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 [...]

2018 Tax Reform, What it means to you?

          Are you wondering if you are going to benefit from the new tax reform? Here is a tool to find out. First, from your gross pay deduct Nontaxable wages   [Dental, medical, HSA, Uniform allowance etc] Tax-deferred wages    [401-k, 403-b, TSP contributions] This calculation will give you Taxable income.   [...]

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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 [...]

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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 [...]

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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   [ [...]

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