December 31 is not necessarily your last opportunity to make a retirement contribution that counts for the year. For traditional and Roth IRAs, the IRA Contribution Deadline generally extends until the federal income tax filing deadline for that tax year—not the end of the calendar year. That means eligible taxpayers may have several additional months…

Getting a large tax refund can feel like good news. Getting an unexpected tax bill definitely doesn’t. But ideally, your federal income tax withholding should come reasonably close to the amount of tax you actually owe. The Tax Withholding Estimator from the IRS can help you see whether you’re on track before tax season arrives….

Need more time to finish your federal income tax return? A Tax Filing Extension can give many individual taxpayers up to six additional months to file—but there is one rule that is especially important to understand: An extension to file is not an extension to pay. For most individual taxpayers, filing Form 4868, Application for…

Waiting for a tax refund can be frustrating, especially when you’re counting on that money. One of the simplest ways to avoid unnecessary delays is to E-File and Direct Deposit your federal tax return and refund. The IRS recommends electronic filing and direct deposit as the fastest way to receive a federal tax refund. For…

The Business Mileage Deduction can be valuable for self-employed taxpayers and business owners who regularly use a personal vehicle for work. But simply driving your vehicle for business isn’t enough. You also need records showing which miles were for business and which were personal. Keeping an accurate mileage log throughout the year can help support…

Business Travel Expenses can add up quickly when you’re self-employed or running a business. Airfare, hotels, transportation, meals, and other costs may be deductible when you’re traveling for a legitimate business purpose—but knowing which expenses qualify and keeping good records are essential. The IRS generally allows businesses to deduct ordinary and necessary expenses associated with…

The Home Office Deduction can provide valuable tax savings for self-employed taxpayers who regularly conduct business from home. But simply answering emails from the kitchen table or occasionally working from the couch doesn’t necessarily qualify. Generally, you must use a specific portion of your home exclusively and regularly for business and satisfy one of the…

The Qualified Business Income Deduction can be a valuable tax break for eligible small business owners and self-employed taxpayers. If you operate a sole proprietorship or own an interest in a partnership, S corporation, or certain other pass-through businesses, you may be able to deduct up to 20% of your qualified business income (QBI) on…

Business Expense Deductions are one of the most valuable tax-saving opportunities available to self-employed individuals and small business owners. Every legitimate expense you document may reduce your taxable net income, but only when you can show that the cost was connected to your business. Whether you are a sole proprietor, independent contractor, freelancer, consultant, or…

Retirement savings are designed for retirement. That’s why Avoid Early Withdrawal Penalties should be part of every taxpayer’s financial plan. Withdrawing money from most retirement accounts before age 59½ can trigger a 10% early withdrawal penalty in addition to ordinary income taxes. Unless you qualify for a limited IRS exception, taking money out too soon…

Retirement should bring peace of mind. It shouldn’t bring an unexpected tax surprise. Many retirees spend years building their retirement savings, but fewer understand what happens when the IRS requires them to start taking money out. These mandatory withdrawals are called Required Minimum Distributions (RMDs), and failing to plan for them can lead to unnecessary…

Saving for retirement is smart. Getting a tax credit for doing it is even better. Many taxpayers know about Traditional IRAs and Roth IRAs. Far fewer know about the Saver’s Credit, officially called the Retirement Savings Contributions Credit. This valuable tax credit rewards eligible low- and moderate-income taxpayers for contributing to retirement accounts. Unlike a…