Donating items and other noncash contributions to a charitable organization can net you a deduction up to the full market value of the assets, as long as they were in your possession for longer than a year prior to the donation. If you owned the asset for less than a year, then the deduction is […]
— 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 moreThe one piece of advice from tax preparers and financial advisors that’s relatively consistent is that you should always keep receipts to document your expenses. While that is certainly true, it’s not necessarily a deal-breaker when it comes to claiming expenses at tax time. That’s because of the outcome of a famous court case, Cohan […]
— 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 moreRecently, Congress decided that sales-tax deductions should be a tax break that you are allotted permanently. However, it’s often forgotten about, and underutilized. As a taxpayer, if you chose to itemize your deductions on a Form 1040, you can do one of two options. You can either: Deduct state and local income taxes, or; Deduct […]
— Read moreWage Base The wage base changes every year, and is the income level at which the full tax rate of 15.30% will apply to withhold Social Security and Medicare taxes. In 2015, the 15.30% rate (a combination paid by employers and employees) is applicable to the first $118,500 of income or self-employment earnings. After that, […]
— Read moreA traditional IRA is an account for retirement savings that can proved favorable at tax time. If your work doesn’t offer a retirement plan, or your income is below a specific threshold, then money contributed to a traditional IRA can be deducted at tax time. For 2015, the maximum amount of contributions for the year […]
— 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 moreMortgage Interest Mortgage interest of up to $1 million in debt, incurred while purchasing or building your primary residence or second home is eligible to be deducted at tax time. If you borrow from a home-equity line of credit, any interest you pay on up to $100,000 can be deducted, no matter how you spend […]
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