The Motley Fool

SEPTEMBER 18, 2023

And because I'm self-employed, I'm on the hook for more Social Security taxes than people who work for an employer, since they split that burden evenly. Read more: we researched free tax software and put together a list of the best options here As such, I try to take advantage of every opportunity to lower my tax bill -- legally, of course.

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The Motley Fool

AUGUST 8, 2023

Image source: Getty Images Have you ever heard that multi-billionaire Warren Buffett pays a lower federal income tax rate than his secretary? Many ultra-wealthy American households pay surprisingly low effective federal income tax rates, and in some cases, no taxes at all. No tax breaks are designed to only benefit billionaires.

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The Motley Fool

DECEMBER 8, 2023

Image source: Getty Images Although the new year has yet to arrive, the IRS has been busy making decisions about 2024 taxes. Each year, we're met with tax changes, and 2024 is no different. Tax brackets are changing The IRS has announced that there will be a 5.4% bump in income thresholds to reach each new tax bracket.

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The Motley Fool

MARCH 15, 2024

Image source: Getty Images There are plenty of deductions and tax credits available in the United States tax code that can help you save hundreds or thousands of dollars each year. Depending on your income, you might even be able to take a full tax deduction for traditional IRA contributions and participate in your employer's plan.

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The Motley Fool

JANUARY 18, 2024

Good news: The IRS gives parents a nice tax break each year called the Child Tax Credit. For most families, this results in a $2,000-per-child reduction in taxes. A family with two children would get $4,000 subtracted from their tax bill when they file their tax return. Watch out -- your tax bill is about to go up.

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The Motley Fool

MARCH 31, 2024

income taxes. Although in most cases, a refund simply represents a repayment of previously overpaid taxes, it still feels nice to get that cash back. Read on to find out why and decide for yourself whether one or more of them may be worth investing your tax refund in. Image source: Getty Images. Do note that U.S.

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The Motley Fool

DECEMBER 6, 2023

After all, you can't simply drive your old car to your favorite charitable organization, hand your keys over to a staff member, and take a tax deduction. You don't legally have to do this, but until someone else is listed on the title, the vehicle is your responsibility. We'll go through the latter in a bit. Should you donate your car?

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The Motley Fool

SEPTEMBER 13, 2024

They deposit the money into their checking account while deciding what to do with it. They came by the money legitimately, yet their bank is legally required to report the deposit by filing a Currency Transaction Report (CTR). The government may also charge the perpetrator for tax evasion in addition to cash structuring.

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The Motley Fool

SEPTEMBER 23, 2023

Image source: Getty Images Paying taxes is something all of us have to do. The good news is that there are plenty of steps you can take to legally lower your taxes and reserve more of your hard-earned money for yourself. If you manage to sock away $5,000, hey, that's $5,000 of earnings that won't be subject to taxes.

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The Motley Fool

OCTOBER 18, 2023

And there's one retirement savings account in particular you might be interested in for one often overlooked reason. Not all self-employment retirement accounts work the same If you think 401(k) retirement accounts are limited to large employers, think again. The only catch? Just bear in mind these limits are raised every year.

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The Motley Fool

JANUARY 15, 2024

When it comes to retirement accounts, the 401(k) is far and away the most popular option. It's passive, there are employer matches, and it comes with tax breaks. It's passive, there are employer matches, and it comes with tax breaks. There's no denying that a 401(k) is an effective way to save for retirement. Here's why.

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The Motley Fool

SEPTEMBER 3, 2023

Image source: Getty Images Depositing money in your savings or checking account is something you'll probably do often over the course of your life. You need to be aware of when and how you could possibly face legal and financial scrutiny if you make deposits in a certain pattern that trigger the attention of authorities. Here's why.

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The Motley Fool

JULY 1, 2024

Image source: Getty Images If you have $10,000 or more to deposit at your bank, you're probably eager to get it into your account where the funds will be safe and accessible. Banks are required to keep records of these transactions and to make reports of them as part of an effort to stop behaviors such as money laundering and tax evasion.

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The Motley Fool

JULY 8, 2024

Image source: Getty Images Depositing money in your bank account is something that you have the right to do. Making a big deposit like this triggers some extra requirements and, in some cases, if you do it the wrong way, you could find yourself facing legal trouble. This is true even if you got the money perfectly legally.

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The Motley Fool

JANUARY 22, 2024

Image source: Getty Images Small business owners have to deal with a few different types of legal compliance and document filing requirements throughout the year. But along with forming an LLC, filing annual reports for a corporation, or filing business tax returns, now there's a new one called "BOI."

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The Motley Fool

JULY 15, 2023

Insurance, retirement accounts, investments, assets, and wills can complicate the process. Gather financial accounts and legal documents First, you want to gather all your parents' financial accounts and relevant legal documents (if your parents are anything like mine, this is much easier said than done).

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The Motley Fool

OCTOBER 8, 2023

You want to grow your business bank account balance while making smart investments in your company's future, so you don't want to spend on anything unnecessary. Spending money on insurance can be crucial to make sure the company can stay afloat and not have to empty its bank account for problems.

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The Motley Fool

SEPTEMBER 14, 2024

But to me, maybe no decision you can make when starting a new venture is more important than what legal form the business will take. You essentially have four choices for how you will legally form your business. The legal issues and potential liability are the same, so no, we don't like this option much either.

