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Nov 16, 2020Unreimbursed Job Expenses
If you have out-of-pocket job expenses, as a W2 employee, you may be eligible to deduct unreimbursed job expenses on your tax return. This will be located on Form 2106. However, prior to tax year 2018, taxpayers can only deduct unreimbursed expenses that exceed 2% of their adjusted gross income. This is located on Schedule […]
adminNov 16, 2020Alimony
Spousal support (alimony) payments are considered taxable income for spouse or common-law partner prior to 2019. If divorced before 2019 and paying alimony, these payments are considered an above-the-line deduction. Beginning in 2019, if a divorce or separation agreement was executed after Dec. 31, 2018, the alimony is no longer included in a spouse’s (recipient) […]
adminNov 13, 2020Gambling Winnings
Gambling winnings are fully taxable and must be reported on your taxes. Gambling income includes, but is not limited to, the following: The payer must issue you a Form W-2G, Certain Gambling Winnings if you receive winnings or if the winnings are subject to federal income tax withholding. You must report all gambling winnings as […]
adminNov 13, 2020Reporting Capital Gains
If you own something and use it for personal or investment purposes, it is a capital asset. If you sell a capital asset, the difference of the adjusted basis of the asset and the sale will lead to either a capital gain or loss. This is reported on Schedule D of your federal tax return. […]
adminNov 2, 2020Choosing the Correct Filing Status
Believe it or not, something as simple as your filing status determines your filing requirements, standard deduction, tax credit eligibility, and your overall tax. Each tax year has a standard deduction based off of your filing status which is adjusted annually due to inflation. There are five filing statuses: Single: If you are unmarried and […]
adminJul 2, 2018Casualties and Thefts – Form 4684
You can deduct casualty and theft losses for both personal use property and income-producing business property. Prior to tax year 2018, special limitations did not apply. For tax years 2018 through 2025, if you are an individual, casualty losses of personal-use property are deductible only if the loss is attributable to a federally declared disaster. Destruction […]
adminJun 28, 2018Tuition and Fees Deduction
The tuition and fees deduction allows you to deduct up to $4,000 of qualified educational expenses from your adjusted gross income. Qualifying expenses include tuition and fees for enrollment at an eligible institution for higher education that you paid for your education, that of a spouse, or of a dependent. Personal, living, or family expenses, such as […]
adminJun 14, 2018Expenses for Business Use of Your Home – Form 8829
Form 8829 is used to calculate allowable expenses for the business use of your home as well as any carryover of amounts not deductible for the current year. You can only deduct expenses for a specific part of your home that you use regularly and exclusively as your principal place of business, as a place for your […]
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