You could score a tax break for hiring your own kids this summer — if you follow the rules

If you’re self-employed, hiring your kids could provide tax benefits. You could deduct wages as a business expense and fund your child’s Roth individual retirement account. However, you need to understand state and federal labor and tax laws first, experts say. Mixetto | E+ | Getty Images If you’re self-employed, hiring your kids could provide […]

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The decision to sell your home vs. rent it out is ‘complicated,’ experts say — what to know

Many homeowners are sitting on low-interest-rate mortgages and could face the decision of whether to sell or rent out their property when it’s time to move. Roughly 6 in 10 existing fixed-rate U.S. mortgage holders had an interest rate below 4% during the fourth quarter of 2023. The average 30-year fixed-rate mortgage was around 7%

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May 17 is your last chance to claim your 2020 tax refund — the median payment is $932, IRS says

May 17 is your last chance to claim your 2020 tax refund by filing your federal return. As of May 6, there was still an estimated $1 billion in unclaimed refunds from tax year 2020, and the median payment was $932, according to IRS data. Your pending refund could include 2020 pandemic relief, such as

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Here are ways to reduce taxes on your savings interest this year

Many Americans are still earning higher interest after a series of rate hikes from the Federal Reserve. Interest from savings accounts or certificates of deposits incurs regular or “ordinary income” taxes, depending on your federal income tax bracket. But there are options to reduce taxable interest, according to financial advisors. Riska | E+ | Getty

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Your home sale could trigger capital gains taxes. Here’s how to calculate your bill

More home sellers now owe capital gains taxes after selling their primary residence, but it is possible to reduce the bill. There are no taxes on the first $250,000 of profit if you are single, or $500,000 for married couples filing jointly, assuming you meet IRS rules. You can lower profits above those thresholds by

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IRS reminder: Time to claim $1 billion in tax refunds from 2020 expires on May 17

There is $1 billion in unclaimed 2020 tax refunds and the deadline to collect the money is approaching. Nearly 940,000 taxpayers have until May 17 to file 2020 returns and claim their refund. Pending 2020 refunds could include pandemic relief, such as the recovery rebate credit for those who didn’t receive a stimulus check. Andresr

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IRS boosts health savings account contribution limits for 2025

The IRS has increased the health savings account, or HSA, contribution limit for 2025 to $4,300 for self-only coverage, and $8,550 for family plans. You must have an eligible high-deductible health insurance plan to qualify for contributions. There are three tax breaks for HSAs: an upfront deduction for contributions, tax-free growth and no levies on

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IRS aims to more than double its audit rate on wealthiest taxpayers in strategic plan update

The IRS has released an update on its strategic operating plan, which outlines “major accomplishments” since its infusion of funding less than two years ago. The agency aims to more than double the audit rate for the wealthiest taxpayers with total positive income of more than $10 million by tax year 2026. It also plans to

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IRS free tax filing pilot processed 140,000 returns, saved taxpayers $5.6 million in fees

This season, more than 140,000 taxpayers successfully filed returns using IRS Direct File, a free tax filing pilot from the IRS. The program fully opened for certain taxpayers in 12 states in early March and saved filers an estimated $5.6 million in tax preparation fees for federal returns. However, the IRS has not made a

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