Category Archives: Deductions
Mortgage points refer to certain fees or costs you’ve paid in order to get a home mortgage. Basically, points are a type of interest that you’ve prepaid, and may be deductible as interest if you chose to itemize your deductions when filing your tax return. If you are able to deduct all of the interest […]
— Read moreThere are two methods you can use to deduct expenses at tax time: you can either itemize or utilize the standard deduction. Deductions decrease your taxable income, lowering your tax threshold. The standard deduction amount is different depending on factors such as filing status, taxpayer age, and income levels, and is revised annually. There are […]
— Read moreDid you know that as an employee you could probably deduct your current work-related costs as an itemized deduction (subject to limitations) in Form 1040, Schedule a, Itemized Breaks? Though travelling expenses are not normally deductible, you may be able to claim some local commuting expenses. Deductible local travelling charges consist of the normal and […]
— Read moreIf you required additional training, or attended seminars for your work, you may be able to deduct any expenses you paid throughout the tax year when you file your return. These expenses have to have been incurred in order to maintain or improve your skills and performance at your job, or is required by law […]
— Read moreAre you a student? Paying for your education can be taxing, especially if you’ve resorted to student loans. However, you may be eligible to deduct interest you paid on certain student loans. Typically, you are able to deduct either $2,500 or the actual amount of interest you paid, depending on which is less. The deduction […]
— Read moreWe do what it takes for the job, right? Even if it means changing locations. If you’ve recently moved as a result of a change in your job or business location, you may qualify to deduct a reasonable amount of moving expense. You cannot deduct meal expenses, but other moving costs may be deducted if […]
— Read moreBad debt accrues when someone owes you money and you don’t have a way to collect it. In order to deduct bad debt at tax time, you have to have previously included the debt amount in your income. Taxpayers are not able to deduct expected amounts that they never received, such as rent or payment […]
— Read moreFor the 2014 tax year, filers can claim exemptions for three different categories, worth $3,950 each, if they meet the requirement for each exemption. Also, taxpayers who are high-income may be subject to a phase-out rule, in which these exemptions do not apply. Yourself: Unless you are claimed as a dependent on someone else’s tax […]
— Read moreIf you travel for work, and you are employed by someone other than yourself, it may be more beneficial to have your employer reimburse any costs you incur while traveling than to try to deduct them at tax time. Deductible expenses occur when you are away on a work related trip outside of your main […]
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