January 14, 2013
Tax Strategies in a Tough Economy
What items aren't taxable and where could you be receiving additional deductions? Find out in this radio episode.
Taxes are never fun. But if you've had a rough year economically, they can really hurt if you haven't planned accordingly. A few reminders: Unemployment benefits, severance pay and paid-out vacation or sick leave are all considered taxable income, so be prepared to pay tax on them if it wasn't already deducted. The good news is: welfare, food stamps and disaster relief payments aren't taxable. If a lender cancels or "forgives" your debt, it's usually considered taxable income. Exceptions include most mortgage foreclosures and debt that's been discharged through bankruptcy. On the plus side, job search expenses are deductible if you itemize.
Bottom line: Taxes are the last thing you want to worry about when facing financial hardship, so plan ahead.
- Should You Adjust Your Tax Withholding?
- Financial Planners Not Just for the Wealthy
- Knowing Which Records to Save and Toss
- Put Your Tax Refund to Work
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