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2 weeks ago | 
wealthup.com | Rocky Mengle
Amidst the 2025 tax season, if you’re keeping an eye on your taxes for next year, you’re still keenly interested in what your 2026 income tax burden might look like.
Therefore, which tax bracket you’re in and what tax rate you’ll pay are important pieces of the puzzle. That’s why taxpayers need to know and understand the annual changes to the tax brackets, and how the tax bracket you’re in dictates the rate you’ll pay.
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2 weeks ago | 
wealthup.com | Rocky Mengle
Although the due date for your 2025 federal income tax return is a long way off (it’s not until April 15, 2026), smart taxpayers will start thinking about their tax bill for the new year far in advance. Proper tax planning takes time, so it’s actually wise to begin collecting information about your 2025 taxes now (if you haven’t already started). That way, you have as much time as possible to minimize your tax bill for the 2026 tax year.
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2 weeks ago | 
wealthup.com | Rocky Mengle
I find it interesting that my doctor and the IRS are telling me the same thing: Limit your salt.
But, of course, they mean very different things.
My doctor wants me to cut back on salty snacks to lower my blood pressure. However, the IRS says I have to cut back my deduction for State and Local Taxes—or SALT, as it’s referred to in the tax world—to raise my tax bill.
You should talk to your doctor if you want to know more about how limiting your salt intake can improve your physical health.
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2 weeks ago | 
wealthup.com | Rocky Mengle
Like many Americans who have reached retirement age, you might be surprised to learn that Uncle Sam can tax your Social Security payments. Exactly how much of your Social Security benefits are subject to tax depends on your tax filing status and what’s commonly referred to as your “provisional income” (or sometimes called “combined income”).
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4 weeks ago | 
wealthup.com | Rocky Mengle
You stashed thousands of dollars in a 529 college savings plan so your child can attend college. But what happens to the unused 529 funds if your child decides not to go to college, gets a full scholarship, picks a much less expensive school than you expected, receives an appointment to a military academy, or otherwise doesn’t need all the money you saved?
If you’re not careful, you could be hit with a big federal income tax bill and an IRS penalty if you have leftover 529 funds.
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1 month ago | 
wealthup.com | Rocky Mengle
Even though you only have to file a federal income tax return once per year, you generally must make tax payments to the IRS periodically during the year. If you work for someone else, it’s easy: Your employer will withhold income taxes from your paycheck and send that money to the IRS to satisfy this requirement.
But what if the amount withheld from your pay isn’t quite right?
If too much tax is withheld, you’ll get a refund when you file your tax return.
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1 month ago | 
wealthup.com | Rocky Mengle
Not everyone retires in their 50s or 60s. Millions of Americans in their 70s or older are still working. Some remain in the workforce for financial reasons, while others just want to stay active and connected to their coworkers.
If you’re working in your 70s, you might be wondering if you still have to take required minimum distributions (RMDs). These are basically forced withdrawals from your retirement savings accounts.
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1 month ago | 
wealthup.com | Rocky Mengle
Wondering whether you’ll need to pay taxes on your Social Security benefits is a very common concern for many seniors and individuals nearing retirement. The answer, though, is not so straightforward, as your own personal financial circumstance will largely dictate the answer.
The good news is that, generally speaking, retirees who rely solely on Social Security for their retirement income needs often don’t have to concern themselves about federal taxes on these benefits.
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1 month ago | 
wealthup.com | Rocky Mengle
Here’s some good news for workers who are using a 401(k) plan to save for retirement: You can stuff more in your account next year than you can this year. That’s because the cap on how much you can put in a 401(k) plan is adjusted each year to account for inflation, and that’s pushing up the 401(k) contribution limits for 2025.
That helps employees who can max out a 401(k) account each year. They can put an extra $500 into their account in 2025.
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1 month ago | 
wealthup.com | Rocky Mengle
There’s a new rule in place that makes 529 plans an even more attractive way to save for your child’s education. As of last year, unused funds in a 529 plan can be transferred into a Roth IRA.
As a result, parents don’t have to worry as much about having leftover funds in a 529 plan if their child doesn’t attend or finish college, earns a scholarship, picks a less expensive school than expected, or otherwise doesn’t need all the money saved over the year in a 529 plan.
