Tagged With: taxes

Don’t fear moving to a new tax bracket

Do you know your tax bracket? I’d say a good number of people do. But do you know what happens when you jump up to a new tax bracket? I’d say a good number of people do not. Tax season is over (unless you pressed the IRS snooze alarm filed an extension), but as your … Continue reading »

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Why the home mortgage interest deduction isn’t as disappointing as I thought

Often when I play board games, I enjoy the process of losing as much as winning. That’s why I love it when people comment on my posts pushing back against my arguments. I don’t consider myself an infallible expert in anything. I’m learning as I go. And so when I’m wrong, I own up to … Continue reading »

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Just making sure: Mortgage interest isn’t a reason to hold on to a mortgage

WARNING: This post contains math. “When you have a mortgage, you get a tax deduction for all the mortgage interest you pay. So you shouldn’t pay down your mortgage early, because you’ll lose the tax deduction.” This is one of the most common reasons people say to not pay down your mortgage. But this is a … Continue reading »

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Why the home mortgage interest deduction is a disappointment

UPDATE: I originally made a math error below, and have corrected it. Apologies. UPDATE #2: I have another take on this. “Oh you’ve got a mortgage now!” goes Conventional Wisdom. “Now your taxes will be lower because you’ll be able to deduct your mortgage interest.” I admit that the idea is appealing. It’s not a reason … Continue reading »

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Which is better, a tax credit or a tax deduction?

  WARNING: This post contains math. This is one of those posts that is a challenge to write. Since everyone is in different places and with different levels of financial literacy, I can’t expect everyone to have the same level of understanding on certain topics. So this post is going to be totally obvious to … Continue reading »

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Why I like the Roth IRA (though it’s not why people think)

  So I hope you’ve done your taxes for the year. I used a certain online program to do my taxes, and one of the questions asked was “Did you contribute to an IRA [Individual Retirement Arrangement] this year?” If you answer yes, you have to indicate whether it’s a Traditional IRA or a Roth … Continue reading »

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Taxes, or the opposite of simplicity

  Each year for me, tax season goes pretty much the same way: I fire up one of the big online hosted tax programs, enter in my info, take the Standard Deduction, get something approximating zero dollars back (I try to get it about even), pay my money to the hosted company, and click “E-file.” … Continue reading »

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Why I pay tolls gladly

  I’ll admit it, I used to avoid tolls. I remember on drives from Philadelphia to points south, there was a toll booth at the Delaware/Maryland border that could be avoided by getting off at the prior exit, paralleling the highway for a few miles, and then getting back on. For this, I saved a … Continue reading »

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Fool yourself into savings

  I’ve been preparing for my latest adventure recently. And while this involves things like digging out my passport, buying travel guides, and maybe booking some lodging (I always wait until the last minute on this), one of the more pleasing parts of this planning process is digging out my change jar. My change jar … Continue reading »

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