)Sony Pictures/courtesy Everett Collection Converting taxable income into nontaxable income is something all taxpayers are eager to do. The backdoor Roth IRA is one of those options — but there are state and federal tax pitfalls to converting money from a traditional IRA or a qualified retirement account (such as a 401(k)) to a Roth IRA. Taxpayers cannot make any contribution to a Roth IRA if their income exceeds the annually adjusted threshold limits. For 2019, the threshold levels are...

The Tax Cuts and Jobs Act has created a new tax break that dangles the potential of a 0% capital-gains tax on certain investments in economically distressed areas. But you’ll need to wait 10 years to claim it. These new investments are funds tied to Qualified Opportunity Zones — approximately 8,000 areas around the country, both urban and rural, that local officials have designated as most in need. Qualified investments can be in real estate — commercial property is an early favorite — as...

MarketWatch photo illustration/iStockphoto More than one in five taxpayers with wages probably had too little money withheld for taxes last year, according to the Government Accountability Office. Among the most likely are taxpayers with wages of $180,000, at least $20,000 of non-wage income and itemized deductions; taxpayers with gambling winnings; those with unreimbursed employment-related expenses; and taxpayers who can’t claim their full state and local taxes as itemized deductions. The...

Getty Images Savings is a challenging part of everyone’s life. But an even more challenging task is faced by those trying to set funds aside for a family member with disabilities. One tax-favored savings account created in 2014 to assist disabled individuals is the Achieve a Better Living Experience (ABLE) program. Although many people are familiar with the basic issues of establishing and contributing to an ABLE account, there are several attractive advantages for the beneficiary of the ABLE...

Getty Images The basic tax rules on charitable contributions seem pretty straightforward: they can be deducted from federal income taxes by those who itemize deductions. But if you receive or expect to receive a benefit (such as a gift, magazine, or meal) in exchange, the deduction is reduced by the value of that item. So should a charitable donation in lieu of taxes be deductible? Or is it just state-sponsored tax dodging given that taxes pay for services provided to, well, taxpayers? The...