Tax

Introduction: As we approach the end of the year, the urgency to make strategic financial decisions is heightened, especially with looming changes in tax laws and the continued impact of inflation on our wallets. The Tax Cuts and Jobs Act provisions are set to sunset after 2025, potentially increasing tax rates. To navigate this complex landscape and optimize your financial position, we’ve compiled 12 last-minute tax tips for 2023. These tips will not only help trim your tax bill for the current year but also position you for success in…

Introduction Inflation can be a double-edged sword. While it’s great to see your wages rise in tandem with the cost of living, it can also push you into a higher tax bracket, resulting in an unexpected tax burden. This phenomenon is known as tax-bracket creep. The good news is that there are several strategies you can employ to mitigate its impact and reduce your tax bill. In this blog post, we’ll explore eight effective ways to tackle tax-bracket creep and keep more of your hard-earned money. Maximize Retirement Contributions One…

Introduction You’ve worked hard throughout your career, paying taxes along the way, with the hope that your retirement years will be tax-free, right? Unfortunately, that’s not always the case. Depending on your household income, up to 85% of your Social Security benefits could be subject to taxation. Additionally, traditional IRA and 401(k) withdrawals are typically considered taxable income. However, there are strategies you can employ to retain more of your retirement income. In this blog post, we will explore how retirement income is taxed and delve into two effective ways…

Tax efficiency is essential for investors, and failure to account for it can be detrimental to your portfolio’s performance. In a world where every percentage point counts, being caught unaware by unexpected tax obligations can set you back considerably. If you’re investing in mutual funds, it’s crucial to be aware of the potential for a nasty surprise: the mutual fund tax trap. The Importance of Tax Awareness A comprehensive Morningstar study spanning the years 1926 to 2021 showcased that ignoring taxes in your investment decisions could slash your portfolio returns…

Homeownership comes with its share of expenses, especially when it comes to renovations. But what if you could save thousands of dollars on making your home more energy-efficient? A recent initiative by the federal government might make this a reality for many American homeowners. Here’s how you can take advantage of the new opportunities. Federal Rebates for Energy-Efficient Upgrades Thanks to a new $9 billion federal program, part of last summer’s Inflation Reduction Act, many Americans stand to save significantly on home renovations. The focus is on energy-efficient upgrades, and…

As mutual funds remain an attractive investment vehicle for many individual shareholders, understanding the tax implications of mutual fund distributions is paramount. In 2023, there are five key types of distributions, each with unique tax considerations, that all investors should be cognizant of. This report will break down these five categories and shed light on how they impact your tax return. 1. Ordinary Dividends Ordinary dividends represent the most common type of distribution by mutual funds from earnings and profits. They are taxed as ordinary income, with the current maximum…

Welcome to the world of cryptocurrencies, a fascinating digital frontier where fortunes can be made, innovative technologies are being developed, and new financial paradigms are taking shape. In this blog post, we will introduce cryptocurrency, explain how to buy digital assets such as Bitcoin, discuss cryptocurrency tax implications, and review TokenTax, a platform that simplifies the complex process of crypto tax calculation. Understanding Cryptocurrency Cryptocurrency is a digital or virtual form of currency that uses cryptography for security. Unlike traditional currencies issued by central banks, cryptocurrencies operate on technology called…

Everyone knows the old saying: “Nothing is certain except for death and taxes.” Regardless of where you live, the government is bound to collect taxes in various forms. Understanding these taxes, why they exist, and how they can affect your personal finance is an essential part of responsible financial planning. So, let’s delve into some common ways your money might end up in the government’s coffers: Income Tax: The money you earn, whether from a job or a business, will likely be subject to income tax. This tax varies depending…

When tax season rolls around, having a reliable tax service provider can make all the difference in ensuring a smooth and stress-free experience. Liberty Tax has established itself as a trusted name in the tax services industry, offering a range of solutions to cater to the diverse needs of taxpayers. In this blog post, we will introduce and review Liberty Tax’s three premier brands: Liberty Tax, eSmart Tax, and FreeTax.com. We will explore each brand’s unique features, benefits, and suitability for different taxpayers to help you make an informed decision…

As a landlord, one of your primary goals is to maximize the return on your investment. One way to achieve this is by taking advantage of tax deductions available to property owners. In this article, we will explore several tax deduction strategies, including property depreciation, transportation expenses, repair and maintenance costs, employee wages, professional fees, loan interest, taxes and insurance, and educational expenses. Some common tax-deductible items for landlords include: Property Depreciation: The IRS allows landlords to deduct the cost of a rental property over a specific period. This process,…