Everyday Law & Life

Top Tax Deductions for Self-Employed People in the U.S. If you’re self-employed, taxes can be a major headache — but they don’t have to be. The U.S. tax code offers a variety of deductions that can reduce your tax burden and help you keep more of your hard-earned money. Let’s break down the most valuable deductions for freelancers, gig workers, and small business owners. 💡 1. Home Office Deduction If you work from home, you may be able to deduct a portion of: Rent or mortgage interest Utilities Internet & phone Repairs and maintenance Must be exclusively and regularly used for business. 🚗 2. Vehicle and Mileage Expenses If you use your car for business: You can deduct mileage ($0.655/mile in 2023) Or actual expenses (gas, maintenance, depreciation) Keep detailed logs — the IRS is strict. 📱 3. Business-Related Technology Deduct: Laptops Phones Software subscriptions (Zoom, QuickBooks, Canva, etc.) If it’s used for your bu...

Is an HSA Really Worth It? Pros, Cons, and Tax Benefits Explained Health Savings Accounts (HSAs) are often praised as one of the best tax-advantaged tools available in the U.S. — but are they really worth it for everyone? Let’s take a deep look into how HSAs work, who can benefit the most, and the potential downsides you should know before opening one. 💼 What Is an HSA? An HSA (Health Savings Account) is a tax-advantaged savings account that allows you to set aside money pre-tax for qualified medical expenses. You can only contribute if you have a High-Deductible Health Plan (HDHP). ✅ Key Tax Benefits Tax-deductible contributions (Even if you don’t itemize deductions) Tax-free growth Earnings and interest grow without being taxed Tax-free withdrawals When used for qualified medical expenses 🔁 Known as a “triple tax advantage” 📊 2024 Contribution Limits $4,150 for individuals $8,300 for families +$1,000 catch-up for age 55+ 🔍 What Can ...

How Much Money Can You Give Your Child Without Paying Taxes in the U.S.? If you’re planning to give your child a large sum of money — for college, a house, or just a head start in life — you might be wondering: Will the IRS tax it? Let’s break down how gift taxes work in the U.S. and what you need to know to give wisely. 🎁 What Is the Gift Tax? The gift tax is a federal tax applied when one person gives money or property to another without receiving anything in return . But don’t panic — there are generous exemptions , and most people never end up paying this tax. ✅ Annual Gift Tax Exclusion (2024) You can give up to $18,000 per year per person without any tax or reporting . Married couples can combine their exclusions → $36,000 per child per year Applies to cash, checks, stocks, property, or other assets 📝 No IRS Form 709 required if you're under the limit. 💼 What If You Exceed the Limit? You don’t pay tax right away. Instead: You file IRS Form...

Is It Better to Take Social Security at 62 or Wait Until 67? Deciding when to start collecting Social Security can have a huge impact on your retirement income . You can start as early as age 62 , but is it better to wait until full retirement age (FRA), which is 67 for most people ? Let’s compare the pros and cons to help you decide. 🧓 What Happens If You Take Social Security at 62? You’ll receive reduced monthly benefits — about 30% less than what you’d get at age 67. ✅ Pros: Get money earlier Helpful if you retire early or have health concerns May be necessary if you can’t work ❌ Cons: Lower lifetime benefit if you live long Locked-in lower monthly payments May affect spousal/survivor benefits 👴 What Happens If You Wait Until 67? You’ll receive 100% of your full benefit . ✅ Pros: Higher monthly income for life Better spousal/survivor benefits More tax-efficient in some cases ❌ Cons: Delay in receiving funds May not live lon...

Do You Have to Pay Taxes on Your Severance Package in the U.S.? If you've been laid off, your employer might offer you a severance package — a lump sum or series of payments to support you after separation. But here's the catch: Will the IRS take a slice of it? Let’s break it down simply. ✅ Yes, Severance Pay Is Taxable The IRS treats severance pay as regular income , meaning: Federal income tax applies Social Security and Medicare taxes apply State income tax may apply , depending on where you live In short: You don’t keep the full amount. 💡 How Is It Taxed? Usually, a flat 22% federal withholding is applied (as with bonuses) States may withhold separately It counts toward your total annual income , which could push you into a higher tax bracket 🧾 Severance vs. Unemployment Benefits Receiving a severance package may: Delay your eligibility for unemployment in some states Reduce your benefit amount temporarily ⚠️ Always repo...

Can You Go to the ER Without Health Insurance in the U.S.? Facing a medical emergency without health insurance is a terrifying experience — especially in the U.S., where hospital bills can be sky-high. But here’s the big question: Can you still go to the ER if you're uninsured? The short answer is yes , but there’s a lot you should know about your rights, potential costs, and what happens afterward. ✅ U.S. Law: Emergency Care Is a Right Thanks to EMTALA (Emergency Medical Treatment and Labor Act), every person in the U.S. — regardless of insurance or immigration status — must be treated in an emergency. Hospitals cannot deny you care if your condition qualifies as an emergency. 🏥 What Counts as an Emergency? You will receive treatment if you have: Chest pain Severe bleeding or injury Difficulty breathing Stroke symptoms Mental health crises Hospitals will stabilize you before asking about payment or insurance. 💸 What About the Cost? Here’s the...

Do You Have to Pay Taxes on an Inheritance in the U.S.? Inheriting money or property from a loved one can be both emotional and confusing — especially when it comes to taxes. Many Americans wonder: Do I have to pay taxes on what I inherit? Here’s a clear and simple breakdown of how inheritance taxes work in the U.S., and what you need to know to stay compliant and avoid unexpected bills. ✅ Is Inheritance Taxed in the U.S.? It depends. At the federal level, there is no inheritance tax . However, that doesn’t mean you’re off the hook entirely. Some states do impose inheritance taxes, and large estates may still trigger estate taxes . 🏛 Federal Taxes vs. State Taxes Tax Type Applies to Who Pays? Estate Tax Estates over $13.61 million (as of 2024) The estate (not the heir) Inheritance Tax Only in 6 states The heir (you) States with inheritance tax: Iowa (phasing out by 2025) Kentucky Maryland (only for non-lineal heirs) Nebraska New Jersey...