Taxes, Credits & Deductions
Use HSAs and FSAs effectively, take advantage of IRS Free File, and maximize charitable deductions. Reduce your tax bill, use pre-tax savings, and file with confidence.
What is a Health Savings Account and Do the Potential Drawbacks Outweigh the Tax Advantages
A Health Savings Account (HSA) is a type of savings account that lets you set aside money on a pre-tax basis in order to pay for qualified medical expenses. When you use pre-taxed dollars to pay for your deductibles, copayments, coinsurance, and some other expenses, you are able to lower your overall health care costs by lowering your taxable income. It's a good way to save, but not for everyone.
Tax Time Guide: Use IRS Free File for Help with Your Tax Returns, Tax Extensions, and More
The Internal Revenue Service (IRS) is reminding taxpayers who haven't filed their federal income tax returns that IRS Free File remains available both online and through the IRS mobile app, IRS2Go. The IRS Free File service makes brand-name tax software products and electronic filing available to most taxpayers at no cost. And some products offer both free federal and state tax return preparation.
Medical-Related Savings Plans: You Can Save Money on Taxes With Flexible Spending Accounts
If you have a health plan through a job, you may be able to use a Flexible Spending Account (FSA) to pay for copayments, deductibles, some drugs, and some other health care costs. Depending upon the extent of your health costs, participating in an FSA can help you save money by reducing your taxes at each paycheck. But be careful. If you contribute more than you spend, your unused funds disappear.
Some Helpful Tips for People Thinking of Giving Year-End Tax-Deductible Gifts to Charities
Gifts to charity are one of the best tax-saving opportunities available. Not only does the charity benefit, but the taxpayer receives a tax deduction. The ways you can contribute, along with the limits and benefits of doing so, are varied and confusing. As with most tax benefits, changes are made from time to time to those limits and other regulations, including some that came into effect for 2019.
What Will Really Happen if You Don't Pay or Forget About Your Federal Income Taxes in 2020?
The thought crosses our minds every year around tax time and again when we start writing that check to the federal government. What would happen if I didn't pay my federal income taxes? We never really find out, though, since we always end up paying them. But what would really happen if we didn't pay up to the federal government? What are the potential consequences if we don't pay or forget to pay?
Federal Income Tax Credits Can Help You at Tax Time if You Financially Support Your Parents
If you're caring for an aging parent, you already know that it can get very expensive. But you can qualify for a some tax credits and tax deductions from the Internal Revenue Service (IRS) for the financial support you provide. There are a lot of different factors to take into consideration, so you may or may not qualify. But if you are able to qualify for the credits, you can see serious savings.
If You Want a Larger Tax Refund, Don't Forget About These Common Tax Breaks and Deductions
Are you looking for the biggest tax refund you can get this year? You're not alone. But far too many people miss out on some common tax deductions each year. But you don't have to be one of them. Review the following tax deductions to see if you might be missing out on a larger tax refund. And don't despair if you see something you may have missed last year. You can always amend last year's taxes.
Don't Let Tax Time Be the Perfect Time for Scammers to Steal Your Identity and Tax Refund
It's that time again. Tax documents are pouring in from banks and employers while we're all collecting receipts and trying to get an idea of how much money we will owe the Internal Revenue Service (IRS). But just because we're at the beginning of the year, it doesn't mean we shouldn't be watching for scams, especially those requesting last-minute deposit changes for tax refunds or account updates.
Think Again if You're Thinking About Getting an Advance on Your Income Tax Refund This Year
If you're short on money and know that you will be getting a tax refund this year, you may be tempted to get an advance on the refund. A tax refund advance, also called Refund Anticipation Loans or Refund Anticipation Checks, is a short-term loan based upon your estimated tax refund. But the fees and interest rates, which are often 200% or higher, should make you think twice.
