…value is dollar-for-dollar, while a tax deduction reduces gross income, which will still be taxed at an individual’s marginal tax rate. What is a Tax Credit? A tax credit is an amount of money a taxpayer can subtract from their owed taxes. There are three types of tax credits: a nonrefundable tax credit, a refundable tax credit, and a partially…
…taxpayer is not familiar with the tax code put forth by the IRS, nor do they know about all the tax breaks they can take advantage of. That’s where a tax advisor comes in. A tax advisor is someone who is familiar with tax law. A good tax advisor is familiar with the tax laws in your state, and a…
…Protection at our next FREE LIVE STREAM Tax-Free vs. Tax-Deferred Investment Accounts While tax-free can imply avoiding taxes altogether, these investment plans aren’t actually free from taxes. Essentially, tax-free investments account for post-tax contributions. This means that you won’t be subject to immediate income tax or taxes for any investment returns made during the year of filing, and the funds…
…child and $6,000 for two or more children. Starting in 2021, the Child and Dependent Care Tax Credit became a refundable tax credit, in contradistinction to a nonrefundable tax credit. This means that if your income is such that you actually don’t owe any taxes or because tax credits and tax breaks eliminate your tax burden, you can still claim…
Updated August 18, 2021 Stock and option trading and taxes can be complex. To complicate matters more, the recent tax reform may impact how your taxes will be assessed. Here are six things that you should know about taxes on stocks and options in 2018. 6 Things Traders Need to Know about Taxes on Stocks and Option Sales: When to…
