Monthly Archives: March 2017

Can Sales Tax Be Deducted

Goods 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 […]

So You Think You Can Claim A Dependent?

Claiming a dependent is a great way to save some cash on your taxes, though you need to be sure that the person you claim actually qualifies as a dependent. There are several rules for claiming dependents on your tax returns, including requirements for qualifying children or relatives. The following information will help you determine […]

Tax 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 […]

The Schedule EIC: Earned Income Credit

The 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 […]

Married? File Jointly or Separately

Taxpayers 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 […]

Claiming Gambling Losses at Tax Time

You 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 […]

Child Tax Credit

Having 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, […]

Separation and Divorce at Tax Time

Couples 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 […]

Child and Dependent Care: Form 2441

If you pay for the care of either a child or a dependent, you may qualify for a credit at tax time. Using Form 2441, taxpayers can claim their credit, however there are a variety of requirements you must meet first, so it’s important to understand all the rules. To claim the credit, you must […]

Understanding Tax Credits

Tax credits reduce the amount of income tax you owe to the government, both federal and state dollar-for-dollar. Tax credits are offered as a reward for stimulating the economy, the environment, or other governmental concerns in a beneficial way. Most tax credits cover expenses that are paid during the year, however there are certain requirements […]