Tax Advantages of Having Life Insurance Plans
All of us already know that providing financial security to your loved ones is the main purpose of Life Insurance. But did you know that Life Insurance also has 2 big tax advantages? First one being you pay no current federal income tax on the potential cash value growth ie as the cash value accumulates, it is not subject to current taxation. Secondly as a general rule Life Insurance death benefits paid out to the beneficiary are not taxed, which means the sum received by the beneficiary will not be included in the gross income of the beneficiary for tax purposes.
Tax Advantages of Health Savings Account
Health Savings Account is available to taxpayers who are enrolled in a medical plan which has a deductible of at least $1,250 (self) and $2,500 (self & family). Deposits to HSA are made on a pre-tax basis and the withdrawals incur no tax if utilized ...
What are the advantages of filing Head of Household (HOH)?
Filing as (HOH) or head of household gives you a higher standard deduction and lower tax rate than filing as a single person or as married filing separately, however you have to be single or separated and you must have a qualifying dependent ...
TAX TIP 129 INHERITANCE
Inheritance it is not taxable and it is not reported on your tax return, However if you receive any kind of interest, dividends or rents on that income then it is taxable
TIP 116 Gift tax exclusion
Yearly Gift tax exclusion for each individual is $14000.
TAX TIP 131 RENTAL PROPERTY
If your tenant pays any of your expenses, the payments are rental income. You must include them in your income from rental property.