income

Figuring Your IRS Taxable Income – Adjustable Gross Income (AGI) vs. Modified Adjustable Gross Income (MAGI)

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You would think that figuring your income that is subject to taxes would be easy. Unfortunately with our overly complex federal tax system the IRS has multiple definitions of income and it’s important to understand the difference between these because not only can it affect how much you pay in taxes, but also determines what [...]

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Tax Planning for 2013 – Dealing with The Uncertainty and Making Smart Money Moves

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Being the finance wonk that I am, I rather enjoy reading some of the tax advice that the big accounting firms put out for their clients. While their target audience (based on their $250 to $500 hourly fee) is clearly higher net worth individuals, you can glean some pretty useful advice from their reports. Take [...]

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The Rich Get Richer and The Poor Get Poorer – An End to The American Dream?

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The graphic and data below from Bloomberg provide a stark reminder of how divergent income growth in America has been. A particularly timely topic during an election year where income inequality has had such a significant focus. The underlying data, showing a fall off in average family income, challenges the very notion of the American dream where each generation does [...]

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How Rich Am I Relative To Others

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The table to the right shows where your household stands, relative to others, based on how much income is earned per year. For example, if your household makes $50,000 a year you would be making more than 56% of American households. At $100,000, you make more than 81% of Americans. To be in the 99% percentile, or in the [...]

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Federal Taxes as a Percentage of Household Income

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An interesting study by the Congressional Budget Office (CBO) provided some very telling graphics around income distribution changes relative to which groups paid the most in taxes. Amazing how politicians can both take the same data and spin it in different ways. The first graphic shows the cumulative growth in average income after federal taxes [...]

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2012 vs. 2013 IRA Maximum Contribution, Income and Deduction Limits Factoring in Employer Coverage Restrictions

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I’ve written a fair bit on tax-advantaged individual retirement plans, but still keep getting lots of questions on this topic. This is likely due to two main factors. One, thanks to the complexities of our tax code, it is not always easy to find current and applicable IRA/401K information. Secondly, because you can have multiple [...]

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The Best Places to Live in The World

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I moved to the states over five years ago to pursue my graduate degree and for better career opportunities. Before this I was in Australia. Looks like I probably should have stayed where I was according to the latest OECD survey, which ranks Australia as the happiest industrialized nation based on criteria such as jobs, [...]

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US Taxes on Foreign Income – Filing Requirements, Exclusions and Deadlines

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When I moved to the states a number of years ago, I left a good chunk of savings back home (Australia). The primary reasons for this were that I wasn’t sure for how long I would be living in the US and more importantly, I was getting a much better rate of return on my [...]

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2013 vs 2012 Food Stamp (SNAP) Income Eligibility Levels, Deductions and Benefit Allotment Payments

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[Updated with 2013 Information] The USDA has published 2013 details for its Supplemental Nutrition Assistance Program (SNAP).  The income thresholds and monthly benefit details are valid till September 2013. Other eligibility rules have not changed much from 2012 as outlined in the previous update below. How Much Could I Receive – Allotment Details?  _______ The Federal Food Stamp [...]

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2012 401K, IRA and Roth IRA Contribution and Income Deduction Limits

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[Updated with 2012 details] 2012 tax advantaged retirement plan contribution limits have officially been released by the IRS, with slight increases over 2011 limits; due mainly to cost of living adjustments (COLA). Further with increases in income phase-out thresholds, more people can benefit from employer and self-managed retirement plans.  The table below summarizes key changes [...]

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