Archive for Tax Deductions

Reduce Tax Liability: Deducting Medicare Premiums

Nanda Kumar, Tax Advisor, Sterling, Virginia, USA, Tax Blog, TaxConnections

Well, it would be a bit of a stretch to say that most of us don’t want to pay taxes. However, who wouldn’t take a tax deduction if it is available? For all those individuals who are looking out for different ways by which they can reduce their tax liability, here is one effective method of doing so. You can include your Medicare premiums and even dental expenses in tax filing for better deductions. Sure, there are some prerequisites and details that one must consider and they are below.

Deducting Medicare Premiums Read more

Tax Saving Tips For Contractual And Project Based Employees

Nanda Kumar, Tax Advisor, Tax Blog, Sterling, Virginia, USA, TaxConnections

Being a contractual or project based employee has quite a few benefits when it comes to taxes. For an instance, you are eligible for a few tax deductions without even having to itemize the same. The following are some great ways of saving money on tax dollars if you a contract and/or project based employee.

Include Business Expenses

A lot of contract employees either shy away or are too skeptical when it comes to deducting business expenses from their returns.As a project based or contract employee, it is imperative that you keep a track of all your earnings throughout a year. If you can manage, having separate cards and accounts for business and personal usage would be ideal. Read more

Tax Deductions Vs. Tax Credits

Olivier Wagner, Tax Digi Nomad, Vancouver, Canada, Tax Blog, TaxConnections

Tax Credits and Deductions are probably the most exciting part when preparing your tax return. They both help you save money by reducing your overall income tax liability. So, you should take a full advantage of all the tax credits and deductions you qualify for.

Tax Credits and Deductions are probably the most exciting part when preparing your tax return. They both help you save money by reducing your overall income tax liability. So, you should take a full advantage of all the tax credits and deductions you qualify for.
As many still get confused about the difference between tax credits and tax deductions, here’s a simple introduction to the these two in the light of the New Tax Reform that just has been approved.  Read more

Valuing Artwork For Tax Deductions

A person would need the stoniest of hearts to gaze upon Michelangelo’s Sistine Chapel or Picasso’s Guérnica and think about money. We all understand that the true value of a masterpiece cannot be expressed in either words or numbers—no one can put a price on art, the saying goes.

Yet when tax time rolls around, the law requires doing exactly that. The IRS has developed extensive guidelines for converting brush strokes and chisel marks into dollars and cents. Read more

Gluten-Free Federal Tax Deduction

To be eligible to deduct the excess costs of a gluten-free diet under Internal Revenue Code Section 213, you must have a documented reason to require the observance of a gluten-free diet, along with a physician’s prescription to follow a gluten-free diet. This should provide sufficient documentation of eligibility.

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Facts & Myths About The Mileage Deduction – Free MileIQ App


The mileage deduction is a great way to save on your tax bill. But there are some misconceptions about this valuable deduction. Let’s go over some facts and myths about the mileage deduction.

Myth: You Need An Odometer Reading for Every Trip

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The Truth About Section 179 And Vehicles

John Stancil

I recently received a mailing from an American automobile company regarding the Section 179 deduction. The letter expressed some urgency to purchase a vehicle before the end of the year to get a large Section 179 deduction. While this is true, the letter left me with the impression that I needed to take action before December 31, 2016, or the deduction would be lost. What they stated was true. However, it is what was left unstated that concerns me.

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Deducting Travel To Conferences And Seminars


Travel to business-related conventions, seminars, or similar meetings can be tax deductible. This can include deductions for your transportation, lodging, and 50% of your meal expenses while on business. Learn about how to do this, as well as some of the IRS restrictions.

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Year End Tax Planning Starts With A Charitable Donation Assessment

John Dundon

How do you plan to give back next year?

The more money we tend to have, the harder it tends to be to share our resources with others. This is true up to the point we start to appreciate the significance of giving back. For many this tipping point comes far too late in life if at all. If you charitably donate or are considering being charitable, how much are you donating? How are you making those donations? Money? In kind? Time? How do you decide what is appropriate?

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Home Office Tax Deduction And Business Miles Deduction-Plus Free MILEIQ App

Many tax professionals like the ability to transfer their home into their office, since it allows for greater flexibility of time. There are also tax benefits when somebody sets apart a place in their home to create a home office. This post from MileIQ gives us the tax benefits and requirements for establishing a home office in order to apply for the tax deduction on business miles from the IRS.

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Dependency Exemptions For Relatives Other Than Children

Harold Goedde

This article will discuss the requirements to claim a relative as a dependent, items considered as support and items not considered as support. It also discusses multiple support agreements.

Requirements for claiming an exemption. ALL of the following must be met or the exemption will be disallowed by the IRS.

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Overlooked Tax Considerations For Small Business


If you own your own business, your tax obligations likely do not end with the IRS. There are other tax agencies looking to put the bite on you as well. Small business owners can cut their taxes by taking various tax deductions. Be sure you don’t pay more taxes than you need to by being aware of the overlooked tax considerations for small business.

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