US Federal Income Tax

How to Navigate Scholarships, Stipend and Taxes: A Grad’s Guide to Tax Savvy

Scholarships are a lifeline for students, providing much-needed financial support for their education. But here’s the catch: are scholarships considered taxable income? The answer isn’t straightforward. It all depends on how you use that scholarship money. Let’s dive into the details. In most cases, scholarships used to cover qualified educational expenses at eligible institutions are […]

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IRA investment strategy

Determining Earned Income for Max Limit of Contribution Under IRA

Pursuant to Publication 590-A, page 9, a taxpayer can contribute to his or her traditional IRA the smaller of $6,000 ($7,000 if the taxpayer is 50 or older) or the taxpayer’s taxable compensation for the year (Publication 590-A, page 6). In addition, compensation does not include government-provided unemployment compensation (IRC Section 219(f)(1) and Revenue Procedure

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