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… Continue reading Tax D​eduction VS Tax Credit


IRA Limits and Eligibility 2018

IRA Limit  for  55 and younger  5,500 IRA limit for 55 and older     6,500 Three kinds of IRA to choose from, based on your eligibility. 1  ROTH IRA    [No immediate tax benafit] Contribution faces out after AGI 189,000 for married filing jointly and can't contribute if AGI is more than 199,000. Contribution… Continue reading IRA Limits and Eligibility 2018


Should I​​ Pay 2018 Property Tax Now

If your 2018 property taxes are assessed, then paying those before 12/31 will let you deduct that amount when filing taxes in 2017. If you wait until next year, then you may not be able to deduct it as your standard deduction is going to be way higher by then. For example, if you owe 5,000… Continue reading Should I​​ Pay 2018 Property Tax Now

Tax, Worth considering.

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… Continue reading Pay No Tax When Shopping Online

Retirement, TSP

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… Continue reading TSP Withdrawal Options After Retirement