Tax & Money
Clear explanations and practical insights about paychecks, salaries, taxes, state taxes, retirement savings, and the money decisions that affect take-home pay.
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Dependent Care FSA vs the Child Care Credit: Why the Answer Flipped
The dependent care FSA cap rose by half, the first increase since 1986. Most coverage stops there, which leaves out the two things that decide whether it helps you: your employer has to opt in,…
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The Underpayment Penalty Is Not a Fine. Here Is How It Works
The underpayment penalty is interest, not a fine, and smaller than people fear. The three safe harbours, why timing costs more than amount, and the withholding rescue.
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You Got a Letter From the IRS. What It Probably Means
Most IRS letters are computer generated, propose rather than impose, and often overstate what you owe. What the common notices mean, the deadlines, and how to respond.
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The Roth Catch-Up Rule, Seven Months In: What It Did to Paychecks
Catch-up contributions became mandatory Roth for higher earners in January. Who it caught, what it did to net pay, and the plan design trap that blocked catch-up entirely.
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Taxed on a Benefit You Never Received: Imputed Income Explained
A line on your stub taxes you for life insurance you never bought. How imputed income is calculated from an IRS age table, and why income tax is owed on it but not withheld.
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The Trump Account Detail Nobody Mentioned: Pre-Tax Payroll Contributions
A new section of the code lets employers put $2,500 a year into a Trump Account tax free, worth more than a $2,500 raise. The limits, the cafeteria plan catch, and why most employers do…
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RSUs Vested and Tax Was Withheld. Why You Still Owe
RSU vests are withheld at a flat 22% while the income is taxed at your marginal rate. The gap in numbers, plus the cost basis error that taxes the same income twice.
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Inflation Data and Your Paycheck: What the CPI Report Actually Changes
The July CPI lands this morning. There is not one inflation number but three, they drive four different mechanisms, and none of them changes your paycheck today.
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Head of Household: The Filing Status People Claim Wrongly Both Ways
Three tests decide head of household, and people fail them in both directions. The married route, the dependent parent exception, and why a Form 8332 release does not move the status.
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Your 2027 COLA Minus Medicare: What Actually Reaches Your Bank Account
Medicare does not automatically swallow your COLA. Whether your deposit grows by more or less than the raise depends on one number, and the real threat is a surcharge decided two years ago.