Q&A – Company Credit Ratings

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

Q&A – Will Medicare Cover the Cost of Nursing Home Care?

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

Q&A – Withdraw account earnings after five-years

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

Q&A – What is the difference between a tax deduction and a tax credit?

What is the difference between a tax deduction and a tax credit? A┬átax 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