If you work from home, you should learn the rules for how to claim the home office deduction. Starting in 2013, there is a simpler option to figure the deduction for business use of your home. The new option will save you time because it simplifies how you figure and claim the deduction. It will […]
Continue readingIf you are an independent contractor or run your own business, there are a few basic things to know when it comes to your federal tax return. Following are six tips you should know about income from self-employment: 1. Self-employment income can include income you received for part-time work. This is in addition to […]
Continue readingTaking money out early from your retirement plan may trigger an additional tax. Following are seven things from the IRS that you should know about early withdrawals from retirement plans: 1. An early withdrawal normally means taking money from your plan before you reach age 59½. 2. If you made a withdrawal from […]
Continue readingWhen you file your tax return, you usually have a choice whether to itemize deductions or take the standard deduction. Before you choose, it’s a good idea to figure your deductions using both methods, then choose the one that allows you to pay the lower amount of tax. The one that results in the higher […]
Continue readingIf you lose your job or your employer lays you off, you may be able to get unemployment benefits. The payments may be a welcome relief, but you should know that they are taxable. Here are 5 important facts from the IRS about unemployment compensation: 1. You must include all unemployment compensation […]
Continue readingThe health care premium tax credit can help make purchasing health insurance coverage more affordable for people with moderate incomes. To be eligible for the credit, you generally need to satisfy three rules.
Continue readingMany people ask me every tax year about medical expense deductions. Below is an excerpt from the IRS explaining in more detail about claiming medical and dental expenses. Deducting Medical Expenses (Dental included) If you plan to claim a deduction for your medical expenses, there are some new rules this year that may affect your […]
Continue readingYear end can be a complicated time for many tax payers. We are usually scrambling around trying to figure out what tax moves we need in order to file our returns. This includes looking for receipts, trying to figure out (guess) if an expense counts as a deduction, wondering if we can claim our neighbors […]
Continue readingTaxpayers have two credits available to help offset the costs of higher education, by reducing their income tax. These credits are the American Opportunity Credit and Lifetime Learning Credit, also referred to as education credits. The requirements for taking these credits depend on: • the taxpayer’s filing status and AGI or MAGI […]
Continue readingThere are two types of exemptions: Personal exemptions for taxpayer and spouse Dependency exemptions for dependents Each exemption reduces the income that is subject to tax by the exemption amount. In 2012, the exemption amount is $3,800. Taxpayers cannot claim an exemption for a person who can be claimed as a dependent on another […]
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