As a married couple, you can get around some profit from being taxed. It won’t be for the full amount that typical joint filers file of $500,000, which is based on one spouse’s eligibility for capital gains home sale exclusion.
The profit or gain of the home sale will determine whether you owe or not. You can even sell your home for millions and not owe a dime to the IRS if your profit wasn’t more than the allowable amount. If all the gain is avoidable, you will not owe.… Read the rest
If you are in the process of going through your taxes, it’s time to understand your own taxes. Even if you have a tax professional doing your taxes, it’s still great to organize your files and know what you will owe.
Let’s look at how you should divide up your income and see if you have capital gains or losses to report this year.
IRS Taxable Income Types
Currently, the IRS allows you to report your income in two taxable brackets that include capital and ordinary.… Read the rest
Although it may seem tiresome, accurately filing your paperwork goes a long way to ensuring you get the correct refund from the IRS.
One of the most crucial documents involved in the tax declaration process is the IRS 1040 form. It forms the foundation of the tax process, and all US taxpayers should be familiar with the document.
It is simple to use – there are separate sections to fill in your income and deductions, and to outline what you think you should be refunded for.… Read the rest
Did you spend a ton of money on medical expenses last year? If so, you may qualify for the medical expense tax deduction. This means you must spend more than 10% of your AGI on medical expenses (7.5% if you are older than 65) to qualify. Therefore, go look at your finances now and see if you qualify.
Medical Expenses You Can and Cannot Deduct
You can deduct medical expenses for your spouse, dependents, and your own expenses that qualify.
You are not able to deduct reimbursed medical expenses.… Read the rest
Your W-2 Form is vital for filing your taxes accurately and quickly. Your employer is required to send you the W-2 Form by January 31st every year, or the following business day if that day happens to be either a holiday or a weekend. If sent by mail, you may have to wait.
That’s why the free W-2 Early Access feature from H&R Block is such a useful tool because it allows an electronic copy to be sent, so you’ll be able to get started with your taxes early.… Read the rest
H&R Block has become something of an industry disruptor with its simple service that allows you to estimate your tax refund in as little as five minutes.
With the free online tax calculator from H&R Block, you just need your approximate earnings and deductions and you’ll be able to estimate your next tax refund in just five minutes. It will also provide you with information regarding what you can expect to receive the following year.
You’ll need to answer certain questions about health insurance, marital status, age, and the number of dependents you have.… Read the rest