Here’s who qualifies and how to claim it
Coroimage | Moment | Getty Images If you worked remotely in 2024, you may be eyeing the home office deduction. However, qualifying for the tax break may be harder than you expect, experts say. Only 7% of companies allowed fully remote work in 2024, down from 21% in 2023, according to a ZipRecruiter survey that […]
Here’s how to get a faster tax refund this season, experts say
Andreswd | E+ | Getty Images It’s official: Tax season is open for individual filers and the IRS has started to process 2024 tax returns. If you’re expecting a refund, there are key things to know, according to tax experts. “There are some very simple tips to get the fastest refund possible,” said Mark Steber, […]
There’s a big inherited IRA change in 2025. How to avoid a penalty
Greg Hinsdale | The Image Bank | Getty Images Inheriting an individual retirement account is a windfall for many investors. However, a lesser-known change for 2025 could trigger a costly surprise penalty, financial experts say. Starting in 2025, certain heirs with inherited IRAs must take yearly required withdrawals while emptying accounts over 10 years, known […]
Here’s how to pay for taxes on your Roth IRA conversion, advisors say
Srdjanpav | E+ | Getty Images More from FA Playbook: Here’s a look at other stories impacting the financial advisor business. When a Roth conversion is completed, you’ll owe regular income taxes on the converted balance, based on your current-year taxable income. Ideally, you’re “managing the tax bracket,” said CFP Jim Guarino, managing director at […]
Here’s how to maximize your tax breaks for charitable giving
Mixetto | E+ | Getty Images As year-end approaches, you may be eyeing a donation to charity — and certain gifting strategies can boost your tax break, experts say. In 2023, U.S. charitable giving hit $557.16 billion, up roughly 2% compared to 2022, according to Indiana University Lilly Family School of Philanthropy’s annual report released […]
The stakes on tax policy are high as the election nears. Here’s how to prepare
Investors have a close eye on the Nov. 5 presidential election, but Congressional contests deserve attention — as they could shape tax policy and the next steps investors take to prepare. “Whatever happens with the election next week, it’s still going to take time for some significant tax law to come through,” said Stephen Bigge, […]
How to leverage higher income limits for the 0% capital gains bracket
dowell | Moment | Getty Images The earnings limit for the 0% capital gains bracket will rise in 2025, which could offer tax planning opportunities, financial experts say. At sale, profitable assets owned for more than one year qualify for lower taxes — known as long-term capital gains. Those rates are 0%, 15% or 20%, […]
How to use required minimum distributions to improve your portfolio
Richard Drury | Digitalvision | Getty Images After funneling money into pretax retirement accounts, you will eventually face mandatory withdrawals in retirement known as required minimum distributions, or RMDs. Since RMDs can trigger higher taxes, the withdrawals can be a nuisance for some retirees who do not need the money. But the yearly activity could […]
How to calculate capital gains taxes when selling your home
Westend61 | Westend61 | Getty Images As home values climb, more Americans owe capital gains taxes when selling property. But knowing how to calculate your home’s profit could reduce your bill, experts say. Most Americans do not owe taxes for selling a primary residence because of a special tax break — known as the Section […]
How to avoid the ‘survivor’s penalty’ before a spouse passes
Jessie Casson | Digitalvision | Getty Images It’s hard to lose a spouse, and a costly surprise makes it even more difficult, especially for older women — higher taxes. But financial experts say there are several ways to prepare. In 2022, there was a 5.4-year life expectancy gap between U.S. sexes, according to data from […]