The Internal Revenue Service (IRS) offers many tax benefits for taxpayers to take advantage of during the tax season. Tax deductions are different from tax credits because they allow you to take the amount of the tax deduction from your taxable income. Tax credits, on the other hand, give you a dollar to dollar deduction …
It’s important to know the best tax deductions for your business. You can deduct the cost of many things as a small business. For example, for your business, you can deduct expenses related to your home office, such as a portion of your rent and utilities, office supplies, automotive expenses, insurance, business-related travel expenses, and …
Have you sent in a charitable donation and wonder if it will count as a tax deduction? The rules for this are a little complicated because you generally must itemize your tax deductions if you decide to take charitable deductions. Most people take the standard deduction each year because that amount is greater than the …
Charitable Deductions | Everything You Need to Know Read More »
The standard deduction is a specific amount decided upon by the Internal Revenue Service (IRS) each year to help lower the taxable income of taxpayers. This amount helps reduce the total of your tax bill each year. While the majority of people take the standard deduction when they file their annual tax returns, there are …
What is the Standard Deduction and How Does it Work? Read More »
Going through a natural disaster is never a good thing, but you might be able to deduct the casualty, theft, and disaster losses you incurred on your annual tax return. To claim the deduction, you must meet certain requirements and follow specific rules. You may want to work with a tax expert, someone who understands …
Casualty, Theft, & Disaster Loss | What Can You Deduct? Read More »
Tax credits are tax breaks offered by the IRS that allow you to reduce your tax liability by the amount of the tax credit. Tax deductions reduce your taxable income, but they do not allow you to have more of a tax refund or anything like that. Basically, deductions just reduce the income you are …
If you are looking to reduce your tax bill, you may want to see if you qualify for a refundable or partially refundable tax credit. Refundable tax credits can be worth more than what you owe in taxes, meaning you may be able to have a tax refund or an increase in the amount of …
The Child Tax Credit (CTC) was created to help families with the cost of having children by offering a partially refundable tax credit. For the 2020 tax year, you can claim a tax credit up to $2,000 per qualifying child. This credit has a refundable portion worth up to $1,400. In this article, we will …
The Child and Dependent Care Tax Credit is another great tax credit you should try to take advantage of (if you qualify). It was created to help working parents with expenses incurred for the care of a child or adult, as necessary for the dependent’s well being and safety. There are some pretty extensive requirements …
Child and Dependent Care Tax Credit | What is It? Read More »
The Health Coverage Tax Credit allows you to have 72.5% of your qualified health insurance coverage premiums to be paid directly to your health plan administrator on a monthly basis on your behalf. This tax credit was created to lower your out-of-pocket payments for monthly insurance premiums. As far as tax credits go, this is …
Subscribe to our newsletter to receive news, updates, and valuable tips.
Copyright © 2021 Borshoff Consulting | All rights reserved | Tax Consultant in Carmel, IN
Download our guide to ensure you know everything you need to and are prepared to deal with the IRS.