Mutual funds are a popular investment choice, but many investors don’t realize how they’re taxed. Whether you’re reinvesting dividends or simply holding shares, mutual funds can create taxable events, so it’s important to understand how they affect your tax bill. Below is a summary of the tax side of mutual fund investing that every investor should know.
If you hire someone to work in your home, you may have what’s called a household employee. Many people don’t realize this makes them an employer in the eyes of the IRS. That means you may be responsible for certain tax obligations, often referred to as the “nanny tax.”
Life brings many milestones that can significantly affect your financial situation. Whether you’re getting married, buying a home, having children, or preparing for retirement, each of these events changes your tax obligations. As a result, effective tax planning helps you maximize deductions, credits, and other benefits during these transitions. In this post, we’ll explore how tax planning plays a pivotal role in navigating major life events.
Summer is a time to relax, travel, and enjoy family, but it’s also a great time to consider how seasonal activities may impact your taxes. Here are some common summertime events that could affect next year’s tax return—and how to stay ahead:
When you’re married, choosing the right married filing status is one of the most important tax decisions you’ll make. The two main options—married filing jointly and separately—can lead to very different results on your return.
When it comes to saving for a child’s or grandchild’s education, few tools are as tax-advantaged and flexible as 529 plans. Whether you’re a parent planning for your child’s college tuition or a grandparent wanting to leave a legacy of learning, 529 plans offer an excellent way to invest in their future—while potentially saving on taxes. Here’s what you need to know about 529 plans.