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
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
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 that 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
The Tax Cuts and Jobs Act (TCJA) completely changed the US tax system. The last such change of this magnitude happened more than thirty years ago. As a result, millions of Americans are now left wondering what they’re entitled to and which deductions are still valid.
One of the most widely taken deductions is the deduction for mortgage interest. The TCJA didn’t eliminate it, but significant changes were made. Plus, due to other changes, many Americans will now be ineligible to use the mortgage interest deduction going forward.… Read the rest
In order to claim the home office deduction, you must know the square footage of your entire home and your home office. Auditors do not usually make home visits. If you send them photos of your home office, that is usually all of the verification that they need.
Determine Which Method to Use
Percentage of your home – This method allows you to calculate your home office percentage and then claim the home office deduction. You need to determine the square footage of your entire home and the square footage of your office.… Read the rest