“So many people were shocked by their cash interest earned” and taxes owed, said Boston-based certified financial planner Catherine Valega, founder of Green Bee Advisory. She is also an IRS enrolled agent. Interest from savings accounts or certificates of deposits incurs regular or “ordinary in...
Gamblers who hit it big will need to pay taxes on their winnings, but there is a way to reduce how much is owed. “They forget they can write off losses," Hoffman says. Keep records and use your losses to offset your gains at tax time. 22. Don't Forget State and Local Tax Bre...
Reduce Federal Income Taxes: I built a tax planning spreadsheet to assist with planning federal income taxes. My tax planning spreadsheet allows the user to compare multiple tax scenarios side by side. It will calculate out federal taxes owed, social security and medicare taxes, and will even ca...
Tax credits, which reduce your total taxes owed on a dollar-for-dollar basis, can save families money. Examples include the Earned Income Tax Credit (EITC) and the child and dependent care credit. “In the juggle of parenting, taxes often feel like an extra ball in the mix,” says Micha...
the cash or investments available and don't want to sell their investments to pay for the down payment. Selling the investments might trigger tax obligations to the IRS. The sale may push the borrower's annual income to a higher tax bracket resulting in an increase in their taxes owed. ...
Tax penalties can be daunting, but they don't need to be confusing. Here's how you can minimize or avoid the most common penalties imposed by the IRS.
WithTurboTax Live Full Service, a local expert matched to your unique situation will do your taxes for you start to finish. Or, get unlimited help and advice from tax experts while you do your taxes withTurboTax Live Assisted. And if you want to file your own taxes, you can still feel ...
If you have struggled to reduce yourtaxesasa high income salaried employee, Deferred Compensation Plan can be the solution. Deferred Compensation plan is especially suited for theFinancially Independent Retire Early(FIRE) crowd. But, there are certain aspects one needs to consider. ...
Are Taxes Owed on Forgiven Debts? The IRS treats forgiven debt as income, so you typically owe taxes on settled balances. However, in some cases, the IRS may exempt forgiven debt from taxation. Consult a tax advisor to determine the extent of your liability. ...
How to claim bad debt on taxes If the bad debt was included in your gross income, you can claim it with the IRS using the specific charge-off method or the nonaccrual-experience method. This reduces your tax liability. In most cases, you are required to use the specific charge-off meth...