Tag Archives: Itemized Deductions
Do you work as a manager of a business or organization, and receive income for your services? If so, you will be required to report your earnings to the IRS and likely file a tax return. You may be able to lessen the amount of taxes you have to pay at tax time by claiming […]
— Read moreAs a hair stylist, your employer is required to supply you with a Form W-2, Wage and Tax Statement. You may also receive additional income in the form of tips, which will be reported with your regular income in Box 1. You don’t have to report tips less than $20 each month to your employer, […]
— Read moreSimilar to other professions, clergy also receive a Form W-2, Wage and Tax Statement, which indicates salary received as well as housing allowances. Additional income forms, such as honoraria and fees for baptisms, funerals, marriages, and other private masses are considered self-employment. The wages are reported on Schedule C, Profit or Loss from Business. In […]
— Read moreIf your job or business requires you to use your own personal car, you may be able to deduct the entire operation costs up to certain limits. If the car is used for both business and personal use, however, you can only deduct costs relating to the business use. Generally, the amount of deduction is […]
— Read moreIn order to deduct qualifying expenses as miscellaneous itemized deductions, they have to exceed 2% of your adjusted gross income. There are generally three different costs that fall under miscellaneous deductions, and therefore are subject to the 2% limitation: unreimbursed employee expenses, tax preparation costs, and certain other expenses. There are some unreimbursed employee expenses […]
— Read moreInterest is usually charged on money you borrowed. There are certain situations where interest can be claimed either as a deduction or a credit. In order to deduct interest, you have to make sure it qualifies and see how you should deduct it. Interest that you have prepaid need to be deducted throughout the tax […]
— Read moreTravel expenses are the ordinary and necessary expenses of traveling for your company, profession or job. Typically, employees deduct these expenses by using Form 2106, Employee Business Expenses, or Form 2106-EZ Unreimbursed Employee Business Expenses, and Form 1040, Schedule A, Itemized Deductions. You can’t deduct expenses that are unordinary or excessive or those that are […]
— Read moreMortgage points refer to certain fees or costs you’ve paid in order to get a home mortgage. Basically, points are a type of interest that you’ve prepaid, and may be deductible as interest if you chose to itemize your deductions when filing your tax return. If you are able to deduct all of the interest […]
— Read moreThere are two methods you can use to deduct expenses at tax time: you can either itemize or utilize the standard deduction. Deductions decrease your taxable income, lowering your tax threshold. The standard deduction amount is different depending on factors such as filing status, taxpayer age, and income levels, and is revised annually. There are […]
— 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 […]
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