Key Takeaways Short-term capital gains are taxed as ordinary income; long-term gains are taxed at lower rates For 2020, capital gains tax rates range from zero to 20%, but policymakers occasionally alter these rates and thresholds Certain derivatives are taxed at a blended 60/40 rate of long-term and short-term capital gains Having a new stock […]

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Key Takeaways Wash sales apply to shares of the same security, as well as so-called “substantially identical securities” such as different share classes of the same company Your broker tracks wash sales within its system, but if you have accounts with more than one broker, you’ll need to keep track yourself  Understanding wash sale triggers […]

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Key Takeaways Year-end charitable donations are critical for nonprofit organizations Many charities are seeing greater needs while receiving fewer donations  Recent legislation has changed how charitable donations may affect tax returns The holidays are a time for giving—a time to reflect on the year’s bounty. Many people use November to start planning their charitable donations. […]

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Key Takeaways Understand the IRS rules that allow realized capital losses to offset up to $3,000 in realized capital gains per calendar year  See an example of tax-loss harvesting in action Learn how an automated tax-loss harvesting service can help investors be more tax efficient and potentially improve after-tax returns Looking to pursue an optimal, […]

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Key Takeaways The end of the year is a good time to think about long-term financial goals and get your taxes in order Consider increasing 401(k) contributions and other simple year-end tax strategies Federal COVID-19 pandemic relief led to rule changes on RMDs for IRAs and 401(k) retirement accounts  Year-end tax planning is something you […]

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Key Takeaways You must be 65 or older to use the senior-specific form Form 1040-SR uses a larger font and less shading than the regular 1040 The 1040-SR doesn’t have an income limit compared to the old 1040-EZ There are perks to being a senior—discounts at restaurants and retail, tuition waivers at some schools, and […]

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