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Standard vs Itemized Tax Deductions, Which is Better?

Understanding the many tax deductions can be nothing short of a minefield, and many taxpayers are unaware of the many deductions that can be used to legally reduce your tax bill. This article highlights just a few of the tax deductions that you can claim if your circumstances lend themselves. Standard Deductions A standard deduction … Read more Standard vs Itemized Tax Deductions, Which is Better?

Tax Diversification — Why It Pays to Tax Diversify

Tax Diversification -- Why It Pays to Tax Diversify 7

We hear a lot about diversifying across asset classes — owning stocks, bonds, real estate, etc. We also hear a lot about diversifying within asset classes — owning mutual funds of hundreds of stocks rather than owning a few individual stocks. But there’s another, lesser-known form of diversification from which you could benefit: Tax diversification. … Read more Tax Diversification — Why It Pays to Tax Diversify

Self-Employment Tax and IRS Estimated Tax Payment

Self-Employment Tax and IRS Estimated Tax Payment 11

It’s a great feeling to be your own boss and make money at it. At least, until you discover that you are now responsible for paying self-employment tax and may be required to make estimated tax payments. I have been paying self-employment tax over the last few years; however, I have not made an estimated … Read more Self-Employment Tax and IRS Estimated Tax Payment

TurboTax Online Income Tax Preparation Software Review

TurboTax Online Income Tax Preparation Software Review 15

The other day I was wondering if I owe any income tax this year, so I decided to give Intuit TurboTax Online Federal Free software a try.  In general, I was impressed at how far online software industry has evolved over the years (not just Intuit’s).  For this 2008 tax year software, you could hardly … Read more TurboTax Online Income Tax Preparation Software Review

Self-Employment, Estimated Tax, and Safe Harbor

Unlike my regular job, where my employer withhold a portion of my salary to pay various taxes — i.e., Federal, State, City, Social Security, and Medicare — there’s no tax withholding for my self-employment income.  To avoid any penalty, I have to pay self-employment tax and make estimated tax payments four times a year.  However, … Read more Self-Employment, Estimated Tax, and Safe Harbor