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What’s My Filing Status and Tax Rates For 2014 Tax Season?

Your 2013 Tax Rates are dependent on your Filing Status.

The IRS announced that the 2014 tax season (the season you file your 2013 taxes in) will begin on January 31, 2014. That means there’s a small delay to the opening of the 2014 tax season.

Before filing your taxes in 2014, you should refresh your memory on the 2013 tax rates. Your tax rate will be dependent on what filing status category you fall into and help you get an idea of what your tax refund or tax liability will look like when filing your taxes.

Do You Know Your Tax Rates?

The two tables below will help you see the IRS tax rates for 2013 (the taxes you’ll be filing in 2014). Click on the tax tables to see a larger view (you can even right click and save them to refer back to). Continue reading “What’s My Filing Status and Tax Rates For 2014 Tax Season?”

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I Need to Collect IRA Early. Are There Penalty Withdrawal Exceptions?

You must be 59 and a half to withdraw from your IRA. However, there are exceptions to the 10% early withdrawal penalty tax.

The whole point of an IRA is to put money away for retirement and let it grow. When you don’t allow the money in your IRA to grow and you withdraw before the age of 59 ½, there is an early withdrawal penalty of 10%  tacked onto the already existing income tax. That means you’ll end up paying an IRA withdrawal tax when filing your tax return.

IRS Withdrawal Before 59 ½

Maybe you want to pay off  your high debt or maybe you just need cash. Whatever your case may be, if you aren’t 59 ½ and desperately need money from your IRA, you can withdraw early and will be required to pay penalty tax. The penalty is 10% on top of your existing income taxes.

Exceptions to the 10% IRA Withdrawal Penalty

There are exceptions to the 10% early withdrawal penalty.This means if you fall within one of the following categories you can withdraw from your IRA before the age of 59 ½ without facing ugly penalties.

Continue reading “I Need to Collect IRA Early. Are There Penalty Withdrawal Exceptions?”

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Do I Pay State Taxes If I Live in Texas but Work in a Different State?

Living in a tax-free state doesn’t mean you aren’t responsible for income taxes if you work in a bordering state.

Texas is an income tax-free state. Fantastic, right? It is for residents of Texas who both live and work in the state. For those that live in Texas but work in bordering states such as Louisiana, New Mexico or Oklahoma, there is an income tax to pay.

If you live in Texas but work in a different state, it’s best to learn the income tax details of the state you work in and the importance of  filing a non-resident return for that state.

I Live in Texas but Work in Louisiana

If you work in Texas but travel to Louisiana for work, you will need to file a non-resident state return for Louisiana reporting all income earned from Louisiana sources.

Personal Louisiana Income Tax Rate:

Single Taxpayers: