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Taxes


Whether or not your pension is taxed depends on the type of pension—years of service or disability—and the type of tax—federal, state, or social security. The Federal Government and Military Retirement Pay If you’ve spent twenty or more years in military service, you’re entitled to a military pension upon retirement. The federal government considers this[…]

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“Audit” is a scary word for most people, because they think it automatically means they’ve done something wrong on their taxes and are going to get penalized. True, sometimes the IRS notices a problem, whether it was intentional misreporting or an inadvertent error. But this is not always the case. The IRS sometimes uses random[…]

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The customary advice about cashing out your retirement plan early is: don’t. There are very few situations that would make it financially worthwhile. A standard IRA or 401(k) provides before-tax contributions and tax-free compounding, deferring taxes to retirement. A Roth IRA, although contributed to with after-tax dollars, provides for tax-free compounding and tax-free distributions in[…]

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So, you have some income that is not part of a traditional job. Maybe you are self-employed, have a rental property, a small business selling crafts, earn income through a business partnership, or you hit the jackpot on “Wheel of Fortun.” The good news is that you’re earning money. The bad news is that the[…]

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A tax lien is a government claim on your property due to unpaid tax debt. A tax lien can originate from both federal and state sources. And it can be placed on property including financial assets, personal property and real estate holdings. A tax lien does not mean that the government will imminently seize your[…]

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There are few phrases that can induce more anxiety than “back taxes.” And there is a good reason for that. Technically speaking, back taxes are taxes that were unpaid in the year they were due. They can be owed on the federal, state, and/or local level. Regardless of where they are owed – back taxes[…]

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Whether you are handling your personal finances or doing small business accounting, it is important to understand capital gains taxes. Put simply, you must pay capital gains taxes anytime you sell an asset for profit. However, there are many factors that can influence how much you owe the IRS. Below are a few important terms[…]

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