Tag Archive for Virginia

8 New State Laws You Should Know For 2020

8 New State Laws You Should Know For 2020

In the state tax world, the beginning of the year means new legislation goes into effect. Are you curious about which laws changed at the beginning of the month? Keep reading for eight states with new and updated sales tax laws you won’t want to miss.

Georgia: 529 Plan State Tax Update

For Georgia residents using a 529 Plan to save for college expenses, state tax deductions will double to be:

  • $4,000 per child for single taxpayers
  • $8,000 per year for those filing jointly with a spouse

This deduction will be available beginning with the 2020 tax year.

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Written by | Posted in TaxConnections

Last Minute Tax Tips Before Deadline

Procrastination of tax returns is not a unique phenomenon. In fact, a lot of tax payers file their tax returns in the last two weeks before the deadline. Filing tax returns earlier than the deadlines is better as you are not rushed and chances of making mistakes is also lower. However, if you are racing against the deadline clock for your returns, here are some tips to help you get through.

Organize Read More

Written by | Posted in Tax Deadline • Tax Mistakes • Tax Preparation • Tax Tips

Owe Taxes? These Tips Can Help

A few of us received an intimation letter from the IRS stating that we owe them some money in the form of taxes. Sure enough, nobody likes to receive such emails. However, if you do here are some ways you can handle the situation without losing your sleep.

Do Not Delay

If you receive that envelope from IRS, do not be a skeptic and not open it at all. I have seen quite a few friends who just do not wish to open the envelope. There are chances that your tax filing might have a minor error that you need to fix. Whatever the reasons could be, do not forget to open and read the letter as soon as you receive it. Read More

Written by | Posted in IRS • Tax Filing

Tax Tips For First Time Filers

Filing taxes for the first time? Don’t let all the experts and jargons overwhelm you. At the end of the day, if you understand some very basic points clearly, you shall pass this test as well. If you are out of the college or just took your first job, it is eminent that you take this step with a lot of seriousness. But not to a level that it becomes a mental block for you. We have outlined some simple tips for you to get through this.

Should You File? Read More

Written by | Posted in Tax Filing • Tax Tips

The American Opportunity Tax Credit System Is In Place

Tax credit systems are in place to let tax payers deduct a certain amount from their tax liability to the state or federal government based on different programs. One such initiative is the American Opportunity Tax Credit, or commonly known as AOTC. This tax credit system is designed specifically for college going students, allowing them to settle their college costs via tax credits. AOTC is much more beneficial when compared to tuition deduction since it allows for an actual reduction in taxes that you owe to the government. But there are certain eligibility criteria that one must meet to be able to benefit from this system. Read More

Written by | Posted in American Opportunity Tax Credit • Tax Credit

Mortgage Insurance Premiums For Taxpayers

Mortgage insurance in the simplest of terms is the backup plan for a lender. In the unfortunate event that the borrower is unable to repay the loan, the lender can cash in the mortgage premium and recover the losses. However, there is more to it than what meets the eye. Here are some more details of this rather intriguing insurance and why you should opt for it.

What Is It?

Statistics reveal that most home buyers pay less than 20% of the entire property cost as up front or commonly known as down payment. Read More

Written by | Posted in Adjusted Gross Income • Insurance • Mortgages • TaxConnections

Reduce Tax Liability: Deducting Medicare Premiums

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

Written by | Posted in Form 1040 • IRS • Medicare • Tax Deductions

Tax Saving Tips For Contractual And Project Based Employees

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

Written by | Posted in Tax Deductions • Tax Tips

Taxpayers – 7 Reasons Why You Should File Your Tax Return Early

Filing your taxes long before the April 15 deadline might not be your top priority, but there are many benefits to completing your return early. By filing early:

  • You avoid the last-minute stress,
  • Have time to plan for paying taxes you may owe,
  • You can get your refund faster and
  • Avoid fraud by filling out your tax forms sooner rather than later.

1. The Earlier You File, The Earlier You Get Your Refund

  •  A good reason to file your taxes early you’ll get your money sooner.
  • According to the IRS, the average refund was more than $2,800 for 2016 and 2017 Tax Filers…so why miss on that earlier claim and why give you an interest free loan to IRS?

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Written by | Posted in Tax Filing • Tax Return

Tax On Holiday Bonus

A large number of companies provide their employees with holiday bonus or end of the year bonus. In fact, a study states that about 80% of the companies do this. It always feels good when you are at the receiving end of such gifts and bonus, doesn’t it? But do not forget the tax liability that might arise out of these bonuses.

Cash

A check or cash bonus paid by your employer is one of the most common forms of holiday bonuses. If you are part of an organization where you are entitled to such benefits, you need to list it out. Read More

Written by | Posted in Year End Bonus Tax

Casualty And Theft Losses

It is not unknown for people to suffer a loss in the form of theft and casualty for their personal properties. If you are one of them, you can claim the same as itemized deduction for your tax returns. To do so, you need to fill up the Form 4684 to understand how much of yours loses you can report and then mention the same in the Schedule A of the Form 1040.

It is important to note that you can claim only for those losses that are not covered or reimbursed by any insurance company. Also, in order to qualify for the deductions, your loss should amount to more than 10% of your adjusted gross income. You cannot claim a deduction otherwise. Read More

Written by | Posted in Tax Return • Theft

Tax On Cash Donations, Non-Cash Donations, Charity Expenses

A donation in any form can give you immense pleasure and harmony of sharing stuff with others who do not have access to such things. More people are interested in such noble causes than ever before. Apart from helping some people in need, you can help yourself as well. A donation is one of the known ways of reducing your tax liability. Unfortunately, a lot of people started to misuse same and in turn forced the government to push for stricter regulations. The following are some important points that you need to consider when it comes to tax on donations or charity. Read More

Written by | Posted in Charity • Donations
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