blogs

Last week, I received two great questions from Money Talk readers. The first asked if NEA member union dues are tax deductible, and if so, how much. Referring to IRS Tax Form Schedule A, union dues may be deductible for tax purposes as part of your miscellaneous itemized deductions (see line 21: Unreimbursed Employee Expenses). To itemize, though, your miscellaneous expenses must exceed 2% of your adjusted gross income. (more…)

Previously, we chatted about the power of tax deductions and credits. Today, I have another tax credit to share with you: the Retirement Savings Contributions Credit, or what is also referred to as the Low Income Savers Credit. Don’t let the boring name fool you, this one packs a sweet little punch for dedicated savers who are just starting out in their career or aren’t yet pulling in a bigger salary. If you contribute to a qualified retirement savings plan and your AGI or adjusted gross income is lower than the allowable limits, you may be eligible for a tax credit worth up to $1,000 ($2,000 if filing jointly)! (more…)

Its tax time again — and as an education professional you have some special tax saving benefits available to you. While taxes can be a dry topic, it literally pays to know the ins and outs of allowable deductions and credits, as they can have a big impact on the amount you will owe come April 15th.

Our first lesson is that not all tax savings are created equal. (more…)

From time to time, I expect that questions will arise from readers regarding my blogs posts. When that happens, I will do my best to respond through the blog so that other readers will benefit from further explanation or additionally provided resources. (more…)

Just like Kramer on Seinfeld, some folks cannot resist the siren’s song of warehouse or club shopping. Who wouldn’t want quadruple size or multi-pack versions of their favorite grocery item? The question to ask yourself is, “Are you really getting a better value?”

Many times if you look at the cost per ounce you pay for the same product at the bulk stores compared to your local grocery store, you may find you’re only getting more of an item, but not paying less. And if you can use coupons at your grocery store and not at the warehouse store, the difference is even greater. (more…)

There has been a lot of talk about the changes to the tax laws that take effect this year surrounding Roth IRA conversions. What’s all the brouhaha the about? Well, the biggie is that the $100,000 income ceiling limit for conversions from traditional IRAs to Roth IRAs is permanently repealed and married individuals who file their taxes separately can convert now, as well. (Notice this change affects only conversion limits, not the previously discussed Roth contribution limitations. Those stay the same.) Therefore, these changes benefit mostly higher income individuals who wouldn’t otherwise be eligible for a Roth.

If you’re thinking about converting, you should definitely discuss it with your financial planner or tax advisor, first, to understand all of the benefits/consequences. Here are some questions from Financial Planning magazine you should consider in preparation for giving them a call. (more…)