Capital gain taxes
Capital gains and losses. What is a capital asset? When does capital gain or losses trigger? Any asset/property you own and use for personal, or investment purpose is considered as a capital asset. For example, your home, personal use items like a car, furniture etc., also bonds/stocks held as investments. How are capital gain or […]
Who is a dependent & qualifying dependent
Who is a dependent/qualifying dependent. Claiming Child tax/dependent credit (also ready Steps to apply for an ITIN). The term dependent means, a qualifying child or qualifying relative. You qualify when you mean few of the tests. To be a qualifying child – the child must be your son, daughter, stepchild, brother, sister (includes stepbrother/sister). (i)Child […]
2025 Federal Income Tax Brackets (the United States of America).
2025 Federal Income Tax Brackets (the United States of America). Tax Rate Single Filers Married Individuals Filing Joint Returns Heads of Households 10% $0 to $11,925 $0 to $23,850 $0 to $17,000 12% $11,925 to $48,475 $23,850 to $96,950 $17,000 to $64,850 22% $48,475 to $103,350 $96,950 to $206,700 $64,850 to $103,350 24% $103,350 to […]
Benefit of selecting MFJ vs single status – tax filing.
If you choose to file a married filing separately as your filing status, the following few of the special rules apply. Because of these special rules, you may end up paying more tax on a separate return than filing as married filing jointly. Reach out to us and make a wise tax plan, which will […]
Five filing statuses.
Individuals in the United States of America (USA), need to know and understand about the filing statuses before filing their tax return (Form 1040). Your filing status is based on your martial status on the last day of the year (Dec/31). You can choose: Example for MFJ status: Sam working at I.T company in Seattle, […]