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Modified Adjusted Gross Income (MAGI)

Shift income to take advantage of the 0% long-term capital gains rate

(GST) Generation-Skipping Transfer Tax Consequences, (LTCG) Net Long-Term Capital Gain, Federal Taxes, Gifts, Investment Income Tax (NIIT), Kiddie Tax, Modified Adjusted Gross Income (MAGI) /

Are you thinking about making financial gifts to loved ones? Would you also like to reduce your capital gains tax? If so, consider giving appreciated stock instead of cash. You might be able to eliminate all federal tax liability on the appreciation — or at least significantly reduce it. Leveraging lower rates Investors generally are subject to […]

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The 2025 SALT deduction cap increase might save you substantial taxes

Federal Taxes, Local Taxes, Modified Adjusted Gross Income (MAGI), One, Big, Beautiful Bill Act, SALT, State Tax /

If you pay more than $10,000 in state and local taxes (SALT), a provision of the One Big Beautiful Bill Act (OBBBA) could significantly reduce your 2025 federal income tax liability. However, you need to be aware of income-based limits, and you may need to take steps before year end to maximize your deduction. Higher

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Making the most of the new deduction for seniors

Deductions, Federal Income Tax, Federal Tax Deductions, Modified Adjusted Gross Income (MAGI), One, Big, Beautiful Bill Act, Senior Deduction /

For 2025 through 2028, individuals age 65 or older generally can claim a new “senior” deduction of up to $6,000 under the One Big Beautiful Bill Act (OBBBA). But an income-based phaseout could reduce or eliminate your deduction. Fortunately, if your income is high enough that the phaseout is a risk, there are steps you

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Payroll tax implications of new tax breaks on tips and overtime

(FLSA) Fair Labor Standards Act, Employees, Federal Income Tax, Modified Adjusted Gross Income (MAGI), One, Big, Beautiful Bill Act, Payroll Tax, Self Employed, Small Business, Tips And Overtime /

Before the One Big Beautiful Bill Act (OBBBA), tip income and overtime income were fully taxable for federal income tax purposes. The new law changes that. Tip income deduction For 2025–2028, the OBBBA creates a new temporary federal income tax deduction that can offset up to $25,000 of annual qualified tip income. It begins to

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No tax on car loan interest under the new law? Not exactly

Deductions, Federal Tax Deductions, Federal Taxes, Individual Income Tax, Individual Tax Tips, Modified Adjusted Gross Income (MAGI), One, Big, Beautiful Bill Act, Qualified Passenger Vehicle Loan Interest, Taxes 2025 /

Under current federal income tax rules, so-called personal interest expense generally can’t be deducted. One big exception is qualified residence interest or home mortgage interest, which can be deducted, subject to some limitations, if you itemize deductions on your tax return. The One Big Beautiful Bill Act (OBBBA) adds another exception for eligible car loan

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What families need to know about the new tax law

529 Saving Plan, Adoption, Child and Dependent Care Credit, Federal Taxes, Individual Income Tax, Individual Tax Tips, Modified Adjusted Gross Income (MAGI), One, Big, Beautiful Bill Act, Tax Laws, Taxes 2025, Trump Accounts /

The One, Big, Beautiful Bill Act (OBBBA) has introduced significant tax changes that could affect families across the country. While many of the provisions aim to provide financial relief, the new rules can be complex. Below is an overview of the key changes. Adoption credit enhanced Parents who adopt may be eligible for more generous

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You may be able to make a deductible IRA contribution for last year this year

Contributions, IRA, Modified Adjusted Gross Income (MAGI), Roth IRA, Simplified Employee Pension (SEP), Small Business Owners, Tax Return, Taxes 2024, Traditional IRA /

If you’re getting ready to file your 2024 tax return and your tax bill is higher than you’d like, there may still be a chance to lower it. If you’re eligible, you can make a deductible contribution to a traditional IRA until this year’s April 15 filing deadline and benefit from the tax savings on

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Your guide to Medicare premiums and taxes

Medicare Premium Tax Deduction, Medicare Taxes, Modified Adjusted Gross Income (MAGI), Pass Through Taxation, Self Employed, Tax Return /

Medicare health insurance premiums can add up to big bucks — especially if you’re upper-income, married, and you and your spouse both pay premiums. Read on to understand how taxes fit in. Premiums for Part B coverage Medicare Part B coverage is commonly called Medicare medical insurance. Part B mainly covers doctors’ visits and outpatient

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Understanding the $7,500 federal tax credit for buying an electric vehicle

Electric Vehicles, Modified Adjusted Gross Income (MAGI), Tax Credits For Buying an Electric Vehicle /

Electric vehicles (EVs) have become increasingly popular. According to Kelley Blue Book estimates, the EV share of the vehicle market in the U.S. was 7.6% in 2023, up from 5.9% in 2022. To incentivize the purchase of EVs, there’s a federal tax credit of up to $7,500 for eligible vehicles. The tax break for EVs

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IRAs: Build a tax-favored retirement nest egg

Federal Taxes, IRA, IRA Early Withdrawal, Modified Adjusted Gross Income (MAGI), Roth IRA, Simples, The Secure Act 2.0, Traditional IRA /

Although traditional IRAs and Roth IRAs have been around for decades, the rules involved have changed many times. The Secure 2.0 law, which was enacted at the end of 2022, brought even more changes that made IRAs more advantageous for many taxpayers. What hasn’t changed is that they can help you save for retirement on

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