Robby Factors to Consider When Making the Decision When deciding whether to lease or buy a car, there are several factors to consider, especially if you are self-employed. Here are some key points to keep in mind: Tax Implications: Leasing: Lease payments are typically deductible as a business expense, up to certain limits. However, you may … Read more
Social Security benefits play a crucial role in the financial well-being of millions of retirees. However, due to the tax treatment of Social Security income, retirees may face challenges when applying for loans, mortgages, or other financial products that require proof of income. This is where the concept of “grossing up” Social Security income becomes … Read more
Navigating Tax Refunds with Installment Agreements Understanding the interplay between tax refunds and installment agreements is crucial for taxpayers seeking financial relief. This comprehensive guide delves into the IRS’s policies and procedures regarding refunds when taxpayers have outstanding payment plans. Can I Receive a Refund with an Installment Agreement? No. One of the conditions of … Read more
Understanding your tax bracket is crucial for effective financial planning and budgeting. This guide will delve into the tax implications of an $85,000 salary in Colorado, using data from reputable sources like TaxAct and Talent.com. Tax Brackets and Calculations Tax brackets are income ranges that determine the percentage of your income subject to taxation. In … Read more
Understanding 1099 Taxes As an independent contractor or self-employed individual, you are responsible for paying your own taxes, including self-employment tax and income tax. Self-employment tax covers Social Security and Medicare taxes, which would typically be withheld from your paycheck if you were an employee. Calculating Your Tax Liability The amount you should set aside … Read more
Receiving a monetary gift can be a joyous occasion, but it’s essential to understand the potential tax implications. In this comprehensive guide, we’ll delve into the intricacies of gift taxes, exploring who is responsible for paying them, when they apply, and the various exemptions and exclusions that may impact your situation. Who Pays Gift Taxes? … Read more
The Recovery Rebate Credit is a tax credit created to provide financial relief to individuals and families who were impacted by the economic downturn caused by the COVID-19 pandemic. This credit is available to taxpayers who did not receive the full amount of the three stimulus payments issued by the government in 2020 and 2021. … Read more
Navigating Tax Deductions for Personal and Business Vehicles Purchasing a vehicle is a significant investment, often prompting taxpayers to explore potential tax savings opportunities. This guide delves into the intricacies of claiming tax deductions for both personal and business-related vehicle expenses, empowering you to make informed decisions and maximize your tax benefits. Personal Vehicle Tax … Read more
Taxes are a fundamental aspect of modern societies, providing governments with the revenue necessary to fund essential public services such as infrastructure, education, healthcare, and defense. However, the concept of refusing to pay taxes has been a topic of debate and discussion for centuries. This article delves into the potential consequences of a scenario where … Read more
Understanding how much you’ll take home after taxes is crucial for effective financial planning. This guide will delve into the intricacies of post-tax income calculations, specifically focusing on the scenario of earning $2,400 per month in California. We’ll explore the various taxes that impact your paycheck and provide a detailed breakdown of your net pay. … Read more