It’s that time of year when taxpayers are thinking about how they want to give back, and many taxpayers will want to donate to a charity that means something to them. The IRS has a tool that may help them make sure their donations are as beneficial as possible. Tax Exempt Organization Search on IRS.gov is… Continue reading How taxpayers can make sure their donations are tax-deductible
Category: Tax Deductions
Find the latest updates and information about Income Tax Deductions here!
Who Claims the Kids after Separation: You or Your Ex?
If you are a divorced or separated parent with children, a commonly encountered but often misunderstood issue is who claims the child or children for tax purposes. This is sometimes a hotly disputed issue between parents; however, tax law includes some very specific but complicated rules about who profits from the child-related tax benefits. At… Continue reading Who Claims the Kids after Separation: You or Your Ex?
What Are Exemptions?
The term “exemption” is often one that inspires bewilderment and perplexity among the most intelligent individuals. When filing your personal tax return or even filling out a W-4 for your employer, you may not be sure what exactly an exemption is – and you certainly do not want to ask and look like an idiot. So,… Continue reading What Are Exemptions?
An In-Depth Look At The Tuition And Fees Deduction
There are several ways in which education expenses can be used to decrease your tax burden. In addition to the Hope Credit, the Lifetime Learning Credit, and the student loan interest deduction, there is also a deduction available for tuition and fees related to educational expenses. Although this deduction can not be taken if you… Continue reading An In-Depth Look At The Tuition And Fees Deduction
The Difference Between Deductions And Credits
When filing your personal income tax return, there are primarily two ways to reduce your tax liability: deductions and credits. Although any way to pay Uncle Sam less is greatly appreciated, there are advantages to utilizing different techniques in reducing the amount you pay in taxes. Deductions and credits are actually considerably different creatures and… Continue reading The Difference Between Deductions And Credits
Most Commonly Missed Deductions And Credits
In all the complexity of tax preparation, it is easy to miss a deduction or credit. This is a particular advantage to utilizing a professional tax service because they ask all the questions you may otherwise overlook. Here is a look at some of the most commonly missed deductions and credits. Tuition and Fees Deduction… Continue reading Most Commonly Missed Deductions And Credits
Tax Credits vs Tax Deductions
Tax credits and tax deductions are two different types of tax breaks. Both can lower your tax bill, but they work in different ways. What is a tax deduction? A tax deduction is an expense that you can subtract from your yearly income. Deductions are taken before you calculate how much of your income is taxable. That means you should subtract any tax… Continue reading Tax Credits vs Tax Deductions
Commonly Overlooked Tax Deductions
Taxpayers know that there are tax deductions out there to be utilized to reduce the taxes paid on your income. Most are aware of the common deductions, but there are many deductions that simply get overlooked by most taxpayers. Gifts to charity are a good place to start. Most taxpayers know that when you give… Continue reading Commonly Overlooked Tax Deductions
Tax Benefits for Members of the Military
Military members benefit from a variety of special tax benefits. These include certain nontaxable allowances, non-taxable combat pay, and a variety of other special tax provisions. Here is a rundown on the most prominent of the tax benefits. Service Member Residence or Domicile A frequent question by service members is “What is my state of… Continue reading Tax Benefits for Members of the Military
Standard Deduction vs Itemized Deduction – What’s The Difference?
The Premise It’s one of the most important questions that every American tax filer has to answer: should I itemize or take the standard deduction instead? With the Tax Cuts and Jobs Act of 2017 making some fairly significant changes to the way both standard deduction and itemized deduction work, the question may seem even more complicated.… Continue reading Standard Deduction vs Itemized Deduction – What’s The Difference?