The Motley Fool

JUNE 10, 2024

Regardless of the role Social Security will play in your retirement finances, it's crucial to understand the tax implications around your benefits so you can plan accordingly. The one wrinkle to Social Security benefits is that retirees in 10 states may have their benefits taxed at the state level. Image source: Getty Images.

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The Motley Fool

FEBRUARY 26, 2024

Image source: Getty Images If you haven't started your 2023 taxes yet, you may want to get moving. Although the April 15 filing deadline is still more than a month and a half away, the sooner you get through the process, the sooner your tax refund, if applicable, can hit your bank account. Of that, up to $1,600 is refundable.

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The Motley Fool

JULY 8, 2024

Although Social Security was never intended to be an individual's sole source of retirement funding, at least this part of your future cash flow isn't taxed in most states. State taxation of Social Security retirement benefits As of the latest look, 41 states don't tax Social Security retirement benefits. Don't sweat it.

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The Motley Fool

FEBRUARY 28, 2024

Image source: Getty Images At this point, a lot of people are starting to get serious about filing their 2023 taxes. And when doing yours, you may be eager to claim all of the tax deductions you're entitled to. But first, let's do a quick refresher on tax deductions, since they're often confused with tax credits.

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The Motley Fool

SEPTEMBER 6, 2024

Are you looking to minimize your tax bill? Taxes can never be entirely avoided, of course. See, although you'll always be subject to federal income tax, there are 13 states that don't tax retirement income -- at all. States that don't tax retirement income Don't get too excited just yet. Most people are.

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The Motley Fool

MARCH 10, 2024

Image source: The Motley Fool/Unsplash Ah, tax time -- it's such fun to sit down with an accountant or tax-filing software and see if you underpaid or overpaid the government (which already knows your tax liability). Paying down low-interest debt So you've decided to pay off some debt with your tax refund.

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The Motley Fool

AUGUST 31, 2024

The only thing that would make this moment better is if you didn't have to pay taxes on your CD earnings. Depending on your tax rate, that could cut out a sizable portion of your earnings. But not all CD holders will pay taxes on their interest. But if it's not used for a qualified medical expense, you'll pay a penalty tax.

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The Motley Fool

MARCH 21, 2024

Image source: Getty Images At this point, a lot of people have already submitted their tax returns to the IRS. But tax returns aren't due this year until April 15. The same holds true for taxes. A smaller tax refund. Get started now At this point, there's still a good number of weeks left before 2023 taxes are due.

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The Motley Fool

JANUARY 16, 2024

Image source: Getty Images Like it or not, we're getting to the point of the year when it's time to start thinking about taxes. Although the filing deadline is April 15, the IRS will begin accepting tax returns on Jan. And filing your taxes early could mean getting your refund sooner, if you're entitled to one.

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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

SEPTEMBER 7, 2024

Image source: Getty Images In 2017, Congress passed the Tax Cuts and Job Act (TCJA), which introduced sweeping changes to the tax code, including a tax cut called the Qualified Business Income deduction. Part of that tax bill is set to expire soon, which could have a massive impact on many small businesses.

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The Motley Fool

MARCH 23, 2024

Image source: The Motley Fool/Upsplash Tax season is a good time for small business owners to reflect upon their past year's business performance, and plan ahead for next year. As part of your tax planning, it's important to watch out for a few big tax mistakes. Where's your revenue coming from?

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The Motley Fool

SEPTEMBER 24, 2023

Taxes in retirement can become complicated fast with income coming from several sources. A Roth IRA can help simplify your taxes while offering incredible savings. Opening up an account sooner rather than later can help you position your finances to keep your tax bill low in retirement. First is when you pay taxes.

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The Motley Fool

MAY 29, 2024

If given the choice, would you rather not pay taxes? No matter where you live or what level of income you're earning, you are taxed.even if it's just sales tax or property tax. In a handful of states, however, retirees' tax burden is eased simply because those states don't tax retirement income.

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The Motley Fool

DECEMBER 22, 2023

Taxes on Social Security can be extremely complicated, and there are some big pitfalls you could find yourself falling into if you're not careful. It's important to understand the basics of how taxes on Social Security work. So keeping your combined income as low as possible is necessary to avoid taxes on Social Security.

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The Motley Fool

JULY 14, 2024

Contributions to traditional IRAs (often called contributory IRAs) are typically tax-deductible for the year in which they're made -- you'll simply owe taxes on this money as it's withdrawn from these accounts. Of course, both kinds of accounts are allowed to grow without incurring any tax liabilities as they do.

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The Motley Fool

JULY 13, 2024

Some well-known perks of contributing to a Roth IRA include tax-free growth and tax-free withdrawals during retirement. workers are unaware of a significant benefit that can help you during tax time: the Saver's Credit. For example, let's say you are a freelancer and didn't pay taxes during the year. Are 18 or older.

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The Motley Fool

MAY 23, 2024

Read more: unlock best-in-class perks with one of these brokerage accounts You may be aware that a primary benefit of saving for retirement in a Roth IRA is getting tax-free investment gains in your account, as well as tax-free withdrawals. It's only the gains portion where you risk paying taxes on your withdrawals prior to 59 1/2.

