State and local taxes can add up, so don't forget to look for ways to reduce your tax burden there as well. While the 2017 federal tax reform law eliminated miscellaneous deductions, many states still allow them or may have a lower threshold for claiming them. For instance, in New Jers...
$400,000. She made no improvements and incurred no losses for the 12 years that she lived there. In 2022, she sold her home for $550,000. Her cost basis was $400,000, and her taxable gain was $150,000. She elected to exclude the capital gains and, as a result, owed no taxes....
Answer and Explanation:1 An income-shifting strategy is an income-tax planning method that helps to reduce the current taxes on an organization or individual's income by... Learn more about this topic: Current Liabilities | Overview & Examples ...
In order to estimate individuals’ state EITC in these three states, we first multiply their federal EITC amount by their state EITC rate as before but cap the amount they receive in state EITC at their estimated taxes owed after other credits have been taken into account. This ensures that ...