Shielding Your Insurance from Estate Taxes

The rules are very stringent, but your financial advisor can help navigate Life insurance, which can help to provide for your heirs in the event of your death, can be an important estate planning tool. It can provide funds to loved ones when they need it most and help meet your family’s financial obligations. One…

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Charitable Giving Yields Tax Benefits for Businesses

An economic downturn may not seem like the best time to increase charitable giving, but at the same time, the need for funding at many nonprofits is especially acute as a result of the current economy. In addition to supporting a worthy cause, you or your business can help lower your tax bill through cash…

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5 Ways to Build A Better Tax Plan

It’s important that as you build your plan, you think about some strategies to reduce or defer your taxes now or in the future. Here are some strategies to consider helping your financial plan become more tax-efficient: 1. Tax harvesting Usually, this strategy is implemented near the end of the calendar year, but it can…

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A Shopper’s Guide to Tax Consultants

Without a doubt, income tax laws are complex. Yet, many individuals do their own income tax returns. Sure, the advent of personal income tax software has somewhat eased this burden. Tax preparation software is reasonably inexpensive. However, you still have to gather all the information. But, on the plus side, most software allows you to…

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Estimating Your Federal Estate Tax

You can estimate your federal estate tax liability by developing your own worksheet. First, calculate the present value of your gross estate by adding up these assets: Stocks, bonds, real estate, and cash. Household furnishings, motor vehicles, jewelry, and collectibles. Proceeds from life insurance policies and annuities. Retirement benefits including Individual Retirement Arrangements (IRAs) and…

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Tax-Advantaged 529 Accounts: What families need to consider

According to the College Board, the most recently published figures of the average annual cost of tuition and fees at a public university for a school year was $9,139 for in-state students and $22,598 for out-of-state students. The average cost of a private university was much higher at $31,231. Thankfully, much like tax-advantaged accounts designed…

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What’s a 990 form? A charity accounting expert explains

Most tax-exempt nonprofits must file a 990 form with the Internal Revenue Service every year, typically in mid-May. The 990 is purely informational. Nonprofits commit to serve an “approved purpose” – such as fighting bigotry, protecting animal welfare or sheltering the homeless – and meeting other eligibility rules. In exchange, they generally don’t pay taxes…

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What to Do If (When) Your Taxes Start Going Up

One variable that is hard to plan for in retirement is taxes. There are steps you can take, though, despite the uncertain tax landscape. We don’t even know what the tax rates will be next year, so how can you plan for 20 years or more in the future? We can’t say whether rates will…

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What to Do if You Underpay Your Taxes

Tips to avoid a surprise tax-time bill and possible penalties Every year, there are taxpayers that underpay their taxes. It just happens. But if you do that, no matter how innocent your underpayment might have been, you can be subject to penalties. The IRS issued a statement to help those who underpay to avoid penalties.…

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A Look at Tax Planning for Retirement

After years of saving and planning for their golden years, many people nearing retirement fail to consider the tax burden they may face on income they receive after they stop working. While you will likely see a reduction in the amount of taxes you owe after the age of 65, you still need to plan…

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