Taxes
I’m a Stay-at-Home Mom With 3 Kids. Claiming This Tax Credit Could Add Up to $6,600 to My Family’s Refund.
Some families may be expecting a new tax break for stay-at-home parents, but despite a 2026 White House draft proposal, no legislation has been approved.1 You may, however, qualify for a higher child tax credit. If you are a stay-at-home parent with three eligible children, that credit could add up…
Wash Sale Rule for Stocks: Tax Deductions
Selling a stock at a loss can be a useful tax strategy. The loss may offset capital gains and, in some cases, reduce taxable income, but that benefit may end up delayed if you buy the same or a substantially identical investment within 30 days before or after the sale. The wash sale rule aims
Unrealized Gains: Favorable vs. Unfavorable Tax Treatment
An investment can increase substantially in value without creating an immediate federal income tax bill. In a taxable account, gains generally aren’t taxed until the asset is sold. That tax deferral can be valuable, but when and how the gain is eventually realized can have a significant effect on…
Trust 65-Day Rule: How Distributions Affect Beneficiary Taxes
The 65-day rule can give certain trusts more flexibility when deciding when to distribute income to beneficiaries. The IRS may treat an eligible distribution made during the first 65 days of a new tax year as though it occurred in the prior year. This can potentially shift taxable income from the…
Sales Tax vs. Use Tax: Definitions and Examples
Most people are used to seeing sales tax on a receipt, but not every purchase includes it. When it doesn’t, you may still owe tax on that purchase through what’s called a use tax. This comes up most often with online shopping, out-of-state purchases and private sales. Understanding the difference…
Federal Tax vs. State Tax: Definitions and Examples
Most people see taxes come out of their paycheck without thinking much about where the money goes. Federal taxes follow one set of rules no matter where you live, but state taxes vary widely depending on your location. Some states have no income tax at all while others take a significant cut. These…
How Paying Off Your Mortgage Early Can Affect Your Taxes
Paying off your mortgage early saves you money on interest but it can also change your tax situation. Once the mortgage is gone you lose the mortgage interest deduction, which may reduce the total amount you can itemize on your tax return. That could mean a higher taxable income than you expected…
Tax Credits and Deductions for Home Improvements
Home improvements can make your home more comfortable, raise its value and lower energy costs over time. Some projects may also qualify for tax credits or deductions. These tax breaks can reduce what you owe when you file your taxes. In other cases, the cost of improvements can increase your home’s…
What Is the IRS Penalty for Failing to File a Tax Return?
Missing a tax filing deadline can feel like a minor slip, but the financial consequences can snowball quickly. The IRS imposes strict penalties on taxpayers who fail to file on time, and those penalties grow with every month that passes without action. Knowing how these penalties work, whether you…
Charitable Giving Strategies: Tax Planning Examples
The tax code offers meaningful incentives for charitable giving, but many donors don’t fully benefit from them. Without a deliberate strategy, charitable contributions often provide little to no tax advantage. With the right approach, however, charitable giving can reduce income tax through…