November 29, 2016

Deducting Medical and Dental Expenses

If you’re planning on deducting health care expenses on your federal taxes, you should know about the following rules: The amount of allowable medical expenses you must exceed before you can claim a deduction is 10% of your adjusted gross income (AGI), unless you or your spouse are age 65 or older. In this case, the AGI threshold is 7.5%. This exception will be valid through December 31, 2016. Beginning January 1, 2017, the threshold will be 10% for all taxpayers. You should also keep in mind that only expenses paid in 2016 are eligible for deductions on 2016 taxes. If you paid by check, you can consider the day you mailed or delivered the check to be the date of payment. You can only claim medical or dental expenses if you itemize deductions on your federal tax return. Tip courtesy of Mike Patton | Forbes.com
August 24, 2016

Back-to-College Tax Tips – Financially Simple

“Back-to-College Tax Tips”If you, your spouse, or a dependent is heading off to college, there are some important tax-saving tips you should know about. Here’s what the IRS says: Back-to-College Tax Tips You can claim only one type of education credit per student on your tax return each year. If you have multiple eligible students, you could claim a different credit for each student. To qualify, education expenses must be for tuition, fees, and “related expenses” for an eligible student. Expenses must be paid for attendance at eligible higher education institutions, including most colleges and universities. Ask the school whether they are an eligible institution or check the school’s accreditation status in the U.S. Department of Education’s Accreditation Database. The American Opportunity Tax Credit: The AOTC is worth up to $2,500 per year, per eligible student. You may claim this credit only for the first four years of higher education. 40% of the AOTC is refundable, which means if you are eligible, you can get up to $1,000 of the credit as a refund, even if you do not owe any taxes. The Lifetime Learning Credit: The LLC is worth up to $2,000 on your tax return. There is no […]
June 29, 2016
Tax Tip: Rules for Home Office Deductions

You May Be Able to Deduct Childcare Expenses

You May Be Able to Deduct Childcare Expenses “You May Be Able to Deduct Childcare Expenses”, If you pay for summer care for your children so you can work or look for a job, you may be able to deduct those expenses on your federal tax return. Here’s what the IRS wants you to know: You can only deduct expenses for the care of a qualifying dependent such as a child under age 13. You must be paying for care so that you or your spouse can work. Qualifying care includes home care, daycare, or a day camp. Overnight camps, summer school tutoring, or care by other dependents does not qualify. You must have earned income in the year in which you incur childcare expenses and the expense limit is $3,000 for one qualifying dependent or $6,000 for two or more. For more information about deductions for dependent care, visit IRS.gov or consult a qualified tax advisor. Tip courtesy of IRS.gov[12] 12 https://www.irs.gov/uac/keep-in-mind-the-child-and-dependent-care-credit-this-summer
June 15, 2016
Tax Tip: Rules for Home Office Deductions

Searching for a Job? You Can Deduct Certain Expenses

“Searching for a Job?  You Can Deduct Certain Expenses”, If you’re on the lookout for a new job this summer, you might be able to deduct some search-related expenses on your taxes. Here’s what the IRS wants you to know: Deduct Certain Expenses You can only deduct expenses for a job search relating to your current occupation. Unfortunately, you cannot deduct job search expenses if there is a “substantial break” between your last job and your job search or if you are looking for your first job. You cannot deduct expenses that are reimbursed by an employer or other party. You can deduct fees paid to employment and job placement agencies and the costs relating to preparing and mailing your résumé to prospective employers, including professional proofing and editing. If you travel to an interview or other search-related activity, you can deduct those expenses, but only if the primary purpose of the trip is to look for work. Job search expenses will usually be claimed as a miscellaneous item deduction, and you can only deduct the portion of miscellaneous deductions that exceed 2% of your adjusted gross income. Tip courtesy of IRS.gov[15] 15 https://www.irs.gov/uac/job-search-expenses-may-be-deductible   https://www.irs.gov/publications/p529/ar02.html