Adjusted 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. […]
— Read moreDo you have a student loan in which you make payments, some of which is applied to interest accrued on the loan? If so, you may be eligible to deduct some of the interest when you file your federal tax return. Your lender will report the amount of interest you paid using IRS Form 1098-E, […]
— Read moreEach state independently determines their own income tax for residents. Depending on which state you live in, you’ll pay a percentage of the amount you earn at your job to the state government. What are State Income Taxes States can tax your income if you are a resident or have some other significant connection to […]
— Read moreIf you or your dependent is enrolled in undergraduate and graduate school, you may benefit from the Lifetime Learning Credit, which covers up to $2,000 in education expenses. In 2016 the rules for the Lifetime Learning Credit haven’t been altered from other years. Not considering any phase-outs, the credit is still worth 20% of qualifying […]
— Read moreIf you have qualifying education expenses you may be able to deduct them using the American Opportunity Credit. This credit covers the first $2,000 of education expenses that qualify, plus 25% of the next $2,000 for a total maximum credit of $2,500 annually. Who is eligible for the credit? If you pay for qualifying education […]
— Read moreEven if you received unemployment compensation during the year, you may still be able to claim the Earned Income Credit. However, you’ll need to meet a few requirements first. The EIC, as its name suggests, require you to have “earnings”, sourced from the act of providing services in exchange for compensation – for example: employment. […]
— Read moreGoods sold in many of the states have a sales tax imposed in addition to the purchase price. There are certain states that do not institute a sales tax for retail goods, however. No matter which state you purchase items in, sales tax can affect your federal tax return when you file. States Without Sales […]
— Read moreTax credits can be a great way to save some cash when it’s time to file your return. Credits like the Lifetime Learning Tax Credit (LLTC) are different from a deduction because it reduces the amount of taxes you owe, dollar-for-dollar. Deductions only subtract from the amount of income you are taxed on. With credits […]
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