Can't itemize? There are still tax breaks for you. Tip Category: Deductions A common misconception in tax filing has been that if you use the standard deduction versus itemizing your deductions you have few additional benefits available to reduce your tax bill. This is often not the case. Standard or Itemize? Every taxpayer can take the standard …
Author: Velisa Bookkeeping Services LLC
Understanding Tax Terms: Basis
Covering the bases on basis Tip Category: Miscellaneous Basis is a common IRS term, but probably does not enter into your everyday conversation. This IRS term is important because it impacts the taxes you pay when you sell, exchange or give away property. What basis is The IRS describes basis as: The amount of your …
Social Security: Know the Variables
It's never too early to understand how it works Tip Category: Retirement Determining the best time and best way to take Social Security benefits can make a big difference in the amount you receive over the balance of your lifetime. What is prudent, is understanding how it works and, if appropriate, running calculations prior to making …
PII. Know it. Protect it.
The importance of personally identifiable information Tip Category: What's New Personally Identifiable Information, or (PII), is in the spotlight at the IRS, the Federal Trade Commission (FTC) and the Department of Labor (DOL), plus other federal agencies. Moving beyond the buzz and into understanding what it means for you relates directly to protecting your personal information …
Don’t Fall for These 5 Audit Myths
Tip Category: The Audit When it comes to the perception of IRS audits, conjecture reigns supreme. The combination of the complex tax code and a government agency with the full authority to enforce it leads to some pretty wild ideas. Here are five audit myths that, if believed, can cost you during an audit: Myth 1: Audits …
Turning Your Hobby Into a Business
Tip Category: Deductions You’ve loved dogs all your life so you decide to start a dog training business. Turning your hobby into a business can provide tax benefits if you do it right. But it can also create a big tax headache if you do it wrong. One of the main benefits of turning your hobby …
Understanding Tax Terms: Wash Sales
Surprise! Your stock loss is not deductible. Tip Category: Your Income You may be considering booking stock losses due to recent market drops. Selling losers can be a great strategy when these losses can offset other gains and up to $3,000 of your ordinary income. However, there is a little-known rule called the wash sale rule …
Five Big Tax Mistakes
Don't let them happen to you! Tip Category: Planning Every year taxpayers are hit with tax surprises that could be avoided if they just knew the rules. Here are five big ones that are easy to avoid with some simple planning. Mistake #1. Withholding too little. This results in a tax surprise when filing your income tax …
Clues You are About to be Scammed
Tip Category: Miscellaneous Mention the word IRS and everyone's blood pressure tends to go up a bit. Unfortunately, thieves know this too and often use the IRS as a threat to get you to fall for their latest scam. Every year the IRS mentions their dirty dozen tax scams and repeatedly tries to keep us all …
An Option to Deduct Summer Activity Expenses
Don't forget to save receipts Tip Category: Deductions The kids are out of school, which means now is a great time to review the rules to deduct eligible summer activities on your tax return. Tax deductible related daycare expenses through the use of the Child and Dependent Care Credit can be a great opportunity to …
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