Category Archives: Deductions
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 […]
— Read moreMeals that are purchased for work or business purposes can either be fully deductible, or only 50% deductible depending on what the meals are for and a few other requirements. 50% Deductible During meetings, meals purchased for employees, stockholders, directors, agents and other business personnel are deductible at 50% of the actual cost of the […]
— Read moreAre you required to wear certain clothes to work to maintain a specific appearance? If so, have you ever wondered if you can count the expensive clothing you buy to wear to work as a business expense? Many employees think that they can consider work attire to be the same as a uniform, and therefore […]
— Read moreIf you own your own home and have a mortgage, you likely received a document at tax time from your lender. Known as the Form 1098, it totals the amount of interest you paid during the last tax year on your mortgage. The IRS must receive a copy of this form from your lender per […]
— Read moreThere are nine different states that don’t tax wages. For residents of the other fourth-one, tax season requires the filing of both a federal income tax return and a state return. While paying taxes to the state may not be ideal in your mind, there’s one highlight: State taxes may be able to reduce your […]
— Read moreIf you use your car for business purposes, the IRS allows you to deduct expenses incurred from your taxable income. You will have to itemize your deductions, which is done on Form 2106 (employee Business Expenses), if you were reimbursed by your employer. Form 2106-EZ can be used if you didn’t receive any form of […]
— Read moreIf you work for yourself, whether through contracting, freelancing, or other self-employed means, you’re entitled to a variety of tax deductions that can save you money when you file your tax return. And as an independent worker, saving money is always welcome. Here are the top five tax deductions to be aware of. Your Home: […]
— Read moreYears of hard work will pay off in retirement, or at least that’s the goal. One thing that’s for sure is retirees are often entitled to special tax benefits. After age 50, the IRS loosens its grip on your money, allowing you a little bit of room to maneuver. The sweet spot is after age […]
— Read moreDeductions are an excellent way to recoup some of your expenses incurred throughout the year. How you account for those expenses, however, can make a big difference on your tax bill. Taxpayers have two methods of claiming deductions- itemizing or taking the standard deduction – and they must choose one to use when filing their […]
— Read moreOne mortgage point is equal to 1% of your loan paid upfront at closing in an effort to stick you’re a lower interest rate. While it isn’t applied to the principle of your loan, it may be beneficial down the road. Mortgage points paid are deductible in the following cases: The loan secures your primary […]
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