Taxable Income Taxable income is any earnings such as wages, interest and dividends that are subject to taxation. When filling out a tax return, taxable income refers to the amount of earnings after subtracting adjustments, deductions and exemptions. This amount will be used to calculate your taxes owed. Tax Bracket There are seven different tax […]
— Read moreTax free income is money that isn’t subject to income tax like other forms of earnings. There are a variety of different things that can be counted as tax-free income, including: Auto rebates Child support payments Disability payments Combat pay Lawsuit damages for personal injury cases Life insurance dividends up to the premium amount Casualty […]
— 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 begin preparing your taxes, it won’t be long before you begin to question who you can claim as a dependent. It’s important to know who qualifies, because each dependent can save you a little extra by way of an exemption – a set amount deducted directly from your taxable interest. The dependent exemption […]
— Read moreHaving a child is an exciting time in a parent’s life, from birth right up until – tax time? That’s right, children can save you money when filing your federal income tax return. If you’re the parent of a new child, you’ll be happy to know that it doesn’t matter what day throughout the year […]
— 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 moreAlthough most Americans are required to file a tax return, there are cases where some taxpayers aren’t required to file. However, it may be in your best interest to file, even if you don’t necessarily have to. If you made estimated tax payments or had federal income tax withheld from your paycheck, you may be […]
— Read moreCollege students are eligible for some important tax credits that can benefit you in a big way when you file your return. Whether you’re enrolled yourself, or you’re the parent of a college student, you can claim different educational deductions and credits. There are two different types of educational tax credits, and each one is […]
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