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MoneyTips

You've received a letter from the IRS regarding an audit. What is your plan? Assuming the fetal position? Heavy drinking? Fleeing the country? Spontaneous combustion? None of these actions is necessary. Simply stay calm and assess the situation objectively.

"Anybody of any income level can potentially get audited," says Betterment Head of Tax Eric Bronnenkant. He advises, "…that people prepare their taxes honestly and truthfully, and also be able to support what they put on their return in the event they get audited."

The letter you receive may be one of three types:

  • Adjustment Letter – This notifies you of a change in your taxes owed, or the refund amount. In this case, it is generally from an obvious wrong number entry or miscalculation on your form. The Tax Cuts and Jobs Act of 2017 brought about many changes, so it is to be expected that more taxpayers will make these types of errors until they are familiar with the new tax ...

IRS Audits Fall to 11-Year Low

You Owe Taxes, But Can’t Pay the Bill

Vacation Taxes and Fees

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Moving is exciting, but it can also be stressful for more reasons than one. From finding the time and energy to box up all of your belongings, to picking a trustworthy moving service to safely transport them all from one place to the next, there are just so many factors to consider. On top of […]

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Monetary policy is the bedrock of any nation’s economic policy, and everyone from part-time workers to huge financial institutions, both foreign and domestic, are impacted as it shifts. Here’s how managing the supply of money affects you and the rest of the economy. What Is Monetary Policy? Central banks use monetary policy to manage the […]

MoneyTips

Waiting until the last minute to pay your taxes can cost you if you are expecting a refund, since the government hangs on to your money and receives more interest on it. However, if you owe money to the government, that same principle applies to you. Why not wait until the last minute?

There is no reason not to, as long as your return is postmarked or electronically submitted by May 17th, 2021, and your payments are submitted then as well. Extending your deadline to file does not extend your payment time. You are expected to pay the amount you owe, or your best estimate, by the May 17th deadline.

"Filing for an extension doesn't get you an extension to pay," confirms Betterment Head of Tax Eric Bronnenkant. "Let's say you don't pay by the deadline, well then you're still going to have to pay interest on that m...

Should You Pay Your Taxes With A Credit Card?

The Punishing Costs of Paying Your Taxes Late

You Owe Taxes, But Can’t Pay the Bill

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The SPAC craze is coming to a struggling former media darling. Vice Media Group is reportedly considering a merger with a blank-check firm, 7CG Holdings and Co., that would value the New York City-based media firm at $3 billion, a nearly 50% decline than what Vice was worth after a round of funding in 2017, […]

A robo-advisor can help you automate the process of investing for retirement and other financial goals. The robo-advisor concept is simple, but for new investors the idea of letting a software algorithm choose your investments may seem somewhat unfamiliar. We’ll take a deep dive into the concept and tell you everything you need to know […]

How do you know that your financial advisor’s advice is in your best interest? While many advisors are fiduciaries required to put your financial interests first, that doesn’t always protect you from inappropriate, outdated or just plain bad advice. Whenever you get financial advice, the best policy is to use your common sense and always […]

MoneyTips

Contributing to a retirement account can be difficult for lower income households, but one can argue that it is even more important for those families to take advantage of all the retirement savings options that are possible. One of the lesser-known options applies directly to lower-income families – the credit for qualified retirement savings contributions, also known as the Saver's Credit. Note that this program is a tax credit and not a deduction, meaning that the amount you qualify for is subtracted directly from the taxes that you owe.

The credit applies to most retirement plans – 401(k)s, IRAs (both Roth and traditional), 403(b)s, 457(b)s, SIMPLE IRAs, SARSEPs, and other plans. It does not apply to rollover contributions, and any recent distributions that you received from these plans can reduce the amount of your credit. As of 2018, you may also take the credit for contributions to an Achi...

Only 25% Of Americans Know This Simple Tax-Savings Trick

It's STILL Not Too Late To Lower Your Tax Bill

Traditional vs. Roth IRAs and 401(k)s

Inflation is coming. No matter how you parse the April CPI inflation report from the Bureau of Labor Statistics (BLS), you cannot escape the reality that prices rose across the board by a lot. Overall, prices in April climbed 4.2% year over year, the biggest such gain in the headline CPI data since September 2008. […]

There’s a reason financial advisors tell you to ignore the noise. Follow the stock market closely enough and you can easily fall into a dizzying sea of numbers and narratives. Stocks are undervalued! No, everything is expensive! Wait, here comes inflation! Today’s darlings (ahem, Tesla) can turn into tomorrow's ugly ducklings as the new, new thing promises to revolutionize an entire industry, again. Individual investors who try to time the parade of disruption often fall into the nasty habit of buying high and selling low. We believe some perspective is in order. After a quick look at the market’s near-term...

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Earnings reports are quarterly financial statements issued by publicly traded companies. As the name suggests, an earnings report details the profits (or losses) earned by a company in a given quarter, along with data like sales volumes, revenue and profit margins. What Are Quarterly Earnings Reports? To be listed on a stock exchange, public companies […]

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