Taxes

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ABLE Accounts Defined: Tax-Advantaged Savings for the Special Needs

An ABLE account is a tax-advantaged savings account that helps individuals with disabilities save for the future while still receiving government benefits such as Medicaid and Supplemental Security Income. Millions of people are eligible to open one — learn how. The post ABLE Accounts Defined: Tax-Advantaged Savings for the Special Needs appeared first on Money […]

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What Is Modified Adjusted Gross Income? (MAGI)

What Is Modified Adjusted Gross Income? (MAGI)

One lesser-known measure of income is your modified adjusted gross income. It impacts your ability to qualify for certain tax incentives or things like health care subsidies. Fortunately, your MAGI isn’t all that hard to calculate once you know what it is and why you’re trying to figure it out.  The post What Is Modified

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Made Green Upgrades in 2021? Don’t Miss These Tax Credits

Made Green Upgrades in 2021? Don’t Miss These Tax Credits

Many Americans have woven green practices into their everyday lives — from recycling to going paperless and even cutting back on meat consumption. Switching to clean energy or purchasing an electric vehicle are additional ways to go green, but large-scale upgrades also often come with major price tags. Several existing tax credits can help to…

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Do You Know About the IRS’ Free File Program?

Do You Know About the IRS’ Free File Program?

If you earn $73,000 or less annually, you may be able to use a service to file your federal tax return for free through a program from the IRS.  The IRS partners with the nonprofit organization Free File Alliance, a group of eight software companies that offer tax filing services. The IRS and the Free

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What Are Tax Lots and How Do They Affect Your Capital Gains?

What Are Tax Lots and How Do They Affect Your Capital Gains?

Tax lots are records pertaining to your acquisition of securities, including the dates of sale and purchase, your cost basis, and sale price. This info determines how your capital gains are calculated and the tax rate you pay. Learn how tax lots work and how to use them to save on your taxes. The post

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If Your Life Changed in 2021, Watch for Income Tax Surprises

The investing information provided on this page is for educational purposes only. NerdWallet does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks or securities. The events of 2021 didn’t always play out as expected. A lingering pandemic, a shifting government response and a wave…

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EY TaxChat Review – Is This Professional Tax Preparation Service for You?

EY TaxChat Review – Is This Professional Tax Preparation Service for You?

EY TaxChat is an online tax preparation service that puts your return in professional hands. In most cases, you can file your federal and state returns here for less than what you’d pay an independent CPA. Pricing is transparent and your taxes are always handled by licensed preparers. The post EY TaxChat Review – Is

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17 Most Common Tax Questions Answered By a CPA

17 Most Common Tax Questions Answered By a CPA

Tax time is a confusing and frustrating time of year for many people. Fortunately, answers to common tax questions are readily available. Learn when your tax return is due, what to do if you can’t file on time, how to work out a payment plan with the IRS, and more. The post 17 Most Common

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Schedule B (Tax Form 1040) Instructions – Interest and Dividends

Schedule B (Tax Form 1040) Instructions – Interest and Dividends

One of the main reasons to invest your money is to make more of it by earning interest and dividends. But that income isn’t free — you have to pay taxes on it. That’s where IRS Schedule B comes in. Learn about Form 1040 Schedule B, the tax form for interest and dividends, and how

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What Is a Private Letter Ruling (PLR) and How Much Does One Cost?

What Is a Private Letter Ruling (PLR) and How Much Does One Cost?

Tax law is tough. Even seasoned tax professionals can have questions about certain transactions or tax planning strategies. You can get most questions answered online or by a tax professional. But if you’re still stumped after that, you can request a private letter ruling from the IRS. Here’s how. The post What Is a Private

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What Is the Stepped-Up Basis Tax Loophole?

The stepped-up basis loophole is part of the tax code that applies to inherited assets. The rule allows you to avoid capital gains on assets you pass to your heirs, lessening the tax burden on your heirs when they inherit from you. Learn about the stepped-up basis loophole and what it means for you. The

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What Is the Alternative Minimum Tax (AMT) and Who Has to Pay It?

What Is the Alternative Minimum Tax (AMT) and Who Has to Pay It?

Most people never pay the alternative minimum tax, also known as AMT. Only about 0.1% of U.S. households paid the AMT, and the majority of those had income greater than $1 million. Calculating the AMT is complicated — learn the basics of how it works if you believe you may have to pay AMT. The

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Your Stash and Taxes: The (Super) Basics

Your Stash and Taxes: The (Super) Basics

If you will receive Stash tax forms, they should be available on or before February 16, 2022 in the Stash app or on the web. Before we begin, please note that nothing written in this article should be construed as investment, legal, or tax advice. Please address specific questions on taxes to a tax professional.

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Why It Can Pay to File Your Taxes Early

Why It Can Pay to File Your Taxes Early

Note: The IRS urges taxpayers to file their 2021 tax returns electronically, to speed up refunds and to support social distancing during Covid-19. Paper returns may take longer to process due to reduced staffing. Find out more here.  How long do tax returns take? It can feel great to complete your federal income tax return

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How to Track Your Small-Business Expenses for Tax Deductions

How to Track Your Small-Business Expenses for Tax Deductions

Keeping track of your small-business expenses can qualify you for tax deductions — but only if you’ve kept a record of them. Thankfully, there are many reliable options for manual and digital expense tracking for you to choose from. Learn how to track expenses for small-business tax deductions. How to Track Your Small-Business Expenses for

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Spend or Save? How American Consumers Plan to Use the Child Tax Credit

Many parents will soon be eligible for extra federal money for their kids, thanks to an expansion of something called the child tax credit. And nearly two thirds of U.S. parents say that the additional money will be essential to supporting their families.  That’s according to a May 2021 survey¹ from Stash on the changes

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How a Bigger Child Tax Credit Could Mean More Money for You

How a Bigger Child Tax Credit Could Mean More Money for You

A tax credit created in 1997 is getting an upgrade, which will send more federal money to help the majority of American families. Starting July 15, 2021, the Internal Revenue Service (IRS) will increase the child tax credit for children below six-years-old to $3,600 and for children between six and 17 to $3,000 from its

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IRS Tax Audit Help – Types, Procedure & What to Do If You Get Audited

IRS Tax Audit Help – Types, Procedure & What to Do If You Get Audited

People imagine IRS auditors as scary, calculator-wielding mercenaries out to get more money. That’s usually not true and audits are rare, but an IRS audit is nonetheless stressful and time-consuming. If you ever do get audited, there are a few things you need to know to get yourself through it. IRS Tax Audit Help –

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Capital Gains vs. Income Tax — Why Investors Pay Less Than Employees

Capital Gains vs. Income Tax — Why Investors Pay Less Than Employees

Billionaire Warren Buffett once famously said he pays a lower tax rate than his secretary. How is that possible? The answer lies in the difference between how capital gains and income from employment are taxed. Learn how and why capital gains and ordinary income are taxed differently here. Capital Gains vs. Income Tax — Why

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