Tax D​eduction VS Tax Credit

Most of us are confused about these two terms.  I was.....Here is a link to visual illustration to explain the differences. Tax deduction vs tax credit In the above example, I calculated tax based on "Married filing jointly status"      Most common tax credits Earned Income Tax Credit American Opportunity Tax Credit Child and Dependent [...]

Tax Brackets 2018

  Note taxable income is calculated by deducting IRA, 401K, 403b, HSA, medical and dental premiums and standard deductions from your gross income [Assuming your total deductions are less than standard deductions] MARRIED INDIVIDUALS FILING JOINT RETURNS AND SURVIVING SPOUSES. TAXABLE INCOME                             [...]

Pay No Tax When Shopping Online

We do a lot of shopping these days especially during the holidays like Christmas. The more you buy, the more taxes you pay which can be huge if you are a typical American consumer. Most of us spend around 8% in tax for the stuff you buy unless you live in the states like Alaska that don't make you pay [...]

TSP Withdrawal Options After Retirement

There are three options. Single payment Monthly payments Life annuities   Single payment You can withdraw your entire TSP account balance in a single payment. You may roll over to investment firms like Vanguard for more flexibility, but you will be paying more fees.Monthly payments. Two ways to do this. Monthly payments computed by the [...]