Generally, it is easier to just choose the standard deduction when filing your tax return, however it may not be the best method for saving you money. In some cases, opting to itemize your deductions can actually lower the amount of taxes you owe. The best option is to determine the amount you will save […]
There are limits on some itemized deductions depending on type. In most cases, limits are calculated based on a percentage of the taxpayer’s adjusted gross income (AGI). To figure out what you’re eligible to deduct within the limitations, you can subtract the corresponding percentage of your AGI from the total amount of your expense. Miscellaneous […]
It may seem like it takes a little more effort to itemize your deductions, but doing so can save you a tax time. By itemizing your deductions, you list all of your expenses and what you’ve paid on a Schedule A, which you file with your Form 1040. There are a range of expenses that […]
Deductions decrease the amount of income you are taxed on, lowering your tax liability. At tax time, you can chose one of two methods to claim your deductions. You can either itemize or opt for the standard deduction. The standard deduction amount is calculated depending on factors such as filing status, taxpayer age, and income […]
If you have miscellaneous deductions that exceed 2% of your adjusted gross income (AGI) you may qualify to claim them on your tax return. Usually the different types of costs can fall under the miscellaneous deductions category, and be subject to the limitation of 2% of your AGI: Tax preparation fees, any employee expenses that […]
If you wish to deduct the payment for any type of medical expense this year, you need to be aware of some new rules that apply to these types of deductions, as they can affect your return. If you are seeking medical or dental expenses deductions you should familiarize yourself with the following guidelines.
Looking to make tax time a little brighter? Consider itemizing your taxes, which will allow you to claim interest you paid on your first and second mortgages. This deduction, worth up to $1.1 million in savings, includes mortgage loans (up to $1 million) and home-equity loans (up to $100,000). Even better, you don’t have to […]