Retirement Solutions, Simple and Reliable
A recent survey found that 28% of workers are very confident about having enough money to live comfortably through their retirement years. At the same time, 27% are not confident.1 In 2001 congress passed a law that can help older workers make up for lost time. But few may understand how this generous offer can […]
Inheriting wealth can be a burden and a blessing. Even if you have an inclination that a family member may remember you in their last will and testament, there are many facets to the process of inheritance that you may not have considered. Here are some things you may want to keep in mind if it […]
The year-end is approaching and you may have questions about RMDs (Required Minimum Distributions). Once you reach age 72 (age 70½ if you attained age 70½ before 2020), the IRS requires you to start withdrawing from—and paying taxes on—most types of tax-advantaged retirement accounts. You may also be required to take RMDs from retirement accounts that […]
The Internal Revenue Service has released new limits for the coming year. After months of high inflation and financial uncertainty, some of these cost-of-living-based adjustments have reached near-record levels. Individual Retirement Accounts (IRAs). IRA contribution limits are up $500 in 2023 to $6,500. Catch-up contributions for those over age 50 remain at $1,000, bringing the total […]
The federal government has upgraded its Child Tax Credit. Thanks to the American Rescue Plan Act, there are four notable differences in effect for the 2021 tax year only.1
First, the Internal Revenue Service is paying many families who qualify for the CTC 50% of their credit before 2021 ends. Second, the credit has grown larger for most eligible families: $3,000 per child, $3,600 per child under age 6. Third, this year’s CTC is fully refundable. Fourth, the credit has been extended to 17-year-olds for the first time – that is, children who turn 17 in 2021.1,2
Remember, this article is for informational purposes only. It’s not a replacement for real-life advice, so make sure to consult your tax or legal professionals if you have any questions about the CTC or how it operates.
Read more about The Expanded Child Tax Credit …
In this 3-part tax guide, we will explore where your tax dollars go, some of the ways tax filing may look different in 2022, and what you can do to prepare. Keep in mind, this guide is for informational purposes only and is not a replacement for real-life advice, so make sure to consult your tax, legal, and accounting professionals before modifying your strategy.
If you missed part 1 (here) or part 2 (here) of this series, check those out first. Part 3 is below.
Planning well in advance of the tax season may help better prepare you for the unexpected. Here are several reasons to begin planning early:
You can make changes throughout the year to ensure that your tax preparations go smoothly.
In particular, you can make periodic assessments of your paycheck withholdings so that you will get a refund or can reduce or eliminate your tax burden.
Read more about Annual Tax Guide – A Guide to 2022 Tax Law Changes (Part 3) …
In this 3-part guide, we will explore where your tax dollars go, some of the ways tax filing may look different in 2022, and what you can do to prepare. Keep in mind, this guide is for informational purposes only and is not a replacement for real-life advice, so make sure to consult your tax, legal, and accounting professionals before modifying your strategy.
The agency provides tools and resources to help you calculate the correct amount to have withdrawn
from your paycheck.
The calculator may help you determine if your employer is withholding adequate amounts from
your paycheck.
The calculator asks for your projected gross income, your current withholding number, the current amount of federal taxes withheld, and other paycheck-related questions.
The calculator leads you through various screens that require you to enter the requested numbers into boxes. The calculator looks similar to a tax-filing form.
The final figure: Once the calculator generates the estimated taxes you can expect to owe or be refunded, it offers suggestions on how to change your withholding amount or request that additional money be withheld from your check.
If the calculator shows you are projected to owe taxes at the end of the year, you may file a new Form W-4, Employee’s Withholding Allowance Certificate, following the guidance provided by the calculator. The IRS-provided calculator is designed to provide feedback based on certain assumptions. It is not intended to provide specific tax, legal, or accounting advice. The calculator is not a replacement for real-life advice,
so please make sure to consult a professional before modifying your tax strategy.5
Suggestions may include changing the number of allowances you are claiming or requesting that your employer withhold additional money.
Taxpayers who receive pension income may use Form W-4P.Once completed, send the form to your payer if you are making changes.6
Read more about Annual Tax Guide – A Guide to 2022 Tax Law Changes (Part 2) …
In this 3-part guide, we will explore where your tax dollars go, some of the ways tax filing may look different in 2022, and what you can do to prepare. Keep in mind, this guide is for informational purposes only and is not a replacement for real-life advice, so make sure to consult your tax, legal, and accounting professionals before modifying your strategy.
Before we dive into the upcoming tax brackets and what you can do to prepare for 2022, it can be helpful to understand precisely where the government allocates your federal tax dollars.
In 2021, the federal government spent $6.82 trillion, which equals 30% of the nation’s gross domestic product. Further examination reveals that three significant areas of spending make up the majority of the budget.1
Read more about Annual Tax Guide – A Guide to 2022 Tax Law Changes (Part 1) …
The Federal Reserve met in mid-January, and clarified its position on monetary policy, providing the clearest hint yet about short-term interest rates. The fed hinted that the first interest rate hit could come as soon as March.1 The markets were on edge anticipating the Fed update. But by the end of the meeting, the market […]
When you marry or simply share a household with someone, your financial life changes—and your approach to managing your money may change as well. The good news is that it is usually not so difficult.
At some point, you will have to ask yourselves some money questions—questions that pertain not only to your shared finances but also to your individual finances. Waiting too long to ask (or answer) those questions might carry a price. In the 2019 TD Bank Love & Money survey of consumers who said they were in relationships, 40% of younger couples described having weekly arguments about their finances.1
Read more about Managing Money as a Couple …