The Internal Revenue Service estimates that taxpayers and businesses spend 6.1 billion hours a year complying with tax-filing requirements. To put this into perspective, if all this work were done by a single company, it would need more than three million full-time employees and be one of the largest industries in the U.S.¹ Tip: Refund […]
By any measure, the tax code is huge. At the end of 2013, Commerce Clearing House’s Standard Federal Tax Reporter was up to 73,954 pages.¹ And each Monday, the Internal Revenue Service publishes a 20- to 50- page bulletin about various aspects of the tax code.² Fortunately, it’s not necessary to wade through these massive […]
The Investment Company Institute reports that there is roughly $6.5 trillion in Individual Retirement Accounts (IRA).1 To help put that in perspective, that’s well over one-third the annual gross domestic product of the U.S.2 If you have a traditional IRA, you may have the opportunity to stretch it out, meaning the account may be structured […]
In a recent survey, 65% of current workers stated they plan to work for pay after retiring.¹ And that possibility raises an interesting question: How will working affect Social Security benefits? To answer that question requires an understanding of three key concepts: full-retirement age, the earnings test, and taxable benefits. Full Retirement Age Most workers […]
Taxes are one of the biggest budget items for most taxpayers, yet many have no idea what they’re getting for their money. In 2014, as in recent years, Americans will spend more on taxes than on groceries, clothing, and shelter combined. In fact, we worked until mid-April just to earn enough money to pay our […]
Important Birthdays Over 50 Tip: Average Benefit. In the beginning of 2014, the average monthly Social Security benefit for a retired worker was about $1,294. Source: Social Security Administration, 2014 Most children stop being “and-a-half” somewhere around age 12. Kids add “and-a-half“ to make sure everyone knows they’re closer to the next age than the […]
“Audit” is a word that can strike fear into the hearts of taxpayers.However, the chances of an Internal Revenue Service audit aren’t that high. In 2013, the IRS audited 1.0% of all individual tax returns.¹ And being audited does not necessarily imply that the IRS suspects wrongdoing. The IRS says an audit is just a […]
American educational reformer Horace Mann called education “the great equalizer.”¹ In football, it’s been said that turnovers are the great equalizer. And anyone who’s ever watched CBS’s “The Amazing Race,” knows airport delays are the great equalizer in a race around the world. In taxes, there’s also an equalizer of sorts; it’s called the alternative […]
Every year, nearly 130 million households file their federal tax returns.¹ For many, the process involves digging through shoe boxes or manila folders full of receipts; gathering mortgage, retirement, and investment account statements; and relying on computer software to take advantage of every tax break the code permits. It seems a shame not to make […]
Americans are expected to spend an annualized $53.8 billion on home improvements in the third quarter of 2014—which represents a 9.9% increase over the third quarter of 2013.¹ Those looking into environmentally minded home modifications may get a boost from Uncle Sam’s tax incentives. Here’s how:² The Energy Property Tax Credit Tax credits for Energy-Star-rated […]
