All too often, taxpayers wait until after the close of the tax year to worry about their taxes, missing opportunities that could reduce their tax liability or help them financially. Fall is the perfect time for tax planning. The following are some events that can affect your tax return; you may need to take steps to mitigate their impact and thus avoid unpleasant surprises … [Read more...] about Mid-Year Tax Planning Checklist
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Convert Unused Property Into a Tax Deduction
When you give away items like clothing, appliances, vehicles, and other goods to a qualified charity, your generosity can add up to a tax write-off if you itemize your deductions. The amount of your deduction is generally the donated property's “fair market value.” The IRS definition of fair market value (FMV) is “the price a willing buyer would pay and a willing seller would … [Read more...] about Convert Unused Property Into a Tax Deduction
Tips for Students and Parents Paying College Expenses
Whether you’re a recent high school graduate going to college for the first time or a returning student, paying for college can be a daunting financial task. The following are some tips about education tax benefits that can help offset some college costs for students and parents. American Opportunity Credit—In many cases, this credit offers greater tax savings than other … [Read more...] about Tips for Students and Parents Paying College Expenses
Tax Tips for Students with a Summer Job
Many students hold a summer job during their time off from school. Here are some tax issues that should be considered when working a summer job. 1. Completing Form W-4 When Starting a New Job – This form is used by employers to determine the taxes that will be withheld from your paycheck. Taxpayers with multiple summer jobs will want to make sure all of their employers are … [Read more...] about Tax Tips for Students with a Summer Job
Read this before Tossing Old Tax Records
Now that your taxes have been completed for 2012, you are probably wondering what old records can be discarded. If you are like most taxpayers, you have records from years ago that you are afraid to throw away. It would be helpful to understand why the records must be kept in the first place. Generally, we keep tax records for two basic reasons: (1) in case the IRS or a … [Read more...] about Read this before Tossing Old Tax Records