Little Known Tax Deductions and Credits
There are many different tax deductions that you can take, some are common, but other are not as well known. This article is to help you maximize your refund and minimize your tax liability by utilizing all of the avenues available to you. Home Office Deduction Many are not aware that there is a special deduction for self-employed individuals who work from home. Under this provision, you can deduct a portion of the cost [...]
Deducting Bad Debts
A loan is one such thing, which in today's world, is quite hard to get especially for people with low income. While for some, it works out great as they pay it back quite soon to lease off the burden, others suffer to repay it back. Bad debts refers to when you are not repaid when you lend money to someone or you sell a product on credit. What is the difference between business [...]
Income Tax Planning
Best Income Tax Planning Strategies Income tax planning involves using strategies to minimize your taxable income. There are several different things that you can do you reduce the taxation of your income. Including, but not limited to; postponing income, shifting income, deduction planning, investment tax planning, and utilizing year-end tax planning. In this article, we will briefly go over how you can use each of these strategies to lower you tax liability. Delaying Income [...]
Required Minimum Distributions
Understanding Your Required Minimum Distributions The phrase RMD, or Required Minimum Distributions, refers to the amount that you are required to withdraw from any traditional IRAs or employer-sponsored retirement plans each year after you reach age 70 ½. You can take more than the required minimum, but you are not allowed to take less. If you do not take the entire amount that you are required to you will have to pay a penalty. [...]
Tax Preparation: 5 Essential Tips for the Newly Self-Employed
Being self-employed definitely has its perks; you get to be your own boss, set your own hours, and have total control over your work. However, it also means being subject to more in taxes, in addition to possible headaches when it comes time to prepare your tax return each year. If this is your first year working as a self-employed individual, the good news is that we've got some tips that'll help make tax [...]
Health Savings Account Basics
Who Can Establish an HSA? Any individual with a high deductible health insurance plan can establish an HSA. In 2015, you have to have an annual deductible of at least $1,300 for an individual or $2,600 for a family. Your plan must also limit your annual out of pocket expenses to $6,450 for individuals and $12,900 for families. You cannot establish an HSA if you are entitled to or enrolled in Medicare, you can [...]