Articles, answers to common questions, and a glossary that make taxes feel a little less intimidating.
Straight answers to the questions we hear most about tax planning and working with a tax professional.
Send it to our team and we’ll point you in the right direction.
Tax preparation reports what already happened by filing your return. Tax planning looks ahead, so you have a chance to shape the outcome before the year ends.
Earlier is generally better, because many opportunities are tied to decisions made before a tax year closes. A planning conversation at any time of year can still surface options.
It is a second opinion on your tax situation, with insights into potential opportunities, risks, and planning ideas to discuss with your tax professional.
Search profiles of participating tax professionals and compare experience, specialties, pricing, client fit, and location to find someone who matches your situation.
A review is meant to support that conversation, not replace it. You will receive ideas to discuss with the professional who prepares or advises on your return.
This is the first step. We help you understand what opportunities you might be missing so that you can get personalized advice.
A short guide to the words that come up most often when you talk about tax planning.
A tax form reporting income earned outside of traditional employment, such as freelance work, contracting, interest, or investment income.
Adjusted Gross Income. Your income after certain allowed adjustments, such as retirement contributions or student loan interest. Many tax calculations start with this number.
Alternative Minimum Tax. A separate tax calculation designed to ensure some higher-income taxpayers pay at least a minimum amount of tax.
The amount an individual can give to another person each year without using any of their lifetime gift and estate tax exemption.
A strategy that involves contributing to a Traditional IRA and then converting the funds to a Roth IRA, subject to IRS rules.
The person, organization, or trust designated to receive assets from an account, insurance policy, or estate.
The profit when you sell an investment or other asset for more than you paid for it. How long you held it can change how it is taxed.
The tax that may be owed on the profit from selling an investment or other asset for more than you paid for it. The amount of tax depends on factors such as your income and how long you owned the asset.
A law that may allow you to continue your employer-sponsored health insurance for a limited time after leaving a job or experiencing another qualifying event.
Generally what you paid for an investment, adjusted for certain transactions. It is used to calculate gains or losses when you sell.
A general term often used to describe taxes that may apply when assets are transferred after someone dies, such as estate taxes or inheritance taxes. The specific tax and who pays it depend on the circumstances.
The average rate of tax paid across all of your taxable income. It is often lower than your marginal tax rate.
A tax that may apply to the transfer of assets after death when the value of an estate exceeds certain limits.
Quarterly tax payments made directly to the government, often by self-employed individuals or those with income not subject to withholding.
Free Application for Federal Student Aid. The form used by students and families to apply for federal financial aid for college.
Flexible Spending Account. An employer-sponsored account that allows you to set aside pre-tax money for qualified healthcare expenses.
A federal tax that may apply when one person gives money or property to another beyond certain IRS limits.
Health Savings Account. A special account that lets eligible individuals save money for qualified medical expenses with valuable tax benefits.
A tax that may be owed by a person who receives money or property from someone who has died. Whether it applies depends on the state and the relationship to the deceased.
A retirement account received from someone who has died. Special withdrawal and tax rules often apply.
Income-Related Monthly Adjustment Amount. An added charge on Medicare Part B and Part D premiums for people whose income is above certain levels.
A trust that generally cannot be changed once established and may offer tax, asset protection, or estate planning benefits.
Specific expenses, such as mortgage interest or charitable gifts, that can be deducted instead of taking the standard deduction.
Limited Liability Company. A business structure that can provide legal protection for owners while offering flexible tax treatment.
Profit from selling an investment or other asset that you owned for more than one year. Long-term capital gains are often taxed at lower rates than ordinary income.
Modified Adjusted Gross Income. A version of your income used to determine eligibility for certain tax benefits, deductions, and Medicare premiums.
The tax rate applied to your next dollar of income. This is different from the rate applied to all of your income.
An alternative way to receive Medicare benefits through a private insurance company that combines Parts A and B and may include additional benefits.
The portion of Medicare that helps cover doctor visits, outpatient care, and other medical services.
Net Investment Income Tax. An additional tax that may apply to certain investment income when income exceeds specific IRS thresholds.
Business income that is reported on the owner's personal tax return rather than being taxed at the business level.
A legal document that allows someone else to make financial or legal decisions on your behalf if authorized to do so.
The legal process used to settle a person's estate, pay outstanding obligations, and distribute assets after death.
A calculation used to determine whether a portion of Social Security benefits may become taxable.
Qualified Charitable Distribution. A direct transfer from an IRA to a qualified charity, available once you reach a certain age.
Qualified Longevity Annuity Contract. A type of annuity purchased within certain retirement accounts that can delay a portion of required minimum distributions.
A special deduction that may allow eligible business owners to deduct up to 20% of qualified business income.
A dividend that meets certain IRS requirements and may be taxed at lower capital gains tax rates instead of ordinary income tax rates.
A trust that can generally be changed or canceled during the creator's lifetime and is often used to help manage assets and avoid probate.
Required Minimum Distribution. The minimum amount you generally must withdraw each year from certain retirement accounts once you reach a set age.
Moving money from a pre-tax retirement account into a Roth account and paying tax on the amount moved, in exchange for tax-free withdrawals later, subject to stringent IRS rules.
A retirement account funded with after-tax dollars. Qualified withdrawals in retirement are generally tax-free.
A business structure that can allow profits to pass directly to the owners while potentially reducing certain payroll taxes.
Taxes self-employed individuals pay to cover Social Security and Medicare contributions that an employer would normally help pay.
Simplified Employee Pension IRA. A retirement plan commonly used by self-employed individuals and small business owners that allows for larger contribution limits than many traditional IRAs.
Profit from selling an investment or other asset that you owned for one year or less. Short-term capital gains are generally taxed at the same rates as ordinary income.
Savings Incentive Match Plan for Employees IRA. A retirement plan designed for small businesses that allows both employer and employee contributions.
The rules that determine whether a portion of your Social Security benefits becomes taxable based on your income.
A 401(k) retirement plan designed for self-employed individuals and business owners with no employees other than a spouse.
A fixed amount that most taxpayers can subtract from their income before taxes are calculated. You do not need to itemize expenses to claim it.
A tax rule that often resets the value of inherited assets to their market value at the owner's death, potentially reducing future capital gains taxes.
A range of income taxed at a particular rate. Only the income inside each range is taxed at that range’s rate.
A dollar-for-dollar reduction of the taxes you owe. Credits are often more valuable than deductions because they directly reduce your tax bill.
A reduction in the amount of income subject to tax. Deductions lower your taxable income, which may reduce your tax bill.
Looking ahead at how today’s decisions may affect your taxes in the years to come, instead of only reporting what already happened.
Completing and filing your return based on what already happened during the year.
Money returned to you when you paid more in taxes during the year than you actually owed.
Money taken out of your paycheck throughout the year and sent to the government to help cover your expected taxes.
The portion of your income that is subject to tax after deductions and adjustments have been applied.
Selling investments at a loss to help offset taxable gains and potentially reduce taxes.
A retirement account that may provide a tax deduction for contributions today, with withdrawals generally taxed later.
A legal arrangement that holds and manages assets for the benefit of other people, often used for estate planning or asset management.
A tax form showing your wages and the taxes withheld from your paycheck during the year.
A form used to tell your employer how much federal income tax to withhold from your paycheck.
An IRS rule that may prevent investors from claiming a tax loss if they buy the same or a substantially identical investment too soon after selling it.
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