There's a reason it pays to save for retirement in an IRA. These accounts give you a couple of helpful tax breaks in the course of building a nest egg. First, contributions to a traditional IRA get to go in on a pre-tax basis. That allows you to shield some income from taxes. Also, investment gains in an IRA are tax-deferred, so you don't pay taxes until you're ready to take withdrawals. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right ...

Millions of taxpayers may be in line to receive larger tax refunds in 2026. Thanks in large part to the One Big Beautiful Bill Act (OBBBA), many Americans will see some kind of tax break when they file taxes in 2026. President Trump promised many of these breaks before retaking office, and the passage of the OBBBA made them a reality. While many taxpayers will realize benefits, one group in particular will likely do so more than others. What Changes in 2026? The OBBBA made many of the tax changes imple ...

Counseling for the Elderly programs to those who make $69,000 or less, have disabilities or are limited-English speaking.Do you have a news tip for Investopedia reporters? Please email us at[[email protected]]Article SourcesInvestopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more abo ...

Although the foundations of the tax code remain fairly similar from year to year, the rules are constantly evolving. Many Americans still file their taxes based on deductions and credits they remember from years ago, only to discover those tax breaks quietly expired, phased out or were sharply narrowed. For example, temporary pandemic relief programs have long since ended and several long-standing deductions have been recently changed or been eliminated. Here’s a look at some of the most commonly assumed ...

Core Insights - The child tax credit is a federal tax break designed to assist families with the costs of raising children, increasing to $2,200 for the 2025 tax year from $2,000 in 2024 for each qualifying dependent under age 17 [2][4] - Taxpayers may receive up to $1,700 of the credit as a refund through the additional child tax credit [2] Tax Credit Overview - The child tax credit is distinct from other tax credits such as the child and dependent care credit and the earned income tax credit [3] - There is also a credit for other dependents worth up to $500 for those who do not qualify for the child tax credit [3] Qualification Criteria - To qualify for the child tax credit, specific requirements must be met, including income limits that phase out the credit for married couples filing jointly with incomes above $400,000 and for all other filers above $200,000 [4][5] - The eligibility rules have changed, requiring both the parent and the child to have Social Security numbers [4][5] Child Eligibility - Each qualifying child must be under age 17 at the end of the tax year, meaning they must be 16 or younger at the end of 2025 to qualify for the credit on the 2025 tax return [5] - The child must be a U.S. citizen, U.S. national, or resident alien with a valid Social Security number and must not have provided more than half of their own financial support for the year [5][6]

Group 1 - The article emphasizes the importance of taking advantage of tax breaks offered by the IRS through retirement savings accounts like IRAs and 401(k)s [1][2] - Contributions to traditional IRAs and 401(k)s are made on a pre-tax basis, allowing income to be shielded from taxes, and investment gains grow tax-deferred until withdrawals are made [2] - However, there are significant drawbacks to relying solely on these accounts for retirement savings, including a 10% early withdrawal penalty before age 59 and a requirement to start taking minimum distributions at age 73 or 75 [4] Group 2 - It is recommended to diversify retirement savings by including a taxable brokerage account, which offers more flexibility despite not providing the same tax benefits as IRAs and 401(k)s [5][8] - Taxable brokerage accounts allow for penalty-free withdrawals at any age and do not impose required minimum distributions, making them a viable option for retirees [9] - The flexibility of taxable accounts can be beneficial in various scenarios, such as unexpected job loss or the ability to avoid tapping into retirement accounts, thus preventing unnecessary tax burdens [6][7]

Small-cap companies in the U.S. are expected by analysts to increase profits much more quickly than larger companies as they see the greatest benefits from lower borrowing rates and tax breaks. ...

Last year was tough on restaurants. But UBS analysts say new tax breaks and a lower bar to clear could make 2026 more forgiving, particularly for the sit-down chains and fast-casual players that draw wealthier customers. ...

Group 1 - The article emphasizes the importance of maximizing contributions to tax-advantaged accounts such as HSAs, IRAs, and 401(k) plans to benefit from tax breaks [1][3] - In 2026, the maximum contribution limits for HSAs will increase, with $4,400 for self-only coverage and $8,750 for family coverage [7][11] - Individuals aged 55 and older can contribute an additional $1,000 as a catch-up contribution to their HSA [4] Group 2 - It is advised to avoid treating HSAs as regular spending accounts, as the funds can grow tax-free if left untouched [5][8] - Eligibility for HSAs can change annually based on health plan rules, and individuals should verify their eligibility before contributing [9][10] - Funding an HSA when not eligible can lead to tax penalties, highlighting the need for strategic management of HSA accounts [10]

Core Insights - Health Savings Accounts (HSAs) combine benefits of traditional and Roth retirement accounts, offering tax advantages and flexibility for retirement savings [2][4] Group 1: HSA Features - HSAs allow contributions with pre-tax dollars, tax-free investment gains, and tax-free withdrawals for qualifying healthcare expenses [5] - Funds in HSAs do not expire, providing a long-term savings option [5] - HSAs can function as a retirement savings account, allowing for potential tax-free income in retirement if funds are kept invested [6] Group 2: HSA Withdrawals - Withdrawals for non-medical expenses incur a steep penalty of 20%, which is double the early withdrawal penalty for traditional IRAs or 401(k)s [7] - Retirees are encouraged to evaluate their eligibility for HSAs, especially with new insurance options available in 2026 [4]