As an investor, tax planning is of the utmost importance. Even your investments 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?
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.
2016 marks the third year citizens will be penalized for not having health insurance. Along with this comes a tax credit — the Premium Tax Credit — for purchasing qualifying health insurance through the Marketplace. How does this affect your investments? It’s important to consider tax-efficient investing whenever possible. Here’s what I mean.
There are only a few months 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.
As is the case every year, the New Year brings changes for retirement plan contributions and limits, though 2016 will have more muted changes than most years. 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 limits generally remain unchanged for 2016, while income limits will increase modestly in some cases.
One of greatest advantages to saving for retirement is the tax benefits you get when investing in an IRA or other qualified retirement account. Most people know there are tax benefits to opening an IRA account, but few understand how many benefits there are, and how powerful they can be in the cause of saving money for retirement. Did you know there are at least six tax benefits to opening an IRA account?
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.
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.
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.