As 2022 comes to an end, the IRS has announced new income tax brackets, standard deductions and 401k contribution limits for 2023. Understanding these changes can help you prepare for the year to come, adjusting your financial plans and savings goals in accordance with the federal income tax rate and 401k limits 2023. Read on … Read more
New tax laws can bring about major changes for most Americans, with different tax credits, rates and exemptions making an impact on your overall bottom line. The tax changes introduced by the Inflation Reduction Act, which passed the Senate in August 2022, represent one such example. Of course, the act has been promoted mostly as … Read more
As your children get older, some of the IRS rules about claiming them as dependents on your tax return change. It’s important to understand all the rules, especially since children are living with their parents longer than they did in previous generations. As is often the case when it comes to tax law, there are … Read more
It’s a quip you hear often when the lottery jackpot creeps upward: “Sure the jackpot is $40 million, but what do they leave you after taxes?” Honestly, on a jackpot this high, the answer is more than enough. But the exact amount depends on several factors, including your tax bracket. Before you start daydreaming about … Read more
Many people choose a Roth IRA for retirement savings, because of the account’s options to allow you to grow your money tax-free. While your money is in the Roth individual retirement account, it can grow, and when you take it out during your retirement, there is no obligation to pay taxes. In addition, you can … Read more
If you’re just starting out in the workforce, the Form W4 your employer hands you may look confusing and foreign. If you’ve been in the workforce for a while but just changed jobs, the form may still look completely different from what you’re used to. This is because fairly recent changes in the tax law … Read more
If you’ve changed jobs within the last year, your previous employer could forget to send you a W2. Most employers and human resource departments try not to let previous employees slip through the cracks at tax time, but it’s a busy time of year and mistakes do happen. It’s important to know when you should … Read more
Hopefully, your parents will live long, healthy lives. If they do, you’ll likely see the pendulum swing as they age and find yourself caring for the people who once took care of you. When a nursing home isn’t an option, many people find themselves moving their parents in with them and taking care of them … Read more
Getting married can change your life in a myriad of ways, and one of those changes will be in how you do your taxes. Much like your marriage itself, your new tax picture can provide many benefits and perks. Things won’t always be sunshine and roses, though. If you’re not careful, getting married and filing … Read more
If you’ve decided to give a friend or family member a monetary gift, you’re probably doing so because you want to help them out — not hand them a tax liability. Fortunately, you need not worry. The IRS holds the gift giver liable for any taxes rather than the recipient. That’s if there is any … Read more
