Mortgage rates are still at some of the lowest rates seen in years, and with some of the current programs like the HARP program, allowing a debt to value ratio of 125%, many people are taking advantage of them.
Unfortunately, not everyone understands what is deductible or non-deductible mortgage interest. And since it all is reported on a single form, the IRS is starting to take a much closer look at this on people’s individual returns. (more…)
Federal and California State income taxes are pre-paid.
For most people who are paid through payroll, this means that the estimated taxes are withheld from your paycheck throughout the year, and then you file a return to claim a refund or make up the balance due. But if you have multiple sources of income, or receive your income without having any withheld for tax, you may become subject to estimated taxes and underpayment penalties. (more…)
As a parent, you may be interested to know how 529 plans help families save for college. A 529 plan is an educational savings option that is operated by a state or educational institution, with tax advantages that make it easier to save for college and other post-secondary training for a designated beneficiary, such as a child or grandchild. These plans are also referred to as qualified tuition programs, tuition plans, or 529 programs. (more…)