Don’t worry if you receive a CP 214 notice from the IRS. It’s just a reminder.
IRS Guidance On Circular Reference in ACA Premium Subsidy and Deduction
The IRS provided guidance on how to solve the circular reference math problem between the premium subsidy under Obamacare and the health care premium deduction for the self-employed.
Roth 401(k) for People Who Contribute the Max
[Updated on October 17, 2014 with a new example.] I said in The Case Against Roth 401(k) I think for most people the majority, if not 100%, of the contribution should go to a Traditional 401(k). I gave these reasons: Fill in lower tax brackets in retirement Avoid high state income tax Leave the option open […]
When To Claim Social Security Calculators
These free and paid online calculators will help you figure out when and how you should claim your Social Security benefits.
File Your Taxes: Person, Software, Or Online?
How should you prepare your taxes, use an accountant, buy software, or do it online? You will be surprised the best method is used by the least number of people.
Marriage Penalty or Bonus Poll Results
Readers reported whether and how much they are paying a marriage tax penalty or receiving a marriage tax bonus.
Solo 401k When You Have Self-Employment Income
The best retirement plan for self-employed persons with no other employees is the solo 401k plan. See the easiest way to set up one.
What’s My Marginal Tax Rate?
Your marginal tax rate isn’t just the listed rate in the tax brackets table. Many phaseouts increases your marginal tax rate.
Reset Cost Basis Higher By Realizing Capital Gains
When you are in the 15% tax bracket or below, long-term capital gains are taxed at 0%. Take advantage of the tax-free capital gains and reset your cost basis higher.
Effective Tax Rates Under ACA Premium Subsidy
The previous post Converting to Roth and Harvesting Capital Gains Under Obamacare Premium Subsidy shows when you are getting a premium subsidy for buying health insurance on the exchange under Obamacare, you face a marginal tax rate of about 25-30% for ordinary income and 10-15% for long-term capital gains, when normally ordinary income would be […]
Circular Reference In Self-Employed Health Insurance Deduction Under ACA Premium Subsidy
If you are self-employed, you can potentially get both the subsidy tax credit and a deduction for your health care premium under Obamacare, but calculating the numbers can be tricky.
Converting to Roth and Harvesting Capital Gains Under Obamacare ACA Premium Subsidy
You will pay an extra 10-15% tax if you convert to Roth or realize capital gains while you receive the premium subsidy under the ACA.