- Passive Income: How Is It Taxed?
Most people’s income comes as the direct result of work — you get a job, show up, hopefully perform decently well and then money shows up in your bank account. Some people, though, look to set up streams of passive… read more…
- TurboTax Deluxe vs. TurboTax Premier
Doing taxes by hand is often tedious and confusing, and it can open you up to making costly mistakes. Using commercially available tax software will ease tax preparation for many Americans. If you’re an individual looking to file your taxes… read more…
- FreeTaxUSA vs. TurboTax
TurboTax and FreeTaxUSA are online tax preparation services that can be used by individuals and businesses. TurboTax is more full-featured and has lots of built-in guidance, as well as helpful support delivered by phone or chat. However, it’s significantly more… read more…
- How Much Do You Have to Make to File Taxes?
While taxes are inevitable for most Americans, the government doesn’t require those with sufficiently low incomes to file. However, choosing not to file usually means forfeiting profitable tax breaks and other financial advantages. Plus, you’ll be penalized if it turns… read more…
- TaxAct vs. TurboTax
As you prepare for Tax Day, you might be overwhelmed by the options available for filing your taxes online. You’ve probably heard of TaxAct and TurboTax, two of the most popular tax-filing services on the market. But which is right… read more…
- Jackson Hewitt vs. H&R Block
When tax time rolls around, one thing you’ll have to decide is whether you’ll do your taxes yourself or hire a pro. If you’re leaning toward letting someone else do your taxes, some of the top options include Jackson Hewitt… read more…
- What Is the Investment Interest Expense Deduction?
If you borrow money to buy investment assets, the IRS will sometimes allow you to deduct the loan’s interest from the taxable income the investments generate. This is called the investment interest expense deduction. While it applies only to income –… read more…
- Understanding a Private Letter Ruling (PLR)
Private letter rulings, commonly known as “guidances,” are the bane of tax attorneys everywhere. They are very specific, vast in number and essential to understanding how tax law works. In brief, it’s a written answer issued by the IRS to a… read more…
- What Is a 1099-R Form?
When tax season rolls around, your mailbox might fill up with W-2s and other forms that you’ll need to file your return. An Internal Revenue Service (IRS) Form 1099-R might be in the mix if you received certain types of… read more…
- How FSAs Save You Money on Taxes
Contributing to a flexible spending account (FSA) could save you several hundred dollars in taxes. FSAs do this by exempting contributions from federal and state income taxes, as well as payroll taxes. FSAs do have some limitations, including a cap… read more…
- How to Avoid AMT on Incentive Stock Options (ISOs)
Incentive stock options, or ISOs, can be a lucrative employee benefit. This is particularly true at startup companies, which frequently offer stock options as a form of alternative compensation to make up for under-market salaries. However, when you exercise your stock… read more…
- How Do I Avoid Paying Tax on Dividends?
Dividends are payments that some companies make to shareholders to reward them for investing in them. Dividends can provide regular, predictable income to investors who also preserve the chance of profiting from price appreciation. Dividends can qualify for advantageous capital… read more…
- Are Medicare Premiums Tax Deductible?
If you’re nearing the age for Medicare eligibility, there are some things you should know about Medicare. One of those things is whether Medicare premiums are tax-deductible. You want to ensure you file your taxes correctly, but you also want… read more…
- Can You Get a Tax Deduction for Your 401(k)?
Planning for retirement requires us to consider not only how to build wealth but how to protect it. Employers offer 401(k)s to address the first need, but careful planning can help us ensure our money stays with us. While you can’t… read more…
- What You Need to Know About Inheritance Taxes
There comes a time in all of our lives when we have to say goodbye to a family member or friend. If you were close with the person who passed away, you might discover that they’ve left you something in… read more…
- Are Closing Costs Tax-Deductible?
When you’re filing your taxes, there’s a whole lot to consider. From figuring out who counts as a dependent to organizing your income streams, you may find the process a bit overwhelming. And if you’re a new homeowner tackling mortgage… read more…
- Tax Loopholes That Could Save You Money
A tax loophole is a tax law provision or a shortcoming of legislation that allows individuals and companies to lower tax liability. Loopholes are legal and allow income or assets to be moved with the purpose of avoiding taxes. This… read more…
- Tax Refund Schedule 2025
If you’re like most people, you dread tax season. But if you’re expecting a tax refund, you may have something to look forward to. Most people will get their tax refund within three weeks of filing, but it varies based… read more…
- All About IRS Form 8962 and Calculating Your Premium Tax Credit
With Form 8962, you are reconciling the tax credit you are entitled to with any advance credit payments (or subsidies) for the tax year. The size of your tax credit depends on the cost of available health insurance, your family… read more…
- All About IRS Form 2441
Hiring someone to care for your loved one so you can continue working is a common practice in the U.S. If a child, spouse or other household member requires care and you can’t provide the care without quitting your job,… read more…
- An Independent Contractor’s Guide to Taxes
If you’re self-employed or a freelancer, you likely get paid as an independent contractor rather than an employee. The IRS defines an independent contractor as someone who performs work for someone else, while controlling the way in which the work… read more…
- All About Self-Employment Tax
As an employee, you may have noticed that your paycheck never matches your full salary. This is because your employer has to withhold certain payroll taxes. You might think that you don’t have to worry about those payroll taxes if… read more…
- How Depreciation Recapture Works on Your Taxes
When you sell a depreciated capital asset, you may be able to earn a “realized gain” if the asset’s sale price is higher than its value after deduction expenses. You’ll then be able to recapture the difference between the two… read more…
- How Long Does It Take to Get a Tax Refund?
Once you’ve gone through the burdensome process of filing your taxes, your sigh of relief might be short-lived. That’s because you’ll likely be wondering, “How long does it take to get a tax refund?” But as excited as you may… read more…
- How Many Allowances Should You Claim?
Prior to 2020, one of the biggest things you could do to affect the size of your paycheck was to adjust the number of allowances claimed on your W-4. The ideal number of allowances for you would depend on your individual… read more…