Is It to Your Advantage to Itemize Your Deductions?
Under the old tax rules from many years ago, the answer to this question was generally yes, for most filers. Today, and especially after TCJA, more filers are using the new standard deduction. If you want to itemize your deductions, you need to exceed those amounts for the standard deduction.
To itemize your deductions, you need to keep track of medical expenses, various types of taxes that you pay, charitable contributions, qualified mortgage interest paid, and certain casualty losses. It takes more work to keep accurate records for these deductions, but it could payoff in the long haul.
Using the standard deduction or View full post…
Can You Claim the Home Office Tax Deduction?
Not long after Covid-19 began to spread wildly, companies that were able, changed their operation by having most employees work from their homes. During the month of May, 2020, over 35% of employees were working from home, according to a report published by the Federal Reserve Bank of Dallas.
This was about a 27% increase over the prior month of February, and it appears that the percentage will continue to rise over the coming months. If you are now classified as a full-time remote employee, you may be wondering if you’ll be able to qualify for the home office tax deduction on your 2020 tax return. View full post…
What Is a Section 1031 Exchange? The Rules & What You Need to Know
The first thing you need to know is that a Section 1031 exchange isn’t for everyone. By that, I mean there are many situations where doing one just doesn’t make sense. Having said that, let’s take a look at the definition and what it does.
Even though, a 1031 exchange can be very complicated, for many, there are major tax advantages to it. For instance, you may have a parcel of real estate that you want to sell, but in doing so, it will generate a big profit and a big tax bill. In this case, a 1031 exchange might be a good option for you. View full post…
File a Tax Return for a Deceased Individual – 6 Tips
We’ve all heard that saying, “the only things that are certain in life are death and taxes.” When a person dies, it doesn’t relieve them of the responsibility to pay any taxes that may be due for the time they were alive.
It may be a spouse, dependent, or a parent that had earned and/or investment income that must be reported to the IRS and the respective state taxing agency. Someone needs to file a tax return and pay any taxes that are due.
Some final returns are very simple like when a deceased person may have worked one job, and had only 1 W-2 form. Many other returns can get complicated very quickly, and we always recommend that you get help from an experienced View full post…
Looking for the Best Online Tax Filing? We Have It
Have you tried to prepare your tax returns yourself and struggled with all the paperwork? Or perhaps you went to your local CPA or one of the tax franchise operators? Has the sticker shock worn off yet or did their very high fees leave you confused? Not the best online tax filing by any means.
Why spend your hard earned money on an expensive tax preparer? Or become frustrated trying to understand a convoluted tax code that even confuses some accountants? We have a simple and low cost solution. A flat rate of $25.00 and that includes a state return too. Plus View full post…
Do I have to Report Unemployment Money on my Tax Return?
Short answer…yes, it’s taxable on your Federal return and on most of the states too. We know next year’s taxes are the least of your worries right now when you lose your job. But, if you’ve gotten any unemployment money this year, it’s a good idea to look at this now, and understand just how they’re taxed. You’ll avoid bad surprises that way.
Unfortunately, yes. We know it seems like the government is kicking you in the gut when you’re down and out. It gets worse…that extra $600 a week a lot of people got through the Cares Act is also taxable.
We hate to be the bearer of more bad news, but View full post…
Awards for Creative Tax Deductions – Or Not
Now that the 2020 tax season initial filing season is over, we’re hoping that the following might help to put a smile on your face. Every tax year, the IRS receives returns with deductions that are…well, let’s just say creative.
Some of these creative tax deductions are approved, some even make it to the tax court, where some of the judges must have a good sense of humor. Here’s the first one:
Normally, expenses you pay for your child to attend school are not deductible. However, one particular child had severe respiratory problems, so the parents sent him to a school in Arizona. They deducted the cost of travel to Arizona and his room and board as a medical expense. It was View full post…
Online Tax Services Help to Avoid These 7 Tax Return Blunders
If there’s one thing that we can count on, it’s that tax laws are constantly changing. To help us to cope, the better online tax services, such as ours at HBS Financial Group, Ltd., offer assistance to avoid the seven most common tax blunders.
These mistakes are not only made by first time tax filers with a very simple return, but also by those who file more complex tax returns. It is our hope that listing these seven types of errors will help you to avoid them.
Failure to report all taxable income
This is probably the area that so many taxpayers fail View full post…
Finally a Solution to Online Tax Preparation That Makes Sense
Now that you’ve decided to take advantage of the online tax preparation method of filing your income tax return, you need to select one of the tax vendors from the many listed in the search results.
You really need to select the one that will best supply your needs, and this will involve some research on your part. This guide may be of help to you as well. We’re assuming that you haven’t filed a tax return online before, so you may not be 100% certain on the services that you may need.
There are various factors to consider, as well as tax documents you need to have in hand before you start to look for an online tax filing service. Get all of your tax documents together such as W-2’s, 1099’s, and any other information that was sent to you.
If you’re not buying a home and don’t View full post…
5 Free Tax Return Filing Tips to Simplify Filing Your Taxes
It’s a known and unfortunate fact that most individuals aren’t too efficient when it relates to tax return filing. We offer these free online tax preparation tips to help those who are disorganized and/or unprepared. Many are stressed out because they are not organized and it doesn’t have to be that way.
- A checklist can be a big help in getting organized.
Making use of a good checklist will guide you in organizing all of the correct documents that you need. This one free tax return filing tip alone can make sure that you don’t miss any required details. Did we mention less stress? Getting your required documentation organized will allow you to View full post…