you'll need to calculate your MAGI if you want to deduct some of your student loan interest payments. For this deduction, your MAGI will be your AGI plus certain exclusions and deductions you’ve claimed for residency outside of the United States, such as the foreign earned income exclusion...
The AGI calculation depends on the tax return form you use; some forms allow you to take more adjustments to income, than others.
This article presents information on several ways of handling the earned income credit. The Earned Income Credit (EIC) is available to certain low-income workers. The amount of the credit is dependent upon two factors--the number of qualifying children living with the individual and his or her...
Sometimes people inherit money that's outside of a qualified account or sell a business or house. That money is not eligible to be put into a qualified account, as it doesn’t meet the earned-income requirement. "Many advisors recommend nonqualified accounts as a last resort for saving due...
The major difference between these two terms lies in the measured value and their purpose. Still, both values are equally important. Without a figure for gross income, it becomes impossible to figure out the gross profit margin for a service business. But what changes when we add the word “...
Earned income is taxable, and the rate is chosen based on the individual’s or couple’s income bracket. The lower the income that the individual or couple earns, the less tax they need to pay. On the other hand, the higher the income earned, the more taxes the individual or couple wo...
Annual income is the total value of income earned during a fiscal year. Gross annual income refers to all earnings before any deductions are
If you usually get a tax refund, but would like to start putting more money in your pocket every month, we can help. Yes, you still have to fill out a W-4 form. But we've developed a quick and easy guide to assist you.
The earned income tax credit (EITC) is a tax break available to low- and moderate-income wage earners.
Taxpayers must report it along with any other income sources received during the tax year. Investors should be on the lookout for Form 1099-INT from financial institutions or investment firms after the end of January. This form shows how much interest was earned and what will be reported to ...