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Personal Finance

Personal money management and financial wellness strategies

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RSUs Explained for Startup Employees: Why Vesting, Not Selling, Is the Tax Event

RSUs are taxed as ordinary income on the vesting date, not at sale, and employers withhold a flat 22% on supplemental wages up to $1 million — leaving employees in the 32–37% brackets short by 10 to 15 percentage points each April. This guide covers double-trigger vesting at private startups, why no 83(b) election exists for RSUs, and the $0 cost-basis error on Form 1099-B that makes people pay tax twice on the same income.

mike

equity-instrumentsexecutive-compensationstartup

Still Paying Off School While Running Your Business? How the $2,500 Student Loan Interest Deduction Works in 2026

For tax year 2026 the student loan interest deduction is capped at $2,500, claimed above the line on Schedule 1, and phases out between $85,000 and $100,000 of MAGI for single filers and $175,000 to $205,000 for joint filers. This guide covers the five eligibility tests, what Form 1098-E does and does not report, and why self-employed borrowers cannot move the interest to Schedule C.

mike

student-loanstax-deductionsself-employment

Contributed Too Much to Your 401(k)? How to Fix a 402(g) Excess Deferral Before April 15

For 2026 the section 402(g) elective deferral limit is $24,500 per person ($32,500 with the age-50 catch-up, $35,750 at ages 60 to 63), aggregated across every 401(k), 403(b), SIMPLE IRA and SARSEP you contribute to in the year. An excess not refunded with earnings by April 15 is taxed twice, once as wages in the contribution year and again on distribution. Steps include totaling W-2 Box 12 deferrals, notifying the plan in writing, reading 1099-R codes P and 8, and capping payroll after a mid-year job change.

mike

taxretirement-plansretirement-savings

Someone Claimed Your Dependent: What IRS Notice CP87A Means and What to Do Next

IRS Notice CP87A means two returns claimed the same dependent's Social Security number. It is not an audit and not a bill — if you are entitled to the claim, the IRS says do nothing. This guide covers the five qualifying-child tests, the tie-breaker ladder, why a divorce decree loses to overnight counts without a signed Form 8332, the 2025 IP PIN fix for e-file rejections, and when to amend with Form 1040-X.

mike

taxtax-complianceirs-reporting

What's Inside Your 401(k)'s Default Fund? How Target-Date Funds Pick Your Investments, and the Fees to Compare

Target-date funds hold about $4.9 trillion and are the default in 99% of the auto-enrollment 401(k) plans Vanguard tracks. Here is how glide paths, "to" versus "through" designs, and expense ratios shape your retirement balance, plus a 15-minute checkup for savers and the fiduciary duties for owners who sponsor a plan.

mike

retirement-plansretirement-savingsretirement-planning

Passing Your House to Your Kids Without Probate: How Transfer-on-Death and Lady Bird Deeds Work

A transfer-on-death deed names a beneficiary for your house the way you would for a bank account — recorded now, revocable any time, effective only at death. More than 30 states plus DC authorize one; Florida and Michigan use the Lady Bird (enhanced life estate) deed instead. Here is what each does, how to record one correctly, and the filing errors that send families back into a 9-to-18-month probate.

mike

estate-planningreal-estatehome-ownership

Are Forgiven Student Loans Taxable in 2026? The IDR Tax Bomb, Who Stays Tax-Free, and the Form 982 Escape Hatch

The ARPA exclusion for student loan discharges expired on December 31, 2025, so income-driven repayment forgiveness after 20 or 25 years, closed-school and borrower-defense discharges are federal taxable income again from 2026, while PSLF, teacher-service and death or disability discharges remain tax-free. A $49,000 IDR discharge can add roughly $5,800 to $10,000 in federal tax; the Form 982 insolvency exclusion, early AGI planning and your own payment ledger are the tools that shrink the bill.

mike

student-loansloan-forgivenesstax

IRMAA for Business Owners: The Two-Year Lookback, the 2026 Medicare Brackets, and the SSA-44 Appeal

Medicare's IRMAA surcharge sets your 2026 Part B and Part D premiums from your 2024 tax return, and crossing a bracket by one dollar triggers the full tier — up to roughly $14,000 a year above standard premiums for a couple. Here is how business sales, Roth conversions and RMDs trigger it, the 2026 thresholds, and how to file Form SSA-44 after retirement or another qualifying life-changing event.

mike

tax-planningretirement-planninghealthcare

Phantom Interest Income: Why Original Issue Discount Taxes You on Money You Haven't Received Yet

Original issue discount makes you report interest income each year on bonds that pay no cash until maturity. This guide covers where OID hides — zero-coupon bonds, T-bills, TIPS, seller-financed notes — the 0.25%-per-year de minimis threshold, how to read Boxes 1, 2, 6 and 8 of Form 1099-OID, and the basis and state-tax mistakes that make investors overpay.

mike

taxinterestpersonal-finance

Is Your State Tax Refund Taxable? The Tax Benefit Rule, Explained

A state income tax refund is federally taxable only to the extent last year's deduction actually reduced your tax. Standard-deduction filers report nothing; itemizers run the Schedule 1 worksheet, where the SALT cap ($40,000 for 2025, $40,400 for 2026), the margin by which itemizing beat the standard deduction, and the income-tax-versus-sales-tax election each cut the taxable amount below the Form 1099-G figure.

mike

taxtax-preparationtax-filing
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