Have you thought about what you’re going to do with your tax refund? The average tax refund for 2015 is in the neighborhood of $3,120. That’s not exactly a life-changing amount, but it’s a decent chunk of change that can jumpstart an investment or savings goal.
Paying taxes, is still something many investors overlook when making plans for their retirement portfolios. Without the right tax planning, your real returns could take a bigger hit than you originally planned.
There are only a few days left until the tax filing deadline. So what’s the best tax software program for investors? While this topic may be somewhat subjective, there are three tax software packages that consistently show up among the top of nearly any list on the subject.
There are different types of financial and investment documents that we rely on, in spite of the fact that so much of this information is now available online. Most companies limit how far back you can go with previous years documents, so the only way that you can make sure that you will have the documents that you will need when you need them, is to actually have a physical copy in your possession.
As is the case every year, the New Year brings a host of changes for retirement plan contributions in 2015. Virtually all retirement plans, like employer sponsored plans and self-employed plans, will be affected. With inflation being on the low end of the scale, the changes in contribution and income limits will be only moderate at best.
Investors don’t just gain advantages when they receive dividends or see significant capital appreciation; they might also receive tax advantages, depending on the type of investment income that they receive. As you prepare to file your taxes (the deadline is quickly approaching) keep in mind that there are likely extra tax forms required because of the various income sources from your portfolio.
The tax code is complicated and getting more so all the time. No matter how much investors try to adapt to the changes, there’s usually no way to stay on top of everything all the time. There’s an art to lowering your tax liability (largely through tax diversification), but there’s also a limit as to how far you can and should go. To help stabilize the ups-and-downs of tax laws, consider this tax diversification strategy.
I want to introduce you to some friends of mine. They are comfortably middle class professionals with a decent income, yet they pay zero federal income tax. There’s no need to call the IRS though. What they’re doing is completely legitimate because they take advantage of enough tax deductions and credits to get their income to a level that results in zero taxes. Love them or hate them, here’s how they do it.
As an investor, tax planning is of the utmost importance. Even the investments of yours that come with favorable rates can be used in your tax planning. One way to make the most of your investment situation is to engage in tax loss harvesting. What is tax loss harvesting, and how can you use it to your benefit?
Updated and expanded for 2015. In 2015, the name of the tax changes game is the Affordable Care Act, or Obamacare. This is the second year citizens will be penalized for not having health insurance. Along with this comes a new tax credit — the Premium Tax Credit — for purchasing qualifying health insurance through the Marketplace. How does this effect your investments? It’s important to consider tax effecient investing whenever possible. Here’s what I mean.
As another year draws to a close, it’s time to start thinking about taxes, perform a review of your finances and investment portfolio, and figure out what moves you should take before the end of the year. No one likes to pay more taxes than they have to, so we’ve interviewed an expert who shares the best year-end tax tips for your portfolio.