Being self employed, what sort of deductions can I take?
If I have a large capital gain this year, what can I do?
What investments can I make to help defer taxes?
Since Treasury Bonds are similarly exempt from state and local income tax, they can be a particularly good investment for those who are in high tax brackets and live in high-income-tax states.
What retirement plans are available to aid in the deferral of taxes?
If you are self-employed, look into getting a Keogh, SIMPLE or a SEP IRA.
What other ways can I defer this year's income?
Record Keeping for Taxes
What do I need to keep for tax reasons?
How should I separate and organize these?
- Medical Expenses
- Business Expenses
How long should I hold onto these documents?
How long should I keep old tax returns?
An added benefit of keeping your tax returns is that you can see what you claimed last year, allowing you to adjust for the current year.
What other records should I keep?
- Anything regarding the property you own and any fixes and repairs that you perform.
- Receipts for any jewelry or other valuable collector’s items
- Records for capital assets, stocks, bonds and such
What recordkeeping system should I have?
If you are a business owner, you may want to consider hiring a bookkeeper or accountant. Check the Financial Guide for Business on this website.
Are there available tax breaks for my children's education?
What is the education tax credit?
- The American Opportunity Tax Credit will work for the first 4 years of college for at least full-time study.
- The Lifetime Learning Credit applies for as long as the student studies, but the percentage of savings per year decreases drastically.
What is a Coverdell (Section 530)?
- Withdrawals aren’t taxed if used for qualified education expenses.
- Contributions can be made only up until the point that the client reaches 18, and all funds must be distributed by the time that they are 30.
- Contributions are not tax deductible
How can I best use the Coverdell (section 530)?
The account can be transferred to another family member at any time. If the original child decides against going to college or is granted a scholarship, another family member can still utilize the money that has been saved.
What is a qualified tuition program?
What differentiates the Coverdell Section 530 and the Section 529?
- The Section 529 allows for much larger yearly investments, whereas the Section 530 currently only allows for $2000 annually.
- The choice of investments in the Section 529 is extremely conservative and limited while the Section 530 allows for many different options.
- The Section 530 is a nationwide program while the 529 varies from state to state.
- The Section 530 will let you use its funds for primary and secondary education, while the Section 529 can only be used for secondary.
Can I take money from my traditional or Roth IRA to fund my child's education?
What tax deductions can be used for college education?
Is student loan interest tax deductible?
- The deduction ceiling is $2,500.
- If you are a dependant, you may not claim the interest deduction.
- You need to be the person liable for the debt and the loan must be purely for education.