Tag: income

Much to my disappointment I ended up owing taxes when I filed my tax return this year. Or said another way I had a tax liability to the IRS. While paying taxes I legally owe is not itself a bad thing, after all I did not give an interest free…

Despite earning more than $100,000 in household income, many people still feel like they're living month-to-month — that a job loss or sudden medical emergency could easily move them from upper-middle-class down to low income. It sounds a bit ridiculous at that income level, but it really comes down to…

You can see the latest EIC tables in this updated Earned Income Tax credit (EITC) page [Updated] Below are the final IRS published 2016 and 2017 Earned Income Tax credit (EITC) figures. You can reference IRS publication 596 or use online tax providers like TurboTax or H&R Block to get a free estimate of the specific…

According to an analysis conducted by two former census bureau officials median income for the average American is still around 6 percent lower (after adjusting for inflation) than when the recession began. So if you feel poorer today than you did a few years ago you are not alone. The…

From a long term trend perspective, despite a few recessions along the way, the American economy based on GDP data, has been growing consistently bigger. Coupled with the stock market reaching new long term highs one may argue that America has found its groove again and that we are back…

The Congressional Budget Office (CBO) has published an interesting report titled, The Distribution of Major Tax Expenditures in the Individual Income Tax System, that shows how 10 of the largest tax breaks, credits and deductions are distributed across household with different income levels. These tax breaks (or tax expenditures as…

You would think that figuring your income that is subject to taxes would be easy. Unfortunately, with our overly complex federal tax system the IRS has multiple definitions of income and it’s important to understand the difference between these because not only can it affect how much you pay in…

The table below shows where your household stands, relative to others in the US population, based on how much income is earned per year. For example, if your household makes $50,000 a year you would be in the 25% percentile group of household income. At $150,000, you would be in the percentile that makes…

An interesting study by the Congressional Budget Office (CBO) provided some very telling graphics around income distribution changes relative to which groups paid the most in taxes. Amazing how politicians can both take the same data and spin it in different ways. The first graphic shows the cumulative growth in…

I've written a fair bit on tax-advantaged individual retirement plans, but still keep getting lots of questions on this topic. This is likely due to two main factors. One, thanks to the complexities of our tax code, it is not always easy to find current and applicable IRA information. Secondly,…

Living abroad? Great! But remember, your tax obligations don't vanish. Uncle Sam still wants his cut, regardless of where you earn your income. This post outlines the key changes the IRS has made for reporting foreign income, helping you avoid those "pretty stiff penalties" they mentioned. Reporting Your Worldwide Income:…

See this updated page for the latest 401K, IRA and Roth IRA contribution limits. [Updated with 2012 details] 2012 tax advantaged retirement plan contribution limits have officially been released by the IRS, with slight increases over 2011 limits; due mainly to cost of living adjustments (COLA). Further with increases in…

The 2026 AMT exemption is $90,100 for single filers and $140,200 for married couples filing jointly — but the bigger story is the phase-out. Under the One Big Beautiful Bill (OBBB), the income levels where the exemption starts disappearing dropped sharply to $500,000 (single) and $1,000,000 (joint), and the exemption…