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The Motley Fool

OCTOBER 21, 2024

These funds typically boast lower turnover rates compared to actively managed alternatives, a characteristic that substantially reduces investors' tax liabilities. To put this into perspective, a $10,000 investment at the fund's launch, with dividends reinvested and assuming no tax liabilities, would have burgeoned to $69,250 today.

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The Motley Fool

APRIL 26, 2024

When you put money into a tax-deferred retirement account like a traditional IRA or 401(k) , the government subtracts your contribution from your taxable income for that year. If you earn $50,000 this year from your job but put $5,000 into your 401(k), you'd only pay taxes on the remaining $45,000 next spring.

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The Motley Fool

OCTOBER 31, 2024

LLC stands for "limited liability company," which is a business structure that combines the pass-through taxation of a sole protectorship with the limited liability of a corporation. The main benefits of creating an LLC include: Liability protection: An LLC protects your personal assets by separating your business and personal assets.

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The Motley Fool

NOVEMBER 26, 2024

Image source: Getty Images Paying taxes is something a lot of people only think about when they sit down in April to file a return. But it's helpful to understand the factors that can cause your tax bill to rise. That's a good thing, but the flip side is it may cause you to owe more taxes. First, contribute more to your IRA.

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The Motley Fool

FEBRUARY 5, 2024

Image source: Getty Images The IRS is officially accepting 2023 tax returns, and in the next couple of months, we'll all have to explain to the government what we did with our money last year. You probably expect to pay taxes on the income from your job or retirement account withdrawals if you've already left the workforce.

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The Motley Fool

MAY 17, 2024

It provides millions of Americans with a financial safety net, but like other forms of income, its benefits have tax implications. The good news is that most states don't have any Social Security tax rules. Kansas : You're potentially subject to taxes regardless of your filing status if your AGI is above $75,000.

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The Motley Fool

SEPTEMBER 26, 2023

Image source: Getty Images Many of us have seen a tax audit play out in a movie or TV show. The IRS does not have the financial resources to send teams of agents to the door of every single tax filer whose return seems a bit off. That said, most people would rather not have their taxes audited. This shift makes sense.

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The Motley Fool

SEPTEMBER 14, 2024

Social Security benefit taxes are costing more seniors every year Social Security has three sources of funding. The most important is the payroll taxes workers pay on their annual incomes. The third source is a tax on certain Social Security beneficiaries whose income exceeds specific thresholds. Image source: Getty Images.

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The Motley Fool

JANUARY 22, 2024

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." In most states, with just some simple paperwork and a small fee, you can set up a small business that has its own separate identity for banking , taxes, and liability purposes.

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The Motley Fool

APRIL 10, 2024

These accounts offer unique tax advantages you won't find with most other retirement accounts. No taxes on withdrawals The biggest benefit of Roth IRAs is the tax-free withdrawals they offer you in retirement. Theoretically, you could avoid taxes entirely in retirement if you had all Roth savings.

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The Motley Fool

MAY 5, 2024

Image source: The Motley Fool/Upsplash The end of tax season is a good time to reflect on the value of professional tax help, especially for small business owners. I don't know why any small business owner would want to go through the hassle and stress of doing your own taxes.

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The Motley Fool

APRIL 29, 2024

The money you contribute, up to the allowable limits set by the IRS, can serve the very important purpose of exempting some of your income from taxes, all the while giving you access to funds you can use later in life. Well, you just created a $10,000 tax liability for yourself -- meaning, the IRS gets to tax that $10,000 as income.

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The Motley Fool

DECEMBER 22, 2023

Not only do the holidays inspire goodwill and cheer, but many people are interested in writing off their donations as we close out the tax year. But there's also a lot of confusion about charitable donations and when you can write them off for tax purposes. To write off a charitable deduction, you'll need to itemize your tax return.

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The Motley Fool

AUGUST 2, 2024

The tax deduction you receive upfront can help you save more today and build a big nest egg quickly. But eventually, the government wants its tax revenue. And with some clever planning, you could significantly minimize the impact of RMDs on your taxes. You'll be required to pay taxes on the amount you convert.

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The Motley Fool

JUNE 29, 2024

Incentives like matching contributions , tax deductions and credits, and tax-free growth can help supercharge your retirement savings. You can't avoid taxes on your retirement savings indefinitely, though. At the same time, you won't have to withdraw more than you need due to RMDs, so you can keep the account growing tax-free.

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The Motley Fool

JULY 11, 2024

You'll pay ordinary income taxes on the taxable portion of your Social Security benefits, so it's not as though you'll actually lose 50% or 85% of your checks. Some states tax Social Security benefits as well. However, each has its own rules about who owes these taxes. However, each has its own rules about who owes these taxes.

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The Motley Fool

JULY 19, 2024

Potential tax benefits Most sources of retirement income are taxed, but running a small business can offer tax benefits in some cases. Other expenses, like gas, travel, and business software purchases, can also provide tax write-offs that lower your tax liability. Who are we when we don't have to clock in?

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The Motley Fool

AUGUST 24, 2024

The federal government encourages retirement savings by offering a tax break for anyone who contributes to certain retirement accounts like a 401(k) or IRA. If you save money in a traditional tax-deferred retirement account, you can deduct the amount you put in on your tax return this year.

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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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