- What Disqualifies You From the Earned Income Credit?
The earned income tax credit (EITC) offers support to low- and moderate-income workers, but certain conditions can make you ineligible. You may be disqualified if your income is too high, if you have significant investment income, or if you are married but filing separately. You also cannot claim the credit without valid Social Security numbers… read more…
- Is Your Homeowners Insurance Tax-Deductible?
Homeowners insurance is usually not tax-deductible for personal residences, but you may be able to deduct part of the cost if you use your home for business or rent out a portion. Most personal expenses related to homeownership don’t qualify, so it’s important to understand the exceptions. A financial advisor can help you understand IRS… read more…
- Can You Deduct Property Taxes on Your Tax Return?
When tax season rolls around, homeowners often wonder if property taxes are deductible on their tax returns. The answer is yes—you can deduct property taxes on your tax return. In fact, property tax deductions remain one of the valuable benefits of homeownership under current tax law. These deductions allow you to reduce your taxable income… read more…
- Refundable Tax Credit: Explanation, Eligibility, Benefits
Tax credits reduce the amount you owe to the IRS, but not all tax credits work the same way. A refundable tax credit can reduce your tax liability below zero. This means you could receive a refund even if you owe nothing in taxes. For eligible taxpayers, this can result in extra money back at… read more…
- Nonrefundable Tax Credit: Definition, Types, Examples
A nonrefundable tax credit can lower what you owe to the IRS, sometimes substantially but only to a point. Unlike refundable credits, nonrefundable credits cannot generate a refund if the credit amount exceeds your tax liability. That means if your total tax due is zero, the credit cannot push you into a negative balance and… read more…
- Form 8829: How to Deduct Expenses for Home Business Uses
Form 8829 is used to claim the home office deduction by calculating the business-related portion of home expenses. Self-employed individuals and freelancers can deduct costs such as rent, utilities and depreciation if they use a designated space exclusively for work. However, the IRS sets specific guidelines for eligibility, including regular and exclusive business use of… read more…
- Average Itemized Deductions in Some States Reach Over $50k. Are You Getting the Most Out of Your Tax Return?
Should you itemize your taxes? Most taxpayers take the standard each year. The Tax Policy Center estimates that only about 10% of households itemize their taxes. This is in large part because the standard deduction is $15,000 per person for individual filers ($30,000 combined for married households). That makes it large enough that, in most cases,… read more…
- Guide to Tax Deductions for Homeowners in 2025
Owning a home comes with costs, but it also provides tax benefits that can lower your taxable income. For those filing taxes in 2025, deductions like mortgage interest and home office expenses have become more relevant with the rise of remote work. Some tax benefits have been long established, while others now apply to changing… read more…
- I Paid $4,500 in Fees to My Financial Advisor This Year. Is This Tax Deductible?
Historically, you could deduct some financial advisor and tax preparation fees. Under the current tax code, that is no longer the case. For example, say that you paid $4,500 this year in fees to your financial advisor. There are no specific tax breaks for this spending for the 2024 tax year. However, the Tax Cuts… read more…
- What Are Property Taxes and How Are They Calculated?
Property tax is a recurring levy imposed by local governments on property owners, based on the value of their real estate. Typically, property taxes are collected locally and fund local community services such as schools, roads, law enforcement and fire departments. The amount of the tax is usually determined by assessing the market value of… read more…
- States With Tax Breaks for Renters: Do You Qualify?
It is rare to get meaningful tax relief as a renter. Homeowners can get significant tax advantages, most notably in the form of the mortgage interest deduction and the capital gains exemption, both of which are available to all households regardless of circumstance. This is less common for renters. There are no federal tax breaks for… read more…
- What Is the 2025 Federal Solar Tax Credit?
