When you’re planning to make a major purchase or investment, or paying down debt, it can be tempting to pull funds from a retirement plan. A 401 (k) retirement plan has its own set of rules. That’s why you need to know whether your early distribution will come with a tax penalty or not.

It’s always nice to discover new options for lowering next year’s tax bill. The kiddie tax rules are just another way to protect your family’s budget. Leverage them correctly, and you’ll be in a better position to keep your tax liabilities down when it comes time to file.

If you’ve been wanting to make a donation to a great cause and you’ve also got a car that isn’t working out for you, there’s a good chance that you can create a win-win scenario for everyone. Donating your car to charity will often come with some convenient tax deductions. But you’ll just want to check the tax code first. Otherwise, you might make a wrong turn and miss out on some great tax benefits!

It always pays to plan ahead! And in terms of a health savings account (HSA), your planning actually does double-duty. You’re not only building a stockpile of savings for possible healthcare expenses down the road. You’re also working to lower your tax responsibility too!

While regular tax planning is crucial for any taxpayer, there are certain scenarios that can really put you at financial risk. Looking ahead to what the tax season might bring can give you a leg up. To keep your tax liability low, be sure to review this list. The sooner you know what to watch for, the better off you’ll be!

The rush of our day-to-day lives can often mean we forget one detail or another. Then there’s also the chance of getting surprised with an entirely new dilemma. When it comes to the IRS reaching out to you, though, be sure to stay on guard. An IRS agent will only contact you in certain, predictable ways.

There are times in life when we’re presented with opportunities to financially help our loved ones. But the tax code can also trip people up! When you have a generous spirit, it’s important to protect your own best interests too.

October is arguably the busiest month for weddings, and it’s always fun to celebrate with friends and family. And obviously, there are endless benefits that come with tying the knot. Unfortunately, in terms of the tax code, married couples aren’t exactly better off than single taxpayers. Knowing what you’re up against can help you get prepared once tax season officially rolls around.

Whether it’s digital records saved on the computer or an overflowing filing cabinet, we’ve all gathered a lot of documents over the years! Some items might be necessary anymore. Yet others are still important and need to be kept around. So how do you know which is which?

We’re seeing the market value of homes rising all across the country. That means we can also expect higher property tax values on the horizon. But if you understand the implications now, you might be in a better position to keep your liability low.

We all know that raising children is expensive. And although it’s definitely rewarding in its own ways, it’s not uncommon to run into some financial bumps over the years. Claiming the tax credits for your family can help offset some of those costs. But are you prepared for what’s coming down the line?

Practicing good discipline and planning for the future with your mutual funds is always smart. But it’s a complicated process. Working with an experienced and trusted advisor can make a big difference in reaching your goals. Along the way, you’ll want to keep some of these key tax concerns in mind.

In theory, pushing back the individual filing date for 2020 tax returns is pretty straightforward. You simply get another month to put your records together for the new May 17, 2021 due date. But there’s a specific tax code update that many individuals and families will want to keep an eye on. If you received unemployment income in the year 2020, that money might end up being tax-free!

Every year brings its own set of new regulations or revised tax rules. But some basics will stay the same. Unfortunately, those sections can still be the ones that mess taxpayers up! Rushing through any of the steps—and then skipping a final review—can lead to some annoying problems down the line.

Submitting your return and putting another year of taxes behind you usually feels pretty good and offers some peace of mind. You’re all done and can move on to other matters! Then again, you might end up realizing that your tax return had an error. What are the next steps?

Great news—your tax return is filed! But apparently, you’re due for a large refund. For most people, getting this type of news is better than hearing that you owe money. However, there are a handful of hang-ups that you might not be aware of at first glance.

Home improvement projects are always exciting—they offer something different, and when done right, they can bright a great ROI. A hot real estate market can make it even more and more enticing to cash in on those upgrades, sell your home, and move somewhere new.

Whether you already know that your tax situation is unique, or you feel like you lead a pretty simple life, there are plenty of ways people can end up owing way more than they expected come tax season. Staying ahead of the curve and double-checking these common scenarios will help ensure you’re on track to keep your tax responsibility low and reasonable.

When it comes to day-to-day life, we usually like to think of age and birthdays as “just a number.” But when it comes to our tax returns, those numbers can actually make a big difference! It’s important to understand how your deductions will change from year to year based on your age—and your children’s ages.

Welcoming a new baby into the family is always a cause for celebration. What new parents may not realize, though, is that the new addition also comes with some practical tax benefits—and also a few tax complications. But when you know how to manage your return, your growing family doesn’t have to add more stress. Even the baby’s grandparents and other relatives can look into new opportunities for lowering their own tax obligations!