As a DINK couple, you may find yourself and your partner in the enviable position of earning high salaries. While having a high income is a nice reward for hard work, drawbacks exist. One of the biggest is the amount of taxes that you have to pay. However, you can utilize tax strategies of high-income earners to limit the tax burden you face. … [Read more...] about What Are the Tax Strategies of High Income Earners?
We’ve owned our house for seven and a half years now, and we’ve made several improvements such as replacing the worn-out carpet in the bedrooms, painting the entire house inside and out, and painting our kitchen cupboards. Soon, we’ll be replacing our master shower with tile. I keep a separate category in our budget for home improvements, but I’m going to start keeping good … [Read more...] about Keep Good Records to Pay Less in Capital Gains
Everyone's personal financial situation is different. Some people are still getting organized, others are in better shape. So, for many the question is: after you've got the basics nailed down, where do you go after that? For example, after you've paid off your high interest debts, have an emergency fund and are sticking to a budget, whats the next step? Well, there … [Read more...] about Wealth Building After The Basics
My uncle and aunt kept their finances separate. She had her own account and income, and he did, too. When tax time came, they filed together, but my uncle took all of the tax return money. Of course, my aunt fumed about this, but the situation never changed. If you and your spouse have separate finances, equity is just one of the reasons why couples should split a tax refund. … [Read more...] about Reasons Why Couples Should Split a Tax Refund
Since it's March and you're reading a personal finance blog, you're probably considering starting on your taxes. Well, it looks like you may have an extra month to file your returns. According to Bloomberg, the IRS is allowing an additional month in which to complete your taxes. From Bloomberg.com: The Internal Revenue Service is delaying the April 15 tax-filing deadline to … [Read more...] about IRS Pushes Back 2020 Filing Date To May 17th
Have you heard of Patreon? This site was created in 2013 and exploded in popularity in 2017. Patreon offers artists the chance to have patrons who support their work much like Renaissance artists of old had patrons who financed their work. The most common types of artists (called creators) on Patreon are YouTubers, podcasters, artists, writers, and game creators, to name a … [Read more...] about Are Patreon Payments Considered Taxable Income?
Tax debt isn’t anything to ignore. The IRS will take whatever measures necessary to get their funds. No matter your reason for getting behind on your taxes, time is of the essence. The faster you catch up with your tax payments, the less it will cost you. While your debt sits unpaid, the IRS charges interest and penalties that make your debt skyrocket. … [Read more...] about What to do If You Owe Back Taxes to the IRS
It is pretty common for people to refer to themselves as being in one specific tax bracket. They think that if they're in the 22% tax bracket, then all of their money is being taxed at 22%. Well, I am here to bust that myth just in time for tax season. … [Read more...] about Do You Really Know How You Are Being Taxed?
Since it is time to start compiling your tax information, I wanted to share this summary of 2020 tax code updates I found on YouTube last week. The author is "Mike the CPA", a self employed CPA and YouTube content producer. His stuff is worth watching if you're into maximizing your tax efficiency. … [Read more...] about Summary Of 2020 Tax Code Changes
As the end of the year approaches, our minds turn to the holidays and a less than pleasant thought – taxes. Parents get a child tax credit for each dependent under the age of 17. Last year’s tax reform package increased the deduction from $1,000 to $2,000. Couples without any children don’t get the big tax break, but you still have some ways to decrease your tax liability for … [Read more...] about Last Minute Tax Planning for Couples With No Children