Employees who are required to wear a specific uniform to work may qualify for a deduction at tax time as an unreimbursed employee expense. However, as the next situation proves, the required clothing must not be suitable for wear outside of the workplace. The Situation Ralph Lauren Corporation sells, markets, and designs a wide range […]
— Read moreEducational tax credits can help taxpayers save when they file their return if they incurred any education-related expenses during the year. However, as the student in the following situation discovered, educational tax credits are based on what you actually paid, not what was billed. The Situation In 2010, the full-time Hampton University student registered for […]
— Read moreUnknowingly engaging in fraudulent transactions or learning you are the victim of a scam is never a good thing. When you’ve lost some of your hard-earned money due to theft, fraud, or a scam, you may be able to deduct the amount at tax time. However, state laws have three criteria that must be met […]
— Read moreFor purposes of deductions and exemptions, a custodial parent can claim a child as a dependent in many cases. The tax law has very specific rules about who can qualify as a custodial parent. The following describes a specific situation in which the rules of custodial parents needed to be examined closely to determine which […]
— Read moreWhen planning for the next tax year, taxpayers should keep accurate records and receipts of any expenses they plan to deduct. However, if no records exist, the Cohan Rule may benefit the taxpayer in such that it states expenses may be reasonably and credibly estimated. The taxpayer in the next situation benefited from the Cohan […]
— Read moreOnce known as the Hope College credit, the American Opportunity tax credit can save taxpayers up to $2,500 on their 2016 return. Remember: A tax credit is a dollar-for-dollar reduction of your taxable income. In theory, the AOTC translates to $2,500 from the government each year for each qualifying college student in your household. While […]
— Read moreIf your spouse and children are U.S. citizens, it is easy to claim them on your tax returns. You just provide their name and Social Security numbers. It can be a bit more difficult to claim a non-U.S. citizen spouse or children on your return. But, you’re still able to claim them and take advantage […]
— Read moreAfter 2016, the Tuition and Fees Deduction will expire. Currently, you are eligible to deduct up to $4,000 from your taxable income for tuition expenses that you paid for either yourself, your spouse, or your dependents. Expenses paid in 2016 can be deducted if they were paid for one of the following purposes: Education during […]
— Read moreAdjusted Gross Income can impact the credits and deductions you are able to claim, this can lead to a reduction in the amount of taxable income reported on your tax return. You are probably paying more attention to your taxable income then your adjusted gross income when you are preparing your tax return. You should […]
— Read moreThe amount of payments you receive through a year either from a single person or a entity are reported on the 1099-MISC for the year your provided them with service The IRS requires that any company or person who makes payments to report them on a Form 1099-MISC to both the IRS and the payee. […]
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