Job Search Expenses Can Be Tax Deductible on Your Tax Return, Even if You Don't Get the Job
If you've been looking for a new job in the same line of work as your most recent job, you may be able to deduct some of your job search expenses on your federal income tax return. And it doesn't even matter if you got the job. But the Internal Revenue Service (IRS) does have some limitations. So if you've been looking for a new job, check into whether your situation qualifies you for a tax credit.
Bigger Refund: Know Which Medical Expenses Are Deductible on Your Federal Income Tax Return
If you're looking for a way to get a bigger federal tax refund this year, you might consider itemizing deductions in order to take advantage of the medical expenses deduction. Taxpayers may to deduct qualified medical expenses in excess of 7.5% of their adjusted gross incomes minus any adjustments to income. But not all expenses qualify. And some that used to qualify may not be deductible anymore.
Don't Miss Out on These Federal Income Tax Breaks if You Have a New Child or One on the Way
After you spend the time preparing for your new child, taxes are probably the last thing on your sleep-deprived mind. But they shouldn't be. Your new child can save you money with tax credits and tax deductions. All new and prospective parents can use some help in navigating the tax code. So make sure you know about all the credits and deductions you can get for having your first or another child.
The Most Common Income Tax Return Errors and How You Can Avoid Them When Filing Your Return
Have you started preparing your 2020 income tax returns? The deadline to file your returns is Thursday, April 15, 2021. The Internal Revenue Service (IRS) expects the vast majority of income tax returns, about 90 percent, will be prepared electronically using tax return preparation software. But there are a number of common tax return errors you should look for regardless of how you file your taxes.
Only Slight Changes to Federal Income Tax Brackets for Income Tax Returns Due April 2020
The Tax Jobs and Cuts Act of 2017 brought a number of sweeping changes to the tax laws that affected how much taxpayers paid starting with their 2018 federal income tax returns. As is usually the case every year, the federal income tax brackets have once again been updated. This time, however, they reflect only a small change for the 2019 tax year as compared to the broad changes we saw for 2018.
Income Tax Pros Beware: Tax Scammers Are Targeting Your Network and Your Customers Data
Income tax time is when identity thieves and scammers go into overdrive aiming to steal sensitive data from taxpayers and tax professionals alike. Tax professionals must be very mindful of scams intended to take personal and professional information or to allow remote control of computer systems, letting cybercriminals complete and file client tax returns and redirect tax refunds to other accounts.
Check These Things Before the End of the Year to Be Ready to File Your Taxes for Next Year
With Christmas just around the corner, one of the last things on your mind is filing your income taxes. But even though the Internal Revenue Service (IRS) tax filing deadline is still a few months away, there are a few things you should check now before this year ends to make sure you're ready for filing. Once the new year begins, your ability to influence your taxes for next year is very limited.
You Can Claim an Adoption Tax Credit to Help Offset Expenses if You Adopted a Child in 2019
If you adopted a child in 2019, you probably had to spend quite a bit of money to do it. Adoption is both expensive and exhausting, but it's also very fulfilling for both the child and the rest of the child's new family. The Adoption Tax Credit exists to give new parents a tax credit of up to $14,080 for each qualifying adopted child, offsetting some of the costs involved in the adoption process.
Common Red Flags That Will Prompt the IRS to Pull Your Income Tax Return Aside for an Audit
You've probably seen ads guaranteeing that certain things you do will ensure you won't get audited by the Internal Revenue Service (IRS) at tax time. Want to know a secret? You can never completely avoid the possibility of a tax audit. The overall number of taxpayers chosen for an audit is usually less than one percent. But there are steps you can take to make an income tax audit even less likely.
It's Relatively Simple to Get a Six Month Extension to File Your Federal Income Tax Return
Needing more time to prepare and file your federal income taxes is more common than you may think. If you need more time from the Internal Revenue Service (IRS) before the tax deadline, you can get an extension. Requesting an extension doesn't trigger an audit and typically takes only a few minutes. It doesn't give you more time to pay, but it gives you some extra time to get everything in order.