Tax season is among us. Most people have gathered and submitted theirs, but not everyone has! I am still in the information-gathering stage, and it’s already becoming overwhelming! Wondering if I should do them myself or not got me thinking, when should you hire a tax professional?
Lack Of Time
The reason most people hire tax professionals is that they don’t have time to do it themselves! That is where I fall. I have so much going on with work that Read more [...]
Tax time is here. The last day to submit those returns is coming up in the next couple of weeks. If you are like me, taxes are frustrating, and the result always ends up with me owing to the IRS, which I think is too much money. I used to do my taxes using Turbo Tax for free, but here are the reasons I hired a tax professional to do my taxes now!
For one, I don’t have the time. I am a busy person and work from sunrise to sunset. When I get Read more [...]
In the past few years, I've worked hard to contribute the maximum amount allowed to my Roth IRA. I have done this in spite of the fact that I have debt to pay off. Am I making the right decision? It feels like it's the right choice for me.
What Is a Roth IRA?
In case you're not familiar with it, the Roth IRA is a retirement plan. I am self-employed. Therefore, I don't have a 401(k) through my work. As a result, I need to take responsibility for my own retirement planning. The Roth IRA is the Read more [...]
2020 was a crazy year. 2021 hasn't been so much fun either. With COVID-19 vaccines being jabbed into arms, we are regaining some normalcy, but families and businesses are still in distress. We have seen a few stimulus packages aimed at helping families, small and big businesses, and students alike. Today we are getting one more to help boost the economy and help uplift those in need. If you're in need, and even if you are not, find out how the new stimulus could benefit you.
How Read more [...]
Do you have a side-hustle or other ways to make a little extra cash? I do, and If you're reading this, you probably do too. I am sure it is quite rewarding. The funds I make from my side-hustle allow me to make extra mortgage payments and fund my many investments in an attempt to retire early. Whatever your side gig may be, do you pay taxes on it? Should extra income be taxed at all? Here my thoughts on it.
Should Extra Income Be Taxed?
If you ask Read more [...]
I've worked as a freelance writer / independent contractor for well over a decade. Some years I do better than others with money management. Which in turn means that some years it's a lot easier than others to complete my taxes. At the start of 2021, I've made a super simple change that will simplify my taxes immensely.
Operating as a Sole Proprietor Without a Business License
People often ask me what my business legal structure is. Am I registered as an LLC or DBA? Do I have an Employee Identification Read more [...]
The United States tax code is complex. It’s chocked full of details, including information about what is and isn’t taxable, many of the taxable items may surprise you. The tax code is shockingly long and incredibly challenging to decipher, particularly for anyone who isn’t trained in accounting or finance as it relates to taxes.
As a result, most people don’t know everything about taxes, including, at times, issues that pertain to their own situation. That can lead to some startling Read more [...]
When the Tax Cuts and Jobs Act (TCJA) of 2017 went through, it essentially doubled the standard deduction. This led many households to reevaluate their charitable giving, mainly because they had to reevaluate their tax strategy. With the new year now underway and tax season drawing near, it’s smart to plan for your charitable giving for 2020. With that in mind, here are five charity no-no’s you should keep in mind.
1. Assuming Your Political Donations Count
Since 2020 is an election Read more [...]
As the year draws to a close, many people examine their financial situation. At times, the goal is to take last-minute actions that can lower your tax liability. If you have some losing investments, selling those stocks could help you reduce what you owe. With the tax-loss harvesting strategy, you can reduce what you pay in capital gains taxes. Here’s a look at how it works.
How Tax-Loss Harvesting Gives You a Tax Break
With tax-loss harvesting, you sell losing stocks to reduce the tax impact Read more [...]
While many people choose to give to charity to support their communities, the ability to benefit financially made giving more attractive. Taxpayers could itemize their deductions and claim their charitable contributions, giving them the ability to lower their tax burden. However, with the new 2019 tax laws, fewer people are going to benefit from itemizing, decreasing the odds that they will receive a deduction for giving to charity.
Changes to the Tax Law
When you file your taxes, you typically Read more [...]