Monthly Archives: February 2015

Deductions, General Filing

What is the Form 1098?

February 18, 2015

At tax time, if you have a mortgage loan on your home you should expect to receive a Form 1098 (Mortgage Interest Statement) from your lender. The Form 1098 reports the amount of interest you paid throughout the year. You aren’t required to file this form with your taxes, because a copy will automatically be […]

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Credits

What is the 1095-A?

February 17, 2015

Any individual who bought a health care plan through the Health Insurance Marketplace can expect to find a Health Insurance Marketplace Statement, also known as a Form 1095-A, in their mailbox by January 31,2015. Many Americans have chosen to take a premium tax credit in advance, which will help subsidize their monthly premiums. This credit […]

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Income

Determining the Taxation of Settlements

February 16, 2015

If you’ve been awarded money or damages through a court of law, it’s important to note whether the funds are subject to taxation as income. In order to determine if settlements or judgments need to be included in your income, you have to look at the individual item that the money is taking the place […]

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As far as the IRS is concerned, same-sex couples who are lawfully married are thereby considered “married” for all tax reasons, regardless of the law where you currently reside. Effective for the 2013 tax year, all same-sex married couples were subject to the same tax implications as other married couples. The IRS recognizes same-sex marriages […]

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Dependents

Who is a Qualifying Relative?

February 14, 2015

The person for whom a taxpayer claims a dependency exemption for is called a dependent. A dependent must be someone other than the taxpayer or their spouse. There are two different distinctions of dependents: qualifying child and qualifying relative. A dependent must be one of the two classifications, as well as meeting a few other […]

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Dependents

Who is a Qualifying Child?

February 13, 2015

Taxpayers are eligible to claim an exemption for dependents in two separate categories: qualifying child and qualifying relative. By taking a dependent exemption you can lower your taxable income by a specified amount equal to that of the exemption. For example, since the dependency exemption for 2014 is $3,950, an eligible taxpayer can deduct this […]

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If you qualify to file your tax return using the head of household status, you may find some benefit to doing so. Generally, head of household status has a lower tax rate ad a higher standard deduction for filers than either single or married filing separately. There are five different filing statuses that you can […]

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There are five different filing statuses that you can use when completing your tax return. The requirements are different for each, and your ability to claim certain deductions changes with each one, so you need to examine each option carefully.

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Did you know that in some cases, federal tax guidelines allow you to claim children as dependents up to 23 years of age? Typically you can claim children under 19 years old, although there are different guidelines for full-time students. Any child under the age of 24 that is a full-time student may be claimed […]

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States

Utah’s State Income Tax

February 9, 2015

Unlike many other states, Utah doesn’t apply different rates of taxation to varying income levels. Instead, the state collects a single tax of 5% on all taxable income. Many Beehive State taxpayers can claim newly instituted credits, including one for retirement and one for taxpayers. These credits are non-refundable.  Tax returns in the state of […]

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