Taxes

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Adopting a child? Bring home tax savings with your bundle of joy

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December 10, 2019 , ,

child adoption tax savings

If you’re adopting a child, or you adopted one this year, there may be significant tax benefits available to offset the expenses. For 2019, adoptive parents may be able to claim a nonrefundable credit against their federal tax for up to $14,080 of “qualified adoption expenses” for each adopted child. (This amount is increasing to $14,300 for 2020.) That’s a dollar-for-dollar reduction of tax — the equivalent, for someone in the 24% marginal tax bracket, of a deduction of over $50,000.

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3 last-minute tips that may help trim your tax bill

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December 3, 2019 , ,

3 last-minute tips that may help trim your tax bill

If you’re starting to fret about your 2019 tax bill, there’s good news — you may still have time to reduce your liability. Three strategies are available that may help you cut your taxes before year-end, including:

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Medical expenses: What it takes to qualify for a tax deduction

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November 26, 2019 , ,

Dr with dollar sign - medical expenses

As we all know, medical services and prescription drugs are expensive. You may be able to deduct some of your expenses on your tax return but the rules make it difficult for many people to qualify. However, with proper planning, you may be able to time discretionary medical expenses to your advantage for tax purposes.

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What is your taxpayer filing status?

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November 19, 2019 , ,

tax filing status

For tax purposes, December 31 means more than New Year’s Eve celebrations. It affects the filing status box that will be checked on your tax return for the year. When you file your return, you do so with one of five filing statuses, which depend in part on whether you’re married or unmarried on December 31.

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5 Ways to Trim 2019 Taxes for Accrual-Based Businesses

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November 17, 2019

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Using your 401(k) plan to save this year and next

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November 12, 2019 , ,

Roth 401(k) or Traditional 401(k)

You can reduce taxes and save for retirement by contributing to a tax-advantaged retirement plan. If your employer offers a 401(k) or Roth 401(k) plan, contributing to it is a tax-wise way to build a nest egg.

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IRA charitable donations are an alternative to taxable required distributions

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October 29, 2019 , , ,

Qualified Charitable Distributiosns

Are you charitably minded and have a significant amount of money in an IRA? If you’re age 70½ or older, and don’t need the money from required minimum distributions, you may benefit by giving these amounts to charity.

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Selling securities by year end? Avoid the wash sale rule

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October 22, 2019 , , ,

If you’re planning to sell assets at a loss to offset gains that have been realized during the year, it’s important to be aware of the “wash sale” rule.
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Use a Coverdell ESA to help pay college, elementary and secondary school costs

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October 15, 2019 ,

Coverdell ESA

There are several ways to save for your child’s or grandchild’s education, including with a Coverdell Education Savings Account (ESA). Although for federal tax purposes there’s no upfront deduction for contributions made to an ESA, the earnings on the contributions grow tax-free. In addition, no tax is due when the funds in the account are distributed, to the extent the amounts withdrawn don’t exceed the child’s qualified education expenses.
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