Taxpayer Knowledge Base
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Taxes are complicated!
Tackling taxes can be complex, but our free resources offer guidance for common financial situations to help simplify the process. They're a click away and cover various tax scenarios to assist you. If you require a personalized approach to reduce your tax burden now and in the future, we invite you to book a discovery call with our experts. Let's plan together for your tax savings!
High-income taxpayers may face additional charges like the Medicare surtax and the net investment income tax, necessitating strategic planning to leverage tax deductions, credits, and investment opportunities to minimize tax liability.
Employer-provided benefits can offer tax savings, as many are pre-tax deductions, reducing taxable income; however, benefits like life insurance over $50k can incur additional taxes.
RSUs are taxed as income upon vesting and may incur capital gains tax upon sale, depending on stock appreciation. Strategic timing of vesting and sale is key to minimizing tax impact.
Losing a job may involve severance pay, which is taxable as income, and can affect your tax bracket; unemployment compensation is also typically subject to federal (and possibly state) taxes.
With a Qualified Employee Stock Purchase Plan (ESPP), the discount is taxed as ordinary income at sale, while any gain beyond that is taxed as long-term capital gains if held for the required period.
Non-qualified stock options (NQSOs) are taxed at exercise, with the spread between exercise price and market value treated as ordinary income, and subsequent stock appreciation taxed as capital gains.
Starting a new job may involve signing bonuses or relocation packages, which are typically taxed as income, and may also alter your tax bracket or necessitate adjustments to your W-4.
During Medicare open enrollment, choosing the right plan can affect your tax-related medical deductions, especially if you itemize and your total medical expenses exceed a certain percentage of your income.
A raise or promotion can push you into a higher tax bracket, increasing your tax liability; it's important to review and adjust your withholding to avoid underpayment penalties.
Selling a home can lead to capital gains tax if profits exceed $250,000 for singles or $500,000 for married couples filing jointly, though living in the home for 2 of the last 5 years can offer exclusions.
Contributions to a Health Savings Account (HSA) are pre-tax, reducing taxable income, and distributions used for qualified medical expenses are tax-free, providing a triple tax advantage.
High inflation can indirectly affect your taxes by changing your purchasing power and possibly pushing you into a higher tax bracket with increased wages, even without a change in real income.
Regularly reviewing cash flow can highlight potential tax-deductible expenses and investment opportunities that can reduce taxable income and optimize tax planning strategies.
Income from a reverse mortgage is typically tax-free, as it's considered a loan advance and not income, but it can affect the tax status of means-tested benefits and estate planning.
