Debra Thompson

You may be able to take the Credit for the Elderly or the Disabled if you were age 65 or older at the end of last year, or if you are retired on permanent and total disability, according to the IRS. Like any other tax credit, it’s a dollar-for-dollar reduction of your tax bill. The maximum amount of this credit is constantly changing.

You can take the credit for the elderly or the disabled if: Read More

Nontaxable or tax exempt income is income that is not subject to income tax, and you do not report these on your tax return. Surprisingly to some taxpayers, there are quite a number of income sources that are actually nontaxable, and these include the following:

• Child support.
• Federal tax refunds.
• Interest on state or local government obligations, such as municipal bonds.
• Welfare and other public assistance benefits.
• Workers’ compensation and similar payments for sickness and injury.
• Meals and lodgings provided by your employer. These will be excluded from your taxable income if: (a) the meals are furnished on your employer’s business premises, (b) the Read More