How the Inflation Reduction Act Will Effect Your Taxes

Inflation reduction

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

How Long Can You Claim a Child as a Dependent?

clan a child

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

Taxes on Lottery Winnings Explained

Mega Millions lottery

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

Roth IRA Withdrawal Penalty Rules and Exceptions

IRA withdrawal

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

How Many Income Tax Allowances Should I Claim?

W-4 Form

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

How To Get a W2 From Your Previous Employer

W-2 Form

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

Can You Claim Your Parents as Dependents?

parents

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

The Tax Benefits of Marriage Explained by Experts

married couple

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

Taxability of Gifts: Who Pays and How to Avoid Taxes

Gift tax return

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

Vehicle Sales Tax Deductions Explained

Vehicle couple

Many taxpayers are aware that you can deduct business use of a personal vehicle on your taxes. Often overlooked, however, are other vehicle tax deductions. The largest of these deductions is usually the vehicle sales tax deduction, and it can make a big dent in your tax liability. Here’s what you need to know about … Read more