Tax Deductions

How to Report Hobby Income and Expenses on Your Tax Return

Hobbies keep balance in our life. It is an activity that we love and enjoy that help us relieve the stress of our day-to-day lives or a diversion to keep us sane. Although most hobbies are done just for leisure such as listening to music, playing sports, playing video games, reading books, traveling, or what […]

Donate or Sell Broken Car?

What happens if the cost of repair is more than the cost of the car? Would you give it up or have it fixed? This was the dilemma that my friend was facing. One of the car that he drives needed some repair but it turned out that it would cost him a lot of […]

7 Mistakes People Make Just To Get A Huge Tax Refund

In general, tax deduction should be the secondary reason not the primary reason for your spending. In other words, do not overspend for the sole purpose of claiming the expense as a deduction in order to get more refund during tax time!! Spending just to claim a tax deduction is like spending $1 to get […]

7 Homeownership Related Tax Credit and Deductions

One of the biggest advantage of home ownership versus renting is that there are a lot of financial benefits including numerous tax breaks available to the homeowners that are not available to renters. Most renters can only claim the standard deduction since they may not have enough expenses to itemize. When you become a homeowner, […]

5 Education Tax Credits and Deductions You Don’t Want To Miss in 2010

Education is very important for families because it provides unlimited opportunities for individuals who have one. The government knows this so as much as possible they would like to help by providing numerous education tax credits and deductions to both the people who are pursuing it and for the people that are teaching or providing […]

March Madness: How the NCAA Helps You Get Away With Watching Games At Work

March Madness is probably the next big thing after the Super Bowl event. Advertisers are probably paying an arm and a leg just to get spots in this 3-week event. The games are available in multiple TV stations now such as the CBS, TNT, TBS, and TRU. This tells you how a lot of these […]

Individual Retirement Accounts (IRA): A Quick Overview

Nowadays, majority of the companies offer a retirement plan and the most common type is the 401(k). However, if your employer does not offer one, you can still save for retirement and enjoy the tax-deferment features by opening an Individual Retirement Arrangement or IRA. In the past, not many employer offer a retirement plan at […]

Tax Issues For The Unemployed Individuals

During the economic downturn for the past couple years, millions of Americans have lost their job. However, as part of the American Reinvestment Recovery Act, the government made sure that even the unemployed are also taken care of by offering numerous benefits such as extending the unemployment benefits, exclusion of up to $2,400 of income, […]

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 […]

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 […]

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 […]