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!
Knowing how to keep a close eye on your budget is a valuable lesson for anyone to learn. Whether you’re a small business owner, caring for a big family, or just starting your career—it’s important to know the ins and outs of your bank account and expenses. That’s why Social Security recipients need to be aware of the changes that are coming down the pipeline this year. If you haven’t already heard the news, here’s a quick recap.
There are a variety of reasons why you may have changed your name in the past year. Whether you celebrated a marriage, finalized a divorce, or decided to change your name for any other reason, there are a few steps you’ll need to follow in order to avoid complications with your upcoming tax return prep and filing.
Even if you love the work you’re doing, there’s no denying the fact that retirement is a major milestone and cause for celebration. It can open a lot of new doors because you’ll have more time to do the things you enjoy most. (And hopefully that includes getting some well-deserved rest and relaxation!)
As the official age for full retirement moves closer to 67 over the next few years, many taxpayers wonder what steps they should be taking in order to maximize their Social Security benefits. Do you start taking those retirement benefits as soon as possible? Or do you wait it out, so you can get a higher check later on?
We hope for the best, but need to plan for the worst. Whether you’re feeling well and healthy now or have a few ongoing concerns, knowing how to navigate your medical expenses correctly can help you keep as much money as possible when you file your tax return. Reviewing the latest tax laws and understanding your options for account contributions and deductions will be a key part of saving tax dollars as you work through those bills—and your own road to recovery.
Making mistakes is a part of life. But they shouldn’t be part of your tax return! Even the smallest oversight can turn into a big problem down the road. Understanding the tax rules and proper communication with your tax preparer can help you avoid the mistakes that tend to be all too common. A little tax planning can work to keep you on track—so you don’t have any surprises later on.
Higher education can come with some hefty enrollment fees. But learning about your available tax breaks ahead of time will help you keep more money in your pocket as you advance your knowledge. Whether you’re heading back to school for a new degree or just some general continuing education courses for your current career, you’ll want to brush up on these details to get the most savings.
Not many people associate positive things with the word “tax.” Fortunately, the word “credit” is another matter. You need to consider every tax credit possible in order to get the most savings on your return. While you probably will only qualify for a handful, it’s still important to check the details on some of the more popular tax credits.
When you have real estate to sell, going to your family members first might seems like a win-win for everyone. They could get a great deal, and you’d be able to stop worrying about property you don’t want anymore. This can be especially appealing when you want a quick sale. However, there are tax implications that you’ll want to think about upfront. You don’t want to get an unpleasant surprise from the IRS.
When you have a loved one who needs assisted living care, it’s only normal to be considered about the ongoing costs. These services are crucial for maintaining a high quality of life, but they can also be incredibly expensive. That’s why it’s important to understand your options with an itemized tax deduction. Correctly tracking your expenses can help ensure that you aren’t overpaying on your taxes.
Investing in our children is a great way to help bring about a better and brighter future for everyone, and we work toward these goals in a variety of ways—from extracurricular activities to emotional support. Of course, teaching our younger generations about smart money habits and saving will also make a big difference in their life!
In an effort to help Americans withstand the new challenges brought on by the coronavirus pandemic, the CARES Act called on the Internal Revenue Service (IRS) to issue Economic Impact Payments. These payments began going out in April 2020, and many families and individuals have already received their allocated funds. Of course, some people are still waiting.
