56

Private mortgage insurance protects the lender if you stop making your mortgage payments. It does not benefit the borrower, aside from the fact that many lenders require it if your down payment isn't large enough. Paying for PMI is essentially paying for insurance to protect someone else's investment - if you're not required to do it, there is no possible ...


54

When a company files for bankruptcy there is no guarantee that they will be able to satisfy any of their debts. Assuming chapter 7 bankruptcy, the employees with unpaid wages become creditors. Assets will be liquidated and creditors will be paid based on priority. Employees with unpaid wages are high on the priority list, but not always at the top. If the ...


47

Assuming the bulk of your income comes from "earned income," your best bets are moves that lower your taxable income. You say that some of your salary goes into a 401(k). The more you contribute to your 401(k), the less taxable income you have. In 2019 the maximum amount you can contribute is $19,000. In 2020 that number will go up to $19,500. Other tax-...


27

Generally speaking, you cannot lower your expenses related to taxes. You can lower your taxes, but not in a way that will make sense. For example, if you qualify for itemized deductions, then a $1 deductible expense will save you up to $0.32 in taxes. While you did cut your taxes, it cost you $0.68 to reduce your taxes. There are exceptions to the above ...


23

The best way to understand insurance policies in general is to consider who gets paid, and under what circumstances. Simply put, PMI policies pay your lender. The condition under which they pay is if you default, and the bank is not able to recover the balance of the loan. If you buy a house for $100,000 with $10,000 down and a $90,000 loan, and then you ...


7

You're probably better off having an accountant or tax lawyer going over your finances than having people on the internet try to come up with ideas that might apply to you, but one small thing is that if you use public transit and your employer has a transit program set up, you can put $265 a month of pre-tax money on a Clipper Card or towards other public ...


7

What are the ways I can pay less taxes? Daniel already noted that you can reduce your taxes by making charitable contributions; note that these lower your taxable income and not your taxes. That is, it is a deduction, not a credit. If you give your last earned dollar to charity, it lowers your taxes by the 32 cents that you would have paid on that dollar ...


7

Contact the state government. They should have the equivalent of the Federal Department of labor. The state has laws regarding how quickly employees should be paid. They can contact the employer. Of course forcing them to pay employees, could force them into bankruptcy earlier. Make sure that you are an employee. Have they been withholding taxes and FICA? ...


7

If you are actually an employee and your employer goes bankrupt, you're first in line to recover money from the bankrupt company. Assuming that the company has some assets that can be sold off, you should get at least some of the money you're owed though it may take some time. The bankruptcy court can also potentially claw back payments the bankrupt ...


6

Companies that want to offer credit to new or existing customers, do a soft pull to get the basic information they need to put you in the "maybe" category. If you are an existing customer they have even more information and can use the info in the soft pull to put you in the "almost certain" category. The fine print in the advertising tells you that you ...


6

In addition to the other excellent answers, consider doing a "Backdoor Roth IRA." Assuming that your income is too high to fund a traditional IRA with pre-tax dollars, fund it to the max with after-tax dollars, then immediately do a Roth IRA conversion. There is no immediate tax cost or benefit the first year, but as soon as the Roth IRA begins earning ...


5

Get married Get divorced A huge chunk of your income will be allocated to "spousal support", which is tax deductible for you (taxable for your ex-spouse). This will significantly reduce your tax burden.


5

There are two reasons I can think of, but they both boil down to the reason that lender will give you a mortgage with PMI, and won't approve a loan without it. Assuming the lender requires PMI for all mortgages with less than a 20% down payment: If you can't come up with enough cash for at least a 20% down payment, you can either get the loan and pay the ...


5

A C-Corp is taxed as a separate entity. So if you start a C-Corp and it has $50k in profit, it will pay corporate income tax on that profit while your personal income tax return will show none of that $50k as income. However, you also won't be able to use that money for personal expenses. If you pay yourself from the company via salary or dividend that would ...


