Do you want to reduce your tax bill this year? You can maximize your tax savings by checking to see if you’re eligible to claim any of the new expanded tax credits.
The difference between a tax credit and a deduction is a deduction reduces your taxable income, whereas credits reduce the amount of tax you pay directly. Refundable credits are even better because they can reduce your tax bill even if the credit is worth more than you owe. Non-refundable credits are only valid up to the amount you owe.… Read the rest
Freelancers, contract employees, and business owners know that taxes can be a financial make or break. Tax season is normally a period filled with dread as you try to justify costs and scratch together last-minute work to prepare for the worst.
Thankfully, there are many ways you can save money if you are self-employed.
Of course, you can only make the most of these self-employed tax deductions if you know what they are. You’ve probably spent most of the year stressing about the taxman taking your hard-earned money, but the truth is that you’ve earned the right to claim the self-employed tax deductions that come with having your own business.… Read the rest
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
The largest tax deduction most people can claim on any mortgage is on the interest paid on the loan.
In most cases, mortgage refinance interest is tax-deductible, which means you can take it off your taxable income for that tax year.
But some rules apply.
Rules for Making Tax Deductions on Mortgage Interest
First of all, the loan must be on either your primary residence or a secondary residence. If you take the deduction on a second residence, this can’t be a rental property.… Read the rest