The Motley Fool

DECEMBER 26, 2023

Image source: Getty Images Giving money to charity is wonderful, but don't do it for the tax breaks. A few years ago, it was easier for everyday people to get a little tax break for donating to charity. Let's look at what it takes to make sure your charitable donations are tax deductible. But most people don't itemize.

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The Motley Fool

SEPTEMBER 18, 2023

This article is intended for educational purposes only and is not legal advice. But those riches can come at a cost, especially if you're not hip to the tax laws you're beholden to, both here and in your new chosen land. tax return every year. For guidance on your personal situation, please contact a lawyer.

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The Motley Fool

DECEMBER 11, 2023

states still impose taxes on them even though they're necessary personal care items. If you get a period and live in a state that charges this tax, you can expect to pay more at checkout. But some relief is here thanks to the Tampon Tax Back Coalition. You can get your tampon tax money returned after filing a claim online.

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The Motley Fool

MARCH 18, 2024

Image source: The Motley Fool/Upsplash As of late February, the average tax refund issued by the IRS this filing season was $3,213. But no matter what refund you get on your taxes , it's important to make the most of that money. Read more: we researched free tax software and put together a list of the best options here 2.

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The Motley Fool

APRIL 5, 2024

A Roth IRA's biggest appeal is the tax-free withdrawals it promises in retirement. It could save you a fortune compared to deferring taxes if you expect your income to remain roughly the same or rise after leaving the workforce. But some don't realize that tax-free withdrawals aren't a guarantee. Image source: Getty Images.

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The Motley Fool

MARCH 27, 2024

The beauty of a Roth IRA lies in its tax structure. Contributions are made with after-tax dollars, but the account's growth and withdrawals are tax free under current laws. A UTMA account offers tax advantages -- the first $1,250 of unearned income is tax free and the next $1,250 is taxed at the child's lower rate.

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The Motley Fool

JANUARY 6, 2024

These plans are specifically designed for saving for education expenses. Initially, 529 plans could only be used to cover the costs of college and higher education. The best thing about 529 plans is that they're tax-advantaged. You can't deduct contributions to a 529 plan from your federal income taxes.

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The Motley Fool

JULY 29, 2023

When it comes to saving, you can stick to the traditional education savings plans, or you can explore other accounts that give you the flexibility to save beyond college. At the end of the year, you won't have to worry about a tax bill because the money in your account grows on a tax-free basis.

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The Motley Fool

SEPTEMBER 20, 2023

Image source: Getty Images Saving for my kids' college education is important to me. I'm not getting any tax benefits from my regular brokerage account, but I get flexibility. But having extra money in a 529 plan can still be annoying, because you'll face penalties on non-educational withdrawals.

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The Motley Fool

JUNE 19, 2023

529 plans are a tax-advantaged way to save for higher education, but the penalty for making non-qualified withdrawals can be a huge headache for those who don't use all the money they've accumulated on schooling. The loan must've been disbursed within 90 days of the date the education costs were paid.

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The Motley Fool

JULY 24, 2023

The money you put into a 529 will not result in a federal tax break, but your state might offer some tax incentives, particularly if you invest in a plan sponsored by your state. The benefit of funding a 529 plan is that your investments in that account get to grow tax-free. Those aren't just limited to college, though.

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The Motley Fool

DECEMBER 31, 2023

Image source: Getty Images Itemizing tax deductions lost its luster for most taxpayers with the passage of the Tax Cuts and Jobs Act of 2017. The law nearly doubled the standard deduction, which is the amount any taxpayer can subtract from their tax bill, regardless of their actual expenses. Rising interest rates.

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The Motley Fool

APRIL 25, 2024

Image source: Getty Images The American tax system is complicated, and the idea of paying penalties can be especially scary if you, like most, aren't super familiar with how it all works. If you have to pay a tax penalty for not filing on time or failing to pay, there may be something you can do to lessen that burden.

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The Motley Fool

OCTOBER 27, 2024

So you may be motivated to save for college as best as you can while your children are young, and you may decide to use a 529 plan to fund their education. You can typically withdraw funds from a 529 plan to pay for educational supplies like computers and books, plus room and board at college.

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The Motley Fool

JULY 9, 2024

Although I recognize that taxes are a part of life, I typically try to do my best to pay as little of them as possible. But even though I love the tax breaks that come with IRAs and 401(k)s, I'm keeping a pretty large chunk of my retirement nest egg outside of these accounts and in a regular brokerage account with no tax benefits instead.

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The Motley Fool

DECEMBER 2, 2023

The 401(k) is a cornerstone of retirement planning -- it's tax-friendly, hands-off, and convenient. Contributions to a traditional IRA may be deductible, and earnings grow tax-deferred until you take withdrawals in retirement. Contributions to a Roth IRA are made with after-tax money, and withdrawals are tax-free in retirement.

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The Motley Fool

AUGUST 5, 2023

Invest in their education An education may well be the greatest gift you can give. A great way to finance an education is through tax-advantaged 529 accounts and similar plans that can be used for college, and in many cases for K-12 and career training. And this is a great place for transparency.

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The Motley Fool

FEBRUARY 12, 2024

Saving money for retirement while simultaneously getting tax breaks is a 2-for-1 benefit that can work wonders for retirees. In a Roth IRA , your tax break comes in retirement. Generally, when you withdraw early from a retirement account, you'll face a 10% penalty and owe taxes on the withdrawn amount.

