As you look ahead to retirement, one of the most important things is making the maximum contributions to your various retirement plans. In 2022, cost-of-living adjustments have resulted in many popular plans now allowing for increased contributions. To make sure you contribute as much as possible toward your retirement, here are some of the 2022 retirement contribution limits that may apply to your situation.
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With tuition rates and fees going up every year, seeing your child graduate with their college degree may sometimes feel like an impossible dream. However, it doesn’t have to be like this. In fact, if you start planning early on and explore various options, you may find that paying for your child’s education may be easier than you expected. To make sure the money is there when it’s time for your child to start college, here are a few savvy money moves for your consideration.
When the golden years approach, many soon-to-be retirees start looking for better horizons. A higher quality of life often means relocating to a new state. When it comes time for you to retire, you may get the relocation bug, like many other retirees before you. While a considerable number of retirees stay right where they are, thousands of retirees decide to up stakes and move. There are many reasons why retirees move. They include:
In case you haven’t noticed over the years, the federal government tends to move at a very slow pace. This is particularly true of the IRS, where speed is something that rarely, if ever happens. Unfortunately, this is very frustrating when it involves your tax refund. As the COVID-19 pandemic has taken hold across the United States, it has slowed the IRS down even more. Thus, you may be wondering why your tax refund is taking so long to process. If you’re still checking the mailbox or your bank account to no avail, here are some likely reasons, as well as other tips you might want to keep in mind.
One of the best ways to put away money for your retirement is with a Roth IRA. A Roth IRA differs from a traditional IRA in that a Roth IRA lets your money grow tax-free, plus allows for tax-free withdrawals. Knowing that, it’s easy to understand why this is such a popular savings option for so many people. But, as with any type of retirement plan where contributions and distributions are part of the mix, the IRS has a complex set of rules that can be ever-changing from year to year. To make sure you understand the Roth IRA rules for 2021 and beyond, here are some key points you should keep in mind.
Now that you are close to retiring, you need to decide where you wish to spend your post-work life. Even if you have planned well and have plenty of financial resources at your disposal, you also realize that money doesn’t go as far as it did years ago. Therefore, you need to find a place to live that has low tax rates and other benefits that will make your retirement much more secure from a financial standpoint. If you are ready to find your retirement haven, keep these common tax considerations in mind as you make your retirement destination choice.
When you own real estate investment properties, there are a lot of tax benefits to be aware of. One of those is depreciation, and it can save you quite a bit of money on your tax bill. While you probably already take other deductions on your property, the depreciation benefit is an extra one that’s separate from the other deductions. Thanks to depreciation, some real estate investors may pay little to no tax on the income they receive from their properties. But that doesn’t mean depreciation is magic, or that there aren’t any potential problems and pitfalls to consider. Here’s what you need to know about depreciation.
If you experience a job loss, you will of course have numerous questions as to how it will impact your job situation. Whether you are an employee who lost your job or a business owner who had to lay off your workers, here are some important details to keep in mind.
For most people, paying taxes is straightforward. You get a paycheck from your employer and the employer has already deducted the amount you owe to the IRS. When it comes time to file your tax return, the discrepancy between what you owe and what you already paid might be minimal. You might have to cut a check to the IRS, but it’s fairly manageable. However, if you get a 1099 or you had other income where taxes weren’t taken out ahead of time, the amount you wind up owing come tax time might come as a shock. What now? What’s the best course of action if you can’t pay your taxes?
In this gig economy, more taxpayers than ever before are receiving tip income. Whether the tips are from waiting tables, driving for Uber, or making home deliveries, those tips are considered taxable income. However, there is a lot of confusion over how to report tip income, what is the threshold for reporting and who should report it. Here is all you need to know about reporting tip income.