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What is Publication 504, Divorced and Separated individuals?
IRS Link to Publication — Found Here Divorce can be a hard thing on a personal level, and the tax returns can become more difficult to sort through as well. Publication 504 walks through the various choices available to those who are divorced or separated and who may need to adjust how their dependents are claimed, how property is divided up or sold, and who pays the taxes due at the time of divorce. Publication 504 gives detailed instructions concerning how to correctly report and file the proceeds of divorce. Continue reading...
What is Adjusted Gross Income?
For tax purposes, Adjusted Gross Income is the basis of an individual’s income tax calculations, before “below the line” deductions. Adjusted Gross Income (AGI) is Gross Income (all of an individual’s earnings for the year) minus above-the-line deductions such as retirement plan contributions, education and medical expenses, Health Savings Accounts, alimony, military exemptions, and so on. After these adjustments, a person can take the standard federal deduction or itemize their other deductions. These are known as below-the-line deductions. Continue reading...
How Do You Understand Tax Returns: Importance, Retention, and Deductions?
Unlock the mysteries of tax returns! From understanding their pivotal role in financial planning to mastering the art of deductions, dive into a comprehensive guide that demystifies retention periods, the evolving tax landscape, and the invaluable role of tax professionals. Ready to become tax-savvy? Continue reading...
What Is a Tax Deduction?
Tax season can be a confusing time for many individuals, but understanding tax deductions is crucial for minimizing the amount of tax you owe. A tax deduction is an expense that you can subtract from your taxable income, effectively reducing the portion of your income that is subject to taxation. Taxpayers have two primary choices when it comes to deductions: the standard deduction or itemized deductions. The standard deduction is a fixed amount that reduces your taxable income. Continue reading...
What Are the Updated Roth and Traditional IRA Contribution Limits?
As we dive into the financial landscape of 2023, it's crucial for investors to stay informed about the latest updates and opportunities in the realm of individual retirement accounts (IRAs). IRAs are a cornerstone of retirement planning for millions of Americans, offering tax advantages that can help you secure a comfortable retirement. In this article, we'll explore the updated Roth and Traditional IRA contribution limits for 2023, as well as key considerations and strategies to optimize your retirement savings. Continue reading...