Monthly Archives: March 2015
When you complete Schedule A for your federal tax return, you are able to deduct any home mortgage interest in two categories: Loan interest for monies used to significantly improve a primary or secondary residence, which is backed by the property. The loan must not exceed $1,000,000. Loan interest that is secured by your home, […]
— Read moreSome itemized deductions have different amount limitations, depending on the type of deduction. Generally, the limits are figured on a scale based off a percentage of the taxpayer’s adjusted gross income (AGI). In order to determine what you can deduct, you will have to subtract the corresponding percentage of your AGI from the total amount […]
— Read moreThe federal government has set up education credits to help Americans who seek higher education. These credits consider “qualified higher education expenses” such as tuition and course fees. Boarding, meal, transportation, and other fees do not qualify as a credit expense. Additionally, money paid for a course which doesn’t apply credit to the degree sought […]
— Read moreIf you submit a tax return and are expecting a refund, you may experience a delay, or even an alteration of your refund, if certain conditions are present. The circumstances that may delay a refund are: You owe individual or business taxes for previous years, which can offset any refund amount You owe child support […]
— Read moreYou may be eligible for a tax credit if you are responsible for expenses related to the care of a child under the age of 13, or a dependent or spouse who is mentally or physically unable to care for themselves. This tax credit is for any costs you incur in relation to their care […]
— Read moreUsing your personal car for business reasons can lead to a deduction come tax time. You may qualify to deduct the actual operating expenses or you can opt to take the standard mileage rate of deduction. Remember though, you can’t deduct expenses you incur while commuting back and forth to work. You may also be […]
— Read moreYou can use the following guide to understand what each box of your W-2 reports. Box 1- reports all wages, tips, bonuses, prizes, and compensatory benefits. Not included in this income are elective deferrals for retirement funds, payroll deductions, or benefits before tax. Box 2 – indicates the amount of money withheld from your pay […]
— Read moreTaxpayers who seek a loan for the purchase of a home are likely aware of the tax savings that come with points deductibility. However, refinancing may afford you the same tax breaks. Typically, refinancing requires the homeowner to subtract loan points over the loan’s term. If any portion of the money received from refinancing is […]
— Read moreIf you want to claim your child as a dependent, in most case the child will have to have lived with you for most (over 50%) of the year. Otherwise, the person with whom the child resided, in most cases the parent with legal custody, is the person entitled to the dependent child claim. You […]
— Read moreMarried couples who file a joint tax return are typically subject to the best tax rates, as well as those who are eligible to file under the qualifying widow(er) status using the same rates as married couples. Those who file separately from their spouse under a married filing separately status receive the highest tax rates, […]
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