How savings bonds are taxed

How savings bonds are taxed

0 Comments

savings bond tax

Many people have savings bonds that were purchased many years ago. Perhaps they were given to your children as gifts or maybe you bought them yourself. You may wonder how the interest you earn is taxed. And if they reach final maturity, what action do you need to take to ensure there’s no loss of interest or unanticipated tax consequences?

Continue Reading: How savings bonds are taxed

Adopting a child? Bring home a tax break too

0 Comments

adoption tax break

Two tax benefits are available to offset the expenses of adopting a child. In 2022, adoptive parents may be able to claim a credit against their federal tax for up to $14,890 of “qualified adoption expenses” for each child. This will increase to $15,950 in 2023. That’s a dollar-for-dollar reduction of tax.

Continue Reading: Adopting a child? Bring home a tax break too

You may be liable for “nanny tax” for all types of domestic workers

0 Comments

nanny tax

You’ve probably heard of the “nanny tax.” But even if you don’t employ a nanny, it may apply to you. Hiring a house cleaner, gardener or other household employee (who isn’t an independent contractor) may make you liable for federal income and other taxes. You may also have state tax obligations.

Continue Reading: You may be liable for “nanny tax” for all types of domestic workers

Plan now to make tax-smart year-end gifts to loved ones

0 Comments

gift tax

Are you feeling generous at year end? Taxpayers can transfer substantial amounts free of gift taxes to their children or other recipients each year through the proper use of the annual exclusion.
The exclusion amount is adjusted for inflation annually, and for 2022, the amount is $16,000.

Continue Reading: Plan now to make tax-smart year-end gifts to loved ones

Investing in the future with a 529 education plan

0 Comments

529 plan

If you have a child or grandchild who’s going to attend college in the future, you’ve probably heard about qualified tuition programs, also known as 529 plans. These plans, named for the Internal Revenue Code section that provides for them, allow prepayment of higher education costs on a tax-favored basis.

Continue Reading: Investing in the future with a 529 education plan

Year-end tax planning ideas for individuals

0 Comments

lower tax bill

Now that fall is officially here, it’s a good time to start taking steps that may lower your tax bill for this year and next.

Continue Reading: Year-end tax planning ideas for individuals

Don’t forget income taxes when planning your estate

0 Comments

estate tax

As a result of the current estate tax exemption amount ($12.06 million in 2022), many estates no longer need to be concerned with federal estate tax. Before 2011, a much smaller amount resulted in estate plans attempting to avoid it. But now, because many estates won’t be subject to estate tax, more planning can be devoted to saving income taxes for your heirs.

Continue Reading: Don’t forget income taxes when planning your estate

Seller-paid points: Can homeowners deduct them?

0 Comments

mortgage points

In its latest report, the National Association of Realtors (NAR) announced that July 2022 existing home sales were down but prices were up nationwide, compared with last year. “The ongoing sales decline reflects the impact of the mortgage rate peak of 6% in early June,” said NAR Chief Economist Lawrence Yun. However, he added that “home sales may soon stabilize since mortgage rates have fallen to near 5%, thereby giving an additional boost of purchasing power to home buyers.”

Continue Reading: Seller-paid points: Can homeowners deduct them?

Is your income high enough to owe two extra taxes?

0 Comments

investment income tax

High-income taxpayers face two special taxes — a 3.8% net investment income tax (NIIT) and a 0.9% additional Medicare tax on wage and self-employment income. Here’s an overview of the taxes and what they may mean for you.

Continue Reading: Is your income high enough to owe two extra taxes?

The Inflation Reduction Act: what’s in it for you?

0 Comments

inflation reduction act

You may have heard that the Inflation Reduction Act (IRA) was signed into law recently. While experts have varying opinions about whether it will reduce inflation in the near future, it contains, extends and modifies many climate and energy-related tax credits that may be of interest to individuals.

Continue Reading: The Inflation Reduction Act: what’s in it for you?