If you don’t have a retirement plan through your employer, then you can open either a traditional or Roth IRA to plan for your retirement. The traditional IRA gives you a tax deduction by reducing your taxable income, but retirement money is taxable when you withdraw from it later. The Roth IRA is not deductible,…
At what age is Social Security no longer taxed? You may have heard that Social Security income is not taxed after age 70; this is false. You may be able to earn however much you want for Social Security purposes and not have to pay it back to Social Security, but for tax purposes there…
This program supports Pennsylvania homeowners and renters who meet the following criteria. Age Criteria 65 or older Widows and widowers 50 and older People with disabilities 18 and older Income Criteria In addition to age requirements, to qualify for the Property Tax/Rent Rebate, your household income must be $45,000 or less annually. If you rent,…
The April 15th deadline is approaching fast, what happens if you’re not ready to file? You may request up to an additional 6 months to file your U.S. individual income tax return. There are three ways to request an automatic extension of time to file your return. You must request the extension of time to file by the…
Head of Household (HOH) is a filing status you can claim if you’re single orunmarried and maintain a home for a qualifying person, such as a child orrelative. The Head of Household vs. Single status provides a larger standarddeduction and more generous tax rates for calculating federal income tax.Requirements for claiming Head of Household status: You…
What should I do if someone has used my information to file a tax return that I didn’t authorize?
At tax time, we find that people seem confused on why they didn’t have any or had little federal tax withholding throughout the year. The W4 that you fill out when you start employment is what the federal tax withholding is based on. So, if you fill it out incorrectly, it can mean a smaller…
The standard way of being paid by an employer is on a W2. You have Federal Income tax, Social Security tax, Medicare tax, State tax (depending on the state you live in) and Local Earned Income tax. There are nine states with no state tax. For starters the Federal income tax withholding is based off your…
Under current law, the maximum refundable child tax credit for a taxpayer is computed by multiplying that taxpayer’s earned income (in excess of $2,500) by15 percent. This provision modifies the calculation of the maximum refundable credit amount by providing that taxpayers first multiply their earned income (in excess of $2,500) by 15 percent, and then…
The deadline for tax extensions is quickly approaching! This year’s deadline isOctober 16, 2023. An extension gives you extra time to file your taxes, but not extratime to pay. Sometimes time escapes you and suddenly you have several years’ worth of taxes tofile. While it certainly feels overwhelming, there are some action plans you can…