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The Motley Fool

OCTOBER 31, 2024

Image source: Getty Images If you're starting a small business, generally the first step is setting up the legal structure of your business. Tax flexibility: By default, LLCs are considered "pass-through entities," which means profits and losses are reported on your personal income tax form. Still not sure?

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The Motley Fool

MARCH 18, 2024

Image source: Getty Images Doing your taxes isn't fun even in the best-case scenario, but for most people, they're at least not too painful. You spend a couple of hours entering data into your tax software, file your return, and get a refund check a few weeks later. You do this through the IRS Free File system, not your tax software.

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The Motley Fool

AUGUST 25, 2024

This report also takes into account fiscal and monetary policy shifts, along with demographic changes, to forecast how financially "healthy" the program will be over the long term -- that is, the 75 years following the release of a report. payroll tax that primarily funds Social Security. annually from 2034 through 2098.

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The Motley Fool

OCTOBER 16, 2023

You can get more flexibility in how you are taxed on your income as a corporation, protect yourself against liability, and more easily transfer ownership. You are not required to hire a lawyer There is no requirement that you hire legal help to assist you with the incorporation process. Here's what you need to know.

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The Motley Fool

SEPTEMBER 22, 2024

Image source: Getty Images I'm not a fan of paying taxes. I'll of course follow the rules and do it because I have to, but I'd rather do everything I can to pay the IRS as little as possible -- within legal limits, of course. That's why I'm a big fan of saving for retirement in an individual retirement account (IRA).

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The Motley Fool

JULY 22, 2024

Some of the best-paying side hustles listed on FlexJobs include: Software developer Project manager Account manager Consultant Web designer Technical writer Video editor Piecing together one-off projects and juggling multiple clients is not the only way to make money as a freelance side hustler.

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The Motley Fool

NOVEMBER 24, 2024

Over time, a greater percentage of earned income -- wages and salary, but not investment income -- has escaped the payroll tax. Legal immigration into the U.S. A majority of the legal immigrants that enter the U.S. payroll tax on earned income. The payroll tax accounted for 91.3% Image source: Getty Images.

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The Motley Fool

JULY 6, 2024

Step 2: Establish your legal framework (Cost: $0 - $20) Think about what type of business structure will work best for you. Unlike a sole proprietorship, an LLC draws a legal line between you and your business. This separation not only protects your personal assets from business liabilities, but can also offer potential tax benefits.

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The Motley Fool

JUNE 16, 2024

Everyday activities, from shopping to opening a checking account , might differ from what you're used to, which can be both an adventure and a challenge. Financial and legal considerations Moving overseas can have significant financial and legal implications. Taxes You may still have to pay U.S.

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The Motley Fool

JULY 13, 2024

They build an emergency fund Another thing that most wealthy people have in common (even before they become wealthy) is the value they put on having an emergency savings account. As soon as funds have been spent, they quickly work to rebuild their account balance so it's there for the next emergency.

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The Motley Fool

MAY 12, 2024

Putting coins in a piggy bank might be a fun way to jump-start your child's saving journey, but opening a Roth IRA ( individual retirement account ) could be the ultimate wealth builder. Roth IRAs are packed with benefits, including tax-free withdrawals during retirement. And anyone with earned income can contribute to a Roth IRA.

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The Motley Fool

JUNE 22, 2024

The great thing about a Roth IRA is that anyone can contribute to the account, whether they are 17 years old or 77 years old, as long as they have earned income for the year and it doesn't exceed the annual threshold. Some accounts may come with account maintenance and other fees that could reduce your child's account balance.

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The Motley Fool

MAY 22, 2024

Image source: Getty Images Before you ask, yes, freelancers can open business checking accounts , even if they don't have an employer verification number. That said, freelancers aren't legally required to open a separate checking account designated for business expenses.

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The Motley Fool

OCTOBER 16, 2024

This article is intended for educational purposes only and is not legal advice. The benefits of a living trust over a will A living trust is a legal arrangement that allows you to pass on assets to the beneficiaries you designate. For guidance on your personal situation, please contact a lawyer.

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The Motley Fool

JUNE 25, 2024

Most cannabis stocks have lost the majority of their value over the past five years due to a litany of trials and tribulations, such as the slow pace of legalization in the U.S., burdensome tax regimes, and supply chain mismanagement by several of the major operators. market upon federal legalization. and the U.S.

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The Motley Fool

MARCH 14, 2024

Image source: The Motley Fool/Upsplash Just as it's sometimes possible to drop the ball on filing your federal taxes , so too might you inevitably drop the ball on your state taxes. So if you're sitting on an old tax return you know you need to submit, don't just ignore the problem. But you may be looking at costly penalties.

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The Motley Fool

SEPTEMBER 28, 2024

The interest it pays you is subject to taxes -- and not just any taxes. CD interest is taxed as ordinary income, which means it's subject to the highest marginal tax bracket you fall into based on your earnings. You can also see if your IRA allows you to hold CDs in your account.

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The Motley Fool

DECEMBER 10, 2023

Does it still make sense to put money into that account? You still get the tax benefits The money you put into a traditional 401(k) goes in on a pre-tax basis. So the more money you contribute to your employer's retirement plan, up to the annual limit, the more income you can shield from the IRS -- legally, of course.

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The Motley Fool

JUNE 18, 2024

Roth IRAs are a hit among savers because you can pay your tax bill upfront and enjoy tax-free income later. This can be a perfect setup for your child since they are typically in a lower tax bracket when they are younger. As soon as your child starts earning income, you should consider opening a custodial Roth IRA.

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