Freedom Tax Services

07/20/2026

https://www.kiplinger.com/taxes/state-capital-gains-tax-rates

Selling investments at a profit can be rewarding for some — until tax season arrives. And federal taxes are just one part of the equation.

07/20/2026

https://www.kiplinger.com/taxes/new-tax-rules-income-the-irs-wont-touch

From financial gifts to Roth withdrawal rules, here’s what income stays tax-free under the new Trump 2025 tax bill, and some information on what’s changed.

07/18/2026

Social Security lets you claim any time from 62 to 70, and most people do not wait.

Using SSA award data, about 3 in 10 file at 62, the earliest age, while fewer than 1 in 10 hold out until 70.

A worker with a full retirement age of 67 who claims at 62 locks in a permanent 30% cut to the monthly benefit.

Wait until 70 and the check runs about 77% larger than the age-62 amount, but you give up eight years of payments to get there.

If you spend those early checks as they come, the two paths tend to cross somewhere in the early-to-mid 80s.

Invest them instead, and the crossover moves later, into the high 80s or 90s, since the invested checks keep compounding while you wait.

So the call turns on how long you expect to live, the other income you can lean on, and whether you are protecting a spouse with a survivor benefit.

If you have already claimed, what age did you choose, and would you make the same call today?



*The content shared here is for educational and informational purposes only. It is not personalized investment, tax, legal, or financial advice. Consult a licensed professional before making decisions based on your specific situation.*

07/18/2026

Taxes can be CONFUSING. When most people think of taxes on earnings, they think of how their income from their job gets taxed, but not all income is taxed the same!

Income from when you sell an investment (also known as capital gains) is actually taxed with a totally different system. If you're investing, you should understand it!

First you need to understand WHAT is taxed. When you sell a stock for $150, you don't get taxed on the full $150. You only get taxed on how much the stock appreciated since you bought it. In the example here, the stock was bought for $100 and sold for $150, so the capital gain was $50.

If someone else bought the stock for $50 and sold it for $150, their capital gain would be $100 and would totally change how they are taxed.

Next you need to understand HOW it's taxed. There are two structures: Short term and long term capital gains tax.

Short term capital gains means that you held the stock for less than a year. As you may suspect, this leads to a less favorable tax classification. Short term capital gains are added to your income, so you'll pay tax equal to your highest marginal tax rate (which could be as high as 37% for the highest earners).

Long term capital gains are for stocks held more than one year and are taxed a bit more favorably. Depending on your income level, you'll be taxed 0%, 15%, or 20% on the capital gain.

Keep in mind this is all the FEDERAL treatment. Each state will have different laws on how to tax capital gains, so your total tax burden could be higher than what's shown here.

You might be thinking "what happens if the stock price goes down and then I sell it?" and that is a GREAT question.

That's called a capital loss, and while I won't go too deep into it on this post, capital losses also impact your taxes by DEDUCTING from your capital gains and income. This can get a bit more complicated and will need a dedicated post, but for now it's good to just know it exists!

- Matt

P.S. I use SoFi for my high-yield savings account and they are running a sign-up bonus where you can get up to a $400 with opening a new account and connecting direct deposit. Comment "HYSA" and I'll send you a link to get your bonus!

07/18/2026

💰 Gifts, inheritances, and life insurance proceeds are never taxable income to the person who receives them, no matter the amount.

The $19,000 annual gift exclusion is a filing requirement for the giver, not a tax on you as the recipient.

Inherited traditional IRAs are the exception inside that rule: the account passes to you tax-free, but every withdrawal is taxed as ordinary income, while an inherited Roth that met the 5-year rule usually is not.

Qualified tips and overtime pay are federal income tax deductions through 2028, not full exclusions, so Social Security and Medicare taxes are still withheld and your state may still tax the income.

Home sale gains skip tax up to $250,000 for single filers or $500,000 for married couples, as long as you lived there 2 of the last 5 years.

Long-term capital gains can be taxed at 0% when your taxable income stays under $49,450 single or $98,900 married filing jointly in 2026.

VA disability benefits and workers' comp are excluded from federal income tax regardless of the amount.

Which of these surprised you the most?



*The content shared here is for educational and informational purposes only. It is not personalized investment, tax, legal, or financial advice. Consult a licensed professional before making decisions based on your specific situation.*

07/18/2026

In an unfortunate twist of the tax system, losing a spouse may trigger a huge financial hit called the widow's penalty. The good news, you can plan for it, says investment adviser Kyle Hammerschmidt.

The widow's penalty is when losing a spouse triggers a huge financial hit. It's an unfortunate twist of the tax system, but the good news is you can plan for it.