The tax code is based on what the Internal Revenue Service (IRS) terms “voluntary compliance.” You’re supposed to willingly part with your dollars and turn them over to the federal government. You can incur penalties for not doing so. But the IRS also refrains from taxing every dollar you bring in by providing you with quite a few breaks. You can avoid some taxation of your income by using them....

Appropriately, line 37 says, “Amount you owe.” Line 38 is dedicated to any penalty you might also owe for making your estimated tax payments late. Technically, line 24 is your total liability for the tax year, but the IRS probably already has some of that money, either through tax withholding from your paychecks or because you’ve made quarterly estimated payments. It’s line 37 that you have to concern yourself with because the IRS still wants that balance....

Alternate name: Age dependency ratio You can find dependency ratios for countries worldwide from the United Nations, which calculates a dependency ratio for every nation every five years, going back to 1950. How Do You Calculate the Dependency Ratio? The dependency ratio formula used by governments and economists worldwide is: (Y) = People aged 0–14(S) = People aged 65+(W) = Workers aged 15–64 How the Dependency Ratio Works The dependency ratio is the number of dependents in a population divided by the number of working-age people....

Alternate name: Nominal Broad-Dollar Index, Broad Index The Federal Reserve’s weightings show the importance of various countries to U.S. trade. The most predominant countries involved in U.S. trade are China, Mexico, and Canada. That ranking is reflected in these top trade weightings (as of Jan. 3, 2022): 14.763 for China, 13.248 for Mexico, and 12.988 for Canada. This weighting relative to U.S. trade is very different from the weightings based on share of the global economy....

If an analyst rates a stock as “overweight,” they think that the stock will perform well in the future. They believe it is worth buying, as it could outperform the broader market and other stocks in its sector. On the flip side, an “underweight” rating means they think future performance will be poor. Usually, the rating refers to predicted performance over the next six to 12 months. You can think of “overweight” and “underweight” as being the same as “buy” and “sell....

What’s In It for You? The CARES Act sends direct payments to eligible adults, expands unemployment insurance, and gives borrowers of home and student loans more time to make payments. The Act also: Extends the Real ID deadline from Oct. 1, 2020, to Sept. 30, 2021.Expands deductions for charitable contributions for non-itemizers. It also waives the 10% early withdrawal penalties on up to $100,000 of 401(k) or IRA distributions. Creates a $150 billion Coronavirus Relief Fund for state and local governments....

When you check your credit report there are three basic types of information you should look for: Signs of Identity Theft More than 14 million people fell victim to identity fraud in 2018, according to the latest Javelin Identity Fraud Study. Identity theft can easily go undetected for months if you don’t check your credit regularly to look for the signs that your information has been compromised. Check Your Credit Report for Accounts That Aren’t Yours Review each of the accounts listed on your credit report to make sure they belong to you (or at least they used to)....

You’re too stunned to speak. But your parents aren’t unusual—up to half of all adults between the ages of 55 and 66 have no retirement savings, according to the U.S. Census Bureau. What’s next? You may be having far more retirement-focused conversations with your parents in the future. Here’s how to start. Have a Conversation To Learn Financial Details “Money is the number-one cause of stress and anxiety in this country,” said certified financial planner Brent Weiss in an email interview with The Balance....

Business insurance policies are divided into five to seven basic types, but you don’t need to buy all of them to protect your company. The type of business insurance you should buy depends on the nature of your business. For instance, all companies need general business liability insurance, but a home-based business may not require commercial vehicle insurance. Knowing what type of insurance your small business needs can help you find the right policies to effectively safeguard your company, your personal property, and the safety of any employees....

The actual nickname comes from a visual display of the Operation Twist expected effect on bond yields. If you were viewing a graph of long-term and short-term bond yield curves, you’d see that as the short-term yield curve trends up, the long-term interest rates trend down at the same time, creating a twist in the chart’s trendlines. Some Background The U.S. Federal Reserve (the Fed) implemented the Operation Twist program in late 2011 and 2012 to help stimulate the economy....

In general, you should only create an infographic resume if you have the resources (either your skills and expertise or the ability to hire a designer) to pull off an exceptional final product. Anything sub-par will only harm your job search, especially because in the vast majority of cases, infographic resumes are not required. Here’s more information on when to use an infographic resume and how to create one....

More than 75% of people who stop working before age 62 apply for SSA benefits within two months of reaching that age. In many cases, it would be better for them to use other savings to support them for a while. Options may even include taking some IRA withdrawals to delay the start of their SSA benefits. Many SSA decisions can’t be undone, but if you’re a single retiree, the choice is less complex than if you’re married....

States With No Income Tax Eight states don’t impose an income tax on earned income as of 2021: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming. New Hampshire taxes only dividend and interest income, so you can hold down a side job here without it costing you in taxes. Tennessee also taxed just dividend and interest income through the tax year 2020. It repealed its tax effective January 1, 2021....

Your Responsibility for Charges on a Stolen Credit Card The Fair Credit Billing Act (FCBA) is the federal law that defines your rights when your credit card is stolen. Under the FCBA, you won’t be held liable for any charges if you report the theft before any fraudulent charges are made on your account. However, you could be liable for up to $50 if the thief uses your stolen credit card before you report the theft....

The S&P 500 started this year with a bang, closing at an all-time high on Jan. 3 even after hitting record after record for most of 2021 as the economy continued to rebound from pandemic-era threats and corporate profits soared. But things soon headed south, mainly because of expectations that interest rates would be on the rise this year and also because of worries about the omicron variant of COVID-19....

What Should a Brand Do? Branding is not just about getting your target market to select you over the competition. It’s also about getting your prospects to see you as the sole provider of a solution to their problem or need. In its essence, branding is a problem-solver. A good brand will: Clearly deliver a messageConfirm the brand’s credibility in the marketplaceEmotionally connect target prospects with a product or serviceMotivate the buyer to make a purchaseCreate user loyalty...

Several things can prompt a coin shortage. The more you know about how change shortages work, the easier it may be to deal with if and when they happen. Why Coin Shortages Happen To understand coin shortages and how they happen, it helps to first look at how coins get into circulation. In the United States, coins are produced by the U.S. Mint. Coin inventory is managed by the Federal Reserve....

What Is Price Optimization in Insurance? Price optimization may mean different things in different contexts or industries. In insurance, it occurs when insurers adjust premiums based on advanced modeling methods and large datasets from insurance and non-insurance databases that include personal consumer information (where allowed by law). Price optimization comes into play after an insurer uses traditional risk-based pricing strategies and may increase an individual’s premiums based on factors other than that person’s loss risk....

Many consumers erroneously think that debts should disappear from their credit reports after the statute of limitations has passed, but they’re confusing the statute of limitations with the credit reporting time limit. Because of the difference in these two time periods, some debts can still be listed on your credit report after the statute of limitations has run out. Statute of Limitations vs. Credit Reporting Time Limit The statute of limitations and the credit reporting time limit are two separate and independent time periods, governed by separate laws....

Since your credit score is based directly on your credit report, it makes sense that your credit score would fluctuate as often your credit report changes. When you check your credit report manually, it might be hard to figure out what exactly caused your credit score to drop. Many credit monitoring services outline the most recent changes to your credit history, making it easier to figure out what affected your credit score....