The purpose of this article is to discuss tax deductions. The discussion will describe common itemized deductions, provide a comparison of itemized deductions and the standard deduction, and explain how to determine when it is best to take the standard deduction versus itemized deductions. Itemized Deductions Itemized tax deductions fall under three categories: expenses incurred ...
As a general rule, all the income you receive in the form of money, property, or services is subject to the federal income tax unless it is specifically exempted by law. On Form 1040 that you use to file your annual federal income tax return, there is a separate line at the end of the ...
When filing your federal income taxes, you have an option to either take the standard deduction or itemize. The standard deduction is just what it says – it is a flat amount of money you can deduct from your adjusted gross income before figuring your income tax for the year. Itemizing eschews the flat rate ...
In general, for federal income tax purposes in the United States, a foreign person who is a resident is entitled to claim the same deductions, exemptions, and credits as a U.S. citizen. A nonresident foreign person can generally claim deductions only to the extent that they relate to income effectively connected to a trade or ...
You may have a property that you decide to rent out at less than fair market value, perhaps to help out a family member or friend. How you report the rental income and expenses for tax purposes depends on whether the property is considered a secondary home or a rental property, and whether you rent ...
With the start of the New Year comes the beginning of tax season. Here are some frequently asked questions for filers in the state of Missouri. Missouri Tax Question #1: What are the minimum filing requirements in Missouri? This answer depends on your marital status and income levels, which will differ from federal levels. You ...
If you are a resident of Alabama you are subject to state income tax on your income from all sources, whether in or outside of Alabama. Part-year residents are subject to state income tax on their income from all sources during the period they are residents, and on income earned from a source in Alabama ...
You may receive certain fringe benefits at work to compensate for commuting or parking costs, including direct reimbursements and transit passes. According to the IRS, qualified transportation fringe benefits can be excluded from your taxable income up to certain limits. These benefits include transportation in a commuter vehicle, such as a van, between your home ...
For seniors, the Internal Revenue Service is divided into 2 parts: (1) The Good IRS and (2) The Bad IRS The Bad IRS – that’s the one we are all familiar with – its job is to try to take as much money from you as it can. The Good IRS – we don’t hear ...
