There are many ways through which the elderly can reduce their income taxes. Approximately 13% of the U.S. population is over the age of 65, and a large percentage of seniors are on fixed incomes. Reducing tax liability is necessary for many individuals, as senior income doesn't usually increase when living expenses ... Read More
Tax Credits & Deductions
What is the Alternative Minimum Tax (AMT) for 2011 & 2012?
If you’ve been doing your research on tax credits and deductions, some of the sources that you've come across might mention that you’ll want to watch out for the AMT when using them. The alternative minimum tax (AMT) system is intended for higher-income taxpayers, but over time has come to affect middle-class families as well, ... Read More
2012 IRS Standard Mileage Tax Deduction Rate?
The 2012 IRS mileage rates (2013 IRS mileage rates) vary depending on whether you are claiming mileage for business travel, moving expenses, charitable work or medical-related traveling. Each category of travel has its own mileage rate used to calculate the tax deductible expenses related to driving your vehicle. IRS mileage ... Read More
2011 Tax Deductible Medical Expenses: Eligibility and Limits
The price of medical care in the U.S. can run into the thousands of dollars each year for routine care once you factor in the cost of insurance premiums, co-payments and medications. In addition to the already hefty expense, some families are also faced with extremely costly medical conditions or diseases, which require medical ... Read More
Charitable Tax Deductions: How to Deduct Donations to Charity
Are you trying to determine whether or not a charitable donation that you've made - or are thinking of making - will be a tax deduction? The good news is that most donations made to charities qualify as tax deductions. The bad, news, however, is that if you plan to write off charitable contributions, you will need to itemize ... Read More
Tax Breaks for Veterans and Active Military Members
If you are a veteran, you may be entitled to certain tax breaks. While veterans must pay taxes on their regular earned military and veteran pay, there are other areas that they do receive tax breaks. If you are a military veteran, here is a look at what you need to know: Property Tax Exemptions for Veterans Certain veterans ... Read More
The Traditional IRA Tax Deduction: Benefits and Taxes of IRAs
Saving for retirement should be a priority for every working adult, regardless of age. In fact, the best time to start saving for future expenses is when you begin your career, whereby you enable years of contributions and interest to grow into your nest egg. Regardless of when you start saving for retirement, knowing which ... Read More
Why Child Support is Neither Tax Deductible nor Taxable Income
Child support does not qualify as taxable income by the parent who receives the payments. Neither current child support payment nor back child support payments constitutes taxable income. As such, a parent who receives child support is not required to claim that money as income on his or her federal tax return. Child Support ... Read More
How to Calculate and Pay 2011 Self-Employment Taxes
If you are thinking of becoming self-employed, it is important to consider the tax impact and to understand the new tax reporting requirements that you will be subject to. When you are an employee, your employer takes care of withholding taxes from your paychecks. However, once you become self-employed, you must calculate and ... Read More
IRS Tax Relief and Deductions Available After Hurricane Irene
If you experienced damages and losses as a result of Hurricane Irene, you may be able to take tax deductions at tax time to help offset the expense. In general, people can claim casualty losses, like damages or losses from hurricanes, floods, fire, earthquakes or volcanoes on their federal income tax returns – provided they ... Read More
2011 Standard Tax Deduction: Amounts & Knowing When to Itemize
Preparing and filing your tax return can be daunting, especially when trying to determine which deductions you qualify for and choosing between taking the standard deduction and itemizing. It is a difficult decision to make, but ultimately you will want to go the route that will result in you having the lowest possible tax ... Read More
Legally Reduce IRS Income Taxes Using These Tax Credits & Deductions
If there is one thing that all taxpayers can agree upon, it is the desire to pay less in taxes and keep more of your hard-earned cash where it belongs - in your pocket. With the ever-changing tax laws and so many life-changing events occurring, staying on top of one's taxes is essential to avoid overpaying. As a general rule, ... Read More
