For tax purposes, December 31 means more than New Year’s Eve celebrations. It affects the filing status box that will be checked on your tax return for the year. When you file your return, you do so with one of five filing statuses, which depend...
You can reduce taxes and save for retirement by contributing to a tax-advantaged retirement plan. If your employer offers a 401(k) or Roth 401(k) plan, contributing to it is a taxwise way to build a nest egg. If you are not already contributing the maximum allowed,...
One of the most laborious tasks for small businesses is managing payroll. But it is critical that you not only withhold the right amount of taxes from employees’ paychecks but also that you pay them over to the federal government on time. If you willfully fail...
The Tax Cuts and Jobs Act (TCJA) reduced individual income tax rates but it left the 3.8 percent net investment income tax (NIIT) in place. It is important to address the NIIT in your estate plan because it can erode your earnings from interest, dividends,...
Are you charitably minded and have a significant amount of money in an IRA? If you are age 70½ or older, and do not need the money from required minimum distributions, you may benefit by giving these amounts to charity. IRA distribution basics A popular way to...
If you are planning to sell assets at a loss to offset gains that have been realized during the year, it is important to be aware of the “wash sale” rule. How the rule works Under this rule, if you sell stock or securities for a loss...
There are several ways to save for your child’s or grandchild’s education, including with a Coverdell ESA. Although for federal tax purposes there is no upfront deduction for contributions made to an ESA, the earnings on the contributions grow tax-free. In addition, no tax is...
As an employer, you must pay Federal Unemployment Tax Act (FUTA) tax on amounts up to $7,000 paid to each employee as wages during the calendar year. The rate of tax imposed is six percent but can be reduced by a credit (described below). Most...
As the gift-giving season nears, you may be considering giving gifts of cash or securities to your loved ones. Taxpayers can transfer substantial amounts free of gift taxes to their children and others each year through the use of the annual federal gift tax exclusion....
We all know the cost of college is expensive. The latest figures from the College Board show that the average annual cost of tuition and fees was $10,230 for in-state students at public four-year universities and $35,830 for students at private non-profit, four-year institutions. These...