- IRS Form 5329: Reporting Taxes on Retirement Plans
When filing your taxes, it’s important to make sure you’re reporting all of your income correctly. That includes making note of early distributions from qualified retirement plans or other tax-favored accounts that may be subject to a 10% early withdrawal… read more…
- Gross vs. Net Income: How Do They Differ?
For individuals, gross income is the total pay you earn from employers or clients before taxes and other deductions. This is not limited to income received as cash, as it can also include property or services received. On the other… read more…
- Fiscal Year (FY): Definition and Importance
In the world of accounting, finance and taxes, there’s more than one type of year. In addition to regular years, there are a number of different fiscal years. A fiscal year is the 12-month period a company uses for accounting… read more…
- What Is a Tax Abatement?
If you’re considering buying a new home, a tax abatement may provide an incentive that’s hard to pass up. These beneficial tax programs allow for a long-term break on your property tax bill. Savings like that will undoubtedly impact your bottom… read more…
- How to Fill Out Schedule C on Your Tax Return
Doing your taxes is never considered to be an easy task and for small business owners there are typically even more layers of complexity. Schedule C is a tax form that some small business proprietors use to file their tax… read more…
- What Is Net Income and Why Does It Matter?
Net income refers to a company’s earnings minus business and operating expenses. An individual’s net income is equal to total income minus applicable deductions and taxes paid. Net income helps you understand how profitable your business is. If you’re an… read more…
- What Is Adjusted Gross Income (AGI), and How Do You Calculate It?
Adjusted gross income, or AGI, is extremely important for filing your annual income taxes. More specifically, it appears on your Form 1040 and helps determine which deductions and credits you are eligible for. Based on the amount of your AGI,… read more…
- States With the Smartest Taxpayers
A large majority (75%) of taxpayers overpay on taxes and receive a tax refund, according to IRS data. A smaller proportion (19%) see the opposite: They will have overestimated their withholdings and learn they still owe the IRS some money. Apart from overpaying and underpaying, there is another small, exclusive group of savvy Americans who… read more…
- What Is the Tax Rate on Stock Options?
For many employees in America, especially those at tech companies and other startups, stock options are a part of compensation packages. While the right to buy stock in a company at a set price is an attractive form of compensation,… read more…
- Will the Government Shutdown Affect Tax Refunds?
The U.S. experienced a partial government shutdown from Dec. 22, 2018 to Jan. 25, 2019. This 35-day shutdown was the longest in U.S. history and disrupted the service of multiple federal agencies, such as the National Park Service. However, the… read more…
- How to Donate Your Vehicle to Charity
Donating your car to charity is a thoughtful and generous act. It’s also one that can save you some money on taxes. Many non-profit organizations that take automobile donations advertise it heavily, but doing research is necessary before you hand over your… read more…
- States Where It’s Easiest to Get Help Filing Taxes – 2019 Edition
Filling out your taxes can be a real headache. It’s no surprise, then, that online software like TurboTax has been growing in recent years to meet the demands of taxpayers in need of expert advice. But there are more resources available to you beyond tax software. Many states have programs to help taxpayers fill out… read more…
- States With the Highest Average Tax Refund – 2019 Edition
About 75% of American taxpayers overpaid on taxes in tax year 2016, according to IRS data. And though they may have been overjoyed to get a handsome tax refund, this scenario means they are simply being reimbursed for money they’ve lent the government. This tax season, whether or not an individual has a windfall on the… read more…
- What Are the Tax Benefits of an LLC?
One of the most popular ways to organize a business is as a limited liability company, otherwise known as an LLC. The true advantage of an LLC over other business entity types comes in the form of tax benefits. LLCs,… read more…
- Guide to the California Gift Tax for 2025
California does not levy a gift tax, however, the federal government does. That tax rate can climb to as high as 40%. Still, there are plenty of ways you can minimize the hit or avoid it all together. For the… read more…
- Where Full-Time Workers Pay the Most Taxes: 2019
It can be difficult to look at your paycheck and see upwards of 15% of it sent to the government. Of course, those taxes pay for worthwhile causes, a fact that doesn’t always lessen the initial sting of seeing your money disappear. Thanks to local and state taxes, though, residents in some places have it… read more…
- How Are Annuities Taxed?
An annuity can provide guaranteed income for the rest of your life. How annuities are taxed depends on the type of contract, how it was funded and how withdrawals are made. Earnings from annuities are generally taxed as ordinary income when withdrawn, while contributions made with after-tax dollars may be partially excluded from taxation. Consider working… read more…
- Guide to the North Carolina Gift Tax for 2025
North Carolina does not have a gift tax. However, you may trigger a gift tax at the federal level depending on the value of the gifts you provide. But you won’t owe a gift tax until you breach your lifetime… read more…
- Guide to the Florida Gift Tax for 2025
Florida does not have a gift tax. However, you may trigger a gift tax at the federal level depending on the value of the gifts you provide, but you won’t owe a gift tax until you breach your lifetime gift… read more…
- Guide to the New Jersey Gift Tax for 2025
New Jersey doesn’t have a gift tax. However, you may still owe a federal gift tax if the value of the gifts you provide exceed a certain amount. Following the passing of the Tax Cuts and Jobs Act, the federal… read more…
- Guide to the Minnesota Gift Tax for 2025
Minnesota no longer has its own gift tax but it does have an estate tax. You may still owe a gift tax at the federal level if you exceed your lifetime gift and estate tax exemption. The Tax Cuts and… read more…
- Guide to the Connecticut Gift Tax for 2025
Connecticut increased its lifetime gift tax exemption to $9.1 million for the tax year 2022, with the plan to rise in subsequent years. This means you won’t owe a Connecticut gift tax unless the gifts you provide in those years… read more…
- All About Gift Taxes: Do I Pay Tax on Gifts From Parents?
If you recently received a sizable gift from Mom and Dad, don’t fret about the gift tax. The IRS generally holds the giver liable for taxes. And unless the person is handing over a small fortune, he or she won’t… read more…
- IRS Form SS-4: Applying for an Employer Identification Number
If you run your own business, you need a way to identify it to the government when it comes time to do your taxes. The same is also true if you’re the executor of an estate, the creator of a… read more…
- Guide to Taxes on Selling a House
Selling a home is a major life change. But before you can concentrate on buying a new house, you’ll need to figure out how to properly report any profits related to the sale of your house. Such profit is known… read more…