Investing

Backtesting​ Portfolio

I found a great tool to understand investment performance This will give you a clear picture of past performance. This tool will give you an idea what a 4% rule can do for your portfolio. It gives you a clear visual understanding and helps you make right decisions based on your situations. Here is the… Continue reading Backtesting​ Portfolio

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Tax

Am I eligible for child tax credit.

Your children should meet all the criteria, and your income should be below the income limit threshold. The threshold is:   MAGI /based  [ For most AGI and MAGI are the same numbers ] $110,000 on a joint return $75,000 for an unmarried individual $55,000 for a married individual filing a separate return So if you… Continue reading Am I eligible for child tax credit.

Tax

Am I getting part of the mortgage interest back when filing tax

All these years I thought that I am getting 25% of the mortgage interest back since I am in the 25% tax bracket. Not so true. I am filing jointly and my standard deduction is higher than the mortgage interest.  In other words, my itemized deduction is less than the standard deduction.   So I… Continue reading Am I getting part of the mortgage interest back when filing tax

Tax

Modified Adjusted Gross Income (MAGI)

Why it is important. Like your AGI, your MAGI can determine whether you qualify for certain tax benefits. One of the most popular is the ability to deduct your IRA contributions on your tax return. However, you may not qualify for that deduction if your MAGI is above a certain level. Your MAGI differs from… Continue reading Modified Adjusted Gross Income (MAGI)

Tax

How to calculate Adjusted gross income [AGI]

Why it is important. Your AGI is the basis for several tax thresholds. Determining whether you qualify for certain tax credits Determining whether you can deduct medical expense Your state tax is based on this number. The first step is to find out your Taxable income. You can find this number in box#1 on your W2… Continue reading How to calculate Adjusted gross income [AGI]

Tax

How to calculate taxable wages [Box 1 on W-2]

Gross Pay  -   nontaxable wages [ HSA, Medical premium, Dental premium, uniform allowance]  -    Tax deferred wages [ Traditional retirement plan] Example Gross pay     3,000 Non taxable wages      200 [HSA]  + 150 [Medical] +   50 [ Dental] + 10 [ Uniform allowance] Tax-deferred wages   500   [… Continue reading How to calculate taxable wages [Box 1 on W-2]

Tax

2018 IRA Contribution and Deduction Limits –

Effect of Modified AGI on Deductible Contributions If You ARE Covered by a Retirement Plan at Work. https://www.irs.gov/retirement-plans/plan-participant-employee/2018-ira-contribution-and-deduction-limits-effect-of-modified-agi-on-deductible-contributions-if-you-are-covered-by-a-retirement-plan-at-work Effect of Modified AGI on Deductible Contributions if You are NOT Covered by a Retirement Plan at Work https://www.irs.gov/retirement-plans/plan-participant-employee/2018-ira-contribution-and-deduction-limits-effect-of-modified-agi-on-deductible-contributions-if-you-are-not-covered-by-a-retirement-plan-at-work Note  The best way to reduce your AGI is making max contributions to employer-based retirement plans and contributing… Continue reading 2018 IRA Contribution and Deduction Limits –