Taxes

How Does Changing the Deed Affect the Mortgage?

Fri, 21 Dec 2018 00:08:25 +0800

Adding someone to a deed with a mortgage can complicate things. Chances are, though, you won't have to change anything with your mortgage as long as you notify them of the change. But you may want to refinance so that the other person is on the mortgage as well in case something happens.

Are IRA Withdrawals Subject to Social Security Tax?

Sun, 16 Dec 2018 17:49:31 +0800

Withdrawing from an IRA as retirement income does not mean the income is subject to Social Security tax on the IRA distributions. The FICA tax paid on employment earnings has already been paid on an IRA, so withdrawals from an IRA account are not assessed Social Security and Medicare contributions.

Does Tithing at Church Count as a Charitable Donation?

Sun, 16 Dec 2018 17:49:31 +0800

If you plan to write off certain deductions on your tax return, you should know what qualifies and what does not. Items in deccent and good working order can be donated and the value deducted from your taxes to a certain limit. Tithes fall into the charitable donation category and can be deducted.

How Much Do You Get Back for a Child on Your Taxes?

Thu, 13 Dec 2018 23:04:30 +0800

Some tax credits are refundable – they can result in the IRS sending you a check for the balance after the credit erases any tax you might owe. Unfortunately, the new Family Tax Credit isn’t one of them, but you might get as much as $1,400 back if you qualify for the Child Tax Credit.

Does Buying a Home Always Help My Tax Return?

Wed, 05 Dec 2018 23:15:26 +0800

Homeownership involves many expenses that you don't pay when you rent an apartment, such as property taxes, interest on home loans and the cost of maintaining the home. Buying a home can, however, save you money when you file your annual income tax return because many home-related expenses are tax deductible. If you buy a home, you aren't guaranteed to see savings on your tax return because the tax deductions for homeownership are "itemized deductions" which do not help all taxpayers.

How to Obtain a Mortgage Without Your Spouse

Tue, 04 Dec 2018 18:16:15 +0800

While it may seem odd at first, there are many reasons for one spouse to buy a house without the other. Some couples keep all finances separate. If one spouse is using inherited money for the down payment, qualifying for a separate loan to buy a house as separate property keeps the investment separate. Since most transactions include both partners, you'll need to inspect everything carefully to make sure all official loan paperwork uses your name -- without any mention of your spouse.

Drawing Social Security & Paying Into an IRA

Thu, 29 Nov 2018 23:50:15 +0800

It's perfectly legal to collect Social Security benefits while you're also paying into an IRA. Unfortunately, Social Security income does not count as "compensation," which you must have to be eligible to contribute to an IRA, so you need other income in addition to your benefits. Earning money, in turn, may affect your Social Security benefits. The interaction between Social Security and your IRA will vary with your situation.

Can an Uncle Claim Nieces & Nephews?

Thu, 29 Nov 2018 23:50:11 +0800

Claiming a child on taxes that is not yours is possible, as long as that child meets the IRS's requirements for a dependent. If your niece or nephew lived with you for the entire tax year and relied on you for more than half of her support, you may qualify to claim her as a dependent.

What Is the Difference Between Payroll Tax & Income Tax?

Thu, 29 Nov 2018 23:50:05 +0800

Both payroll taxes and income taxes are typically withheld from an employee’s wages. The difference between payroll tax and income tax is that payroll tax is used to cover the cost of Medicare and Social Security, while income tax funds other national programs, including national defense.

W-4 vs. 1099

Thu, 29 Nov 2018 23:49:40 +0800

The key to understanding W-4 and 1099 forms is to know whether you’re an employee or a sole proprietor. The W-4 signifies an employment relationship, and the 1099 represents a contractual relationship. As an employee, you fill out a W-4 and give it to your employer, who uses the form to figure how much federal income tax should come out of your paychecks. As a sole proprietor or independent contractor, you get an annual 1099 from the contracting company.

What Happens if You Don't Change Your Mortgage to Your Married Name?

