Are you one of those who dread deducting business, medical, and charitable miles on your tax return? You’re not alone. Keeping track of all the miles you drive for work or charity can be daunting, but there’s a solution to this problem – and it’s as simple as downloading an app on your smartphone. With the MileIQ app, tracking your miles simple and efficient. Available for both Android and iOS, MileIQ is a mileage-tracking app that automatically logs your drives … Continue reading “Tracking Miles: There Is An App For That”
Are you running a business or just a hobby? The difference between the two is not always clear-cut, but it’s essential to understand the distinction, especially regarding taxes. If you have a side hustle or a small business to turn into a full-time gig, you must operate it like a legitimate business. One of the main factors that determine whether the IRS considers your business a hobby or a for-profit enterprise is the intent to make a profit. If you … Continue reading “Is It A Business Or A Hobby?”
The Internal Revenue Service (IRS) has announced new mileage rates for 2023, which will take effect from January 1st. These rates determine the amount you can deduct from your taxes for any driving you do for business, medical or moving purposes, and charitable work. This year, the IRS has raised the mileage rates to reflect changes in fuel prices, fuel economy, and insurance costs.For taxpayers who use their car for business purposes, the new mileage rate has increased from 58.5 … Continue reading “Driving Your Way to Tax Savings: Understanding the 2023 IRS Mileage Rates”
Tax season can be stressful for most Americans, but staying informed about any changes that could affect your financial situation is essential. For tax returns filed in 2023, the tax credit for children may be worth up to $2,000 per qualifying dependent under 17, which is excellent news for parents. But what does that mean for you? Firstly, let’s clarify who qualifies as a dependent. A qualifying dependent is a child under 17 who is related to you and lives … Continue reading “Maximizing the Child Tax Credit: Tips for Parents”
Tax time can be a stressful period for many individuals and families, especially when trying to navigate the complicated maze of tax laws and deductions. One of the most important factors to consider when filing your taxes is the standard deduction, which can significantly impact your tax liability. The standard deduction is a fixed amount that taxpayers can claim on their tax returns to reduce their taxable income. This deduction is available to all taxpayers, regardless of whether they choose … Continue reading “Get Ready for a Tax Break: 2023 Standard Deduction is Increasing”
Bought or Refinanced a house in 2014? The closing statement, HUD-1, received at closing will have some valuable information for tax preparation.
The Internal Revenue Service will begin accepting tax returns electronically and processing paper returns on January 20, 2014.
Hey, what is this new tax form 1095-A? That’s your Health Insurance Marketplace statement. If you got health insurance on the marketplace in 2014, you will need Form 1095-A to file your tax return. This form reports the monthly health insurance premiums pad to the insurance company you selected through the marketplace in 2014. Form 1095-A also details the advance premium tax credit payment that were paid directly to your insurance company.
Did you refuse, forget and not get covered with qualifying health insurance for 2014? Well, you you may have to pay a penalty when you file your taxes. Unless you have an exemption, the tax penalty starts at $95 per family member on your tax return or 1% of your household income, whichever amount is higher. The maximum penalty is capped at the national average premium for a bronze plan which is approximately $2,448 in 2014.
Did you get health insurance through the state or federal marketplace? If you answered yes, then you will need to reconcile your premium subsidy, reported on IRS Form 1095-A, with your income.