Claiming dependents and itemizing deductions is an efficient approach to reducing your income taxes. Each dependent you claim reduces your taxable income by one exemption for tax years earlier than 2018 and enables you to claim a tax credit for tax years beginning in...
The main tax relief for teachers is the Educator Expense Deduction. To qualify for the Educator Expense Deduction in any given year, you must fulfill three criteria: You worked as an educator, instructor, advisor, principal, or aid for children from kindergarten to...
Raising a child can of course be expensive, including the cost of child care, basic living expenses, and college tuition, and these prices are frequently rising. However, parents may benefit from tax credits for schooling, child care, or for simply having kids. The...
Let’s all breathe a collective sigh of relief now that this year’s tax return has been filed. But now that this year’s filing is done, what might you have done differently? One typical error that people make is not thinking about their taxes until it...
Penalties for late filings and payments The IRS applies late filing penalties when taxpayers fail to submit or pay their tax returns on time. The failure-to-file penalty is typically 5% of the unpaid tax, with a maximum of 25% every month or portion of a month that...
The IRS generally has three years to audit a tax return, beginning with the later of the return’s due date or the day you submit. You can also file an amended return within this time window if you missed anything. Here’s what you should know about keeping...
Thanks this was helpful