How Does a 529 Plan Work?

For most parents, paying college tuition out of pocket is simply out of the question. If you’re one of those parents, you probably know what a 529 Plan is: named after Section 529 of the Internal Revenue Code, these investment vehicles allow you to sock away money for education expenses in a tax-advantaged way. Your earnings accumulate tax free and, if used for qualified educatione expenses, withdrawals are tax-free, as well. But choosing a 529 Plan is no simple thing and many investors don’t have a full understanding of how these things work. mint.com give you the basics in this infographic.

via www.mint.com

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Tax Cheats and Tax Deductions: The Messy Work of the IRS

What finally did in Al Capone? It wasn’t all the murders, rum running and bookmaking. The infamous mobster went to prison because of a far more mundane crime, tax evasion.

Tax cheats are nothing new. From the days of Al Capone to modern celebrities such as Martha Stewart and Luciano Pavarotti, taxpayers have been trying to cheat the government out of its tax dollars for years.

via www.creditloan.com

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Your Coming Tax Cut (or Not)

The Bush tax cuts of 2001 and 2003 are set to expire at the end of this year, and the fight is on to renew some or all of them. Many Democrats want to scrap future cuts for the wealthiest taxpayers. Wealthy Americans, they say, can use their tax savings to create jobs. In either case, the extensions would be expensive: perhaps $2.7 trillion less for the Treasury through 2020.

Here is a guide to who will get what if the cuts are extended, and who got what from the last seven years of cuts, according to an analysis by the Tax Policy Center, a nonpartisan research organization.— BILL MARSH

via www.nytimes.com

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How the fight over tax breaks affects your bottom line?

Tax cuts enacted under former president George W. Bush are set to expire at year's end, and lawmakers are battling over whether to extend them before the November elections. Most Republicans want to extend all of the cuts, saying that any increase in taxes will hold back the economic recovery. President Obama and Democratic leaders would extend many of the cuts but say tax breaks for top earners should expire to pare down deficits. Each plan would affect average tax rates for income groups differently.

via www.washingtonpost.com
(click here for an interactive graphics)