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 Net short-term capital gains are taxed at ordinary income rates…up to 37%. This applies to gains from the sale or exchange of capital assets held for a year or less. The 3.8% NII tax can also hit short-term capital gains of upper-income taxpayers. Take heed of stock mutual funds that frequently buy or sell holdings. […]

On individual tax planning, look at the overall impact on 2024 and 2025. The end game is to cut your tax bill over both years. And because the provisions affecting individuals in the 2017 tax law don’t expire until after 2025, you can expect that the income tax rates and deductions for 2025 will be

Tips and the taxability of social security benefits:   For single filers: If provisional income is less than $25,000, then the benefits are tax-free. If provisional income is between $25,000 and $34,000, then up to 50% of benefits is taxable. If provisional income is over $34,000, up to 85% is taxed. For joint filers: If provisional

Are you married, but only one of you works and earns compensation? You can make a spousal IRA contribution for the nonworking spouse. For 2024, if you file a joint tax return, you and your spouse can each contribute up to $7,000 to an IRA, plus a $1,000 catch-up contribution for people 50 and up.

There’s a deduction for student loan interest, and taxpayers needn’t itemize to take this write-off. Up to $2,500 of interest paid each year can be claimed as a deduction on Schedule 1 of Form 1040. For 2023, the break begins to phase out for single filers with modified adjusted gross incomes above $75,000…$155,000 for joint

Big losses claimed by real estate professionals get scrutiny. Real estate pros must spend over half of their working hours and more than 750 hours a year materially participating in realty to beat the passive-activity loss rules. Joint filers can’t combine their hours. A couple took a $24,000 loss for cabins they rehabbed for rental.

Learn the warning signs of Employee Retention Credit scams Businesses and tax-exempt organizations should watch out for telltale signs of misleading claims involving the Employee Retention Credit. Scammers and unscrupulous promoters continue to run aggressive broadcast advertising, direct mail solicitations and online promotions for the credit. Many of these ads wildly misrepresent and exaggerate who can

Itemizers have the most flexibility in shifting write-offs, as shown here. Home interest. If you pay your Jan. 2023 mortgage bill before year-end, you can deduct the interest portion on Schedule A of your 2022 income tax return. State and local taxes. If under the $10,000 cap and your locale allows it, pay the property

Some popular tax provisions are expiring at year-end. Unless Congress acts to extend the breaks for another year or so, the last time you can take them is on your 2022 business or individual tax return that you will file next year. Among the expiring extenders: The ability of businesses to write off 100% of

Here is a list of the items to that you will need to have your 2021 tax returns processed efficiently and accurately. Original form(s) W-2 Original form(s) 1099R (pensions/retirement documents) All 1099s – interest and dividend (brokerage) statements (include any 1099s for dependents) Social Security Statements (forms SSA-1099 or RRB-1099) 1099G – New York State