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?
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
Itemized tax deductions have given many wage earners a chance to pocket more income, rather than hand over their hard-earned cash to the government. For those who keep good records, deductions have long meant more money for them and less for the Internal Revue Service (IRS). In 2018, due to the Tax Cuts and Jobs … Read moreThe Most Overlooked Tax Deductions
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
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
Some people try to itemize when they are better off using the standard deduction. On the other hand, some taxpayers avoid itemizing because it seems too difficult — even when itemizing deductions could save them money. Get the best tax savings from itemizing or taking the standard deduction with these tips. You can’t deduct … Read moreStandard vs. Itemized Deductions
Your tax bracket shows you the tax rate that you will pay for each portion of your income. For example, if you are a single person, the lowest possible tax rate of 10 percent is applied to the first $9,525 of your income in 2018. The next portion of your income is taxed at the … Read moreHow Tax Brackets Work
The Tax Cuts and Jobs Act of 2017 made some provisions to the tax tables and numbers used to estimate your tax liability. Included in those changes were adjustments to the standard deduction for each filing status. Here are answers to some of the most common questions about the standard vs itemized deductions in 2018. … Read moreStandard vs Itemized Deductions in 2018