MAGI, or Modified Adjusted Gross Income, is a key figure in tax and financial planning. It starts with your Adjusted Gross Income (AGI) and adjusts it by adding back specific deductions or exclusions. MAGI determines eligibility for tax benefits, healthcare subsidies, and other government programs. Understanding your MAGI helps you maximize tax savings and plan …
Finance/
Taxes
How to Calculate Capital Gains Tax: A Beginner’s Guide
Capital gains tax is a levy on the profit earned from selling an asset that has appreciated in value. It applies when the selling price of an asset exceeds its purchase price. The sale of investments like stocks, bonds, real estate, and other valuable assets such as collectibles or cryptocurrency typically triggers this tax. Understanding …
Receiving gift money from parents can be a generous way to support your goals, whether it’s funding education, buying a home, or simply saving for the future. However, many people wonder: do I owe taxes on the money my parents gave me? This question often arises due to widespread confusion about gift tax laws and …
An IRS transcript is a detailed record of a taxpayer’s account, showing all transactions, payments, and adjustments related to their tax return. These transcripts use transaction codes to summarize various account activities, such as payments, credits, or refunds. One such code, Code 766, often raises questions due to its impact on a taxpayer’s account balance. …
Ultimate Guide
State income taxes are levied on individual earnings and are a critical funding source for public services such as education, healthcare, and infrastructure. These taxes vary significantly across states, ranging from no-state income tax to some of the highest rates in the country. For residents, understanding state income taxes is essential for effective financial planning, …
Ultimate Guide
Understanding state taxes is crucial for individuals and businesses, as taxes can significantly impact financial well-being. Whether planning to relocate, start a business, or simply optimize one’s finances, knowing which states offer the lowest tax rates is critical. Each state has its unique tax structure, from income tax to sales, property, and corporate taxes. This …
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Countless Americans are quitting their regular jobs to chase their dream of starting a business. They want more happiness, satisfaction, and maybe more money. But getting a business off the ground is challenging now when living costs are rising, and pay stays the same. One big choice that can make or break your business is …
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Corporations are responsible for a bevy of taxes on the state level across different mediums. Above that, each state sets its own rates for corporate entities to contend with. State corporate tax rate varies depending on which state from which you operate your business. Corporate State Tax Rates Explained Corporations are a type of business …
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