Category Archives: Income
So you’ve done some spring cleaning and found some extra items that made you some cash on one of the popular auction sites online, such as eBay. If you’ve sold anything on one of these sites, you may be curious to know how it will affect you at tax time. Let’s say you sold roughly […]
— Read moreUsing funds form your IRA, whether a traditional plan or a Roth, can be a great way to cover some major expenses that you may incur through your lifetime. Just be aware of certain terms and conditions that apply when withdrawing. Home Purchase If you chose to withdraw funds from your traditional IRA before you’ve […]
— Read moreHaving an IRA savings in place is a great way to prepare for retirement. However, sometimes situations may arise in which you will need to withdraw your funds before you’ve reached retirement age. Typically, if you take money from your individual retirement account prior to age 59 ½, you’ll be subject to a 10% early […]
— Read moreTaxable 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, […]
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