Earned Income Credit (EIC): Meet the IRS Version of Welfare

The government has various ways on how to take care of the unfortunate ones. Different agencies, at the state, county or federal levels have different programs to help the poor. Among the government programs that are popular are free medical cost, housing assistance, cash aid, food stamp, WIC, etc. but your income must be at […]

Claiming Mortgage Interest Credit On Your Tax Return

If you think that there are no more tax credit for first time home buyer’s credit, think again!! One tax credit that has been around since 1984 but has been overlooked by most home buyer is the mortgage credit certificate program or simply called MCC. However, this is not a program administered by the IRS […]

Understanding The Child Tax Credit

The government has continually helped families financially by providing generous tax credits and deductions to those who have kids and have low to moderate family income. Families with children can avail tax deductions such as the dependency exemptions and tax credits such as the child tax credit, dependent care credit, earned income credit, etc. However, […]

Adoption Credit: What Expenses Are Included, How Much and The New 2010 Changes

Adopting a child is a long process and can be really costly. Prospective parents would have to attend various seminars and would have to be interviewed by a social worker on a consistent basis including numerous visits to the adopting parents home. Adopting parents would have to show that they are both financially and emotionally […]

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 […]

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 […]

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 […]

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 […]

2009 Tax Benefits Extended in 2010

Every year there are just so many changes in the tax law and it seems that we really have to be on top of things for us to take advantage of the various tax savings. In tax year 2009, there are a lot of tax benefits that sprung out to help the American people weather […]

Schedule A: Medical Expenses You May Deduct

If you paid medical and dental expenses for yourself, your spouse and your qualifying dependents, you may be able to deduct them on your tax return. The IRS defines medical expenses as the costs of diagnostic, treatment, mitigation or prevention of disease and the costs of treatment affecting any part or function of the body. […]