Tax credits can reduce your tax bill or give you a bigger refund but not all tax credits are created equal. While most tax credits are refundable, some credits are nonrefundable but before we take a look at the difference between refundable and nonrefundable tax credits, it’s important to understand the difference between a tax credit and a tax deduction. Continue reading “What’s the Difference Between a Refundable vs. Non-Refundable Tax Credits?”
What Are Estimated Tax Payments?
Estimated tax is the method used to pay tax on income that is not subject to withholding. This includes income from self-employment, interest, dividends, and rent, as well as gains from the sale of assets, prizes and awards. You also may have to pay estimated tax if the amount of income tax being withheld from your salary, pension, or other income is not enough. Continue reading “What Are Estimated Tax Payments?”
Five Tax Provisions Retroactively Extended for 2017
The Bipartisan Budget Act of 2018 (BBA) retroactively extended a number of tax provisions through 2017 for individual taxpayers. Let’s take a look at five of them. Continue reading “Five Tax Provisions Retroactively Extended for 2017”
Using a Car for Business: New Rules under 2018 Tax Reform Act…
Many of the tax provisions under tax reform were favorable to small business owners including those relating to using a car for business. Here’s what you need to know. Continue reading “Using a Car for Business: New Rules under 2018 Tax Reform Act…”
Is The Home Equity Loan Interest Still Deductible?
The Tax Cuts and Jobs Act has resulted in questions from taxpayers about many tax provisions including whether interest paid on home equity loans is still deductible. The good news is that despite newly-enacted restrictions on home mortgages, taxpayers can often still deduct interest on a home equity loan, home equity line of credit (HELOC) or second mortgage, regardless of how the loan is labeled. Continue reading “Is The Home Equity Loan Interest Still Deductible?”
Do You Need to Get Information For Previous Tax Years?
Tax season may be over, but you still need to hang onto your tax returns and other tax records for at least three years. However, if the IRS believes you have significantly underreported your income (by 25 percent or more), or believes there may be an indication of fraud they have the authority to go back six years in an audit. Furthermore, some documents including those related to real estate sales should be kept for three years after filing the return on which they reported the transaction. Continue reading “Do You Need to Get Information For Previous Tax Years?”