Finding Tax Loopholes, the Blog

Get the most from Itemizing

Get the most from Itemizing
Itemizing is an incredibly easy theory to understand, yet the strategies behind it all can be intricate and countless. The rule for when to itemize is simple You’ll do it if the total of your itemized deductions is greater than your standard deduction. First of all, your tax is based on your “taxable income.” That’s your total income after you’ve subtracted above-the-line deductions like your Individual Retirement Account (IRA) or other qualified retirement-plan...
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Retired

Retired
Now is the time when you really have to be careful about market slumps. Because the combination of investment losses and pulling money out for living expenses can depress the value of your portfolio. So much so that it may not be able to recover sufficiently even when the market rebounds. There are two ways to protect yourself against the risk of going through your money too soon. One is to scale back your stock holdings enough to allow for modest growth. This can limit the damage from a...
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Retirement, late in your career

Retirement, late in your career
You’re hitting the home stretch With about 10 or 15 years to go until retirement, the kids are leaving and you’re at/near your peak earnings. This is an excellent time to rev up your savings effort – including making catch-up contributions to your 401(k) and IRA/s. Yup, Catch-up contribution option to retirement plans enable savers age 50 and over to increase contributions when retirement draws near. Age-50 catch-up contributions are possible in 401k, 403(b) and 457 plans,...
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Investing in retirement Mid Career

Investing in retirement Mid Career
After you’ve got a few years on the job, your investing will probably have enough money sitting in 401(k)s and IRAs that a market downturn would trigger a big enough dollar loss to get your attention. Which means you could be even more prone to abandon your long-term strategy to avoid short-term pain. “Resist that urge.” With 20 or more years to go until retirement, you still have lots of time to make up for any setbacks. So long-term growth of your savings should still be...
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Starting out with your investing

Starting out with your investing
Getting started with your investing, your main focus at this point in your planning should be making sure you’re stashing enough money into your 401(k) and other retirement accounts, not following the ups and downs of the economy and the markets. CNNMONEY.COM has a calculator where you can quickly tell whether you’re stashing away enough. What you need to save. Just plug in your age, annual salary and the amount you already have saved, and you’ll have it! You’ll get an...
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Our era of growing economic uncertainty-Prologue

Our era of growing economic uncertainty-Prologue
As we enter an era of growing economic uncertainty, we could learn a lot from the last American generation to truly experience a financial hardship. When people my age – I’m 51 this year – or younger casually discuss their worries of a coming recession or even a depression, I think they’re playing parlor games. We have never lived through The Great Depression. Most of us have never even had an emotionally honest conversation with someone who did. I don’t think...
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Are You Eligible to File Form 1040A?

Are You Eligible to File Form 1040A?
Why would you want to? Form 1040A is shorter and easier to fill out than the longer and more complex Form 1040. Form 1040A also covers more deductions and tax credits compared to the 1040EZ. For example, you can deduct IRA contributions and student loan interest on the 1040A short form, but cannot take the same deductions on the 1040EZ form. The benefits of using Form 1040A are that the form is faster to prepare than the longer 1040, and faster also for the IRS to process. That means less tax...
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“Eckhardt, you oughta think about the future.”

“Eckhardt, you oughta think about the future.”
. . . Eckhardt merely scoffs at the statement, “You’re an A-1 nut-boy, and Grissom knows it.” Later as things had changed, he is told again, “Eckhardt! Think about the future.” Of course then Eckhardt is killed. – me being me, did Eckardt have an estate plan?             Avoid the ‘Death Tax’.             As a fan of the Batman movies, I am interested in its characters and those who play them. However, this post isn’t about Batman.             Recently, a big Estate I...
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Are You Having Enough Taken out for Withholding?

Are You Having Enough Taken out for Withholding?
Well how are you supposed to know? A few easy steps and some light planning can help you figure this out. What you need to know: If you fail to estimate your federal income tax withholding properly, it may cost you in a variety of ways. If you receive an income tax refund, it essentially means that you provided the IRS with an interest-free loan during the year. By comparison, if you owe taxes when you file your return, you may have to scramble for cash at tax time–and possibly owe...
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Avoid the “Death Tax”

Avoid the “Death Tax”
“Why, Eckhardt, you oughta think about the future.” . . . Eckhardt merely scoffs at the statement, “You’re an A-1 nut-boy, and Grissom knows it.” Later as things had changed, he is told again, “Eckhardt! Think about the future.” Of course then Eckhardt is killed. Avoid the ‘Death Tax’. The above is taken from Batman, I am interested in all its characters and those who play them. However, this post isn’t about Batman. Recently, a big Estate I have been working on for well over...
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