Category Archives: Deductions
Do you own your own home? If so, are you aware of the deductions you can take at tax time? There are three major deductions available to homeowners when they file a return that can mean big savings when it comes to taxes. Mortgage Interest: if you have a mortgage for either your first or […]
— Read moreHome Office Do you work from home? Is there a special part of your home that you use exclusively for business on a regular basis? If your home office is the place where you meet clients, customers, or other business related persons, you may qualify to deduct expenses related to the operating costs. Generally, expenses […]
— Read moreStandard Deduction You can take this deduction, which reduces the amount of income which you are taxed on, as an alternative to itemizing all of your expenses. The standard deduction is variable depending on your filing status. In 2015, the standard deduction is: Single or married filing separately: $6,300 Married filing jointly: $12,600 Head of […]
— Read moreDonating items and other noncash contributions to a charitable organization can net you a deduction up to the full market value of the assets, as long as they were in your possession for longer than a year prior to the donation. If you owned the asset for less than a year, then the deduction is […]
— Read moreRecently, Congress decided that sales-tax deductions should be a tax break that you are allotted permanently. However, it’s often forgotten about, and underutilized. As a taxpayer, if you chose to itemize your deductions on a Form 1040, you can do one of two options. You can either: Deduct state and local income taxes, or; Deduct […]
— Read moreMortgage Interest Mortgage interest of up to $1 million in debt, incurred while purchasing or building your primary residence or second home is eligible to be deducted at tax time. If you borrow from a home-equity line of credit, any interest you pay on up to $100,000 can be deducted, no matter how you spend […]
— Read moreDid you know that you can deduct expenses incurred from job searching? However, the IRS has strict guidelines regarding what is eligible for deduction and what isn’t. All job search expenses must be within your current industry. Looking for a new occupation or a new line of work will not qualify for deduction. The following […]
— Read moreOnce you graduate, if you opted to finance your education, you’ll be responsible for paying back any student loans. While you won’t see a direct tax break in accordance with student loan repayment, you can deduct interest that you’ve paid, up to $2,500. Student loan interest is deducted through Form 1040, on line 33. Using […]
— Read moreDeducting expenses you racked up during your education can offer a little bit of a break at tax time. Certain educational expenses qualify while other do not. The general rule is that “qualifying” educational expenses include money you paid for tuition and other fees for an eligible student. While that seems like it covers a […]
— Read moreWhen you’re ready to file your return, you may be interested in knowing how you can save money just by being a parent. The sheer act of raising children can reduce the amount of taxes you owe. The following eight options are available to parent taxpayers: Dependent Deduction: Generally, you can claim your child as […]
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