Who Is Exempt from Paying Social Security Tax?

Just like the income tax, most people can’t avoid paying Social Security taxes on their employment and self-employment income. There are, however, exemptions available to specific groups of taxpayers. If you fall under one of these categories, you can potentially save a significant amount of money. However, if you do take advantage of the exemption, … Read moreWho Is Exempt from Paying Social Security Tax?

IRS Issues Guidance For Deducting Home Equity Loan Interest Under The New Tax Law

The home mortgage interest deduction was spared in the tax reform, but the amount of home mortgage allowable for purposes of the deduction was limited to $750,000 for new mortgages. Existing mortgages were grandfathered, but that didn’t appear to be the case for home equity debt, raising some questions for taxpayers. The Internal Revenue Service … Read moreIRS Issues Guidance For Deducting Home Equity Loan Interest Under The New Tax Law

Deducting Unreimbursed Job Expenses

The passing of tax reform brought many eliminated tax deductions. All unreimbursed job expenses for traditional employees are no longer tax deductible. Tax reform eliminated the option to claim “miscellaneous expenses subject to the 2 percent adjusted gross income (AGI) floor” as itemized deductions. Unreimbursed job expenses were previously part of that miscellaneous expense category. … Read moreDeducting Unreimbursed Job Expenses

Itemized Deductions vs. Above-the-Line Deductions

Income tax deductions are items that reduce your taxable income. But, not all deductions are created equal. For instance, some deductions can be taken “above the line” on your tax return. Above-the-line deductions are subtracted from your income before the adjusted gross income (AGI) is calculated for tax purposes. This would include items such as … Read moreItemized Deductions vs. Above-the-Line Deductions