There are many tax benefits built into home ownership. Here's a summary of the most common. It may be worth a quick review to ensure you are maximizing your home ownership tax benefits. Common deductions Interest deductibility. Mortgage interest is one of the few allowed deductible interest expenses. It is limited to the first $750,000 dollars …
Category: Deductions
Vehicle Donations: Do it Right!
A little mistake could cost you plenty At the end of the year you will be inundated with commercials to donate a vehicle to charity. While it is one of the biggest contributions a taxpayer can make, if not done carefully, the tax deduction of a donated vehicle could be a lot lower than you …
Research Your Preferred Charities
Summertime often sees an increase of natural disasters, with hurricane season soon after. You may want to help, but you want to make sure the organizations are not a scam. And while fewer taxpayers itemize deductions, those that do want to ensure there deductions are legitimate. Here are some tips on how to research these …
Maximize the Child & Dependent Care Credit
Tip Category: Deductions The Child & Dependent Care Credit provides a reduction in taxes to offset the cost of daycare when you are employed. The maximum amount of the credit is $3,000 for one dependent or $6,000 for two or more qualifying persons.* To take advantage of the credit here is what you need to know. …
Elections. Elections. Elections.
Tax savings can be found in the elections you make! Tip Category: Deductions Every year is an election year when it comes to making decisions on your annual income tax return. Here are four common examples that can create tax savings opportunities if you elect the correct option. 1. Tax filing status. Typically, filing a joint …
How to Maximize Deductions for Assisted Living
Tip Category: Deductions It's possible that someone in your family will need assisted living care at some point in their life. This care can be at an assisted living facility, a nursing home, or in their own home. Often, assisted living care is expensive and not fully reimbursable by typical health insurance policies. Thankfully, there is …
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Understanding Tax Terms: Head of Household
Tip Category: Deductions The tax term head of household is one of the more misunderstood tax phrases inside the U.S. tax code. However, if your situation warrants head of household status, there are two big tax benefits: First, a higher standard deduction. Second, lower effective tax rates for virtually every income level. This is great, but …
Deductions for Non-Itemizers
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 …
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 …
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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