Tips on Gambling Income
Gambling winnings are fully taxable and must be reported on your tax return. Here are seven tips to know about gambling winnings. Gambling income includes – but is not limited to – winnings from lotteries, raffles, horse and dog races and casinos, as well as the fair market value of prizes such as cars, houses, trips or other noncash prizes. Depending on the type and amount of your winnings,...
March 21st, 2010 by The Tax Man
Eight tips to know about the New Vehicle Sales and Excise Tax Deduction
If you bought a new vehicle in 2009, you may be entitled to a special tax deduction for the sales and excise taxes on your purchase. 1. State and local sales and excise taxes paid on up to $49,500 of the purchase price of each qualifying vehicle are deductible. 2. Qualified motor vehicles generally include new cars, light trucks, motor homes and motorcycles. 3. To qualify for the deduction, the...
March 19th, 2010 by The Tax Man
Seven Tips about Claiming the First-Time Homebuyer Credit
If you purchased a home in 2009 or early 2010, you may be eligible to claim the First-Time Homebuyer Credit, whether you are a first-time homebuyer or a long-time resident purchasing a new home. Here are seven things to know about claiming the credit: 1. You must buy – or enter into a binding contract to buy – a principal residence located in the United States on or before April 30,...
March 18th, 2010 by The Tax Man
Tips for understanding the Standard deduction and Itemized Deduction
Most taxpayers have a choice of either taking a standard deduction or itemizing their deductions. If you have a choice, you can use the method that gives you the lowest tax. Whether to itemize deductions on your tax return depends on how much you spent on certain expenses last year. Money paid for medical care, mortgage interest, taxes, charitable contributions, casualty losses and miscellaneous...
March 10th, 2010 by The Tax Man
A free way to get your money faster
A Best Tax Tip – we suggest that taxpayers (and tax preparers) who want to expedite their tax refunds should use direct deposit. By using direct deposit, taxpayers can get their refunds much sooner than those who choose to have a paper check mailed to them. The advantages of choosing direct deposit include: Security—Direct deposit eliminates the possibility that the taxpayer won’t...
March 5th, 2010 by The Tax Man
Eight Tips to Help You Choose a Tax Preparer
Use care and caution when choosing a tax preparer. Remember, you are legally responsible for what’s on your tax return even if it was prepared by an another individual or firm. Most tax return preparers are professional, honest and provide excellent service to their clients. However, unscrupulous tax return preparers do exist and can cause considerable financial and legal problems for their...
March 1st, 2010 by The Tax Man
Eight Reasons why you may want to file income tax
Even if you don’t have to file, here are eight reasons why you may want to file: 1. Federal Income Tax Withheld If you are not required to file, you should file to get money back if Federal Income Tax was withheld from your pay, you made estimated tax payments, or had a prior year overpayment applied to this year’s tax. 2. Making Work Pay Credit You may be able to take this credit...
February 19th, 2010 by The Tax Man
Tips on Items Excluded from Income
Here is a tax tip to reacquaint taxpayers with situations where certain types of income are partially taxed or not taxed at all. Common examples of items that are not included in income, such as: —adoption expense reimbursements for qualifying expenses —child support payments —gifts, bequests and inheritances —workers’ compensation benefits —meals and lodging for the employer’s...
February 16th, 2010 by The Tax Man
Five Tips to offset education costs
1. The American Opportunity Credit This credit can help parents and students pay part of the cost of the first four years of college. The American Recovery and Reinvestment Act modifies the existing Hope Credit for tax years 2009 and 2010, making it available to a broader range of taxpayers. Eligible taxpayers may qualify for the maximum annual credit of $2,500 per student. Generally, 40 percent...
February 15th, 2010 by The Tax Man
Seven Tips about Claiming the First-Time Homebuyer Credit
If you purchased a home in 2009 or early 2010, you may be eligible to claim the First-Time Homebuyer Credit, whether you are a first-time homebuyer or a long-time resident purchasing a new home. Here are seven things to know about claiming the credit: 1. You must buy – or enter into a binding contract to buy – a principal residence located in the United States on or before April 30,...
February 11th, 2010 by The Tax Man
