Category Archives: Deductions
Taxpayers can use Schedule A to create an itemized list of deductions which include specific taxes that you were required to pay throughout the year. You can’t deduct taxes that you paid for anyone else, if you weren’t dually responsible for the tax. Taxes that can be deducted include: State and local income tax Contributions […]
— Read moreWhichever method your spouse choses for taking deductions, you’ll have to follow suit, even if you file separately. If one of you opts to itemize your deductions, the other will not qualify for a standard deduction and ill also have to itemize. It possible that you can claim a separate return with itemized deductions that […]
— Read moreYou may be able to deduct some expenses incurred from a work-related move. Whether or not you itemize deductions, you may qualify to deduct some of these expenses if you meet the following two conditions: Your new job has increased your commute from your old home by over 50 miles. This means that there has […]
— Read moreMedical expenses are defined as any costs related to diagnosing, curing, mitigating, treating, or preventing disease. These services can affect any functionality of the body. Expenses also include monies paid to doctors, dentists, surgeons, and other medical staff who provided legal medical care, as well as the cost of any supplies, equipment, or devices necessary […]
— Read moreChosing to itemize your deductions at tax time can prove beneficial in many ways. When you itemize, you list all of your expenses and amounts paid on Schedule A of Form 1040 when you file your tax return. These expenses can range from medical or dental care and state or local income tax, to mortgage […]
— Read moreWhen you complete Schedule A for your federal tax return, you are able to deduct any home mortgage interest in two categories: Loan interest for monies used to significantly improve a primary or secondary residence, which is backed by the property. The loan must not exceed $1,000,000. Loan interest that is secured by your home, […]
— Read moreSome itemized deductions have different amount limitations, depending on the type of deduction. Generally, the limits are figured on a scale based off a percentage of the taxpayer’s adjusted gross income (AGI). In order to determine what you can deduct, you will have to subtract the corresponding percentage of your AGI from the total amount […]
— Read moreUsing your personal car for business reasons can lead to a deduction come tax time. You may qualify to deduct the actual operating expenses or you can opt to take the standard mileage rate of deduction. Remember though, you can’t deduct expenses you incur while commuting back and forth to work. You may also be […]
— Read moreWhether you’re settling into your first place, or upgrading to somewhere new, buying a new home is a big moment in life. Most likely, upon finalizing the purchase of your new property, you paid some form of “closing costs” or “Settlement fees” in addition to the price of the home. Generally, the seller and you […]
— Read moreSeveral federal tax provisions have expired as of November 2013, and Congress has yet to respond to the issue. While the public waits for Congress to approve extender legislation, which probably won’t happen until late December at the earliest, there are a few changes that will significantly impact taxpayers filing for 2014. Industry specialists suggest […]
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