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, and subsidizing the COBRA health … [Read more...] about Tax Issues For The Unemployed Individuals
Taxes are really very confusing. There are some deductions that people think they can claim but in reality, they can't.Â 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 be very confusing for a … [Read more...] about 7 Income People Think Are Taxable But Actually Are Not
Sometimes your job may require you to pay out-of-pocket costs.Â When this happens, you may be able to deduct those expenses on your tax return. Keep in mind that you can only deduct them if you are itemizing your expenses. So if youâ€™re only claiming the standard deduction, then you wonâ€™t be able to deduct these expenses. In addition, these costs are subject to the 2% of … [Read more...] about Unreimbursed Employee Expenses: What Can You Deduct
The tuition and fees deduction can reduce your income subject to tax by up to $4,000. This is considered as an adjustment to your gross income. The qualified expenses must be paid for a higher education. Generally, the education tax credit provides a higher refund than the tuition and fees deduction. However, there are some instances that you may not qualify for the education … [Read more...] about Tuition And Fees Deduction: When To Use This Tax Relief?
Lifetime Learning Credit is a tax credit to help offset the cost of higher education. A taxpayer can receive up to $2,000 of credit PER TAX RETURN (and not per student) and it is available for all years of post-secondary education and for courses to acquire or improve job skills. Student does not need to pursue a degree or other recognized education credential and the number of … [Read more...] about Understanding the Lifetime Learning Credit