How To File A FAFSA As An Independent Student
FAFSA requires you provide certain information about your parents’ finances. But what if they aren’t willing? How to file a FAFSA as an independent student.
FAFSA requires you provide certain information about your parents’ finances. But what if they aren’t willing? How to file a FAFSA as an independent student.
Married couples enjoy more Social Security benefits, tax breaks, retirement options, estate planning perks, and cheaper insurance (health and auto).
One of the biggest myths in the student financial aid world is that you can’t submit the FAFSA if your parents have a high income. Everyone, regardless of their parents (or their) income should submit the FAFSA every year.
Different brackets of income are taxed at different percentages. Your marginal tax rate — the highest percentage of tax you’ll pay — only applies to the income that falls within your top tax bracket, not to the income in all your lower brackets. So you won’t take home less money after taxes if your salary increases.
An audit happens when the IRS flags your tax return and reviews it for accuracy. In all, you have about a 0.6% chance of being audited. Things like high income and unusual deductions can increase your risk of getting flagged.
Those with diverse income sources — like employment, freelancing, or rental property — will likely need to acquaint themselves with a variety of tax documents, including Forms 1040, W2, 1099, Schedule C, Schedule E, etc.
It’s generally a good idea to work with a tax professional if you’re self-employed or a small business owner, if you plan to itemize your deductions, or if you’ve sold/plan to sell significant capital assets.
If you’ve got a babysitter or nanny, then you need to pay taxes on their income. Learn how to pay “nanny taxes”—and why you must.
Just 1 in 10 Americans still choose to itemize their tax deductions. Itemized deductions require more paperwork and record-keeping – but if you had high medical bills, state and local taxes, and sizable interest payments last year, itemizing could save you big bucks on your taxes.
When it comes to filing your taxes – status matters! Here’s a breakdown of the five different tax filing statuses and who is eligible to use them.