Business Deduction for Work-Related Education
Mar31

Business Deduction for Work-Related Education

If you are an employee and can itemize your deductions, you may be able to claim a deduction for the expenses you pay for your work-related education. Your deduction will be the amount by which your qualifying work-related education expenses plus other job and certain miscellaneous expenses is greater than 2% of your adjusted gross income. An itemized deduction may reduce the amount of your income subject to tax. If you are...

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Missing Your RMD Deadline Will Cost You!
Mar29

Missing Your RMD Deadline Will Cost You!

The IRS reminds taxpayers who turned 70½ during 2015 that in most cases they must start receiving required minimum distributions (RMDs) from Individual Retirement Accounts (IRAs) and workplace retirement plans by Friday, April 1, 2016. Failure to do so will cost you big time with a stiff penalty equal to 50% of the shortfall (the difference between the RMD amount you should have taken out for the 2015 tax year and the amount you...

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8 Benefits of Health Savings Account
Mar25

8 Benefits of Health Savings Account

A health savings account (HSA) is a tax-advantaged medical savings account available to taxpayers who are enrolled in a high-deductible healthplan (HDHP) to pay or reimburse certain medical expenses. The funds contributed to an account are not subject to federal income tax at the time of deposit. Your employer may offer an HSA option or you can start an account on your own through a bank or other financial institution. To qualify, you...

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What is the American Opportunity Tax Credit?
Mar22

What is the American Opportunity Tax Credit?

The American Opportunity Tax Credit is a credit for qualified education expenses paid for an eligible student for the first four years of higher education. The credit expanded on the Hope Credit with higher income limits and more qualified expenses. You can get a maximum annual credit of $2,500 per eligible student. If the credit brings the amount of tax you owe to zero, you can have 40 percent of any remaining amount of the credit...

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IRS Warns Scammers Changing Tactics

The IRS is receiving new reports of scammers calling under the guise of verifying tax return information over the phone. The latest variation being seen in the last few weeks tries to play off the current tax season. Scam artists call saying they have your tax return, and they just need to verify a few details to process your return. The scam tries to get you to give up personal information such as a Social Security number or personal...

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