When I said that the current capital gains tax rate is 0% for some taxpayers, a reader, Colin, was shocked. He states: I had no idea long term capital gains are presently 0%. Are you sure? Yes, Colin, I’m sure! Let’s take a closer look at capital gains and the capital gains tax rates. Capital [...]

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Adoption Tax Credit

Posted by Kate

What is the Adoption Credit? If you adopted a child recently, qualified expenses related to the adoption have reverted back to being a nonrefundable tax credit. (The credit was refundable for tax years 2010 and 2011.) The tax adoption credit is a maximum of $12,970 per child for tax year 2013. What Expenses Qualify? Qualified [...]

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Itemized Deductions

Posted by Jill

When you file your taxes, you have the option to either claim the standard deduction or itemize your deductions. While the standard deduction is a set amount, itemized deductions will vary from person to person. As such, if you have a large number of itemized deductions you will likely be able to reduce your tax [...]

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What is the Earned Income Tax Credit? The earned income tax credit (EITC) is an incentive to work for low to moderate income individuals and families. The earned income credit is refundable, which means that even if you don’t owe any taxes, you can still get a refund. 2013 Earned Income Tax Credit Income Limits [...]

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Let’s look at 2014 W-4 Form information to help you fill out a W-4 Form for your employer. What is W-4 Form? A W-4 Form indicates how much federal income tax should be withheld from your paycheck. Your employer will use your W-4 form and the number of exemptions you claim to calculate your withholding. [...]

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Tax Extension Form 4868

Posted by Kate

Form 4868 is the form you must fill out if you are not able to file your federal income tax return by April 15. Form 4868 is used to file for a tax extension. What is Form 4868? By filling out the IRS form 4868, you can get an automatic 6 month extension of time [...]

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Standard Deduction

Posted by Jill

What is a standard deduction? How much is your standard deduction? When you fill out your tax return, you report your gross income. But before you calculate your taxes owed, you reduce your income by claiming deductions. Each year, the government publishes a standard deduction amount that is indexed to inflation. Tax payers can choose [...]

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This week’s Featured Deal from the US Bank FlexPerks card is a perfect way to celebrate to the Winter Olympics. Normally, a 20,000 Point Sign Up Bonus, US Bank gives you the chance to increase your sign up bonus based on the medal count during the Olympics. During the last Olympics in 2012, I picked [...]

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Now that you can begin to file your taxes, focus immediately shifts to how long it takes to get your tax refund. How Long Can the IRS Hold Your Tax Refund? The short answer to this question is: indefinitely. If, that is, you owe certain kinds of debts. Let’s say you are the type of [...]

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The numbers are in and for the second year in a row, my experiment selling on Amazon is proving to be a successful side gig. Last year, our Amazon business generated $50,000 in total profits! Not bad at all for a business that just started out as a side project that I wanted to test [...]

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