Category Archives: Taxation

Defining Taxable and Nontaxable Income

Professional Tax Service Defines Taxable and Nontaxable Income
by Holly Petherbridge
We can help taxpayers understand the difference between taxable and nontaxable income. In general, most types of income are included in the taxable category. When filing your taxes with or without the help of a professional tax service, you will want to make sure you report exactly what the IRS defines as taxable income. The following is a list of items which the IRS states are NOT taxable. *Child support payments - If you receive child support payments, you are not required to report it as income. The person sending the support has already paid taxes on it. *Gifts, bequests and inheritances are not

Can’t file taxes by April 15? You don’t have to…

Can't file taxes by April 15? You don't have to...
The IRS will grant an automatic extension to anyone who asks. But you still have to estimate what you owe and send the money.  This post is by Laura Saunders of The Wall Street Journal. For taxpayers who can't manage the April 15 deadline, the Internal Revenue Service offers an automatic six-month filing extension. This year the due date is Oct. 15, and taxpayers qualify by filing Form 4868. Getting an extension is preferable to filing a return with mistakes, says Melissa Labant, a tax specialist with the American Institute of CPAs. "If you have already filed, then you will need to amend the return, which is often

Home Mortgage Interest Tax Deduction

Filing Taxes - Home Mortgage Interest Tax Deduction By J W Schroeder How Homeowners Can Get The Maximum Tax Refund Owning a home. Ask any homeowner what's so great about owning versus renting, and most will say "the tax deductions!" That's right because all homeowners who itemize their taxes are able to deduct 100% of their mortgage interest and property taxes from their income tax returns. But how do you maximize tax deductions and get the maximum tax refund for homeowners? If you don't own a home yet, there may be good reasons, but the advantages of owning a home far outweigh renting. There are really only two reasons not to own a home-you may live rent free with your parents or

How To File Taxes Online

How To File Taxes Online Even If You Haven't Done It Before
By You've spent considerable time gathering your tax information for the current tax year and are wondering how to file taxes online. When your nephew filed your previous year taxes, he gave you the paper copies to mail to the IRS. After waiting around two months to get your refunds, you realized that there has to be a better way, and you were right. There are a number of options available that will show you how to file taxes online and receive refunds in as little as eight days,

How To Get a Tax Deduction For Home Office Expenses

How To Get a Tax Deduction For Home Office Expenses
By A taxpayer may get a tax deduction for home office expenses in computing income tax in the USA. The home office tax deduction is allowed only if specific requirements are met.{26 USC 280A} First, the portion of the home must be used exclusively and regularly for business. Second, the use must be either as the principal place of business or by customers in regularly dealing with the taxpayer. Use of a separate structure (such as a freestanding office)