There are different options for school tax deductions, including the tuition and fee deduction, which may expire in 2010, and the student loan interest deduction. Tax credits, such as the Hope Credit and Lifetime Learning Credit, may be more valuable. The tuition and fees deduction is available while attending school, but only for eligible expenses […]
Taxpayers can receive credit for certain expenses, including a dependent deduction, which varies each year and reduces tax liability. The IRS has rules for what constitutes a dependent, and penalties will be imposed if a person claims a dependent who does not meet the criteria. Other relatives may also qualify for the deduction. When it […]
Taxpayers with a health savings account (HSA) may be eligible for a federal tax deduction for contributions made during the tax year, up to a specified maximum. Withdrawals from an HSA are often tax-free if used for qualifying medical conditions. Eligibility for the deduction requires owning the HSA as part of a high-deductible health plan […]
Payroll deductions are amounts taken from paychecks, including mandatory deductions like taxes and voluntary deductions like contributions to retirement or health insurance. The types of deductions vary by country and employer. In the US, standard deductions include federal and state taxes and FICA payments, while other countries may have national health insurance deductions. Some deductions […]
The dividends received deduction is a rare example of a deduction applied to money received, rather than spent, in US federal income tax regulations. It limits double taxation and has three levels of deduction depending on the percentage of shares owned. Deductions are limited by the corporation’s taxable income and the deduction only applies to […]
To claim a medical expense tax deduction, you must have incurred tax-deductible medical expenses, complete the appropriate forms, and itemize your deductions. Deductible expenses vary by jurisdiction and must exceed a certain percentage of your adjusted gross income. Allowable expenses include physician fees, hospital stays, tests, dental fees, and medically necessary aids. You may also […]
Business owners and employees can claim a mileage deduction on their taxes for certain gas charges. Accurate records of business-related miles driven and receipts for gas purchases are important. Deductions can be claimed for trips to seminars, client meetings, and other business-related outings, as well as trips to the bank, post office, and business-related supply […]
Homeowners with mortgages can deduct interest on their primary and second mortgages, as well as take advantage of a home office deduction. Points paid when buying a home or refinancing are also tax deductible, while costs associated with selling a home can be deducted from taxable income. Eligibility requirements vary and should be checked annually. […]
Homeowners can reduce taxable income by claiming a mortgage insurance deduction, but laws and eligibility vary by country. Mortgage insurance protects lenders from defaults, and borrowers pay monthly premiums. Homeowners may claim deductions upfront or incrementally, but tax authorities may limit deductions. Homeowners can also claim deductions for home repairs and property taxes, but renters […]
Tax credits and deductions are different ways to reduce the total tax paid. Deductions reduce taxable income, while credits are taken after tax is calculated. Tax credits can reduce the amount owed or result in a refund, but are subject to limits. It’s important to keep up with current tax laws to see if there […]
The SUV deduction was originally created for farmers, but became a way for self-employed business owners to write off luxury SUV purchases as business expenses. The IRS has since closed the loophole, limiting the deduction to $25,000 for vehicles used for business purposes over 50% of the time. Environmental groups argue that this tax break […]
The standard deduction reduces taxable income and is available to most US taxpayers. It’s an easier option, but itemizing may reduce tax liabilities further. Couples may take over $10,000 USD, and expenses like home mortgage interest and medical expenses can be itemized. The standard deduction saves time and reduces the likelihood of an audit. Elderly […]
To claim a medical expense tax deduction, one must have incurred tax-deductible medical expenses and complete the appropriate forms. The types of medical deductions vary by jurisdiction and may depend on factors such as illness and treatment. Eligible expenses include doctor’s fees, hospital stays, exams, dental expenses, and medically necessary aids. Medical miles may also […]
Tax authorities impose charitable deduction caps to prevent taxpayers from avoiding full income tax. Donations must be made to registered charities and taxpayers may be asked to provide receipts. Exceeding the limit results in ordinary income tax, and people can donate valuables but must estimate their value accurately. Tax authorities can audit those who claim […]
A capital loss deduction allows taxpayers to offset the decline in the value of an asset and reduce taxable income. Tax codes vary by jurisdiction and may limit deductions to investment property, such as stocks, bonds, and rental real estate. A capital loss deduction is a reduction in taxable income that is allowed by a […]
The US tax code allows certain educators to deduct up to $250 or $500 annually for expenses related to teaching, including equipment and materials. Only educators in kindergarten through 12th grade are eligible, and there are other restrictions. En los Estados Unidos, el Tema 458 del Código Tributario del Servicio de Impuestos Internos (IRS) is […]
Vehicle deductions for business purposes can be made in different ways, including deducting all expenses for company-owned vehicles and using either the real gas method or the standard mileage fee method for personal vehicles used for business. Care must be taken to avoid audit issues and excessive deductions. A vehicle deduction is against the gas […]
A mileage deduction allows business owners and employees to waive certain gas expenses on their taxes. To participate, the owner must calculate business miles traveled and multiply them by the standard deduction rate. Keeping accurate records is important, and software programs can help. Deductions can be claimed for trips to seminars, client meetings, and other […]
