Finding just the right level of withholding can be tricky, especially if you anticipate significant changes to your income or deductions.
The IRS isn't the only one who wants a piece of your paycheck - 41 states have a broad-based individual income tax. Only seven states lack an income tax altogether.
Health savings accounts (HSA) provide an opportunity for people to save up for medical expenses using pre-tax dollars.
"A health savings account is an account that is specifically designed to be used with a high deductible insurance policy," notes Miriam Caldwell.
Contributions to a health savings account are tax-deductible. And as long as the funds are used to pay for medical expenses, distributions from a health savings account is tax-free. There are no restrictions on when the money must be spend, so the savings can accumulate from year to year until needed for a major medical expense.
This combination of tax-deductible savings plus tax-free distributions is a powerful money-saving combination, as Dana Anspach explains.
To be eligible for the deduction, individuals need to be covered by an HSA-compatible high deductible health insurance plan.
Did you relocate for work last year? If so, you might be able to deduct the cost of moving.
Moving expenses are deducted if a person started a new job and the new job is located at least 50 miles farther from your old home than the distance between your old home and your old job. This deduction is available for employees and self-employed people who relocated for work, and for Americans working abroad who retire and move back to the United States.
Employees who pay for any work-related expenses out of their own pocket may be able to deduct those expenses on their tax return.