It’s true, the older you get and the more complicated your life gets, the more tax breaks you can claim on your tax return. But just because you’re young doesn’t mean you don’t qualify for tax deductions, credits, and other breaks. [...]

I just learned about the retirement saver’s tax credit. If you qualify, this tax credit is definitely worthwhile.

In a nutshell, if you fall under the income caps and contribute up to $2,000 to any retirement plan (401[k], traditional IRA, or even a Roth IRA), you may be able to take a tax credit of up to 50% of that contributed amount. (A tax credit, as opposed to a deduction, means the money comes right off of what you owe—or gets added to your refund you receive!) [...]

I have certainly been guilty of filing my taxes at midnight on April 15th, but as I get older and my taxes get more complicated, I can’t afford to wait until March to start getting my taxes in order. Here are five things I’ve found helpful to start doing in January to ensure filing your taxes are as painless as possible. [...]

Finding out you owe federal income taxes at filing time is no fun, but did you know that the IRS can charge you interest and penalties if you don’t properly estimate (and pay) your taxes on at least a quarterly basis? If you’re self-employed or earn additional income from sources that do not withhold federal income taxes (i.e., you receive 1099 forms), you may have to make quarterly estimated tax payments. [...]

Did you know that if you are an American buying your first home between April 9, 2008 and July 1, 2009, the U.S. government will give you up to $7,500 in the form of a federal tax credit? [...]

Sixteen states are offering sales tax holidays this August, providing consumers with a couple of days to shop tax-free. Should you take the bait? [...]

Donating your unused clothing makes a lot of sense; you can help out a charity like Goodwill or the Salvation Army while cleaning out your closet. You’ll even score a small tax deduction. But choose whom you give you clothes to carefully; for-profit companies are now setting up clothing drop boxes and then reselling your duds to consignment stores or textile recyclers. [...]

I just noticed that I received my $600 economic stimulus tax rebate via direct deposit today. While I am putting this money in my high yield savings account for now, I have to chuckle at how I’m really going to spend this money: on a trip to Europe this August.

So much for stimulating the US economy personally, although I hope others do. Today that $600 is only worth €393, which won’t go far away from home. But an economic boost just may nudge that exchange rate back up a bit before summer.

How are you spending — or saving — your tax rebate?

I just had an exciting Saturday evening with my stack of W2s and H&R Block’s TaxCut Pro.

I swear, I’m not actually so nerdy that doing my taxes is my idea of a good time, but it does feel great to have them done. (April 14th has often been a long night for me in years past). [...]

If you, like me, are a nine-to-fiver and a part-time entrepreneur, the IRS is not going to congratulate you for your hard work, but they will take their cut. Did your side-gig take a loss last year?

You may be able to deduct that loss and beef up any refund you are owed. But be careful: Deduct a business loss for more than a couple years in a row and you may be flagged for a painful audit.

The IRS has recently caught on to taxpayers utilizing self-defined business losses to reduce their total income and, subsequently, their tax liability. As a result, the IRS has instituted the so-called hobby loss rule.

There is no way to easily distinguish between a for-profit business and a not-for-profit hobby. Whether you are a photographer who shoots weddings, a musician who plays a few gigs, or a blogger with advertising revenue, whether you earn $1 a year or $100,000, your side work could be considered either: a business, or a hobby. [...]