The Federal Solar Tax Credit, also known as the Investment Tax Credit (ITC), provides an up to 30% tax credit for the costs of adopting solar energy in the United States. The credit applies to new solar photovoltaic (PV) systems and expansions of existing ones, reducing the overall installation cost by nearly a third. This… read more…
- Tax Credits You Can Use to Reduce Your 2024 Taxes
Tax season has arrived, and when it comes to preparing your return remember this: deductions are good, but tax credits are better. Anyone who’s paid taxes knows the value of deductions, which reduce the amount of your tax bill at your marginal tax rate. If you’re in the 22% federal tax bracket and you deduct $2,000 in… read more…
- I Worked Two Jobs in 2023. Can I Get a Tax Credit for Paying Too Much in Payroll Taxes?
If you paid Uncle Sam more than his fair share in payroll taxes in 2023, you may be owed a refund. In 2023, you would have paid a combined 7.65% in payroll taxes on all employment-based earnings up to the annual limit. But if you worked two relatively high-paying jobs, there’s a chance that a… read more…
- Five Medical Expenses You Can Deduct on Your Taxes
Taxpayers can deduct medical expenses by itemizing them on their taxes. However, these deductions may be out of your reach as the current standard deduction is high. In 2024, the standard deduction is $14,600 for individuals and $29,200 for joint filers. Therefore, taxpayers generally itemize deductions if the total amount is greater than the standard… read more…
- How to Receive Charitable Tax Deductions
Every year, charitable individuals and households make one saying a reality when they make a donation to nonprofits: It’s better to give than to receive. However, when you give, the IRS also allows you to receive something in return: Charitable tax deductions. When you donate money to a qualifying public charity, you can deduct up… read more…
- Available Education Tax Credits You Can Claim
For students and their parents, there are two tax credits that can help with the costs of higher education. The American opportunity tax credit is a partially refundable tax credit that you can receive for qualified educational spending. The lifetime learning tax credit is a non-refundable tax credit that you can receive based on tuition… read more…
- What Does It Mean If Something Is Tax-Advantaged?
Tax-advantaged investments can help you maximize your returns. Simply put, a tax-advantaged investment is any type of investment, account or savings plan that offers notable tax benefits to the investor. These investments allow you to minimize the amount of taxes you pay, either by deferring, reducing, or, in some cases, completely avoiding them. You may… read more…
- What Are Section 199A Dividends?
When it comes to maximizing investment income, few tax benefits are as overlooked, or as valuable, as the Section 199A dividend deduction. This special provision allows certain investors to deduct up to 20% of qualified dividends from their taxable income, potentially saving thousands in taxes each year. For those who invest in real estate investment… read more…
- This Little Known Tax Credit Helps Low-Income Workers Catch Up on Retirement Contributions
Retirement has gotten harder for low-income Americans. In July, the Government Accountability Office studied the impact of tax-advantaged retirement accounts. In doing so, they found that the disparity in retirement savings between low-income and high-income workers between ages 51 and 64 grew significantly between 2007 and 2019. This means people nearing retirement today are in… read more…
- Schwab Says Lower Your Tax Bill By ‘Bunching’ Your Charitable Deductions
Donating to charity isn’t just a way to have a positive impact on society – it’s also a savvy approach to reducing your tax liability. Schwab suggests people who donate to charity on an annual basis may want to consider… read more…
- What Is the Investment Interest Expense Deduction?
If you borrow money to buy investment assets, the IRS will sometimes allow you to deduct the loan’s interest from the taxable income the investments generate. This is called the investment interest expense deduction. While it applies only to income –… read more…
- Are Medicare Premiums Tax Deductible?
If you’re nearing the age for Medicare eligibility, there are some things you should know about Medicare. One of those things is whether Medicare premiums are tax-deductible. You want to ensure you file your taxes correctly, but you also want… read more…
- Can You Get a Tax Deduction for Your 401(k)?
Planning for retirement requires us to consider not only how to build wealth but how to protect it. Employers offer 401(k)s to address the first need, but careful planning can help us ensure our money stays with us. While you can’t… read more…
- Are Closing Costs Tax-Deductible?
When you’re filing your taxes, there’s a whole lot to consider. From figuring out who counts as a dependent to organizing your income streams, you may find the process a bit overwhelming. And if you’re a new homeowner tackling mortgage… read more…