Tag Archives: tax deductions

Money Monday: Tax Breaks for Parents

Now that it’s tax season, it’s time to consider what tax breaks you as a parent might be able to claim.

1. Childcare tax break

One way to save is to set up a Dependent Care Flexible Spending Account, or DCFSA, during Open Enrollment. You might be able to save up to 30% in taxes on the money you put toward it.

2. Child care credit

If you did’t sign up for a DCFSA, check out the Child and Dependent Care Credit when filing your taxes.

3. College savings plans deductions

“Many states offer full or partial tax deductions for parents saving for college in state-sponsored 529 plans.” (“Taxes made easy: 5 breaks for childcare and education.” Jeanie Ahn. Yahoo Finance.)

4. College tax credits

There are two college tax credits that you might be able to gain: the American Opportunity Tax Credit and The Lifetime Learning Credit.

Read more on these tax credits and deductions here: “Taxes made easy: 5 breaks for childcare and education”.

Money Monday: Tax Deductions for Homeowners

With the tax deadline coming up, now is the time to refresh yourself and learn about tax breaks you could be getting if you are a homeowner.

Some of the following tax deductions are only applicable to new homeowners, but there are a few that any owner can file for:

  1. Mortgage interest
  2. Mortgage insurance premiums
  3. Energy related tax credits
  4. Capital gains exclusion
  5. Property inheritance
  6. Property taxes
  7. Home office costs
  8. Moving expenses

If you would like details on these potential tax breaks you could be getting, read Yahoo’s article here.

Money Monday: Tax advantages of owning real estate

Usually, it would be expected that the government would take money for the real estate that you own. Since you are gaining a profit off of it for a livelihood it should work like any other job that you have. However, you can take advantage of several tax breaks for your real estate, all which will help you with the ownership of your property.

taxes

If you own a home, then you can also expect for it to be tax deductible. All home related expenses and refinancing that you decide to do for your home will be a way for you to take off money at the end of the year. You can also receive tax deductions from the mortgage interest that you pay. If you just own a home or if you are considering home equity, you can easily find a way to break off some of what you would owe.

When you are working on owning a home, you will be paying property taxes in your monthly payment towards your loan. If you have been paying these taxes throughout the year, they will be deductible on your taxes. In order to make sure this is part of the deduction, you will have to get a statement from the person who carried out the loan as well as find the interest that is connected to the property taxes that you have been paying.

If you have to sell your home and owe tax, you can allow a request for tax relief. This will be given to you by the IRS if they find a significant cause in selling your home. If there are uncertain circumstances that have forced you to sell your home, than the IRS can give you some benefits in taxes.

By finding the necessary forms and conditions, you can easily benefit by gaining tax relief with your ownership. You can easily find how to do this by researching possibilities and finding what the categories are for getting a tax break for the year.

These are all general benefits of owning real estate, for information on your own available tax breaks and how to fully cash in on the tax benefits you should talk to your tax advisor.

Money Monday: How you’ll benefit from the new tax deal

Parents, low-income families, students, teachers and mass commuters are among those who will benefit from a $760 billion tax deal that was signed into law on December 11, 2015.

taxes“The deal, which was combined with a $1.1 trillion spending package for 2016, is dominated by business tax breaks. But it also includes more than $250 billion worth of tax breaks for individuals”:

  • Bigger refund when you have kids.
  • More generous tuition tax credit.
  • Higher refund for low-income working families.
  • Fairer treatment for mass transit commuters.
  • Permanent deduction for residents of states without income taxes.
  • Teacher deduction made permanent.
  • Deduction for mortgage insurance premiums.
  • Income exclusion for mortgage debt that’s been forgiven.
  • Tuition tax deduction.

All information is from CNN Money; read the full article here: “How you’ll benefit from the new tax deal”.