When you chose to move funds from one retirement plan, such as an IRA or Keogh plan, it is called a direct transfer. You can also perform a direct transfer from one company plan to another, or move your money from a company plan to a personal plan. During a direct transfer, you never handle […]
— Read moreIf you pay for college, you likely are aware how quickly the expenses can add up. Thankfully, there are two different education tax credits which can assist in making higher education a little more affordable. American Opportunity Credit Worth up to $2,500 for each eligible student during the first four years of college, this credit […]
— 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 moreEstimated Tax Payments When you have any form of income that isn’t subject to regular taxation, such as retirement distributions or self-employment pay, the IRS may hold you accountable for making payments to cover any amount of tax you may owe at the end of the year. If you don’t pay the correct amount, (your […]
— Read moreAt tax time, any different thresholds and credit eligibilities are dependent upon your specific relationship status. If you’re a newlywed, here’s what changes you should expect when you file your tax return. Filing Status Once you tie the knot before December 31st of the tax year, you file your taxes either jointly or separately as […]
— Read moreDo you have a child under the age of 17? If so, you may be eligible to claim the Child Tax Credit, in which each child is worth a tax reduction of up to $1,000. In situations where the Child Tax Credit is worth more than the amount you owe in income tax, the Additional […]
— Read moreLearning the math behind your tax return may seem overwhelming. However, understanding the three different levels of income can make things a little easier. The three amounts are: total gross income, adjusted gross income (AGI), taxable income. Adjusted Gross Income One important term to familiarize yourself with at tax time is adjusted gross income. This […]
— Read moreIt seems like there’s so much to learn about the tax world. Many terms are relative, and once you learn them, you can apply them to other parts of the tax code. Earned income, for example is a vital definition to know so you can know what parts of your income are taxable. The following […]
— Read moreUsing the status married, filing separately on a tax return is appropriate for couples who want to keep all of their financial records separate, including their income and expenses. However, if you chose to file separate tax returns, you may not miss out on important deductions and credits that are only available to married couples […]
— Read moreTaxes can be difficult to prepare on your own, and as a parent, the addition of dependents can make things even more difficult. However, by claiming your child(ren) as a dependent, you become entitled to a variety of tax savings from the government. In order to maximize your benefits as a parent, follow these tips: […]
— Read more
