The Basics: If your employer has a flexible spending arrangement, consider using it to pay your medical expenses. To deduct medical expenses, you must itemize and medical expenses must exceed 10% of adjusted gross income (AGI). Disability is taxable [...]
The Basics: If you file on time, but don’t pay the entire balance you’ll be charged a late payment penalty of 0.5%, up to 25%, of the unpaid tax. You may be penalized up to 47.5% of your unpaid [...]
Under the kiddie tax rules, part of a child´s investment income might be subject to tax at the parent´s highest marginal tax rate if: The child is: Under age 18 at the end of the year Age 18 at [...]
The Basics: First of all – Congratulations! Next – call us and let us do a withholding analysis to find out if you or your spouse want to adjust your withholding. If your name changes after you get married, [...]
The Basics: When applying for financial aid, you may need to provide a copy of your tax return. See if you qualify to claim the American Opportunity Credit or Lifetime Learning Credit. Out-of-state students: You generally file a state [...]
Tax benefits might be available if you’re saving for or paying education costs for yourself or another student who’s a member of your immediate family. However, most benefits apply only to higher education. Plus, you usually can’t claim more [...]
The Basics: Alimony is both deductible by the payer and taxable to the recipient. Child support isn’t deductible by the payer, and isn’t taxed to the recipient. To file as Head of Household after a divorce, several requirements must [...]
The Basics: Exclude certain pay from your income while working in a combat zone. Service outside a combat zone is considered to be inside a combat zone if the service is in direct support of combat zone military operations. [...]
The Basics: You can deduct your contributions to charitable (non-profit) organizations only if you itemize your deductions. You can’t deduct the value of your time or services spent on charitable work, but you can deduct mileage or vehicle expenses [...]
The Basics: The Alternative Minimum Tax (AMT) was designed to catch people who avoid paying taxes due to certain tax breaks, credits, and/or deductions. AMT exemption amounts for 2015 are $83,400 for Married Filing Jointly and Qualifying Widow(er), $53,600 [...]
