Roth IRA contributions for high-income couples

A while back, there was an article from the Wall Street Journal that discussed a way for high-income couples to make Roth IRA contributions. A physician and his wife were maxing out their 401(k) accounts and 457 savings plans, but were ineligible for deductible contributions to a traditional IRA or contributions to a Roth IRA …

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Social security benefits and your taxes

Were you surprised when you finished your tax return and discovered that part of your social security benefits were taxed on your return? Some people must pay taxes on their Social Security benefits. If you get Social Security, you should receive a Form SSA-1099, Social Security Benefit Statement, by early February. The form shows the …

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Six tips on making estimated tax payments

Some taxpayers may need to make estimated tax payments during the year. Here are some tips on what to consider when deciding if you should. If you do not have taxes withheld from your income, you may need to make estimated tax payments. This may apply if you have income such as self-employment, interest, dividends …

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8 facts on filing an amended individual tax return

What should you do if you already filed your federal tax return and then discover a mistake? Don’t worry; you have a chance to fix errors by filing an amended tax return. Here are 8 facts you should know about filing an amended tax return: Use Form 1040X, Amended U.S. Individual Income Tax Return, to …

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Proceed with caution when helping children buy a home

According to The Project on Student Debt, the average student debt at graduation in 2018 ranged from $19,750 in Utah to $38,650 in Connecticut, and new graduates’ likelihood of having debt ranged from 36% in Utah to 76% in New Hampshire. While the job market is bright, this much debt makes it very difficult for …

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Tax aspects of employee terminations

Although taxes are probably the last thing on your mind after losing or quitting a job, tax aspects of your changed personal and professional circumstances can be significant. Depending on your situation, the tax aspects can be complex and require you to make decisions that can affect your tax picture this year and for years …

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Don’t lose your deduction: Proving vehicle use

Tax law surrounding business vehicles (or any tax law for that matter) can be complicated. What do you need to give to the IRS if your vehicle use deduction is ever challenged? Don’t miss: Business meals + expenses A taxpayer must maintain adequate records or other corroborative evidence to support the business portion of auto …

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Claiming treaty benefits

The United States has income tax treaties with many foreign countries. These treaties may reduce the U.S. income tax of a resident of a foreign country. The reduced tax rates or exemptions vary between each country and each type of income. Don’t miss: IRS releases FAQ’s for sick foreigners claiming U.S. tax exemption Many of …

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IRS outsourcing of cryptocurrency analysis

While most taxpayers probably haven’t been thinking much about cryptocurrency reporting requirements over the last few months (for good reason), the IRS has not forgotten about the vast number of taxpayers who are likely not reporting their cryptocurrency income, intentionally or otherwise. To the contrary in fact, the IRS appears to be ramping up their …

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