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 W-2 Form is one of the most essential forms in the tax world. It details what you’ve been paid by your employer.
The first point is to remember that the W-2 form is entirely different from your W-4 form. This details any payment that has been withheld as tax by your employer. Any employer that has paid you at least $600 during the tax year must send you a W-2.
Contractors and freelancers will receive 1099s because they don’t have employers; they have clients.… Read the rest
The new Form 1040 is different from the old one. This new draft may seem confusing, but we are going to help you understand it. Here are the five things all Americans should know about the new IRS Form 1040.
The New 1040 Form is the Size of a Postcard
One of the main promises Donald Trump made during the 2016 presidential campaign is he wanted to change the tax code to make it simpler. He said that he wanted the average American to be able to file their taxes on something the size of a postcard.… Read the rest
When you have young children, one of the most difficult financial burdens is paying for dependent care, but some good news is that there are some relief options when it comes time to file your taxes.
What is the Child and Dependent Care Tax Credit?
The child and dependent care tax credit is available for almost anyone who has a dependent and is working.
The dependent care tax credit is different than the child tax credit, and this article is intended to help you understand how to claim the childcare tax credit.… Read the rest
The largest tax deduction most people can claim on any type of 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 there are rules that 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 are taking the deduction on a second residence, this can’t be a rental property.… Read the rest
If you have ever filed a tax return, then you’ve probably come across the term W-2.
This is an essential tax document that provides an overview of your income and the taxes withheld from your salary every year. You are going to need it to file state and federal returns, so here’s everything you need to know about a w2 form.
Your employer is required, by law, to withhold a portion of your salary to cover mandatory taxes.
Just like you must file taxes, so does your boss – and part of their filing process is a breakdown of how much tax they have deducted from you based on what you earn.… Read the rest