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Understanding The Differences Among Tax Credits, Deductions, and Adjustments

Understanding The Differences Among Tax Credits, Deductions, and Adjustments

When it comes to your taxes, knowing the lingo is key to understanding them. What’s the difference between and tax credit, tax deduction, and an adjustment? A credit is an amount off what you owe, dollar for dollar. Tax deductions and adjustments are amounts off your income, which reduces your taxable income. Tricky right?

Gains & Losses: What Will Be Taxed and What Can I Claim?

Gains & Losses- What Will Be Taxed and What Can I Claim-

When you sell an asset its tax treatment is determined on whether or not the asset is considered a “personal asset”. If it is, then you are taxed on the profit but cannot deduct a loss. If it’s not a personal asset then you are taxed on the profit but can also deduct a loss if you have one.

Unemployed? At Least Your Job Search is Tax-Deductible

Last week, the National Bureau of Economic Research announced that the recession ended in June 2009. According to the announcement, the economic downturn reached a plateau that month and hasn’t decreased since then. In other words, we are now on the painfully slow journey to recovery. The end of a recession doesn’t mean that economic […]

Wedding Taxes: Four Must-Know Tax Facts For Planning Your Big Day

Wedding Taxes- Four Must-Know Tax Facts For Planning Your Big Day

Do I have to pay taxes on my wedding? Are any parts of my wedding tax-deductible? If my parents help pay, do they have to pay taxes if the wedding is a gift? These are just some of the tax questions that might come up when planning your wedding.

Mid-Year Tax Planning

Mid-Year Tax Planning

There are things you can be doing now to make tax time a little less painful next year. Getting and keeping you paperwork organized will save you loads of grief later. Also, staying on top of your withholdings. Life changes during the year may mean necessary changes to your payroll withholdings.

Tax Benefits of Home Ownership

Tax Benefits of Home Ownership

Buying a house can give you more than just the pride of ownership, there are several tax benefits as well. You can deduct the interest, mortgage points, property taxes, and even part of the principal of your mortgage if you have a home office. And the sellers aren’t left out, there are tax benefits for selling as well.

I Received an IRS CP 2000 Letter; What Do I Do?

A few days ago, I discovered a big fat envelope from the Internal Revenue Service in my mailbox. “Well, this can’t be good,” I thought. Inside was an IRS CP 2000 Letter. It had a friendly-enough-sounding title “We are proposing changes to your tax return.” But I knew the truth. A CP 2000 notice is […]

Declare Your Tips!

Declaring tips is the right thing to do and part of a smart financial plan.

When you get paid small amounts of cash every day it’s easy to think you can just pretend they never happened. But tips are income and the IRS is well aware that servers are notorious under reporters of income. But reporting your tips isn’t just the right thing to do, it can also help you show more income which will go a long way with creditors.

Avoid These Simple Tax Return Mistakes

Avoid These Simple Tax Return Mistakes

After you’ve done everything right in filing your tax return you don’t want to ruin it with a simple mistake. Forgetting your signature or messing up your social security number or bank account number will just cause problems for you to deal with later.

Two Deadlines Loom

Before dashing off the weekend, I want to remind everybody of two important upcoming deadlines. Don’t forget, April 15th is tax day, and it’s next Thursday! Still plenty of time to use TurboTax to finish your returns. Also, for anybody interested in the $8,000 first-time home buyer tax credit or the $6,500 home buyer tax […]