Individuals who didn’t qualify for a third Economic Impact Payment or got less than the full amount, may be eligible to claim the 2021 recovery rebate credit based on their 2021 tax year information. If you are eligible, you will need to file a 2021 tax return even if you don’t usually file a tax…
There are two higher education credits that reduce the amount of tax someone owes on their tax return. (1) American opportunity tax credit (2) Lifetime learning credit The taxpayer, their spouse or their dependent must have been a student enrolled at least half time for one academic period to qualify. The taxpayer may qualify for…
The home office deduction allows qualified taxpayers to deduct certain home expenses when they file taxes. To claim the home office deduction on your 2021 tax return, taxpayers generally must exclusively and regularly use part of their home or a separate structure on their property as their primary place of business. Can You Claim This…
If you have adopted or started the adoption process in 2021, you may qualify for the adoption credit. This credit can be applied to international, domestic private, and public foster care adoption. However, if you adopt your spouse’s child, you cannot claim this credit. Basic Information About the Adoption Tax Credit The maximum adoption credit…
Certainly you want your refund as soon as possible, and you would like to have your taxes filed and done. However, make sure you have gotten all of your documents before you file. I.E., make sure you have received all of your W2s, 1099s, mortgage interest statements, K-1, capital gain, etc. If file before receiving…
The most common tax return errors are surprising simple. Missing or Inaccurate Social Security Numbers. Each SSN on a tax return should appear exactly as printed on the Social Security card. Misspelled Names. A name listed on a tax return should match the name on that person’s Social Security card. Entering Information Inaccurately. Wages, dividends,…
In any tax filing, the document you need depends on your situation. For Personal Income Tax filing, some of the common documents needed are: – Names and social security number for all dependents – W-2 Forms from all employers – Form 1099-NEC or 1099-MISC for non-employment income – Form 1099-DIV for dividends or distributions of…
The monthly internet service fee that you pay can be deduction on your tax return. You can also deduct fees for your business website hosting and domain registrations and renewals.
If you contribute to an IRA, then these amounts can be deducted on your tax return. The IRS categorizes the IRA deduction as an above-the-line deduction, meaning you can take it regardless of whether you itemize or claim the standard deduction. The IRA deduction reduces your taxable income for the year, which ultimately reduces the…
