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Income Taxes

Got An IRA? Here’s a Tip That Can Save You NJ Income Taxes

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IRA Distributions: Federal VS NJ

Contributing to a traditional IRA reduces your federal income and, as a result, when you take a distribution down the road it’s fully taxable. While the distribution is fully taxed on the federal level because of this previous tax benefit, what many overlook is the fact that the distribution is not necessarily fully taxable to New Jersey. When the contributions to the traditional IRA were made, they were not deductible for NJ. [Read more…] about Got An IRA? Here’s a Tip That Can Save You NJ Income Taxes

Long-Term Care Insurance- A Wise Investment

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Many people would prefer not to think about the possibility of needing long-term care down the road. “After all,” they rationalize,” won’t my dear daughter/daughter in law care for me in my old age?” They therefore do not see long-term care insurance as relevant to them. This may be a big mistake. Considering the potential cost of long-term care, as well as other factors, it could prove even more costly to put it off. Here are a few reasons you may want to consider long-term care insurance: [Read more…] about Long-Term Care Insurance- A Wise Investment

Dementia Caregiver Expenses Tax Deductable!

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Dementia: A Growing Challenge

8 million Americans currently exhibit some signs of dementia and this population is steadily increasing. Eventually, few people will be spared the challenge of caring for a relative with this disease.  In many cases, a physician may determine that the patient requires 24 hour supervision. If no relative or friend can provide the required supervision, it can result in considerable caregiver expenses. Often, people will hire unlicensed caregivers to minimize this cost.   In a recent Tax Court case, the issue presented was whether or not these expenses are deductible for income tax purposes. [Read more…] about Dementia Caregiver Expenses Tax Deductable!