Correcting Common Financial Mistakes
You’re working at the office, getting stuff done around the house, or hanging out with family when — wham! — a phone call, email or text alerts you that something happened with your finances. When a not-so-nice financial event hits, don’t let it take you down. Here are some common miscues and steps to remedy each situation:
As soon as your child begins to earn income, open a Roth IRA and set a contribution goal to reach before they graduate from high school. Assuming an 8% expected rate of return, the investments made by age 19 will grow to FORTY times its value by the time they reach 67 (current full retirement age).
It is late February and you realize the Form 1099 you received is in error. In fact, it overstates your income by several thousand dollars. What should you do?
Tax return filing season usually gets a little crazy, but this year will be more turbulent than most. Due to new tax legislation and guidance from the IRS, you will have to cope with a wide variety of tax changes, some of which relate to the pandemic. Here are several tips for making some order out of the chaos.
Passion alone will not fuel a small business; you must be smart about starting and running a company in order for it to thrive. Here are a few tips to help you keep your business profitable by avoiding common financial mistakes made by entrepreneurs.
Unified Credit: TCJA increased the unified credit applicable to estate and gift taxes after 2017, effectively doubling the amount exempted from estate and gift taxes. For 2022, this increase in the credit is projected to effectively shield $12,060,000 from estate and gift taxes.
Ordinary Income Tax Rates: Currently, individual ordinary income is taxed at seven graduated rates: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. For 2022, the 37% bracket is projected to begin at the following income levels, depending on filing status:
On September 25, 2021, the House Budget Committee approved legislative text for the Build Back Better Act. The Build Back Better Act is a massive proposal containing the majority of President Biden’s domestic policy agenda.
If you have not already done so, now is the time to review your tax situation and make an estimated quarterly tax payment using Form 1040-ES. The third quarter due date is now here.
There are a lot of positive things about getting married, but the IRS’ marriage penalty isn’t one of them. The marriage penalty occurs when you pay more tax as a married couple than you would as two single filers making the same amount of money.