I recently discussed payment terms with a new vendor and was told my company’s credit rating was good. I didn’t know my company had a credit rating. What is it? A company’s credit rating is based on its “trade” credit track record. Trade credit is the credit extended by vendors and suppliers when they give … Read more
I’m having an argument with my brother about whether Medicare will cover the cost of nursing home care for our mother. He says it will, I say it won’t. Who’s right? It depends. It’s not that easy to qualify for coverage. Generally, if someone with Medicare has been hospitalized for at least three days for … Read more
I know I have to leave money in my Roth individual retirement account (IRA) for at least five years before I can withdraw account earnings tax free for a first-time home purchase. I have two Roth IRAs at two different financial institutions. How does the five-year clock work in a situation like mine? You start … Read more
What is the difference between a tax deduction and a tax credit? A tax deduction reduces the amount of your income that is subject to tax. For example, if you earn $80,000, deducting $10,000 of expenses would leave you with $70,000 of taxable income. A tax credit is a dollar-for-dollar reduction in tax liability. So, if … Read more