4

Because you are currently driving and don't have insurance. You need to get insurance today. It appears that it is law in Florida that all drivers must have insurance. Even if it wasn't the law, you still should get insurance to protect you in case of an accident. Because you need insurance today, you need to worry less about getting the lowest rate, you ...


3

No. Unreimbursed business expenses are no longer deductible by employees as of tax year 2018.


3

A public company does not need a majority approval from share holders to do a secondary offering. Note that there are two types of secondary offerings. From Investopedia, What Is a Secondary Offering? A secondary offering is the sale of new or closely held shares by a company that has already made an initial public offering (IPO). There are two ...


3

The benefit to the homeowner is that they get to buy the house with a lower downpayment than they would otherwise need. So to make up a case where you might reasonably want to pay PMI... Say it's just after the stock market crash of 2008. You have $50K in cash, you want to buy a house for $250K, but you also think that this would be a really good time to ...


3

The reason why you owe more than the car is worth is due to the long term of the loan. The longer the term the more likely you will be underwater. The used car price is dropping due to the age of the vehicle, not just due to the mileage of the vehicle. The lender will require you to pay off the loan completely when the vehicle is sold. The car is their ...


3

One way to pay less taxes is with the mortgage deduction. The mortgage payment replaces a rent payment but the interest on the mortgage is deductible. Then hopefully the property also increases in value by more than the interest cost of the mortgage. Also, consider the property taxes.


3

or can I just added to next years income taxes? Of course, it goes on this year's income taxes, but that's probably what you meant. Since it's so late in the year, and just $250, I'd just add it to your 2019 Tax Return and call it a day. (I hope you put about $50 away for the taxes you might owe on it.)


2

I did a little bit of googling and found the answer to my own question. Not sure why I was too lazy to do that initially. Anyway, it depends on when you have to repay the bonus. If you accept the job, then have to pay back the bonus in the same tax year, then you just repay the amount you received after taxes. IE, if my bonus was $1000 and I only received $...


2

Generally speaking yes. Actual physical residence is not the only test countries use to determine tax residence. Contrary to what many people seem to believe, there is no overarching internationally agreed principle that tax residence only exists if you spend X days in a country or anything like that (in fact, the tax year is not the same in all countries in ...


2

Generally speaking - it least from the US point of view - the answer is absolutely yes. For example: A foreign investor in US real estate is subject to US Federal (and possibly state and local) income tax on capital gains from the sale of the property and on any rental income received with respect to it. A foreign investor receiving dividends from a US ...


2

There are two things at work here. Let's assume you are buying 300 shares for $32*300=$9600 at a time when the fair market value is $55. At this point you realize a gain of ($55-$32)*300 = $6900. As long you as don't sell anything, there are no taxes due. If you sell the stock right away and cash the $6900 you need to pay regular income tax on this. How ...


2

Read what they're saying. They're not saying they'll issue you a credit card without a hard pull. They are saying you can see if you qualify without a hard pull. What actually happens is You apply, and they ask you questions -- to collect all the data needed to give you the card. They do a "soft pull" to verify some of your answers. They offer you the ...


2

I believe that you should not be subject to US taxes on your work income after you started working remotely from abroad, and your employer should not be withholding US taxes (including federal income tax as well as FICA tax (Social Security tax and Medicare tax), as well as any state taxes). As a nonresident alien, you are only subject to US taxes on your ...


2

I believe they will provide me with a 1099 statement. Income from contract work is considered business income and gets entered via Schedule C (or C-EZ) regardless of whether or not that income is reported to the IRS separately via 1099. You'll also record any appropriate expenses that might offset this income. If after factoring in expenses there's more ...


1

An LLC protects you from liability, but for contract development work there's likely no need to set one up as you aren't typically exposed to much liability risk in that context. For tax purposes, LLC doesn't really mean anything to the IRS. If you have a single-member LLC, it will be taxed as a sole-proprietorship, or you can elect to have it taxed as an S-...


1

No, you will not have to pay income tax to the US if you aren't a tax resident of the US. You likely will have to pay income tax in the country you live and/or your country of citizenship.


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