Kids can be stressful at times, but the good news is they can save your butt during tax time. Today we are sharing some of the tax benefits that kids and other dependents bring to you.
Dependent Tax Deductions
You may be able to claim more dependent tax deductions and credits as a family than single taxpayers. However, if you’re not aware of these deductions and credits, you might be losing out on significant tax breaks.
Child Tax Credit
The child tax credit is better than the deductions because your taxes are reduced dollar for dollar.… Read the rest
Even if you have the best insurance plan, you still might end up paying medical bills. However, all hope is not lost. You can still get a tax break from your medical expenses, which can help reduce your overall medical costs.
In 2019, the IRS allowed you to deduct medical expenses that exceeded 7.5% of your adjusted gross income.
Beginning Jan. 1, 2019, all taxpayers may deduct only the amount of the total unreimbursed allowable medical care expenses for the year that exceeds 10% of their adjusted gross income.… Read the rest
Can I Get a Tax Deduction for Home Improvements?
Although home improvements cannot be deducted, they may be depreciated.
This simply means you deduct the expenditure over a period of time ranging from three to two and a half years.
To be eligible for depreciation on home renovation and improvement expenses, you must utilize a part of your house for purposes other than a personal residence.
You Can Use Your Mortgage to Improve Your Home
If you’re buying a home, you can reduce the costs of your renovation project by making the changes when you purchase the home.… Read the rest
Category: Credits, Deductions
Tags: 2021, 2022, 2023, breaks, deductions, first, homebuyer, homeowner, Tax, time
Is There a Tax Credit for Buying a New House?
The First-Time Homebuyer Act of 2021 establishes a federal tax credit for first-time homebuyers. It’s not a loan you have to pay back, nor is it a cash gift like the Downpayment Toward Equity Act. The tax credit is equivalent to 10% of the purchase price of your home and cannot exceed $15,000 in 2021.
US politicians presented the First-Time Homebuyer Act of 2021 on April 28, 2021. The measure amends the IRS tax law to provide up to $15,000 in federal tax credits to first-time home purchasers.… Read the rest
Student loan interest can quickly add up. That’s why the Federal government introduced the student loan interest tax deduction to help ordinary students out. If you made interest rate payments on your student loans during the tax year, you could deduct up to $2,500 in interest paid.
If you happen to qualify for the 22% tax rate, you have the best deal because your maximum deduction is $550. A few hundred dollars in your wallet for doing very little sounds great, so how can you make sure that you claim the maximum deduction amount available to you?… Read the rest