Category Archives: Deductions
There are nine different states that don’t tax wages. For residents of the other fourth-one, tax season requires the filing of both a federal income tax return and a state return. While paying taxes to the state may not be ideal in your mind, there’s one highlight: State taxes may be able to reduce your […]
— Read moreIf you use your car for business purposes, the IRS allows you to deduct expenses incurred from your taxable income. You will have to itemize your deductions, which is done on Form 2106 (employee Business Expenses), if you were reimbursed by your employer. Form 2106-EZ can be used if you didn’t receive any form of […]
— Read moreIf you work for yourself, whether through contracting, freelancing, or other self-employed means, you’re entitled to a variety of tax deductions that can save you money when you file your tax return. And as an independent worker, saving money is always welcome. Here are the top five tax deductions to be aware of. Your Home: […]
— Read moreYears of hard work will pay off in retirement, or at least that’s the goal. One thing that’s for sure is retirees are often entitled to special tax benefits. After age 50, the IRS loosens its grip on your money, allowing you a little bit of room to maneuver. The sweet spot is after age […]
— Read moreDeductions are an excellent way to recoup some of your expenses incurred throughout the year. How you account for those expenses, however, can make a big difference on your tax bill. Taxpayers have two methods of claiming deductions- itemizing or taking the standard deduction – and they must choose one to use when filing their […]
— Read moreOne mortgage point is equal to 1% of your loan paid upfront at closing in an effort to stick you’re a lower interest rate. While it isn’t applied to the principle of your loan, it may be beneficial down the road. Mortgage points paid are deductible in the following cases: The loan secures your primary […]
— Read moreTaking out a home equity loan can give you a little extra cash for things you might need, such as improvements for your home or a little help with college tuition. At tax time, you may wonder if you are eligible for any tax breaks for the interest you paid on the loan. It really […]
— Read moreSo you finally purchased your home, and are excited to have something to call your own. In addition to wonderful new living space, you also get some pretty great tax breaks as well. In some cases, certain tax incentives can even be applicable to your second home. And if you’ve been in your home for […]
— Read moreTaking as many deductions as you are legally entitled to is a great idea, especially if you want to maximize your tax benefit. However, it may not be as obvious as you’d think when it comes to taking deductions legally. Avoid the following deductions, as they are often used in error. Weight Loss Deduction: You […]
— Read moreGiving to charity is a good thing, especially during times of need, such as a disaster response. However, do you know how giving to charity affects you at tax time? There’s a few things you should consider: Itemizing You need to itemize your deductions via a Schedule A in order to deduct your charitable contributions. […]
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