There is a tremendous misunderstanding about marginal income tax rates which are the highest rate at which your income is taxed. Income is taxed at increments by the IRS. Below is an example for a single person. Rates are different for married persons filing jointly and heads of households. the purpose of this example is…
Category: income tax
2021 Federal Taxes: Expanded child Tax Credits and Child-Care Flexible Spending Accounts
Q: (True or false): Taxpayers who got direct deposits of 2021 child tax credits last year could have lower refunds or higher taxes due than expected on returns they’re preparing now. A: True. Millions of taxpayers received partial prepayments of expanded child credits for 2021 last year via direct deposit. As a result, these amounts…
Boost your savings with the Retirement Savings Contributions Credit
Get paid to contribute to your retirement account with the Retirement Savings Contributions Credit. Eligible filers can claim up to 50% of retirement contributions for a maximum credit of $1,000 and married couples filing together may receive $2,000. It’s a non-refundable credit so you must owe federal income taxes to benefit. “For 2021, you may…
How much of your college scholarship is taxable?
Wait! What? My scholarship money is taxable?Many students have no idea that their scholarships might be taxable.Due to the coronavirus the income tax deadline has been extended to July 15, 2020.Payments and interest on federal student loans for 6 months of relief…. So, about those scholarships and possible taxation.Any aid used for living, travel and…
Federal Income Tax Filing Deadline Extended 3 months
You Have an Extra 3 Months to File Your Taxes. Should You Wait? If you’re owed a refund, it may be better to file quickly. You can also file your return now but wait until July 15 to pay any taxes owed. Why postpone the inevitable. If you expect to owe taxes, file now and…
Easy way to build an emergency fund
According to the IRS, around 72% of Americans received a refund on their taxes in 2019. This extra cash may be the largest check some people receive all year and can be a perfect opportunity to start—or grow—your emergency savings funds.Learn how your tax return can kickstart your savings. The Consumer Financial Protection Bureau’s guide…
Time to update your income tax withholding
With the changes in federal income taxation resulting from the recently passed “Tax Cuts and Jobs Act,” NOW is the time to update your withholding. With so many changes in federal income taxes, including an increased standard deduction, elimination of personal exemptions, increases in the child tax credit, limited or discontinued certain deductions, and changes…
Useful Reference & Planning Guides: 2018 Taxes, Long term care, Social Security, & Medicare
Manning & Napier produced four 2-page guides to the latest developments in federal income taxes, long term care, Social Security, & medicare that are succinct and easy to understand. Check out: Tax Reference Guide Our new tax guide has everything you need to know about tax reform, and changes to contribution limits and tax rates.…
Tax time is the time to act on retirement savings!
It’s time to feed your “Financial Freedom Fund.” The federal government (under previous administrations… not sure how long this great deal will last….) offers a tax credit to help workers boost their retirement accounts. “The Retirement Savings Contribution Credit, aka the Saver’s Credit, is a tax credit that may be applied to the first $2,000…
Wealthy likely to get huge tax cut under Trump propsal
As reported December 2, 2016 by the conservative Wall Street Journal, despite promises of big tax cuts, the middle class is likely to pay higher taxes under Trump while the wealthy enjoy big tax cuts under trump’s proposed tax plan. Bottom line: big increase in the federal deficit under this Republican administration. Trump;s pick for…