The Foreign Earned Income Exclusion (FEIE) is a provision in the U.S. tax code that allows eligible taxpayers to exclude a portion of their income earned abroad from U.S. taxation. This exclusion is particularly beneficial for Americans working and living overseas, as it helps reduce the potential burden of double taxation. Below, we explore how […]
What is a Section 179 Deduction?
When it comes to running a business, one of the key goals is to minimize expenses and maximize profits. One often overlooked avenue for achieving this is by taking advantage of tax deductions. Section 179 of the Internal Revenue Code offers a powerful tool for business owners to significantly reduce their tax liability while investing […]
Tax Shelters: Meaning, Examples & How They Work
Tax shelters have long been a topic of interest and controversy in the world of finance and taxation. They can serve as valuable tools for individuals and corporations seeking to minimize their tax liabilities. However, the use of tax shelters often raises ethical and legal questions. This article dives into what tax shelters are, how […]
Active-Duty Military Tax Benefits: What You Can Deduct and How to Qualify
Military service comes with many sacrifices; and thankfully, the IRS recognizes that with special tax benefits for those who serve. From combat pay exclusions to deductions for moving costs and uniform maintenance, active-duty military members are eligible for a variety of tax breaks that can significantly reduce their overall tax burden. Understanding these benefits can […]
How to Fill Out a W-4
Key Takeaways: When taxpayers notice smaller-than-expected refunds, it’s often due to an outdated Form W-4. Many people don’t realize that a W-4 needs to be updated whenever certain life changes occur, and failing to do so may leave you with too little tax withheld throughout the year. This can result in a smaller refund, or […]
Filing Taxes During a Marriage Separation
Filing Taxes During a Marriage Separation Marriage separation can create significant tax complexities, particularly when determining filing status, dependent claims, and the treatment of shared income or assets. For tax purposes, the IRS generally considers individuals married until a final divorce decree or separate maintenance decree is issued. Understanding how this distinction affects tax obligations […]