- How Many Allowances Should You Claim?
Prior to 2020, one of the biggest things you could do to affect the size of your paycheck was to adjust the number of allowances claimed on your W-4. The ideal number of allowances for you would depend on your individual… read more…
- How Taxes on Lottery Winnings Work
Before you see a dollar of lottery winnings, the IRS will take 25%. Up to an additional 13% could be withheld in state and local taxes, depending on where you live. Still, you’ll probably owe more when taxes are due… read more…
- How to Avoid Paying Taxes on a Bonus Check
The satisfaction of receiving a year-end bonus may soon be tempered by the realization that income taxes will have to be paid on the extra money. Bonuses are treated as income and thus subject to taxation, but there are ways… read more…
- Can You Avoid Capital Gains By Buying Another Home?
When you sell your home, the IRS allows one major form of capital gains break. It’s called the home sale exclusion, and it allows you to deduct a significant amount of the profit from your home sale to minimize or… read more…
- Who Should Itemize Deductions Under the Trump Tax Plan
When you file a federal income tax return, you have the choice between taking the standard deduction or itemizing your deductions. The option that you pick should depend on which strategy will maximize your tax benefits. Your calculations may also have… read more…
- Explaining the Proposed Changes to the State and Local Tax (SALT) Deduction
The state and local tax (SALT) deduction allows taxpayers of high-tax states to deduct local tax payments on their federal tax returns. The tax plan signed by President Trump in 2017, called the Tax Cuts and Jobs Act, instituted a… read more…
- How to Avoid Paying Taxes on Inherited Property
Inheriting a home or other property can increase the value of your estate, but it can also result in tax consequences. If the property you inherit has appreciated in value since the original owner purchased it, you could be on… read more…
- How to Fill Out Your W-4 Form? Answers to FAQs About the W-4
If you’re filling out a Form W-4, you probably just started a new job. Or maybe you recently got married or had a baby. The W-4, also called the Employee’s Withholding Certificate, tells your employer how much federal income tax… read more…
- Capital Gains Tax on Inherited Property
An inheritance is a windfall that can absolutely help someone’s financial situation – but it can make your taxes tricky. If you inherit property or assets, as opposed to cash, you generally don’t owe taxes until you sell those assets. These… read more…
- How to Fill Out Form 709
If you give someone cash or property valued at more than the 2023 annual exclusion limit of $17,000 ($34,000 for married joint filers), you’ll have to fill out Form 709 for gift tax purposes. But don’t fret. This doesn’t always… read more…
- Tax Prep Checklist: What You Need to Know
If you’re part of the roughly 60% of Americans who pay someone else to prepare their tax return, then there’s a good chance that you’ve had to make more than one visit to the preparer’s office because you forgot something. Since preparing… read more…
- Taxes: Single vs. Married
When filing federal income taxes, everyone has to choose a filing status. There are five filing statuses: single, married filing jointly, married filing separately, head of household and qualifying widow/er with dependent child. Most people are only eligible for one… read more…
- What Can You Deduct at Tax Time?
Knowing what you can deduct when you’re doing your taxes each year is important if you want to reduce your tax liability. Some common deductions, like the mortgage interest tax deduction, are well known, but if you’re going to do… read more…
- Tax Breaks You Can Claim Without Itemizing
When you file a federal income tax return, you have the choice between taking the standard deduction and itemizing your deductions. But after the 2017 Trump tax changes, which nearly doubled the standard deduction, many taxpayers who lowered their tax bill by… read more…
- A Guide to the Federal Estate Tax for 2025
An estate tax is most notably levied at the federal level, and it’s charged to a decedent’s estate when their assets pass on to their beneficiaries. Most estates won’t trigger the federal estate tax though, as it only applies to estates… read more…
- Understanding How Tax Credits Work
If you were unhappy with last year’s income tax bill, there are several ways to reduce your overall 2022 tax burden before the April 18, 2023, filing deadline arrives. You can try to qualify for as many tax deductions and… read more…
- How to Deduct Medical Expenses on Your Taxes
Paying for health insurance and medical bills can get expensive. Luckily, you can recoup some of those costs when you file your taxes by taking a deduction for medical expenses. To do so, the expenses in question must meet the qualifications outlined… read more…
- Filing Taxes After Divorce: A Practical Guide
If you’re getting a divorce, the tax implications probably are not the most pressing issue on your mind. The specifics of filing taxes after divorce and how you draw up your divorce agreement could make a big difference when it… read more…
- How the LLC Pass-Through Taxation Works
Limited liability companies (LLCs) are what’s called “pass-through entities.” This means that the business does not pay corporate income taxes. Instead, the individual owners or members of the LLC collect its proceeds as income and then pay personal income taxes… read more…
- How to Find a Small Business Tax Advisor
Small business owners can identify tax advisors by asking for recommendations from other professionals such as accountants, seeking personal referrals, checking out professional directories and following leads from advertisements. Before seeking help from a tax advisor, business owners will want… read more…
- Tax Haven Examples, Benefits and Legality
Tax havens offer very low tax rates to foreign and domestic investors. While we often think about the business implications of tax havens, there can also be implications for individuals. Here are common examples, benefits and legal requirements you must… read more…
- What Is a Deferred Tax Asset?
When it comes to a company’s taxes, there are two important categories to understand: assets and liabilities. Tax liability is anything that a person or company owes taxes on, such as income or revenue. Tax assets are anything that can be… read more…
- How Options Are Taxed
Historically, options contracts have been a niche market occupied by professional investors. All that changed in recent years with the rise of no-fee online brokers. Now, retail investors trade options contracts regularly, and this means paying taxes on those trades.… read more…
- What Is OASDI Tax on My Paycheck?
If you’ve glanced at your pay stub or W-2 from your employer, you may be dismayed at the rundown of tax items dinging your take-home pay. The Old Age, Survivors, and Disability Insurance program (OASDI) is one such tax. Fortunately,… read more…
- What is Tax Diversification?
Tax diversification is an investment strategy that uses tax-advantaged, fully taxable and tax-free investment accounts to help lower taxes. Diversification is the name of the game when it comes to investing. This even applies to taxes. When you invest in accounts… read more…