Financial Advisors

Despite the cooling market, many homeowners made money selling their property in 2022 — and part of that windfall may be taxable.Home sellers made a $112,000 profit on the typical sale in 2022, a 21% increase from 2021, and a 78% jump from two years ago, according to ATTOM, a nationwide property database. While most sellers fall under the thresholds for capital gains taxes, high-dollar home sales or long-term ownership can trigger an unexpected bill, experts say.More from Smart Tax Planning:Here's a look at more…

vitapix | E+ | Getty ImagesPlanning to sell some investments this year? It's less likely to affect your 2023 tax bill, experts say.Here's why: The IRS made dozens of inflation adjustments for 2023, including the long-term capital gains brackets, applying to investments held for more than one year.This means you can have more taxable income before reaching the 15% or 20% brackets for investment earnings.More from Smart Tax Planning:Here's a look at more tax-planning news."It's going to be pretty significant," said Tommy…

Talking about money with your romantic partner or spouse can be tough — especially when you don't understand or know much about how they think about money.A new survey finds that 64% of couples admit to being "financially incompatible" with their partners, with different philosophies about spending, saving, and investing their money.Unfortunately, this friction can lead some to commit so-called financial infidelity, hiding purchases from their partner. In this survey by the fintech firm Bread Financial, 45% of coupled…

Bill Oxford | E+ | Getty ImagesIf you're banking on a tax refund, it may be "somewhat lower" than last year's payment, according to the IRS.Typically, you can expect a federal refund if you've overpaid yearly taxes or withheld more than what you owe. One of the big reasons for smaller payments this year is expiring pandemic relief, which was delivered via tax breaks for 2021 returns, experts say.More from Smart Tax Planning:Here's a look at more tax-planning news.Meanwhile, many Americans are still struggling financially,…

Drakula & Co. | Moment | Getty ImagesHow soon to expect a tax refund after filing your returnTypically, you will receive a refund within 21 days if you've filed an accurate, electronic return with direct deposit for the payment, according to the IRS. Paper filings and errors may extend the timeline. You can check the agency's refund portal for status updates. The timeline changes if you're claiming the earned income tax credit — a tax break for low- to moderate-income workers — or the additional child tax credit.…

If you're expecting a refund this season, it's critical to file a complete and accurate tax return to avoid "extensive processing" and delays, according to the IRS.   One of the keys to error-free filing is including all your required tax forms, known as information returns, which employers and financial institutions send yearly, with copies going to the IRS and taxpayer.If you skip tax forms received by the agency, the IRS systems may flag your return and mail you a notice, explained Sheneya Wilson, a certified public…

If you made a Roth individual retirement account conversion in 2022, you may have a more complicated tax return this season, experts say. The strategy, which transfers pretax or non-deductible IRA funds to a Roth IRA for future tax-free growth, tends to be more popular during a stock market downturn because you can convert more assets at a lower dollar amount. While the trade-off is upfront taxes, you may have less income by converting lower-value investments."You get more bang for your buck," said Jim Guarino, a…

mediaphotos | E+ | Getty ImagesEnlist tax prep helpOne of the first things to consider: Will you be filing your own taxes this year or tapping an expert to file a return on your behalf?If you're planning to hire a tax preparer, January is a good time to find someone, said certified financial planner Anna Sergunina, president and CEO of MainStreet Financial Planning in Los Gatos, California."Don't wait till March," she warned. "They most likely will not be taking on new clients that late in the tax season."For those eyeing…

Jamie Grill | Getty ImagesIt's not easy to prioritize financial goals, especially when choosing between two essentials in an unsteady economy: saving for retirement or building your emergency fund. While there are higher 401(k) contribution limits for 2023, you shouldn't skip rainy day savings to max out your retirement plan, experts say. Indeed, more than half of savers are prioritizing short-term financial goals in 2023, including emergency savings, according to a recent study from Fidelity Investments. And a recent…

dowell | Moment | Getty ImagesInvestors have many options when saving for short-term goals, and those choices have become more complicated amid high inflation and rising interest rates.While there have been signs of slowing inflation, the Federal Reserve is expecting higher interest rates to continue."It looks like this year might be a little tricky," said Ken Tumin, founder and editor of DepositAccounts.com, a website that tracks the most competitive options for savings.  More from Personal Finance:Strategies that can…