Your best audit defense Tip Category: Deductions The IRS is being very public about increasing the review of tax returns. The best defense for you is to be prepared before it happens. Here are some suggestions: The one-two punch To prove your deduction, most auditors look for two key documents: receipts and proof of payment. …
Category: Deductions
Understanding Tax Terms: Health Savings Accounts (HSA)
Health Savings Accounts are the No.1 way to reduce your cost of medical care! Tip Category: Deductions If Benjamin Franklin were alive today, his famous quote Nothing is certain, except death and taxes might include a third item paying medical expenses. Fortunately a health savings account (HSA) is a great way to cut your spending on medical …
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Make Your Child’s Summer Break a Tax Break
You can turn your child's summer break into up to a $1,050 tax break for you, using the Child and Dependent Care Credit. Tip Category: Deductions As a busy working parent, you may be concerned about what activities are available for your kids this summer. There may be a solution that’s also a tax break: …
Three Tax Break Tips for Caregivers
Caregivers can get help from three federal tax breaks: the medical expense deduction, the child and dependent care credit, and the "family" credit. Tip Category: Deductions If you’ve ever had to care for a sick, elderly or disabled person, you know it can be difficult financially as well as emotionally. A recent study found that …
Taxes and Uncollectible Debt
Tax ramifications can be good or BAD! Category: Deductions There are few things as frustrating as not being paid what is owed to you. If it becomes clear the debt is not going to be paid, you might be able to recoup some of the lost money via a tax deduction. The IRS has two …
Should You Expense or Depreciate Your Capital Asset?
Section 179 and bonus depreciation let you take larger, short-term deductions for capital purchases. Does it make sense for your business to take advantage? Tip Category: Deductions If you own a business, you know that you may accelerate the expensing of qualified capital purchases. This can be done within two special provisions in the tax …
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Hidden Back to School Tax Deductions
Before school gets going this fall, check out these school expenses that might help you decrease your tax bill. Summer is coming to a close and the back-to-school advertising blitz is underway. Hidden in some of those school expenses are tax deductions you can take advantage of. Here are some ways you can save: Watch …
Maximizing the Tax Benefit of Charitable Deductions
It may be best to bundle several years of charitable deductions into one year to get the most tax savings. Your charitable contribution deductions are still a great tax savings tool, but they now require more planning. Now is a great time to look at this area as part of your tax planning exercise.BackgroundTypically, cash …
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Homeowner Alert! Review Your Tax Forms
New tax rules are creating confusion New rules for deducting mortgage interest are causing confusion and adding additional documentation. It's more important than ever to understand the numbers on your tax forms. Home-related tax rules changing over the past few years have caught some taxpayers by surprise. When your mortgage company reports tax-related information to …
Tips to Maximize the Value of a Car Donation
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 …
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