Category Archives: Income
Taxable Income Taxable income is any earnings such as wages, interest and dividends that are subject to taxation. When filling out a tax return, taxable income refers to the amount of earnings after subtracting adjustments, deductions and exemptions. This amount will be used to calculate your taxes owed. Tax Bracket There are seven different tax […]
— Read moreTax free income is money that isn’t subject to income tax like other forms of earnings. There are a variety of different things that can be counted as tax-free income, including: Auto rebates Child support payments Disability payments Combat pay Lawsuit damages for personal injury cases Life insurance dividends up to the premium amount Casualty […]
— Read moreA capital asset, including personal property and investments, can be sold for either a loss or a gain. If you sell your assets, you should be aware of the following ten facts regarding capital gains and losses: Assets: Capital assets describe property you own, like a home or a vehicle. The term also encompasses investments, […]
— Read moreKnowing the difference between capital gains and losses, and how each factors into your tax return can make a big difference on your stress level. Continue reading to learn more about each. Capital Gain Profits made from the sale of assets, such as stocks, real estate and mutual funds is called capital gain. Short term […]
— Read moreThere are many tax terms that can get confusing if you’re not a tax expert. Basically, capital gains tax is applied to the increase in investment value. In order to understand how the tax is applied you must first know what a capital gain is. Capital Gain – the resulting amount when the purchase price […]
— Read moreIf you are divorced or separated, you should know how your alimony payments factor in at tax time. Any payments made in accordance with a divorce or separate maintenance decree, or written separation agreement from both parties is considered alimony at tax time provided the following are met: You do not file a joint return […]
— Read moreDebt includes any incurred, whether personally liable or only to the limits of the property that secures the debt. Debts secured by property that are canceled, either in whole or in part, are typically the result of foreclosure, repossession, property abandonment, loan modification or voluntary surrender of the property. You will receive a Form 1099-C, […]
— Read moreThe Employee Retirement Income Security Act (ERISA) of 1974 requires compensation plans to follow certain requirements in order to be considered “qualified”. A 401(k) plan typically meets all of these requirements, and is considered a qualifying deferment compensation plan under the standards of the ERISA. A 401(k) is one in which your employer adds a […]
— Read moreThere’s a chance you may not have to file a tax return if your Social Security or equivalent railroad retirement benefits are the only source of income you’ve received throughout the tax year. If you have received additional forms of income, the aforementioned benefits are typically tax-free providing your modified adjusted gross income (MAGI) is […]
— Read moreIt can be a great feeling to get a scholarship or grant to help fund your education. A scholarship is typically an amount paid to a student for a specific institution for study. A fellowship grant is similar, except that the money paid can be used for the purpose of study or research. There are […]
— Read more