Thu, 29 Nov 2018 23:48:45 +0800

You are not legally obligated to record your newly married name on your old mortgage and related property deed unless you wish to change the tenancy status. However, if you choose to not include your new spouse in the tenancy, he may not have the right to the property in the event that he survives you. This can precipitate future estate management, tax, and asset protection problems, according to the Navy Federal Credit Union.

Social Security Benefits for Children in College

Thu, 29 Nov 2018 04:52:49 +0800

The Social Security Act of 1935 has delivered monthly retirement payments to American workers over seven decades. Social Security has also paid benefits to survivors of deceased workers, including minor children. For a short time, the payments for the surviving children of deceased workers was extended to those enrolled in college to age 22 years; however, this benefit for has been eliminated. Today, only Social Security benefits for college-enrolled, disabled survivors of deceased workers remain.

How to Fill Out Form W-4 for a Full-Time Student

Thu, 29 Nov 2018 04:39:18 +0800

Each time you begin a new job, your employer gives you a W-4 form to complete. This form tells your boss how much to take out of each paycheck for federal income taxes. Virtually every job – including part-time gigs and work study arrangements – is subject to federal employment tax rules. Depending on the state you live in, you might also have to complete a similar form for state withholding purposes. Each state varies, but if your state has its own W-4, you’ll have to provide similar information on each form.

Can My Boyfriend Claim My Child on His Taxes?

Thu, 29 Nov 2018 04:37:58 +0800

Everybody loves tax exemptions. They reduce the amount of your taxable income, which affects the amount of taxes you pay. You can take a personal exemption for yourself, and you get an exemption for each of your dependents. In some cases, you might qualify as your boyfriend's dependent. He might even be able to claim your child on his taxes, provided certain conditions apply.

TSA vs. Roth TSA

Thu, 29 Nov 2018 04:35:49 +0800

A TSA, also known as a tax-sheltered annuity or a 403(b) plan, is a retirement plan offered by non-profit institutions. Both employees and employers can contribute to the plan but must remain within IRS limits. A Roth TSA doesn't offer tax-deductible contributions but rather tax-free distributions.

What Is Considered Earned Income With Social Security Benefits?

Thu, 29 Nov 2018 04:34:16 +0800

You can keep working and collect Social Security retirement or survivor's benefits at the same time. However, Social Security will reduce your benefits if you earn more than the government's limits before reaching your full retirement age. This age is 66 for workers born between Jan. 2, 1943, and Jan. 1, 1955, and increases for those born later. Although earned income counts toward the limits, other types of income are exempt.

How Far Back Does the IRS Go for Back Taxes?

Wed, 21 Nov 2018 05:06:42 +0800

Everyone says that the only two sure things in life are death and taxes. However, in the long run, taxes may be less certain. With some debts, such as medical bills or credit card debt, the statute of limitations can cut off a creditor who might try to sue you over an old debt. How far back the IRS can go to collect back taxes depends on your circumstances.

Can You Write Off Uncollectible Debts on Your Taxes?

Wed, 21 Nov 2018 05:04:37 +0800

It's bad news when someone who owes you money fails to pay the debt. You may be able to compensate for your loss by taking a tax deduction, but some bad debts don't even give you that benefit. Even if a debt is completely worthless -- there's no hope of collecting -- you may not be able to write it off.

How to Buy out the Rights of a Co-Owner of a House

Fri, 16 Nov 2018 00:17:14 +0800

When you buy a home with someone else, both of you have ownership rights. If the co-owner decides he no longer wants to own the property, you have the option to buy out his share. Aside from determining a fair price, the process is fairly straightforward. Since you already own half of the property you can bypass some of the common home-buying steps, such as an inspection.

How Much Do You Need to Make to File Taxes?

Thu, 15 Nov 2018 03:26:46 +0800

There’s actually no minimum amount you have to make to file a tax return. Sometimes people file just because they can get money back. But the IRS does have rules that state how much you can make before you have to file taxes. Depending on your situation, the minimum that applies to you can be anywhere from a few hundred to several thousand dollars.