New Hampshire Fiscal Policy Institute’s Post

A very worthwhile read if you have a few minutes. The article discusses a potential Republican strategy to combine the extension of tax cuts with the privatization of Fannie Mae and Freddie Mac in upcoming tax legislation. The proposal involves selling the government's stakes in the GSE's, which would bring in massive amounts of revenue that could be used to extend tax cuts and pay off government debt. https://lnkd.in/eP7S_fup

...from the Diary of a Tax Advisor... "One Day I Won’t Be Here: A Guide to My Children for Financial Independence" series. 📢 Income Tax is one of the most significant financial obligations you’ll face, whether you’re an employee with taxes deducted through PAYE or a sole trader managing it yourself. It’s the price of living in the UK and earning money—it helps fund schools, roads, and more (so at least you’re getting something back!). Here’s a quick guide to understanding it: 💷 What Is Income Tax? It’s a tax on your earnings, covering employment income, self-employment profits, rental income, and even investment income like interest and dividends. 📊 Rates & Bands (for 2024/25): 0%: Up to £12,570 (tax-free Personal Allowance). 20%: Between £12,571 and £50,270 (Basic Rate). 40%: £50,271 to £125,140 (Higher Rate). 45%: Above £125,140 (Additional Rate). 💰 Investment Income Interest: Your savings might be covered by the Personal Savings Allowance (£1,000 for Basic Rate taxpayers, £500 for Higher Rate). Dividends: You have a Dividend Allowance of £1,000, with any excess taxed at 8.75%, 33.75%, or 39.35%, depending on your tax band. 💡 For Self-Employed or Side Hustlers If you’re self-employed, you’ll need to register for Self-Assessment by 5th October following your first tax year. The tax return deadline is 31st January, 9 months after the end of the tax year. Keep good records of income and allowable expenses (home office costs, supplies, etc.) to reduce your taxable income. I recommend that you have a separate bank account for your business. 🔍 When Do You Need to File a Tax Return? You’re self-employed and earned over £1,000. You have untaxed income like rent or significant investment gains. Your total income exceeds £100,000. Taxes may not spark joy, but understanding them gives you control. Because with knowledge, you can plan effectively, save smartly, and even minimize your tax liability. 🌎 For my network, please add your valuable insights on the subject in the comments below.

As a realtor, your time is money—literally. Between open houses, client meetings, and closing deals, managing your taxes might not always make it to the top of your to-do list. But as a self-employed professional, it’s crucial to stay on top of quarterly tax payments. Falling behind can not only lead to penalties but also stress and financial strain, especially when the next tax year rolls around. This guide will break down what quarterly tax payments are, how to calculate them, and how to avoid the common pitfalls that catch many real estate professionals off guard. https://lnkd.in/eKPMtpSj

7 Reasons to File Your Back Tax Returns By Nikia Owens, Ph.D. Filing back taxes is crucial for achieving financial stability and peace of mind. Many delay this task due to economic hardship, oversight, or fear of owing money, but neglecting it can lead to serious consequences. At the Campaign for Working Families, we educate and assist individuals in fulfilling their tax obligations. Here is why you should file your back tax returns immediately. 1. Avoid Penalties and Interest Unpaid taxes accrue penalties and interest, increasing your debt over time. Filing back taxes stops additional penalties and helps manage your financial situation more effectively. 2. Claim Your Refunds You may be entitled to refunds that can only be claimed within three years of the original filing deadline. After this period, unclaimed money goes to the U.S. Treasury. Filing back taxes ensures you receive any refunds due. 3. Protect Social Security Benefits For self-employed individuals, unreported income results in lower Social Security benefits at retirement. Filing past-due returns ensures all your income is reported, protecting your future benefits. 4. Obtain Loans and Financial Aid Financial institutions require proof of income and tax compliance for loans or financial assistance. Without current tax returns, securing a mortgage, car loan, or student financial aid becomes difficult. Keeping tax records up-to-date facilitates smoother transactions. 5. Avoid Collection Actions The IRS can garnish wages, levy bank accounts, and place liens on property to collect unpaid taxes. These actions harm your financial well-being and credit score. Filing back tax returns prevents such measures and allows you to arrange manageable payment plans. 6. Maintain Compliance and Peace of Mind Filing late returns ensures compliance with federal law and alleviates the stress of unresolved tax issues. It provides peace of mind, allowing you to focus on other financial matters. 7. Reduce Audit Risk Unfiled tax returns may lead the IRS to estimate your tax liability, often resulting in an inflated tax bill. Filing your returns provides accurate information, reducing the risk of audits or incorrect assessments. How to Get Started Gather all necessary documents and seek professional help if you have past-due tax returns. The Campaign for Working Families offers free tax preparation services to help you meet your tax obligations confidently. For more information about CWF’s FREE tax preparation services, visit cwfphilly.org or contact us at 215-454-6483. #cwfphilly #freetaxprep #taxtips #taxrefund #taxfiling #taxexperts

