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Apr 9, 2025What Defines State Residency for Tax Purposes?
Your state residency decides your need to pay state taxes; every state has different rules on residency. Though the criteria vary, the following are the key traits that usually characterize state residency:
adminApr 9, 2025What constitutes taxable interest income?
It is any kind of interest you get that was: Examples of Taxable Interest Income: If the interest is less than $10, the credit union may not issue a form detailing it. You must record all income. The IRS enables rounding to full figures. If your interest income is 49 cents, you can round it […]
adminApr 9, 2025Understanding Self-Employment Profit and Loss: A Tax Guide for Independent Earners
The profit or loss from self-employment is the difference between your revenue and costs. When your self-employment income exceeds your expenses, you profit. Conversely, when self-employment expenses exceed income, there is a loss. Self-employed individuals pay self-employment tax. The SE tax is a Social Security and Medicare tax. What is self-employment? Self-employment entails running a […]
adminApr 9, 2025How Qualified Dividends Can Lower Your Tax Bill
A kind of payout that satisfies specific IRS criteria, qualified dividends are taxed at reduced long-term capital gains rates rather than higher ordinary income tax rates. Here is what you should know: Qualified dividends play a key role in tax-efficient investing due to their preferential tax treatment.
adminApr 9, 2025Understanding Ordinary Dividends and Their Tax Implications
Ordinary dividends are payments to shareholders from corporate profits. The most frequent kind of dividend are a shares of the company’s profits spread out over time. Here is how they operate and what you should know: For investors in particular, ordinary dividends are crucial to monitor closely as they can greatly affect your tax return.
adminApr 9, 2025What Does Unearned Income Include?
Unearned income is money you get without actually toiling for it or providing services. Unlike earned income, which is payment for work, unearned income originates from investments or other passive sources. The IRS categorizes the following as unearned income: Because it’s not subject to payroll taxes, unearned income doesn’t qualify you for some tax benefits […]
adminApr 7, 2025What Does Earned Income Include?
Earned Income is any revenue you obtain from a job or personal services. It is the money you make while completing responsibilities or labor. The IRS defines earned income as wages, salaries, tips, and other kinds of compensation received in exchange for labor. Earned income consists of several major components, including: Earned income also includes […]
adminApr 7, 2025When Can You File as a Qualifying Widow(er) with a Dependent Child?
The Qualifying Widow(er) with Dependent Child filing status is meant to enable people who have lost a spouse to keep getting the same tax advantages as those who file jointly for up to two years following the spouse’s death. Using this status calls for meeting particular IRS criteria: This status lets you perhaps get greater […]
adminApr 7, 2025How to Qualify for Head of Household Status
You have to satisfy certain IRS criteria to qualify for Head of Household (HOH) filing status. Filing as single or married filing separately may not offer the same benefits as this status, which can offer a better tax bracket and bigger standard deduction. Qualifying is as follows: Since filing as Head of Household can lead […]
adminApr 7, 2025What Are the Requirements for Married Filing Jointly?
You have to be legally married as of December 31st of the tax year to qualify for the Married Filing Jointly tax status. Often the most advantageous for married couples, this status usually provides a bigger standard deduction, access to more tax credits, and lower tax rates than filing separately. You may file jointly if: […]
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