What is the 403(b) Retirement Plan? – Overview

Even though the 401(k) is the most common retirement account in the United States, not everyone has access to such a plan.

Those who work for governments, schools and non-profit corporations don’t have access to an employer-sponsored 401(k).

If you don’t have access to a 401(k), you can, of course, open an IRA.  However, the contribution limits are fairly low, which can be discouraging if you want to contribute a higher amount toward a successful retirement.

The good news is that many hospitals, schools, non-profits (including churches), and governments have their own retirement account offering: The 403(b).

What is the 403(b)?

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What Business Expenses are Tax Deductible?

When it comes to reducing business income for tax purposes, the tax deduction is one of the most popular methods.

You can deduct some of the money you spend on business and lower your taxable income.

However, it’s important that you understand what makes an expense tax deductible for business purposes.  Otherwise, you could find yourself red-flagged by the IRS.

But What Business Expenses are Tax Deductible?

Ordinary and Necessary Expenses

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Alternatives to Foreclosure

If you are concerned that your home might become a foreclosure risk, you are probably casting about for other options.

Foreclosure can impact your credit score, and make it difficult for you to purchase a home in the future — at least for the next two to four years.

When you are trying to avoid foreclosure, you do have some options.

However, it’s important to realize that you will have to meet certain requirements in order to qualify for some of these options.  Additionally, some of your foreclosure alternatives will impact your credit score, even if it isn’t impacted as much as it would be with a foreclosure.

Here are some of your alternatives to foreclosure:

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Cost Basis Reporting – How it Affects Your Taxes

When you sell an investment, your gains or losses depends on your cost basis.

If you sell for more than your cost, you end up owning capital gains taxes on the increase.  If you sell at a loss, you don’t have to pay taxes on the difference; instead, you might be able to claim a tax deduction for your investment loss.

What is Cost Basis?

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What is Self-Employment Tax?

When you work as someone who is self-employed, one of the costs of doing business is paying the self-employment tax. As you get ready to pay your taxes, don’t forget that you will need to add the self-employment tax.

What is the Self-Employment Tax, and Who Must Pay It?

The self-employment tax encompasses Medicare and Social Security taxes.  For those who are more traditionally employed, these taxes are automatically taken out of the paycheck.  The employer pays a portion of the tax, and the employee pays a portion.

Note that as a self-employed person, you will be responsible for the entire tax on your own — both the employer portion and the employee portion.
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What is Tax Evasion and How Could it Affect You

handcuffs

As tax season moves into high gear, thoughts turn toward how to improve tax efficiency.

There are a number of legal ways to reduce what you owe in taxes, thanks to deductions and credits.  If you think about your expenses, and re-examine your position, it is quite likely that you will find a few commonly overlooked deductions and credits that you missed.

Additionally, with a little thought, it is even possible to reduce your tax liability for the previous year — even though a new year is under way.

However, there is a very real difference between employing legal and properly documented tax breaks to reduce what you owe, and evading taxes in order to avoid paying what you are bound to pay by law.

Tax evasion is a serious matter, and you need to be careful to avoid engaging in it.

What is Tax Evasion?

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10 Common Overlooked Tax Deductions

As you start getting your tax information together, don’t forget to look for tax deductions.

While it is mostly too late to rack up new tax deductions, you can go back through your expenses from last year and figure out if you are eligible for another deduction or two.  Every little bit helps when it comes to decreasing your tax liability.

If you are looking for a few more deductions to add to your tax return, here are 10 common overlooked tax deductions to consider:

1. Charitable Mileage

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