- What Is a Tax Audit?
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… read more…
- How to Avoid Capital Gains Tax on Mutual Funds
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… read more…
- How to Report Foreign Income Without a W-2
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… read more…
- How to Legally Avoid Paying Sales Tax on a Used Car
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… read more…
- How the Premium Tax Credit Works
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… read more…
- Trust Tax Rates and Exemptions for 2024 and 2025
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… read more…
- 2025 Capital Gains Tax Rates by State
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.… read more…
- What Is the Jock Tax?
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… read more…
- How to Avoid Capital Gains Tax on a Business Sale
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… read more…
- How to Avoid Capital Gains Tax on Stocks
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… read more…
- How to Avoid Paying Taxes on a Lawsuit Settlement
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… read more…
- How to Avoid Capital Gains Tax When Selling a House
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 at the moment, it… read more…
- What Is a Taxpayer Identification Number?
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)… read more…
- How to Find a CPA for Tax Services
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… read more…
- How to Avoid Taxes on a Large Sum of Money
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… read more…
- How Savings Accounts Are Taxed
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… read more…
- JP Morgan Reveals 3 Tricks to Cut Taxes
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… read more…
- The Carried Interest Loophole and the Inflation Reduction Act Concession
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… read more…
- When 1099-K Is Needed: IRS Form
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,… read more…
- Differences in Hiring a Tax Preparer vs. a CPA
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… read more…
- Donating Real Estate to Charity: Tax Benefits
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,… read more…
- 7 Tax Saving Strategies for High-Income Earners
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… read more…
- How Much Should You Save for 1099 Taxes
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… read more…
- Taxpayers Beware: Your 2023 Tax Refund Could Be Smaller. Here Are 4 Reasons Why
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.… read more…
- What Is the ISO AMT?
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… read more…