- Should You Prepay Your Property Taxes Before January 1?
President Trump signed sweeping tax legislation in 2017 that capped property taxes and other state and local taxes (SALT) deductions at $10,000. This change went into effect in January 2018, which impacted 2018 taxes that were filed in April 2019, and… read more…
- What You Need to Know About California Sales Tax
Governments, at all levels, may charge sales tax for goods and services. Retailers collect sales tax on their goods at the point of sale and then send their collections to the government. Currently, 45 states charge sales tax with some counties… read more…
- America’s Most Charitable States – 2017 Edition
The United States is the second-most generous country in the world, according to 2016 data from the Charities Aid Foundation. But not all states in the United States are equally generous. Residents in some states give more to charity or volunteer more free time to causes near and dear to their hearts. Below we rank… read more…
- The Best Cities to Be Self-Employed
For many Americans, being your own boss is a long-held aspiration. But striking out on your own can be challenging and risky. There are many factors that can add potential roadblocks to people hoping to start their own businesses. Income tax rates, for example, come into play, as well as local costs of living. Below we… read more…
- All About the FICA Tax
If you earn a wage or a salary, you’re likely subject to Federal Insurance Contributions Act taxes. Not to be confused with the federal income tax, FICA taxes fund the Social Security and Medicare programs. Also known as payroll taxes,… read more…
- All About Tax-Loss Harvesting for Investors
Tax-loss harvesting is a way to use investment losses to lower your taxes on any capital gains you have in a year. If you’ve only invested in your future by contributing to a retirement account, tax-loss harvesting won’t likely help… read more…
- Is Canceled Debt Taxable?
No matter how hard you try to keep your debt under control, sometimes it piles up. Depending on your situation, you may be able to cancel some of your debt. That would probably lift a huge weight off your shoulders.… read more…
- Tax Deductions for the Self-Employed
Self-employment tax deductions can reduce how much independent workers pay in federal taxes by offsetting common business expenses. These deductions apply to costs such as health insurance premiums, retirement contributions, home office use and vehicle expenses. These write-offs apply only when they meet IRS criteria related to the taxpayer’s profession. Knowing what qualifies can affect… read more…
- What You Need to Know About the Capital Loss Tax Deduction
When it comes to investing, you can expect to experience both gains and losses. You might even incur a capital loss on purpose to get rid of an investment that’s making your portfolio look bad. And while selling an asset… read more…
- Where Millennials Pay the Highest Taxes – 2017 Edition
Many studies seem to suggest that millennials are in a financial pickle. For starters they earn less than their parents did when they were young adults. Plus, the average millennial has over $30,000 in student debt. For millennials who are struggling to boost their net worth and make the leap to homeownership, the last thing they… read more…
- All About IRS Form 1023
Businesses and individual consumers have something in common. Both groups have to file taxes. Some groups, however, are automatically tax-exempt, meaning that they’re not required to pay federal income taxes. Others must apply for tax-exempt status. If you want your… read more…
- Tax Breaks for Household Expenses in 2024 and 2025
Owning a home can be expensive. Paying for property taxes, repairs and homeowners insurance can significantly reduce what you can spend on luxury items and discretionary goods and services. Fortunately, homeowners may be able to recoup some of the money they’ve… read more…
- Tax Deductions: Is College Tuition Tax-Deductible?
Going to college seems to get more expensive every year. Tuition, fees, room and board for an out-of-state student attending a four-year public institution cost $28,240 for the 2022-2023 school year (on average). About a decade ago, an in-state student… read more…
- Who Can You Claim as a Tax Dependent?
The IRS knows that some taxpayers provide their children and relatives with financial support. That’s why the government offers folks with dependents the opportunity to reduce their tax burden. Being able to claim someone as a dependent may significantly lower… read more…
- Tax Deductions for Miscellaneous Expenses
Making sense of the U.S. tax code can be a daunting feat. That’s why many taxpayers turn to professionals when they need to file their tax returns. Regardless of whether you’re working with a tax accountant or completing your own… read more…
- Tax Deductions: Are Job Hunting Expenses Deductible?
Looking for a new job can seem like a job in itself. And after a while, the expenses associated with finding a new gig start to add up. Even if you put effort into writing a resume and going on… read more…
- Where Homeowners Save the Most on Taxes in 2017
Few tax breaks have been more controversial than the mortgage interest deduction. Proponents of the tax benefit contend that it encourages Americans to buy homes. Opponents, on the other hand, argue that it reduces tax revenue and leaves lower-income individuals at a disadvantage. For the second year in a row, SmartAsset assessed how the mortgage… read more…
- What Are Above-the-Line Deductions?
If you’re planning on using a tax break to minimize your tax bite, keep in mind that deductions come in different shapes and sizes. There’s the standard deduction that any taxpayer can claim every tax year just for filing taxes.… read more…
- How Trump’s Estate Tax Affects the Wealthy
The Trump tax law doubled the federal estate tax exemption for estates and gifts, allowing wealthy investors to pass on their financial legacy with big tax savings for their heirs. Many families work with a financial advisor to maximize an estate plan for their loved ones. Let’s take a look at how the estate tax could affect affluent investors and their… read more…
- 9 Expenses You Can’t Deduct on Your Tax Return
If you want to shrink your tax bill or beef up your refund, claiming all the deductions you’re eligible for can be a smart strategy. Deductions reduce your taxable income. That’s a plus if you want to hang on to… read more…
- The New Tax Filer’s Guide to Itemized Deductions
Filing federal income taxes can be stressful. Making sure you plug in all the right numbers and snag every tax break you qualify for can make your head spin. If you’re relatively new to tax filing, you may not know… read more…
- 9 States With No Income Tax
In one way or another, taxes are a part of every American’s financial life. But for residents of Alaska, Florida, Nevada, South Dakota, Tennessee, Texas and Wyoming, they are off the hook for state-level personal income taxes. While avoiding state… read more…
- What Is a Personal Exemption?
Under the tax reform bill that passed into law at the end of 2017, the personal exemption was eliminated. This means you cannot claim it on your taxes starting with the tax year 2019. So the following information on the personal… read more…
- What Do NFL Players Pay in Taxes? – 2017 Edition
The NFL salary cap (which limits how much teams can spend on players) has risen from $40 million in 1996 to $155 million in 2016. This means NFL salaries have increased by almost 400% over the past 20 years. To put that in perspective, median incomes in the U.S. rose 12.5% from $24,500 in 2005 to… read more…
- What Is Taxable Income?
Paying taxes is a fact of life for most Americans. Whether you work for a business from 9 to 5 or you’re self-employed, you’re expected to turn over a portion of your pay to Uncle Sam. There are many different… read more…