Tax Planning

A 529 is a state-sponsored college savings plan that offers both state and federal tax-saving benefits. The federal tax impact of cashing in your 529 account depends on how your investments inside…

The Internal Revenue Service makes it quite difficult to access your 401(k) balance before retirement, but in limited cases, it is possible. When you do take an early distribution, you must not only…

A preservation plan is an agreement that a company enters into to preserve specific tax benefits for the future. These plans are often associated with limiting the amount of ownership change that can…

Dividend reinvestment plans (DRIPs) allow investors to get started in the stock market with only a small amount of money. With a DRIP, investors purchase shares of stock slowly over time, by investing…

High-income individuals face a tax structure that is different from middle- or lower-income Americans, called an Alternative Minimum Tax. The AMT subjects high-income earners to a minimum tax that is…

There are many things to consider when making financial planning decisions, including the impact on taxes. Every financial decision you make can have an impact on your taxes, and if you fail to take…

Congress introduced the alternative minimum tax system, or AMT, in 1969 as a way of ensuring that all affluent or wealthy taxpayers paid some income tax and that you couldn't use itemized deductions…

According to the National Center for Educational Statistics, the average cost for a year of undergraduate education at a private university in 2009 was $31,233, $12,283 if you go to a public…

Accrued shareholder salary is an amount of compensation that a company has been paying a shareholder over a period of time, but which, according to Net MBA, the company hasn't officially recorded.…

An S corporation may distribute cash and other property to its shareholders and corporate officers based on the percentage of interest the individual owner has. The taxation of the distributions…

An S corporation is known as a "pass through" entity for federal income tax purposes because its shareholders are responsible for taxes associated with income, deductions and credits. The S corp…

The purpose of a net operating loss (NOL) carryback is to offset net income taxed on the entity's tax return in a previous year. Because a Sub-chapter S corporation passes net income, net losses,…

Section 529 is a provision in the tax code that allows families to set aside money on a tax-advantaged basis to pay for anticipated higher education expenses for a loved one. Generally, contributions…

Many small business owners in the United States prefer to conduct operations as S corporations; they get that name because Subchapter S of the Internal Revenue Code governs their treatment for federal…

According to the Internal Revenue Service, S corporation distributions to shareholders are reported on their personal tax returns and taxed at their individual income tax rates. You report S corp…

The Alternative Minimum Tax (AMT) is an alternative tax used for determining taxable income. The intended purpose of the AMT was to create an alternative tax method that would ensure that high-income…

The West Virginia Department of Taxation allows you to set up a payment plan if you are unable to pay your tax amount in full.

Roth 401(k) plans offer an after-tax savings option for employees of any income level. Unlike Roth IRAs, Roth 401(k) plans do not restrict participation based on the employee's income level. Only…

Electing S corporation tax status with the IRS is one of the most popular business taxation strategies because of the numerous tax advantages involved. S corporation tax status may be elected by both…

Withdrawing money from a 401(k) plan involves numerous restrictions and potential consequences. There are several ways this can be done to achieve the goal of withdrawing money to invest or start a…

The federal government's estate tax has been a controversial topic in the past and is likely to be again, thanks to upcoming changes in the tax system. While the Internal Revenue Service (IRS) says…

Most people rarely give taxes another thought once the April 15th deadline has passed. In fact, it is probably safe to say that they wait until they are right up against the deadline before even…

Individuals are allowed to save money for higher-education expenses via tax-advantaged investments called 529 plans. Originally introduced in 1996, 529s are now available in every state. These are…

There are two types of 529 plans to help you save for future education expenses. A prepaid-tuition plan locks in the current rate of college tuition, while college savings plans allow contributions to…

Certified public accountants, or CPAs, must have many hours of training to handle accounting matters, and they need to be licensed. However, not all accountants are equipped to handle tax planning.…

Tax loss harvesting, or the practice of offsetting your capital gains tax liability by selling securities at a loss, can help you save on taxes. Short-term capital gains are taxed at a higher rate…

Planning for your retirement is no easy task. If you are young, it most likely seems like light-years away. However, it pays to do your best to plan ahead for taxes you will pay on your IRA. You need…