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The Motley Fool

FEBRUARY 25, 2024

What makes a Roth different than a traditional IRA is that your contributions are not tax-deductible, but you won't be taxed on your withdrawals. In other words, your money grows tax-free. That allows you to give as much time for your portfolio to compound and grow (again, tax-free) as you want.

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The Motley Fool

JUNE 22, 2024

They each share common benefits but have noteworthy tax-break differences. You contribute after-tax money into a Roth IRA, and in turn, you get to take tax-free withdrawals in retirement. This allows your money to grow and compound without a tax bill waiting for you down the road.

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The Motley Fool

OCTOBER 18, 2024

Many families see 529 plans as the go-to college savings accounts because of their tax benefits. Your contributions might reduce your state income tax liability, depending on your plan, and interest grows tax deferred. If you use the money for qualifying educational expenses, you won't owe any taxes on withdrawals.

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The Motley Fool

JULY 19, 2023

Education isn't just for the young -- it's a lifelong process. It's never too late to go back to learn a new skill, and continuing your education as an adult can be extremely beneficial in both personal and professional aspects of your life. These accounts have tax advantages and can help you maximize your retirement savings.

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The Motley Fool

OCTOBER 28, 2024

Professional fund managers are extremely smart, highly educated, hard-working, and ultra-competitive. And in an ironic twist, the less competitive you are, the better you'll be able to stick with a strategy that can lead you to after-tax returns that beat 98% of professionally managed mutual funds. Image source: Getty Images.

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The Motley Fool

MARCH 29, 2024

Or they inherited privileges -- education, connections, social capital -- that enabled them to make more money. Paying taxes is the worst thing to happen to anyone ever" Taxes buy civilization. I'm grateful to pay taxes. I keep voting to raise my taxes, but no politician will.

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The Motley Fool

SEPTEMBER 9, 2024

This article is intended for educational purposes only and is not legal advice. You should also know that placing assets into a living trust won't necessarily benefit you from a tax perspective. Assets you place into the trust are subject to whatever taxes you'd normally have to pay.

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The Motley Fool

OCTOBER 24, 2024

These funds can be invested and ultimately withdrawn tax-free. 529 distributions cover a lot The average cost of college tuition has soared for years, forcing students to take out big loans to pay for college or simply skip higher education altogether because they can't afford it.

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The Motley Fool

MARCH 6, 2024

Duolingo (NASDAQ: DUOL) operates the world's largest digital language education platform. Duolingo is transforming education An estimated 2 billion people are learning a foreign language worldwide. It already had a separate education app for math learners, and it also launched a music learning platform last year.

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The Motley Fool

JULY 26, 2023

The National Center for Education Statistics notes that there were 2 million high school dropouts aged 16 to 24 in the U.S. According to data from the Education Data Initiative, roughly a quarter of full-time first-year college students drop out of college -- and among part-time first-year college students, more than half do.

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The Motley Fool

JULY 1, 2023

This program enables you to have any remaining loan balance forgiven after 120 qualifying payments (and the forgiven debt is not taxed). For many more years, you will be obligated to send in payments on your educational debt. This could lead to a hefty tax bill.

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The Motley Fool

AUGUST 28, 2023

And while you will not get a tax deduction for investing in one in the year you contribute to it, you get to take tax-free withdrawals during your retirement. You can also use an online calculator since MAGI doesn't actually appear on your tax return. Image source: Getty Images A Roth IRA can be a great retirement account.

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The Motley Fool

SEPTEMBER 13, 2023

A not-for-profit organization counts if they are tax-exempt under Section 501(c)(3) of the Internal Revenue Code and/or whose primary function is to provide certain services, including but not limited to the following: Emergency management. Early childhood education. Public education. Law enforcement. Public safety.

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The Motley Fool

OCTOBER 16, 2024

This article is intended for educational purposes only and is not legal advice. You should also know that your assets won't necessarily receive more favorable tax treatment if they're put into a living trust. So if your goal is to save on taxes or lower your beneficiaries' tax burden, a living trust generally won't help.

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The Motley Fool

AUGUST 9, 2024

There's no clear answer to that question, but I can make several educated guesses, based on Buffett's past behavior and Berkshire's historical patterns. Buffett was referring to talk in Washington about the capital gains tax rate going up, though there are no specific plans to raise it. Here's a closer look.

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The Motley Fool

AUGUST 14, 2023

Lowering your current tax bills and postponing taxes on gains made within a retirement account means you've got more money to put to work right now. The IRS's form 8606 must also be filled out for the tax year in which you put this non-deductible contribution into the retirement account in question. It's a no-brainer.

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The Motley Fool

AUGUST 13, 2023

You contribute after-tax dollars to a Roth IRA, but withdrawals are free in retirement if you meet other requirements. Money received can also be counted toward your annual income, increasing your tax bill. A traditional IRA could be more beneficial if your current tax bracket is higher than it'll probably be when you retire.

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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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The Motley Fool

FEBRUARY 25, 2024

It doesn't include the income taxes these workers will have to pay on their withdrawals. Or you can convert your tax-deferred savings from a traditional 401(k) into a Roth IRA. But to do this, you must pay taxes on the converted sum in the year you make it. billion in 2023 alone. And that's just the penalties.

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