The Standard Deduction May Be Costing You – This technique could save you plenty
The Standard Deduction May Be Costing You – This technique could save you plenty Many taxpayers default to the standard deduction when filing their tax return because of its simplicity. Unfortunately, this often creates a higher tax bill. Here is a tip to ensure it does not happen to you. Only about a third of Americans file income tax returns using itemized deductions. Unfortunately many of those who don’t itemize are overpaying their taxes. Don’t wait until tax time to figure out if itemizing your deductions yields a lower tax bill. Start now to review your situation and plan for
Tax Credits versus Tax Deductions – Which is worth more to you?
Tax Credits versus Tax Deductions – Which is worth more to you? Deduct this or take a Tax credits? Which is worth more to you? Often the answer is not as simple as you think. Every industry and profession has common terms that are used so often those of us in the business often forget that most people do not have the depth of understanding that a person working within the tax code might have. One of these areas is understanding the differences between the tax terms “deductions” and “credits”. Is one better than the other? If it were simple
Ten Commonly Overlooked Deductions Don’t forget these ideas to lower your taxes
Ten Commonly Overlooked Deductions Don’t forget these ideas to lower your taxes The tax code is about 75,000 pages long, so it’s not surprising there are many overlooked money-saving deductions hidden within it. Check out this list of commonly overlooked deductions. You might wind up with a bigger refund than you expected. State sales tax alternative You can choose to deduct state and local sales taxes rather than state income taxes on a tax return using itemized deductions. This is especially useful for residents of states that don’t have state income taxes. It can also be used if you made
Research Your Preferred Charities
Research Your Preferred Charities Often during an audit, what you thought was a qualified deduction to a charitable organization is ruled non-deductable Research Your Preferred Charities November and December seem to be the months we are rained upon with charitable organization solicitations. Some of the groups, such as the American Red Cross, the Salvation Army, United Way, and the American Cancer Society are household names. Others are less known. Here are some tips on how to research these organizations prior to donating funds. 1. Charitable organization efficiency. For every dollar you donate, only a percentage of it is actually used
Tax Savings for Non-Itemizers – Can’t itemize? There are still tax breaks for you
Tax Savings for Non-Itemizers – Can’t itemize? There are still tax breaks for you If you own a home you probably itemize your deductions on your tax return. But what if you are a Non-itemizer? Can someone using the standard deduction still get a tax break? Tax Savings for Non-Itemizers 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 Deduction to reduce their income
The Earned Income Tax Credit (EITC) – Are you Eligible?
The Earned Income Tax Credit (EITC) – Are you Eligible? The Earned Income Credit (EITC) is one of the most common ways Americans reduce their tax bill. Yet per the IRS, 1 out of 5 people who could qualify for the credit do not file for it. Here are answers to some common questions. The Earned Income Tax Credit (EITC) The Earned Income Tax Credit (EITC) was originally established in 1975 to give low and medium income taxpayers a break on their Social Security taxes while providing an incentive to work. Unfortunately, the EITC is often the subject of missed
STOLEN! Can I Deduct it?
STOLEN! Can I Deduct it? The theft of an item of value is a terrible experience. This experience can be made worse if you cannot deduct the theft on your tax return. Here is what everyone should know.
Five Tips for Non-Cash Charitable Contributions
Five Tips for Non-Cash Charitable Contributions One way to protect the value of your charitable donation deduction is keeping good records. Here are five tips to help ensure your deductions are iron clad. The IRS is quick to disqualify your non-cash charitable contributions if you do not have adequate records to support your donation. Here are five quick tips to ensure this does not happen to you. Get a receipt. Whenever you donate items of value please get a receipt from the charitable organization. It should include the name of the organization, the date of the gift, a general description
The mileage rates for 2016 are now available and are noted here.
The IRS recently announced mileage rates to be used for travel in 2016. The Business mileage rate decreases by 3.5 cents while Medical and Moving mileage rates are lowered by 4.0 cents. Charitable mileage rates are unchanged. 2016 New Mileage Rates Standard Mileage Rates Mileage Rate/Mile Business Travel 54.0¢ Medical/Moving 19.0¢ Charitable Work 14.0¢ Here are 2015 rates for your reference as well. 2015 Mileage Rates Standard Mileage Rates Mileage Rate/Mile Business Travel 57.5¢ Medical/Moving 23.0¢ Charitable Work 14.0¢ Remember to properly document your mileage to receive full credit for your miles driven.
Tax Benefits of Home Ownership
ow that home values are on the rise once more, it makes sense to review the tax benefits of home ownership. As always, should you know of someone who may benefit from this information please feel free to forward this newsletter to them. Tax Benefits of Home Ownership When it comes to tax savings it really is home sweet home. Here are some of the popular tax benefits of owning your own home and how to get the most out of your home’s tax advantaged status. Mortgage interest. Interest paid on your home mortgage is still tax deductible. This deduction