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If you purchased a new vehicle that runs on electricity drawn from a plug-in rechargeable battery, you may be eligible to claim the qualified plug-in electric drive motor vehicle tax credit, which can reduce your tax bill. In order to take the credit, you must file IRS Form 8936 with your return and meet certain
Qualified Plug-In Electric Drive Motor Vehicle Credit Worksheet Read More »
You might be able to deduct qualified medical expenses that are more than 7.5% of your adjusted gross income. For tax returns filed in 2022, taxpayers can deduct qualified, unreimbursed medical expenses that are more than 7.5% of their 2021 adjusted gross income. So if your adjusted gross income is $40,000, anything beyond the first $3,000 of
What Is a Tax Deduction? Unlike a tax credit, which reduces the amount of tax owed, a tax deduction reduces the amount of income subject to taxation before taxes owed are calculated. Tax deductions typically fall into three main categories: The standard deduction Itemized deductions Schedule 1 deductions (also known as above-the-line deductions). Standard Vs.
So far, three sets of Economic Impact Payments (also known as “stimulus checks”) have been issued to eligible recipients as part of the pandemic relief from the federal government. . Each set of payments has been slightly different and is outlined below for your Federal return. Round of Payment Legislation Projected Date Projected Payment
Installing solar panels earns you a federal tax credit. That means you’ll get a credit for your income taxes that has the potential actually to lower your tax liability or increase your refund. You can qualify for the ITC as long as your solar system is new or being used for the first time between January
Solar Tax Credit (Residential Energy Credit) – Form 5695 Read More »
“Tax Now” means you pay taxes on this item now, but you don’t have to pay the taxes on the accumulated amount when you retire. “Tax Later” means you save taxes now, but you have to pay the taxes on the accumulated amount when you retire. IRA stands for Individual Retirement Account. NAME
What are tax Credits? Tax credits reduce your tax liability, which means they directly lower the amount of income tax you owe for the year. If you owe $6,000 in taxes for 2021 but you qualify for $2,000 in tax credits, you will only owe $4,000 in taxes for the year. Each tax credit has