Archived Posts: Tax

Tax Breaks for Families With Children

Tax Breaks for Families With Children

by | Mar 17, 2021 |

If you have children, one or more of these tax credits and deductions could help your family reduce the amount of tax owed when you file your 2020 tax return. Let's take a look: 1. Child Tax Credit Generally, taxpayers can claim the Child Tax Credit for each qualifying child under the age of 17. The maximum credit is $2,000 per child. Taxpayers who get less than the full amount of the credit may qualify for the Additional Child Tax Credit (see below). The refundable portion of the credit is...

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Renting Out a Second Home

Renting Out a Second Home

by | Mar 11, 2021 |

In general, income from renting a vacation home for 15 days or longer must be reported on your tax return on Schedule E, Supplemental Income and Loss. You should also keep in mind that the definition of a "vacation home" is not limited to a house. Apartments, condominiums, mobile homes, and boats are also considered vacation homes in the eyes of the IRS. Tax rules on rental income from second homes can be confusing, especially if you rent the home out for several months of the year and use the...

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Avoiding an IRS Tax Audit

Avoiding an IRS Tax Audit

by | Mar 4, 2021 |

Just 0.45 percent of taxpayers were audited in fiscal year 2019. Still, with taxes becoming more complicated every year, there is an even greater possibility of confusion turning into a tax mistake and an IRS audit. Avoiding "red flags" like the ones listed below could help. Red Flags That Trigger IRS Audits Claiming Business Losses Year After Year When you operate a business and file Schedule C, the IRS assumes you operate that business to make a profit. Claiming losses year after year...

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Taxable vs. Nontaxable Income

Taxable vs. Nontaxable Income

by | Feb 23, 2021 |

Are you wondering if there's a hard and fast rule about what income is taxable and what income is not taxable? The quick answer is that all income is taxable unless the law specifically excludes it. But as you might have guessed, there's more to it than that. Taxable income includes any money you receive, such as wages, tips, and unemployment compensation. It can also include noncash income from property or services. For example, both parties in a barter exchange must include the fair market...

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Social Security Benefits and Taxes: The Facts

Social Security Benefits and Taxes: The Facts

by | Feb 19, 2021 |

What to Know About Social Security Benefits and Taxes Social Security benefits include monthly retirement, survivor, and disability benefits; they do not include Supplemental Security Income (SSI) payments, which are not taxable. Generally, you pay federal income taxes on your Social Security benefits only if you have other substantial income in addition to your benefits. Examples include wages, self-employment, interest, dividends, and other taxable income that must be reported on your tax...

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