Sales taxes are imposed on many everyday goods and even some services. Keep reading to learn how they work and the different types. Definition and Examples of Sales Tax The tax administered by state and local governments on various products and services is called a sales tax. Examples of items and services that are subject to a sales tax include retail goods like food and clothing, and common services, such as dry cleaning and hairdressing....

“The S&P 500 Energy index consists of U.S.-based publicly traded companies in the energy sector,” Shea explains. “Approximately 23 companies make up this index, which you can access through index funds or [through] buying the stocks individually.” How the Energy Sector Works The energy sector tracks individual companies in the energy business, as well as the overall energy industry, Shea explains. The energy sector also includes several different energy sources:...

Creditors can’t automatically start garnishing your wages anytime you’re behind on payments. Most creditors can’t get permission to garnish your wages without first filing a lawsuit against you and then winning a judgment in that lawsuit. If a certain amount of time passes after that judgment and debt still exists, then a creditor may ask the court for permission to garnish your wages. Wage Garnishment Limits The Consumer Credit Protection Act sets limits on how much of your wages can be garnished....

Investors can face window dressing in any security they invest in, but they’re most likely to come across it when investing in mutual funds or stock of some companies. Learn more about how mutual funds and public companies can use window dressing and discuss ways you can spot it in securities you own or are considering investing in. Definition and Example of Window Dressing in Finance Window dressing is a term used to describe cosmetic changes a financial institution might make, often near the end of a reporting period, to improve its appearance to investors....

Some investors hold paper stock certificates bearing their name. These are proof they own shares in a corporation. Other investors are invested in a dividend reinvestment program (DRIP) and their shares are noted by the company’s registrar in an electronic journal. This journal entry is known as a “book entry.” In both cases, the company can quickly and easily access the total number of shares you own or contact you directly....

One way to offset the high costs of health care when you’re retired is through income tax deductions. If you deduct all the medical and dental costs the tax code allows, you may be shocked at how much you can save. Which Medical Costs Can I Deduct? You can deduct the amount of your medical and dental expenses that exceed 7.5% of your adjusted gross income (AGI). If you have very little income during retirement, then the deduction may not help you....

Learn the details behind getting upside down on a loan and how to solve the problem. Upside-Down Auto Loans With most standard auto loans, you pay down your loan balance over a set period of time. A portion of each monthly payment goes toward interest costs, and the remainder goes toward the loan balance. Eventually, you pay off the car loan balance entirely. This process is called amortization. Auto loans can go upside down when the vehicle loses value faster than you pay down the loan balance....

During COVID-19 and the economic crisis that followed, some credit issuers did just that—scaling back on credit limits offered to new customers and lowering limits on existing customers. With many people losing jobs and income, lenders were concerned that consumers might overextend themselves by spending more on credit cards than they could afford to pay back. So what can you do if your credit issuer decides to trim your limit?...

You may have a grace period—often 10 days or so—to decide what to do and provide instructions to your bank. Doing nothing usually results in the CD renewing automatically—your money gets moved into a new CD, and the process starts over. However, renewing is not necessarily your best option, and it’s always wise to proactively choose what happens to your money instead of letting your bank do it for you....

Small-cap stock funds were affected by the pandemic downturn but are poised for a quicker turnaround and recovery, because they tend to be made up of more small domestic companies than their large-cap counterparts. Maximize Returns With Small-Cap Stock Funds Some investors choose an appropriate allocation of small-cap stock mutual funds and stick to the allocation for the long term. They rebalance the portfolio on a periodic basis, such as once per calendar quarter or once per year....

You can get a home equity loan from a bank, credit union, mortgage company, or online lender, although some lenders have ceased offering this product due to the financial climate as of this writing. Learn who still offers home equity loans, how to shop around, and ways to prepare and apply for a home equity loan. Who Offers Home Equity Loans? Home equity lenders include banks, credit unions, mortgage companies, and online lenders....

Using a Credit Card in an Emergency Situation Is Like Getting a Loan It is stating the obvious, but think about what that means. It means you’re taking out a loan to cover an emergency expense because you can’t afford to pay it out of pocket. It means you’ll have to pay the money back. If you can’t afford to pay it back all at once, it means you’ll have to pay interest....

However, small business owners may not be aware of the benefits that come with opening separate lines of credit for their business. Many business owners may find it preferable to keep their personal credit and business credit separate. Why Use Business Credit? Your small business’s credit is linked to your personal credit unless you have taken certain steps to avoid this. If you are just starting your business, then the business is essentially an extension of yourself....

As the Fed’s campaign to fight inflation intensifies with the biggest interest rate hikes since 1994, skeptics who include lawmakers and economists are questioning whether getting price increases under control this way is worth a potential cost of millions of lost jobs—and whether it will even work. Some dissenters believe the Fed’s approach, which is to intentionally slow the economy, is misguided and risks snuffing out one of the economy’s few bright spots—the great job market, where there are nearly two open positions for every unemployed job seeker....

While it makes no sense to try to make less money to receive more financial aid, it does make sense to make sure your child’s savings accounts are titled properly. For example, 20% of the assets in accounts owned by the child, such as ​The Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA) accounts, are expected to be used annually toward college costs. However, a max of only 5....

Hiring an Independent Contractor Before you hire an independent contractor, you need to have three important documents: A W-9 form with the person’s contact information and taxpayer ID number,A resume to verify the person’s qualifications, andA written contract showing the details of the agreement between you and the independent contractor.In addition, some businesses require an application form from independent contractors, but this application isn’t the same as an employment application....

Before You Apply If you begin the process of applying and you don’t know answers to some of the sections, you may have to begin over again. It’s best to print out a copy of the application, on IRS Form SS-4, and answer all the questions on this form. If you decide you need help completing the EIN, you can get an attorney to help, or find other help to complete the EIN, including the trickiest part, designating your business legal type....

Counting on High Levels of Appreciation Real estate investors can get into trouble by thinking that what happened before in the real estate market is going to happen again. History, however, is no predictor of the future. You can’t rely on the future to produce the same results. Even if the property has been appreciating at a 12% to 20% rate for several years, counting on that rate to continue is an extremely risky proposition....

There are a variety of reasons to begin or continue saving money. Different people save for different reasons, but in general, havings savings will benefit you in the future, whether you’re avoiding hardship or going after the things you want. Saving money may also be easier if you have a clear goal or purpose for it. Here are several reasons you should save money now. That emergency might be an unexpected car repair, expensive medical bills, or a sudden job loss....

However, there are plenty of ways you can cut your food costs by planning ahead, thinking creatively, and putting in a little extra time and effort. Here are seven tips to help significantly slash your food budget. 1. Shop Smarter Learn to distinguish when something is truly a good deal and when it just seems like one. Just because a name-brand item is on sale, or just because you have a coupon for it, that doesn’t necessarily mean it’s the best bargain....