- Is Alimony Taxable?
Alimony has two important tax statuses. If you finalized your divorce before Jan. 1, 2019, the person who collects alimony pays taxes on this money. This means that the person who pays alimony can claim a full tax deduction for… read more…
- How the Premium Tax Credit Works
Tax credits can save you money at tax time by reducing what you owe. If you purchase health insurance through the Health Insurance Marketplace, you may qualify for the Premium Tax Credit. Eligibility for the credit is based on income… read more…
- JP Morgan Reveals 3 Tricks to Cut Taxes
With interest rates rising, it’s increasingly important to make sure you’re taking advantage of all interest deductions you’re entitled to so you can avoid paying more in taxes than you need to. Three interest deductions are particularly important, according to… read more…
- Who Claims a Child on Taxes With 50/50 Custody?
Claiming one or more dependents on your taxes can yield some valuable tax benefits, including the ability to claim the child tax credit and the child and dependent care tax credit. But when parents share 50/50 custody, determining who claims a child on taxes depends on IRS rules and agreements between the parents. Typically, the… read more…
- How to Add a Newborn to the Child Tax Credit
What do onesies, binkies of every size and color, swaddles plastered with fluffy animals, and tax credits have in common? If you had a child in the last year, they all play a significant role in your life. As any new parent can attest, diapers and bottles aren’t cheap, particularly with inflation on the rise.… read more…
- Can You Deduct Rent on Your Taxes?
If you’re wondering whether you can deduct your rent on your tax return, the short answer is yes. You can deduct rent if you live in a state that allows it. However, only 23 states and Washington D.C. offer this type of deduction. Here’s what you need to know. A financial advisor can help you create a… read more…
- Last-Minute Tax Deductions to Take in 2025
With tax season in full swing and the April 18 filing deadline rapidly approaching, many Americans are once again wondering whether they should take a standard deduction or consider itemizing their deduction. If you’re considering itemizing your deductions and up… read more…
- Are Funeral Expenses Tax Deductible?
When a loved one passes away, most families hold a funeral to mourn, remember the deceased’s life and pay last respects. While these events are a good way to gather family and friends to honor the deceased, funerals can be… read more…
- This Is a Little Known Tax Credit You Should No Longer Ignore
The Hope Credit, which is the previous and perhaps better known name of the American Opportunity Tax Credit, is a federal tax break that can help people pay for college or trade school. This credit offers up to $10,000 in tax credits per student over four years to cover qualifying educational expenses. Students pursuing degrees… read more…
- 2025 Tax Deductions for Traditional, Roth IRAs
Whether you have access to a workplace retirement account or not, everyone with earned income can contribute to their own IRA. However, depending on your income, work situation and the type of IRA chosen, your contributions may or may not… read more…
- Are Home Equity Loans Tax Deductible?
A home equity loan is a loan using your house as collateral — a somewhat risky move, but useful in some circumstances. Furthermore, you may be able to deduct the interest you pay on a home equity loan as long as you meet some requirements. Taxpayers who itemize deductions on their returns, spend the proceeds… read more…
- Is HELOC Interest Tax Deductible?
A home equity line of credit (HELOC) and a home equity loan both free up cash by accessing the equity you have in your home. In both cases, the interest charges may be tax-deductible. The HELOC is a line of credit,… read more…
- What Is the AMT Credit, and Who Gets It?
The alternative minimum tax (AMT) was created to close loopholes and ensure that all U.S. taxpayers pay their fair share of taxes. When you pay an AMT, some or all of that additional tax is for future income that is being taxed due to differences in the rules. For those payments, a credit is issued… read more…
- Earned Income Credit vs. Child Tax Credit
The Earned Income Tax Credit and the Child Tax Credit are both programs designed to help alleviate poverty, but there are key differences. The EITC is a credit available to employed, low-income households. It is intended to boost the effective income of people who are employed. The CTC is a credit available to employed households with children. This… read more…
- How to Reduce Your Taxes on 1099-MISC
Earned income is generally recorded in two ways for federal tax purposes. There is W-2 income and 1099-MISC income. The former is for employees, either full- or part-time; the latter is for contract workers, sometimes known as a freelancers. Here’s… read more…
- Student Loan Interest Deduction for 2024 and 2025
The student loan interest tax deduction is for students and their parents who are repaying federal student financial aid. It’s the “above the line” adjustment to your adjusted gross income (AGI) if you have paid interest to a qualified loan program… read more…
- How to Get a Foreign Tax Credit
In some circumstances you can get a deduction or credit on your federal income taxes for taxes that you’ve paid to other non-U.S. governments. The foreign tax credit is one of these cases. If you live overseas, work overseas or… read more…
- 2024 and 2025 Work From Home Tax Deductions
The 2017 tax reform law ended the ability for most taxpayers to deduct expenses for working from home just in time for millions more people to begin working from in response to the Covid pandemic. Nowadays only a few select… read more…
- How Did the Trump Tax Bill Affect Itemized Deductions? – 2021 Study
The Trump tax bill – formally known as the Tax Cuts and Jobs Act (TCJA) – nearly doubled the standard deduction while also limiting some itemized deductions. From 2017 to 2018, the standard deduction rose from $6,350 to $12,000 for singles, from $12,700 to $24,000 for married couples filing jointly and from $9,350 to $18,000… read more…
- A Comprehensive Guide to 2025 Tax Credits
Every year, people’s lives change in ways that affect their taxes. They may start a higher education program or have a child, and others take on elderly parents as dependents. These situations can change their eligibility for tax credits. In… read more…
- Are Political Contributions Tax-Deductible?
Simply put, political contributions are not tax-deductible. Americans are encouraged to donate to political campaigns, political parties and other groups that influence the political landscape. When it comes time to file taxes, though, many people may not fully understand what… read more…
- All About the Home Office Tax Deduction
Maintaining a home office for your business can yield a benefit at tax time if you’re able to claim a deduction for your expenses. The IRS lays out the rules for deducting home office costs in Publication 587. There’s a… read more…
- The Lifetime Learning Credit: Are You Eligible?
The Lifetime Learning credit is a tax credit for college expenses, though it can also be claimed for tuition paid for graduate courses, vocational schools and continuing education courses. The credit is worth up to 20% of the first $10,000… read more…
- The American Opportunity Tax Credit
There are two key education tax benefits that can help families who are paying for college: the Lifetime Learning Credit and the American Opportunity Tax Credit (AOTC). In general, it may be wise to take the American Opportunity Tax Credit if… read more…
- 9 Rental Property Tax Deductions for Landlords
Being a landlord can significantly bolster your savings, but it’s also a lot of work. On top of the finances and responsibilities of your own living space, you have to find tenants, secure insurance and pay a mortgage and property taxes.… read more…