Do you pay someone to care for your child or another dependent while you work or look for work? If so, you could qualify for the Child and Dependent Care Credit (CDCC), a tax break that can help you offset the cost of daycare, preschool, and more.
Your tax bracket, roughly speaking, is the tax rate you pay on your highest dollar of taxable income. It is not the tax rate you pay on all your income after adjustments, deductions, and exemptions.
When you enter the world of freelancing or working as an independent contractor, it’s nice to have the independence of owning your own business. Still, it also comes with new tax responsibilities — one of the most important being the self-employment tax, which is the equivalent of the FICA tax for traditional employees. It consists of the Social Security tax and Medicare tax.
As a taxpayer, you’ve undoubtedly heard about adjusted gross income, or AGI, which plays a pivotal role in your taxes. Let’s take a deep dive into what AGI is and why it’s so important.
While there is no escaping inflation, the IRS adjusts certain tax numbers every year to account for reduced purchasing power. There were some significant inflation changes for 2024, so let’s take a look at them.