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Archive for the ‘Tax Planning’ Category
Tax Issues In Divorces
A divorce is always difficult, even when it is without legal hassle. One of the problems that divorce brings is with taxes. Your filing status changes, your finances may fluctuate, and with it, your tax liability. To manage the tax changes, gather as much information as you need, and seek help from a tax professional – especially before filing your return the first time after divorce. Taxpayers that are going through divorce proceedings or are newly ...
read more »Which is Better For You: Traditional IRA or Roth IRA?
According to the Government Accountability Office (GAO), the median amount of retirement savings is about $104,000 for households with members between 55 and 64 years old, and $148,000 for households with members 65 to 74 years old. To increase savings for retirement, taxpayers can use tax-saving retirement plans such as IRAs, Roth IRAs, and 401(k). However, saving early and saving more are the keys to having a satisfactory income after retirement. Roth IRS vs. Traditional IRA Some ...
read more »How to Choose The Best 529 Plan
High fees for higher education are a worry for many parents and students. Average payments made for tuition and other college fees are a whopping $31,000 a year. Scholarships, grants, and tax credits help to lower these costs, but for many parents, the expense is still hard to cover. 529 plans can help parents manage the cost of higher education. 529’s are saving plans that make higher education affordable by providing tax and other advantages.
read more »How to Help Your Grandkids Pay College Expenses
Rising tuition fees at colleges may take many parents by surprise. Even if they have been saving for their children’s college education, they may find that it’s not enough. According to a report, college tuition and fees account for only about 40% of the total expenses incurred by in-state students for a four-year college education. Even if the student takes a part-time job, the cost of college is often too burdensome to pay. Grandparents that have ...
read more »Who Should Make Estimated Tax Payments
Those whose income is not subject to withholding need to make estimated tax payments. Income from self-employment, dividends, rent, interest, alimony, prizes and awards, and gains from the sale of assets are subject to estimated tax payments. Those whose income is being withheld are only required to pay estimated tax if their tax liability is more than the amount withheld from their wages. Estimated Tax Payment Limit Self-employed individuals need to pay estimated tax only if their ...
read more »A Smart Way to Boost Your Tax-Free Retirement Savings
If you are making regular contributions to a 401(k), hopefully, you’re saving the most in taxes by maxing out your contributions. How do you save taxes? You can increase your tax savings by knowing the new IRS rules regarding retirement accounts, including the maximum pre-tax contribution limit, moving your after-tax contributions, and distribution rules. Knowing the tax rules for your retirement accounts will help you to take the maximum advantage of the tax savings allowed ...
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