Taxes

Giving to charity can support causes you care about, but it does not always translate into meaningful tax savings. That is why some households use a strategy called charitable donation bunching, which involves combining several years of donations into one tax year to potentially unlock larger deductions. As tax rules…

Claiming a dependent on your tax return can unlock meaningful savings, but the rules around who qualifies are more nuanced than many people realize. Whether you’re supporting a child, an aging parent, or another family member, understanding the IRS requirements and the benefits tied to dependency status can make a…

With fuel prices skyrocketing due to his war in Iran, President Trump says he wants to suspend the federal gas tax “for a period of time.” GOP lawmakers immediately promised to introduce bills to do just that. And Democrats were way ahead of them: Back in March, senators Richard Blumenthal…

A limited liability company (LLC) offers liability protection and operational flexibility, but the costs, paperwork, and compliance requirements differ from state to state. Knowing what your state requires before you file can save you time and money down the line. A financial advisor can help you compare entity structures, work…

Claiming dependents correctly could help reduce your tax bill. A family with two qualifying children may potentially receive several thousand dollars in combined tax credits, including the Child Tax Credit and the Child and Dependent Care Credit. Someone supporting an elderly parent may also qualify for additional benefits, including head…

Land contracts can offer a path to homeownership without a traditional mortgage, but the financial responsibilities involved are not always straightforward. Property tax obligations in particular depend on how the contract is structured, and misunderstanding them can lead to serious financial consequences for either party. Here is what to know…

Pulling money out of a trust can feel straightforward, but the tax consequences are often anything but. Depending on how the trust is set up and what type of funds you withdraw, a distribution could be tax-free, or it could come with an unexpected tax bill. Many people assume that…

Winning the lottery can create instant wealth, but it also introduces immediate tax considerations. U.S. tax law generally treats lottery prizes as taxable income at both the federal and, in many cases, state levels. Winners may qualify for certain deductions that decrease how much they owe, but full tax exemptions…

Custodial accounts are a common way for parents and grandparents to save or invest on behalf of a minor, but they often raise tax questions. The IRS generally treats the minor as the taxpayer but special rules, such as the kiddie tax and optional parent reporting, can complicate things. A financial…

Co-signing a mortgage can affect your taxes in several ways, depending on the loan’s structure and the property’s use. In general, being a co-signer does not automatically give you the right to claim mortgage interest or property tax deductions. Those tax benefits typically belong to the person who actually pays…