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 moreThe federal government has set up education credits to help Americans who seek higher education. These credits consider “qualified higher education expenses” such as tuition and course fees. Boarding, meal, transportation, and other fees do not qualify as a credit expense. Additionally, money paid for a course which doesn’t apply credit to the degree sought […]
— Read moreIf you submit a tax return and are expecting a refund, you may experience a delay, or even an alteration of your refund, if certain conditions are present. The circumstances that may delay a refund are: You owe individual or business taxes for previous years, which can offset any refund amount You owe child support […]
— Read moreYou may be eligible for a tax credit if you are responsible for expenses related to the care of a child under the age of 13, or a dependent or spouse who is mentally or physically unable to care for themselves. This tax credit is for any costs you incur in relation to their care […]
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