Leaving off deductions you’re eligible for, such as mortgage interest and property taxes, is leaving money on the table and with tax reform revving up again on Capitol Hill, with the heads of key committees pledging to work toward a simpler and fairer tax code, Congress may be looking to tradeoff these tax breaks with lower tax rates. Sounds intriguing?
Homeownership can pay off big time if you itemize your deductions. Use these five tax breaks to cut what you owe Uncle Sam:
1. Home Office
Do you work at home? Collect a tax break either by using the simplified method explained below or doing some complicated calculations to claim your exact home office expenses. Read More
So Valentine’s Day was here and left- that could only mean one thing – we are into the 3rd serious week of tax season! The Internal Revenue Service got out it’s fact sheet about the changes in reporting requirements for individuals. I thought for all those self-preparers, this would be a good tool to look at and see if this is the year you want to make the leap & have your taxes examined by a tax professional, especially an Enrolled Agent!
THE AFFORDABLE CARE ACT (ACA):
The ACA says that a taxpayer and each member of his family when filing his federal income tax return, must either
• Have qualifying health coverage for each month of the year; Read More
Additions and structural improvements (such as adding a garage or room, taking out interior walls, putting in new floors) are not a deductible expenditure and must be added to the cost of your house. However, some residential expenditures may qualify for the non-business residential energy credit on your federal income tax return and a deduction or credit on your state income tax return.
To claim the energy credit on your federal tax form use form 5695. These rules are for tax year 2012. They may qualify in 2013 any unused 2012 credits may be carried over to 2013, but you need to check the tax law or ask your tax return preparer when your 2013 return is prepared.
A. 30% of the cost (which includes labor for on site preparation and installation), of water heating property, small wind energy property, geothermal heat pumps, solar water and house heating items (including solar panels as part of a roof). Amounts attributable to hot tubs and swimming pools do not qualify.
B. Other items and amounts: Read More