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There are two types of IRAs: traditional IRAs and Roth IRAs. Traditional IRAs defer taxation of investment income, and withdrawals are taxable income except for withdrawals of previously nondeductible contributions. In most cases, however, contributions are deductible. Roth IRAs are subject to many of the same rules as traditional IRAs. Still, there are several differences, the primary one being that contributions are not deductible and are made after tax, but qualified distributions are generally tax-free.

If you have income from wages or self-employment income, you can contribute up to $7,000 for 2025 (also $7,000 for 2024). IRAs are available even to children who meet these conditions. Individuals aged 50 and older can contribute an additional $1,000 for a total of $8,000 for 2025 (the same as for 2024).

Not everyone can contribute to a Roth IRA. The ability to contribute phases out if modified adjusted gross income (MAGI) exceeds certain amounts. For married taxpayers filing jointly, the 2025 phaseout range is $236,000 to $246,000. For single and head-of-household taxpayers, the 2025 phaseout range is $150,000 to$165,000. (For 2024, the phaseout ranges are $230,000 to $240,000 and $146,000 to $161,000, respectively.) You can make a partial contribution if your MAGI falls within the applicable range, but no contribution if it exceeds the top of the range. As with traditional IRA contributions, you must have earnings from personal services equal to or greater than your Roth IRA contribution. The 2025 (and 2024) IRA contribution maximum of $7,000 (plus an additional $1,000 for taxpayers age 50 or older) applies to traditional and Roth IRAs on a combined basis. So your maximum Roth IRA contribution is reduced by any traditional IRA contributions you make for the year. If you make the maximum contribution to a traditional IRA, you can't contribute to a Roth IRA.

You may be able to take an immediate Section 179 expense deduction of up to $1,250,000 for 2025 ($1,220,000 in 2024), for equipment purchased for use in your business, instead of writing it off over many years. There is a phaseout limit of $3,130,000 in 2025 ($3,050,000 in 2024). Additionally, self-employed individuals can deduct 100 percent of their health insurance premiums. You may also be able to establish a retirement plan for yourself, such as an individual or self-employment 401(k) plan, a Simplified Employee Pension (SEP) or a SIMPLE IRA, and deduct your contributions.

You sometimes may benefit from filing separately instead of jointly. Consider filing separately if one spouse has large medical expenses deductions, or casualty losses and the spouses' incomes are about equal. Separate filing may benefit such couples because each spouse's adjusted gross income (AGI) "floor" for taking the deduction will be computed separately. (If medical expenses not paid via tax-advantaged accounts or reimbursable by insurance exceed 7.5% of your AGI, you can claim an itemized deduction for the amount exceeding that floor.)

If you're planning to make a charitable gift, giving appreciated long-term capital assets generally makes more sense instead of selling the assets and giving the charity the after-tax proceeds. Donating the assets instead of the cash avoids capital gains tax on the sale, and you can obtain a tax deduction for the full fair-market value of the property.

Once you are married you are entitled to file a joint income tax return. While this simplifies the filing process, you may find your tax bill either higher or lower than if each of you had remained single. Where it's higher it's because when you file jointly more of your income is taxed in the higher tax brackets. This is frequently referred to as the "marriage tax penalty." Tax law changes in the form of marriage penalty relief were made permanent by the American Taxpayer Relief Act of 2012, and remained in place under the Tax Cuts and Jobs Act of 2017 with the exception of married taxpayers in the highest tax bracket. You cannot avoid the marriage penalty by filing separate returns after you're married. In fact filing as "married filing separately" can actually increase your taxes. Consult your tax advisor if you have questions about the best filing status for your situation. Under a joint IRS and U.S. Department of the Treasury ruling issued in 2013, same-sex couples, legally married in jurisdictions that recognize their marriages, are treated as married for federal tax purposes, including income, gift, and estate taxes. The ruling applies regardless of whether the couple lives in a jurisdiction that recognizes same-sex marriage or a jurisdiction that does not recognize same-sex marriage. In addition, the ruling applies to all federal tax provisions where marriage is a factor, including filing status, claiming personal and dependency exemptions, taking the standard deduction, employee benefits, contributing to an IRA and claiming the earned income tax credit or child tax credit. Any same-sex marriage legally entered into in one of the 50 states, the District of Columbia, a U.S. territory, or a foreign country is covered by the ruling. However, the ruling does not apply to registered domestic partnerships, civil unions, or similar formal relationships recognized under state law.

Generally, no; however, fees paid specifically for income or estate tax advice pursuant to a divorce may be deductible. Also, fees made to determine the amount of alimony or to collect alimony can be deducted. These deductions would be miscellaneous itemized deductions subject to the two percent limitation. For tax years 2018 through 2025, miscellaneous itemized deductions (Form 1040, Schedule A) have been eliminated due to tax reform (Tax Cuts and Jobs Act of 2017).

Generally, the custodial parent is entitled to the deduction. However, this is often negotiated in the divorce settlement. If the parents agree in writing, the non-custodial parent can take the deduction. For tax years 2018 through 2025, the personal exemption as well as dependent exemptions is eliminated due to tax reform (Tax Cuts and Jobs Act of 2017). However, the dependent exemption deduction for noncustodial parents still exists for 2018-2025 (that is, it was not repealed) but is reduced to $0.

It depends. The federal government imposes estate taxes at your death only if your property is worth more than a certain amount based on the year of death. By some estimates, more than 99 percent of estates do not pay any estate tax. In 2023, the exemption limit is $12.92 million ($12.06 million in 2022). Estates worth more than $12.92 million are taxed at 40 percent. For married couples, the exemption is $25.84 million. There are a couple of important exceptions to the general rule, however. All property left to a spouse is exempt from the tax as long as the spouse is a U.S. citizen, and estate taxes won't be assessed on any property you leave to a tax-exempt charity.