Archives for February 2011

Claiming The Residential Energy Credits

As a homeowner, being energy efficient pays off a lot when it comes to reducing your monthly electric or gas bills. In addition, you are also helping the environment in reducing deadly emissions in the air so it does provide double benefit. However, purchasing these equipment may be too costly and the break-even point (the […]

Miscellaneous Items You Can Deduct On Schedule A

There are really two kinds of miscellaneous deductions that can be deducted on your itemized schedule: items that are subject to the 2% of AGI limitation, which will be discussed on this article and the ones that are not such as gambling losses, casualty or theft losses, etc. Miscellaneous Section Subject to the 2% of […]

Schedule A: Interest Expense You Can Deduct

Interest expense is the amount of money you pay for the use of borrowed funds. Certain types of interest expense may be deductible depending on where you use those borrowed money. Most consumers have various debts such as home mortgage debt, auto loans, credit card balances, student loans, business loans, and investment loans. Most of […]

Claiming The Making Work Pay Credit On Your 2010 Tax Return

As part of the American Recovery Reinvestment Act, the IRS offered a special tax credit for tax year 2009 and 2010 allowing taxpayers to receive additional refund. Married Filing Joint (MFJ) taxpayers can receive as much as $800 while the rest of the filers can receive as much as $400. The credit equals 6.2 percent […]

Personal/Non-Business Losses You May Deduct – Casualty and Theft Losses

Majority of personal expenses are not deductible. This include expenses paid for living, home rent, food, clothing, insurance, utilities, child support, auto payments, vehicle expenses interest on credit cards, etc. If you run a business (see How a home-based business may help you reduce your taxes) or you have unreimbursed employee expenses, you may be […]

Claiming The Home Buyer’s Credit On Your Return

The American Recovery Reinvestment Act has brought a lot of tax benefits to the American people in order to stimulate the economy. After the real estate crash a couple of years ago, the government tried to find ways to stabilize the real estate market since this is one of the major reason why the economy […]

7 Income People Think Are Taxable But Actually Are Not

Taxes are really very confusing. There are some deductions that people think they can claim but in reality, they can’t. I’m sure that you’ve been hearing different stories from your friends or co-workers regarding the deductibility of some deductions. It works the same way with reportable income: Determining which income is taxable or not can really […]

Deducting Charitable Donations Part 3 – Limitations on Your Contributions

This is the last part of the three part series. The other two are: Part 1 – Qualified Organizations – You can only deduct donations if these are made to qualified organizations. Also discusses organizations that are not qualified by the IRS. Part 2 – Items You Can Deduct – Discussed the items that you […]

Deducting Charitable Donations Part 2 – Items You Can Deduct

This is the second part of a 3-part series about Deducting Charitable Donations. On the last post, we’ve talked about the various qualified organizations (organizations that meet the IRS qualification requirement for your contribution to be deductible). Part 1 – Qualified Organizations – You can only deduct donations if these are made to qualified organizations. Also […]

Deducting Charitable Donations Part 1 – Qualified Organizations

Every year, Americans have been giving billions of dollars of donations to charity. Thanks to the government for giving out the incentive to do so: deducting those donations from your taxes. However, there are certain rules on what can you deduct, what organization qualifies, and how much you can deduct. This is a three part […]

The Home Mortgage Interest Deduction

One big advantage of owning a home is if you carry out a mortgage when you first purchase it, the mortgage interest that you paid may be tax deductible. This may include the loans you used to purchased your home, the second mortgage, or home equity loans. To be deductible, the mortgage loans must meet […]

Schedule A: Taxes You Can Deduct

It seems that there are just so may taxes that we have to pay from federal, state, sales, gift taxes, etc. The good thing about this is that the IRS allows us to deduct a few of these items on our tax return. However, not all taxes are deductible. You can deduct any of the […]