Simplified Employee Pensions (SEPs) are a popular retirement plan for small businesses since they are easy to set up and administer. To set up a model SEP you complete Form 5305-SEP and retain it in the company’s files. A SEP-IRA account (similar to a Traditional IRA account) is opened for each participant at a selected financial institution.
Funds in a custodial account under the Uniform Transfer to Minors Act (UTMA) belong to the child, so there are some restrictions if you transfer funds to a 529 Plan.
The 2010 Tax Act extended the Child Tax Credit through 2012. Like most credits, the Child Tax Credit has income limits.
Failure to file is just one penalty the IRS can levy upon your tax return for not filing or paying by the April 15th deadline.
Personal exemptions reduce your taxable income. You can also claim an exemption for a dependent if all five of the exemption tests are met.
Real estate is, in our opinion, a very illiquid investment, and not ideal for those close to retirement. Additionally, to hold it in your IRA you have to be able to purchase it outright. You cannot mortgage the property.
If you sell an asset—be it a stock or your car—it comes with tax implications. Regardless of whether you expect to incur a gain or loss, there might be a way to strategically maximize the amount you get to put in the bank.
Who is “FICA” and why does he get so much of my paycheck? Because it funded a program designed to address the problem of economic security for the aged through a contributory system in which the workers themselves contributed to their own future retirement benefit.
The dream is to be your own boss and work for yourself. However, with that dream comes with self employment taxes, Schedule Cs and many accounting decisions.
Capital gains or losses come from the sale of a capital asset. However, the IRS considers more than just your stocks and mutual funds capital assets.