AGI

Is your income high enough to owe two extra taxes?

High-income taxpayers face two special taxes — a 3.8% net investment income tax (NIIT) and a 0.9% additional Medicare tax on wage and self-employment income. Here’s an overview of the taxes and what they may mean for you. 3.8% NIIT This tax applies, in addition to income tax, on your net investment income. The NIIT…

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IRA charitable donations: An alternative to taxable required distributions

Are you a charitably minded individual who is also taking distributions from a traditional IRA? You may want to consider the tax advantages of making a cash donation to an IRS-approved charity out of your IRA. When distributions are taken directly out of traditional IRAs, federal income tax of up to 37% in 2022 will…

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Thinking about converting your home into a rental property?

In some cases, homeowners decide to move to new residences, but keep their present homes and rent them out. If you’re thinking of doing this, you’re probably aware of the financial risks and rewards. However, you also should know that renting out your home carries potential tax benefits and pitfalls. You’re generally treated as a…

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tax season

The Taxman Cometh – Are You Ready?

With the start of the new year, most people are reflecting on the past and making resolutions – while not necessarily thinking about filing taxes, April 15th is coming soon! Tax season does not need to be overwhelming or confusing – if you take the time to get organized and make some plans, it can…

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medical expense

Can You Qualify for a Medical Expense Tax Deduction?

You may be able to deduct some of your medical expense, including prescription drugs, on your federal tax return. However, the rules make it hard for many people to qualify. But with proper planning, you may be able to time discretionary medical expenses to your advantage for tax purposes. Itemizers must meet a threshold For…

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401(k) plan

Maximize Your 401(k) Plan to Save for Retirement

Contributing to a tax-advantaged retirement plan can help you reduce taxes and save for retirement. If your employer offers a 401(k) or Roth 401(k) plan, contributing to it is a smart way to build a substantial sum of money. If you’re not already contributing the maximum allowed, consider increasing your contribution rate. Because of tax-deferred…

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tax tips

July/August 2020 Tax Tips

Feeling charitable? Now’s the time to give In an economic downturn, charitable donations typically decline. So, if you’re in a position to donate, charitable organizations need your help now more than ever. Fortunately, the Coronavirus Aid, Relief and Economic Security (CARES) Act offers some tax incentives to support your favorite charity. For cash gifts made…

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economic impact payments (EIP)

Did You Get an Economic Impact Payment that was Less Than You Expected?

Nearly everyone has heard about the Economic Impact Payments (EIP) that the federal government is sending to help mitigate the effects of the coronavirus (COVID-19) pandemic. The IRS reports that in the first four weeks of the program, 130 million individuals received payments worth more than $200 billion. However, some people are still waiting for…

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EIP

Answers to Questions You May Have About Economic Income Payments

Millions of eligible Americans have already received their Economic Impact Payments (EIP) via direct deposit or paper checks, according to the IRS. Others are still waiting. The payments are part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Here are some answers to questions you may have about EIPs. Who’s eligible to get…

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