November 3, 2016
contribute to retirement accounts

Don’t Forget to Contribute to Retirement Accounts!

Contribute to retirement accounts before the end of 2016! You need to contribute to retirement accounts like your 401(k) or other workplace retirement plan by December 31st. This ensures your contributions count for 2016. However, you still have until April 15, 2017, to contribute to other retirement accounts such as an IRA for 2016. Low- and moderate-income workers can also take advantage of the Retirement Savings Contribution credit. This rewards them for making contributions to IRAs, 401(k)s, and similar retirement plans. The maximum credit is $1,000 per taxpayer, though other deductions and credits will reduce the benefit. With this credit, eligible taxpayers deduct retirement contributions from their Adjusted Gross Income, as usual. On top of that, they can deduct an additional percentage of their contribution, as outlined in this chart: Saver’s Credit *Single, married filing separately or qualifying widow(er) Though anyone over 18 can apply for the credit, full-time students and those claimed as dependents are not eligible. So don’t forget! Contribute to retirement accounts to prepare for your future and catch a break right now! Tip courtesy of IRS.gov
August 31, 2016
Tax Goof

Make a Tax Goof? Here’s How to Amend Your Return

Make a Tax Goof? Here’s How to Amend Your Return. It’s very common to make a mistake when filling out tax forms. Fortunately, the IRS makes it easy to file an amended tax return. Here’s what you need to know: Make a Tax Goof? Here is How to Amend Your Return The IRS says that you should amend your federal tax return if you need to correct your filing status, the number of dependents you claimed, or your total income. Deciding to claim additional deductions or tax credits that you left off of your original return also calls for an amendment. In some cases, you may not need to file an amended return. The IRS usually catches and corrects simple math mistakes when processing your return, so realizing you made a simple arithmetic error shouldn’t be a cause for worry. The IRS will also mail a request for any missing information they may need to process your original return. If you need to file an amendment, you’ll need to use Form 1040X and indicate which year’s return you’re amending. Unfortunately, there’s no way to complete this form online, so you’ll have to fill it out in paper form. If you […]
August 9, 2016
Tax Tip: Rules for Home Office Deductions

Tax Benefits for Job Hunters – Financially Simple

“Tax Benefits for Job Hunters”, Are you or is someone you know looking for a job? If you’re looking for a job in the same line of work (i.e. not switching careers), you may be able to deduct some of your expenses on your federal taxes. Here’s what the IRS has to say: You’ll usually deduct your expenses on Schedule A, Itemized Deductions, as a miscellaneous deduction. However, you can only deduct miscellaneous deductions that are more than 2% of your adjusted gross income. Costs that you can deduct include: resume preparation, editing, and mailing costs; travel expenses related to your search, and placement agency fees. You may not be able to deduct job-hunting expenses if there has been a long gap between the end of your last job and the beginning of your hunt, or if you’re looking for a job for the first time. Keep in mind that reimbursed costs are never deductible, and you should always keep receipts and mileage logs in case of an IRS audit. So in this article we have completely described the tex benefits for job hunters. For more information about job-hunting tax concerns, consult a tax professional in your area or see […]