRS allows you to lower your tax burden by combining tax deductions and credits. Here are nine common tax-saving strategies to protect your wealth. A financial advisor can help optimize your investment portfolio to lower your taxes. Aim For Long-Term Capital Gains Long-term capital gains are profits from the… read more…
- Can You Have Two Primary Residences If Married Filing Jointly?
Getting married and having multiple homes are blessings to enjoy – unfortunately, a tax exemption for two primary residences isn’t among the benefits of such a situation. While it would be wonderful if two people filing taxes meant twice the benefits and exemptions, U.S. tax laws require married couples filing jointly to claim just one… read more…
- I Want to Give My Daughter and Her Husband $50,000 For a Down Payment. Do I Have to Worry About the Gift Tax?
Imagine you have $50,000 to give to your daughter and her husband for a down payment on their new home. The question is, will you owe gift taxes because of your generous gesture? Despite popular framing, the federal gift and estate taxes only apply to very wealthy households. Unless you have approximately $15 million to… read more…
- How to Reduce Your Tax Liability on a Roth IRA Conversion
Converting retirement savings to a Roth IRA can be an effective long-term tax strategy, especially if you expect to be in a higher tax bracket later in retirement. While a Roth conversion may reduce future taxes and allow for tax-free withdrawals down the road, it can also create a sizable tax bill in the year… read more…
- End-of-Year Tips: 2026 Tax Rule Changes
As the year winds down, it’s important to set aside time to ensure your 2025 taxes don’t result in unwelcome surprises in 2026. Effective year-end tax planning generally falls into two categories: proactive strategies that may help reduce your tax burden, and required tasks that can lead to penalties if neglected. Reviewing both can help… read more…
- How a Roth IRA Is Taxed
A Roth IRA is funded with after-tax dollars, which means contributions aren’t deductible when they’re made. The benefit comes later: qualified withdrawals in retirement, including both contributions and investment growth, are generally free from income tax. This setup allows the account to grow without ongoing tax liability, provided that age and holding period rules are… read more…
- How to Hire Your Child as an Employee and Save on Taxes
Hiring your child as an employee can be a strategic move that benefits both your family and your business. Not only does it provide your child with valuable work experience, but it can also offer significant tax advantages. By employing your child, you may be able to reduce your taxable income, as wages paid to… read more…
- I’m Not Sure How Giving to Charity Can Reduce My Taxes. Is It Really Worth It?
Donating money to charities you care about feels good. It can also lower your tax bill by reducing your taxable income in an amount equal to the amount you give. A number of rules and restrictions govern how much you can give and how you can do it, though. Understanding how this works so you… read more…
- I’m Selling My Home and Netting $750k to Downsize for Retirement. Do I Have to Pay Capital Gains Taxes?
Suppose you sell your primary home and make a $750,000 profit. Will you owe capital gains tax on that profit? The short answer is yes. Depending on a handful of factors, you may owe tens of thousands of dollars to over a hundred thousand dollars. Your exact tax liability could vary drastically, so knowing what… read more…
- How Foreign Real Estate Property Is Taxed in the U.S.
One common misconception among Americans living abroad is that foreign income or property sales are automatically exempt from U.S. taxes. In reality, U.S. citizens and residents generally must report worldwide income to the IRS, including gains from selling real estate located overseas. Depending on the details of the sale, you may owe capital gains taxes… read more…
- How Creating an S Corporation Can Reduce Your Self-Employment Taxes
Self-employment taxes can take a sizable bite out of business income, especially as profits grow. An S corporation may help reduce that burden by allowing eligible owners to split earnings between salary and distributions, but the strategy comes with payroll rules, filing requirements and other tradeoffs that can affect whether the tax savings are worthwhile.… read more…
- Common Tax Breaks for Retirees
Retirement changes how income is earned, and it also changes how that income is taxed. Retirees typically draw income from Social Security, pensions, traditional IRAs, 401(k)s, Roth accounts, annuities and taxable brokerage accounts. Each source is treated differently, and several tax deductions for retirees become available at certain ages. The federal tax code includes tax… read more…