Individuals who receive sizable tax refunds are usually pleasantly surprised by the amount of the refund. However, the government generally pays no interest on tax refunds. Tax filers can adjust the amount of tax withheld from their earnings by submitting an updated IRS Form W-4 to their employer.
An excessive level of income tax withholding has an effect on your cash flow throughout the year. The mismatch between withheld tax and actual tax is often due to a common misconception concerning Form W-4.
Individuals who have funds in a 401(k) retirement plan sometimes choose to transfer some portion of their account into an IRA. After separating from a place of employment, a 401(k) participant might prefer the additional investment options available in an IRA. Individuals who are planning to transfer funds from a 401(k) to an IRA should compare the fees of both accounts before requesting a rollover.
Even if you expect no specific charge for transferring funds from a 401(k) account to an IRA, each plan likely has an ongoing fee structure.
A freelance career not only changes who your boss is and how you work, it can also change how you file and save money on your taxes. Here are four tax tips that anyone starting a freelance career needs to know.
#1 Keep Accurate Records Of All Income
You are responsible for keeping track of all your sources of income, regardless of how much income you made from that source. That means if you complete a contract with a company for $400, and that is the only contract that you do with them this year, you need to document that source of income.
Nothing is harder than trying to live paycheck to paycheck, with the exception of no paycheck and homelessness. So, how can anyone even think of planning for the future when the present is so hard? A financial planner can help, but you have to do some of the work too. Here are some tips that will help you tighten up your shoestring budget so you can live more comfortably in the future.
When it comes to planning for your retirement, you need to account for more than just your regular monthly expenses to be covered. Life happens, even after you've retired, and you need to make sure your financial plan allows you to take care of emergency expenses, whether it be car repairs or making major repairs to your home. Here are a few things you should discuss with your financial planner to ensure you have everything covered when you are set to retire.