Phoenix property taxes are determined by multiplying the assessed value of the property by the property tax rate. The assessed value is determined by the Maricopa County Assessor’s Office and is based on the property’s market value. The property tax rate is set by the city of Phoenix and is used to fund city services … Read more
For non-residents, capital gains tax obligations vary depending on the country’s specific tax laws and the nature of the asset sold. In general, non-residents may be subject to capital gains tax on the sale of real estate located within the country, even if they do not reside there permanently. However, the tax treatment of other … Read more
Converting traditional IRAs to Roth IRAs can provide tax benefits in the long run, but it’s crucial to avoid potential tax traps. To avoid taxes on a Roth IRA conversion, ensure you meet specific criteria set by the IRS. Firstly, you must be at least 59½ years old or have a qualifying event, such as … Read more
To claim your Individual Retirement Account (IRA) contributions on your taxes, you need to know the type of IRA you have. Traditional IRA contributions are tax-deductible, but withdrawals are taxed as income. Roth IRA contributions are made with after-tax dollars but withdrawals are tax-free. To deduct traditional IRA contributions, you must meet certain income limits … Read more
Minimizing tax on dividends requires understanding the different types of dividends and the tax laws that apply to them. Qualified dividends, which come from investments held for a specific period, are typically taxed at a lower rate than ordinary dividends. To avoid paying tax on dividends altogether, consider investing in tax-advantaged accounts such as 401(k)s … Read more
When the government issues stimulus checks, many taxpayers wonder if they can have their payments directly deposited onto their TurboTax card. The answer is yes, if you used the TurboTax card to file your taxes and receive your tax refund in previous years. The IRS will automatically send your stimulus check to the TurboTax card … Read more
Residents of Washington D.C. have a unique tax situation compared to other states. Despite being a federal district, D.C. operates as a municipality and thus has its own local tax laws. However, as a federal district, D.C. is not subject to state income taxes. This means that individuals who live and work in Washington D.C. … Read more
A tax refund is not considered income. The Internal Revenue Service (IRS) views a tax refund as a return of overpaid taxes, not as additional income. The refund represents the amount of money that was withheld from your paycheck or estimated tax payments during the year that exceeded your actual tax liability. When you receive … Read more
Long-Term Care policies, designed to cover expenses associated with chronic illnesses or disabilities, offer tax-free benefits. These benefits are not subject to federal income tax, and in some cases, state income tax as well. In contrast, Accelerated Death Benefits, which provide a lump sum payment when a policyholder is terminally ill, are generally considered taxable … Read more
Property taxes are typically assessed on the value of your home and land. In some areas, Mello-Roos taxes are also included in property taxes. Mello-Roos taxes are special assessments that are levied to pay for certain public improvements, such as roads, parks, or schools. These taxes are typically used to finance new development and are … Read more