Orry

The alternative minimum tax is a parallel tax system designed to ensure that high-income taxpayers pay at least a minimum amount of federal income tax, regardless of deductions and credits. Originally created in 1969, the AMT operates alongside the regular tax system and requires certain taxpayers to calculate their liability twice. You may be wondering … Read more

Making estimated tax payments is one of the most important responsibilities for self-employed individuals, freelancers, and small business owners. Unlike employees who have taxes automatically withheld from their paychecks, self-employed workers must calculate and pay their taxes quarterly throughout the year. This guide will walk you through exactly how to make estimated tax payments, from … Read more

Last tax season, I discovered a painful lesson about the wash sale rule the hard way. I sold $15,000 worth of tech stocks at a loss in December to offset my capital gains, then bought similar positions in early January. When my CPA reviewed my return, she pointed out that my $4,200 loss deduction was … Read more

Capital gains tax is a tax on the profit you make when selling capital assets like stocks, real estate, or collectibles. The rate you pay depends entirely on how long you held the asset before selling. Short-term capital gains apply to assets held one year or less and are taxed as ordinary income at rates … Read more

Understanding Traditional IRA contribution limits can save you thousands in taxes each year. I’ve spent over a decade helping clients navigate these rules, and I still see the same confusion popping up again and again. Many people mistakenly believe high income disqualifies them from contributing, or they mix up contribution limits with deduction limits. This … Read more

The 4 percent rule for retirement withdrawals is a simple guideline that helps retirees determine how much they can safely spend from their savings each year without running out of money. You withdraw 4% of your total retirement portfolio in the first year, then adjust that amount annually for inflation to maintain your purchasing power. … Read more

If you are a government employee or work for a tax-exempt organization, you may have access to a retirement savings tool that most private-sector workers cannot use: the 457(b) plan. This employer-sponsored retirement account offers some unique advantages that set it apart from the more familiar 401(k), particularly when it comes to early retirement flexibility … Read more

A SEP IRA (Simplified Employee Pension Individual Retirement Account) is a tax-advantaged retirement plan that allows self-employed individuals and small business owners to make employer contributions to retirement savings accounts for themselves and their employees. It is one of the most powerful tools available for self-employed workers who want to save significantly more for retirement … Read more

The main difference between a 403(b) and 401(k) is eligibility: 401(k) plans are offered by for-profit companies, while 403(b) plans are for employees of nonprofit organizations, public schools, and certain government agencies. Both are tax-advantaged retirement plans with similar contribution limits and tax benefits, but 403(b) plans may have more limited investment options and include … Read more

How much do you need to save for retirement? This question keeps millions of Americans awake at night. Whether you are in your 20s just starting out or in your 50s wondering if you have enough time, the answer depends on several personal factors. I have spent years researching retirement planning strategies and talked to … Read more