Twenty-five states and the District of Columbia have enacted their own state version of the Earned Income Tax Credit (EITC). Maine is among those who model their state credit after the federal version, in terms of eligibility requirements. Taxpayers can determine their eligibility for the Maine state EITC the same as they do for the […]
— 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 […]
— Read moreWhile retirees may reap state income tax exemptions on public pension distributions and Social Security benefits in some states, the overall trend is that exclusions of state income tax on private pensions are less popular amongst the Great Fifty. Private pensions are fully taxed by the District of Columbia and the following twelve states: Arizona […]
— Read moreWhen it comes to state tax policies, federal legislation exists to protect governmental civil service pensions. Because of this, pensions deriving from state or local governments cannot receive better taxation than Federal civil service pensions. State tax departments are allowed to institute policies that favor their own state pensions over those from another state. The […]
— Read moreAlong with federal income tax, you are required to pay taxes on most income you earn as a resident of your home state. This income tax is assessed under specific regulations, and each state has different rules about what qualifies as taxable income. In twenty-seven of the fifty states and the District of Columbia, Social […]
— Read moreTaking out a home equity loan can give you a little extra cash for things you might need, such as improvements for your home or a little help with college tuition. At tax time, you may wonder if you are eligible for any tax breaks for the interest you paid on the loan. It really […]
— Read moreYou are allowed to deduct state taxes on your Federal income tax return. Additionally, many states allow you to deduct any taxes you paid to other states. So it only seems logical that you should be able to deduct Federal income tax when filing your state return. However, only six of the 41 states with […]
— Read moreSo you finally purchased your home, and are excited to have something to call your own. In addition to wonderful new living space, you also get some pretty great tax breaks as well. In some cases, certain tax incentives can even be applicable to your second home. And if you’ve been in your home for […]
— Read moreAt tax time, determining your resident status might be confusing. Aside from being a four year resident of the state in which you live, there are two other statuses that you may fall under: Part-Year resident and nonresident. A part-year resident has only spent a portion of the tax year within the state, while a […]
— Read moreSo you finally sold your home, and now it’s time to rejoice in having a large burden removed from your shoulders. It’s even better when you’ve made a profit from the sale. Capital Gain When you sell your house for more than what you originally paid, the end result is a capital gain. In most […]
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