Category Archives: Deductions

Medical and Dental Expenses

New rules apply this year to taxpayers who want to deduct any type of medical expenses from their tax return. These new rules may affect your return and before you file you should be aware of them. If you seek deductions for your medical or dental expenses, familiarize yourself with the following guidelines. Gross adjusted […]

Tax Donations

Do you know that many donations you make to the charity can be deducted from tax? That’s right, you can turn your household goods into a tax benefit that you no longer need. So, as you walk into the back of your closet, keep track of all the donated items. You ‘re responsible for reporting […]

Disabled taxpayers who wish to deduct their medical expenses at tax time, generally must follow a unique set of rules to do so. Expenses related to the disability that fall under the category as necessary and ordinary business expenses include: Those necessary for you to perform your work in a satisfactory manner Goods and services […]

Education Savings Bonds and Taxes

Qualified U.S. Savings Bonds generate interest, which isn’t required to be included in your income at tax time, if you used the bond to pay for certain higher education expenses. Additionally, that interest isn’t subjected to any state or local income tax. Note: You can’t use the same expenses to claim the interest exclusion for […]

Deducting Job Search Expenses

Many people don’t know they can write off expenses related to searching for a job, as its not a common deduction. That’s likely because there are specific rules regarding what is eligible for deduction and what isn’t. First, expenses must be incurred while searching for a job within your current occupation. You can’t seek employment […]

What is a 529 Plan?

A 529 plan is maintained by the state to help residents save for college. You aren’t eligible to deduct contributions made to a 529 plan, but your contributions will increase tax-free for as long as it remains saved in the plan. Even if you use the money for qualified educational expenses, earnings continue to be […]

Form 5498

Saving for retirement with an IRA or other tax-advantaged account will generate a Form 5498 from your financial institution at the beginning of tax time. Your financial institution also sends the IRS a copy of the form, which documents how much you contributed to your IRA during the year. Information Reported The Form 5498 reports: […]

Student Loan Interest Deduction for 2017

Whether you’re in college currently, or have entered repayment of your student loans, every penny can matter. Maximize your tax refund by taking all the deductions you qualify for, including student loan interest. You may be eligible to deduct up to $2,500 from your taxable income if you’ve paid interest on your student loans. For […]

Education expense deductions can be beneficial to student taxpayers or their parents, however, knowing what qualifies as an appropriate expense is important. As the taxpayers in the next situation soon learned, even if you spend significant time educating yourself in various topics, if the expense is not deemed ordinary and necessary, it will be categorized […]