If you have qualifying education expenses you may be able to deduct them using the American Opportunity Credit. This credit covers the first $2,000 of education expenses that qualify, plus 25% of the next $2,000 for a total maximum credit of $2,500 annually. Who is eligible for the credit? If you pay for qualifying education […]
— Read moreEven if you received unemployment compensation during the year, you may still be able to claim the Earned Income Credit. However, you’ll need to meet a few requirements first. The EIC, as its name suggests, require you to have “earnings”, sourced from the act of providing services in exchange for compensation – for example: employment. […]
— Read moreGoods sold in many of the states have a sales tax imposed in addition to the purchase price. There are certain states that do not institute a sales tax for retail goods, however. No matter which state you purchase items in, sales tax can affect your federal tax return when you file. States Without Sales […]
— Read moreTax credits can be a great way to save some cash when it’s time to file your return. Credits like the Lifetime Learning Tax Credit (LLTC) are different from a deduction because it reduces the amount of taxes you owe, dollar-for-dollar. Deductions only subtract from the amount of income you are taxed on. With credits […]
— Read moreThe Earned Income Tax Credit is refundable, allowing eligible low to moderate income workers the opportunity to reduce their taxable income. If its reduced below zero, the taxpayer may receive a refund of the excess amount of the credit. The credit is adjusted each year to account for the cost of living, as well as […]
— Read moreTaxpayers who are married have two options for filing their tax returns: either jointly or separately. The IRS offers incentives in the form of different tax breaks to couples who file together. While it’s generally most advantageous for married couples to file a joint return, there are some situations where filing a separate return may […]
— Read moreYou can deduct losses you incurred from gambling on your tax return, but only up to the amount of your winnings. Since gambling loss deductions are dependent on your winnings, you’ll need to report all the money you win from gambling to the IRS. This means you’ll have to include it in your taxable income […]
— Read moreHaving children can mean you get some significant savings at tax time, relevant to your income and how old your children are. The child tax credit is worth as much $1,000 per child under the age of 17 by the end of the calendar year. Unlike deductions, credits reduce the amount you owe in taxes, […]
— Read moreCouples who are separated have decisions to make at tax time, which can affect the amount you get back in a refund, or how much you have to pay. You are able to make some of these decisions on your own, however there are a few that require both parties to be on the same […]
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