Unlocking Tax Secrets: How the Wealthy Save and How You Can Too 🌟💼 Ever wondered how the wealthy manage to save so much on taxes? Our firm's blog post dives into their strategies and how you can apply these methods to your finances. It's not just for the ultra-rich—these tips can help anyone looking to optimize their tax planning. Check it out for some practical insights! #TaxSavings #FinancialPlanning #WealthStrategies

Your golden ticket to tax savings. How to reduce your tax exposure with these 6 strategies. Growing up, I thought your salary was what you took home. Laughable right? But what if you could slide the scale in your favor? Keeping more of what you earn. Let’s start cooking with grease: 1. Depreciation: The IRS's gift to real estate investors.     - Write off a portion of your property's value each year.   - Offset your passive income.   - Carry forward excess losses. 2. Cost segregation: Turbocharge your depreciation.   - Front-load deductions in the early years.   - Potentially write off 50-60% of your equity in year one. 3. Mortgage interest deductions: Another tax-saving gem.   - Deduct interest payments from your taxable income.   - Especially powerful in the first few years of ownership. 4. Capital gains vs. ordinary income: Pay less when you sell.   - Long-term capital gains rates are lower than income tax rates.   - Hold for over a year to maximize this benefit. 5. 1031 exchanges: The holy grail of tax deferral.   - Sell high, buy higher, pay no taxes (for now).   - Compound your wealth tax-free. 6. Cash-out refinancing: Tax-free money in your pocket.   - Pull out equity without triggering a taxable event.   - Reinvest and grow your portfolio. But here's the kicker: These benefits aren't just for the ultra-wealthy. They're for you. The aspiring investor. The wealth-builder. With the right strategy, you can: • Lower your tax bracket • Keep more of your hard-earned money • Build generational wealth It's not about avoiding taxes. It's about smart, legal tax planning. What tax strategies do you utilize? Have you benefitted from any of these?

𝗔 𝗳𝗲𝘄 𝗰𝗼𝗺𝗺𝗼𝗻 𝘁𝗮𝘅 𝗺𝘆𝘁𝗵𝘀. This is the time of year when I start receiving a lot of questions about how to pay less taxes. That answer looks different for everyone, but here are a few misconceptions surrounding what saves you taxes. 1️⃣ If you file Married Filing Separately, you will pay less taxes. This is rarely the case (aside from a few fringe scenarios). One argument for doing this is to help lower a spouse’s student loan payment if they are on an income-driven repayment plan. 2️⃣ If you have federal withholdings on your paycheck, you won’t owe additional taxes in April. I have seen W-2 employees receive a $20k refund and others owe $20k more in taxes. Your employer doesn’t know how much taxes you will owe; they simply withhold based on what you reported on your W-4. 3️⃣ Depreciation is a simple strategy to help you avoid taxes. Depreciation is an excellent tool for tax planning, but it doesn’t always eliminate taxes. When you go to sell an asset, you have to pay back (a portion of) the depreciation you took in prior years. 4️⃣ Owning real estate is an easy way to make additional income. Demand for real estate investing has skyrocketed in recent years, but it’s not for everyone. Owning properties requires in-depth knowledge, upfront cash, and much of your time. If you’re looking for a hands-off investment, real estate likely isn’t for you.

How Wealthy People Save on Taxes: Can Regular People Do the Same? 🌟💼 Tax strategies used by the wealthy can often seem out of reach for regular individuals, but many of these tactics can be applied to your own financial planning. A blog post explores the tax-saving methods used by the rich and how you can implement similar strategies. Discover practical tips for optimizing your tax situation. Click the link below to learn more! https://lnkd.in/grZcFtV9 #TaxPlanning #WealthManagement #FinancialTips

What to Do if You Cant Pay Your Back IRS Taxes When we speak to taxpayers who have unfortunately fallen into the IRS Collection Division and believe their hardship can be settled with a hardship letter and the IRS just goes away unfortunately that’s not how it works. These individuals are confronted with the prospect of dealing with federal tax issues imposed by the (IRS) and not having a clear understanding of what the rules are and what’s available to the taxpayer. More Info Here: https://lnkd.in/eSGP2-vF

An interesting insight from a recent article dives into the IRS Hardship Program. Did you know that around 40% of Americans report experiencing tax-related financial distress at some point? This highlights the significant impact financial difficulties can have on tax compliance and overall well-being. The article articulates how the IRS has introduced various programs to help taxpayers facing hardships, focusing on ways to alleviate stress through manageable repayment plans. This approach not only aims to assist individuals but it is also crucial for the government to ensure compliance and maintain revenue streams. Understanding these statistics adds depth to the conversation around effective tax management and the importance of providing relief options for those struggling financially. It raises questions about how these systems can be improved further to reach more people in need of assistance. What are your thoughts on the effectiveness of the IRS Hardship Program? Have you seen changes in tax compliance as a result of these relief efforts? https://lnkd.in/eekY6TEY