Getting A Mortgage Tax Deduction

You may assume that filing taxes has to be confusing, but that isn’t the case. With the use of Turbo Tax 2014, you can make the filing process less stressful.

If you have a mortgage, you may be considering utilizing the mortgage tax deduction when handling your taxes.

My Mortgage Docs to be Reviewed by an Expert
My Mortgage Docs to be Reviewed by an Expert (Photo credit: i am real estate photographer)

Many people attempt to lower their taxable income with the use of deductions and credits. In order to do this, you may want to claim your mortgage interest. Some homeowners plan to use the deduction and hope to benefit from it, so they choose not to pay off their mortgage. You’re likely wondering if it makes more sense to benefit from the savings or get rid of your debt altogether.

Many individuals find that they have enough money to pay off their debts and still have some savings for emergencies, but they’re not sure if they should make this move.

If you choose to pay off your mortgage so that you can be debt free, remember that tax credits are different than deductions. A credit will lower your taxable income and a deduction will lower the percentage of tax that you owe. If you don’t have a mortgage, you may pay more in taxes, but it may still be less than what you’d pay in interest if you had a loan. In this case, it doesn’t make sense to keep a mortgage in order to get the tax breaks.

Tax Carnival Ecstasy – December 17, 2013

Welcome to the December 17, 2013 edition of Tax Carnival Ecstasy. We start with some information on filing your taxes at the end of the year for the 2013 tax season. We have a TradeKing review from John Schmoll. And finally Mark Wang looks at assets that you can own that create passive income. Make sure to bookmark the carnival on social sites, like on Facebook, Tweet, and share with all your friends.

filing

Bill Smith presents Important Dates For Filing Your 2013 Tax Return Forms posted at 2011 Taxes, saying, “As the year comes to an end, it is important to start thinking about filing your 2013 taxes.”

A Granny Smith apple
A Granny Smith apple (Photo credit: Wikipedia)

Bill Smith presents The TurboTax ItsDeductible App posted at 2010 Tax, saying, “Intuit Inc. announced on December 3, 2013 its new TurboTax ItsDeductible app, had become available for use on the iPhone.”

retirement

John Schmoll presents TradeKing Review: An Online Brokerage Worth Considering posted at Frugal Rules, saying, “Investing in the stock market is vital to building wealth and with the variety of options available of where to invest it can be confusing. Choosing a good brokerage that has good offering and low fees can be a great way to help grow your retirement portfolio and get your investing on the right foot.”

John Schmoll presents My Retirement Dream: to Keep Working! posted at Frugal Rules, saying, “Many want to follow the traditional retirement dream of working until 65 and then leaving the workforce completely. My retirement dream is different – to continue working. With frugal living and an aggressive investing strategy I believe many can pursue that dream and eventually work for yourself in retirement.”

taxes

Bill Smith presents IRS Forms To File Back Taxes posted at 2008 Taxes, saying, “Even if one is certain there are no mistakes in the forms when following federal tax procedures, a little shiver goes down a taxpayers spine at the very thought of a letter arriving from the IRS.”

Bill Smith presents How To Survive The Holidays posted at 2012 Taxes – Free Tax Filing Options, saying, “The holiday season can be fun yet challenging. Everyone wants to share in showing appreciation and love for those they love.”

Bill Smith presents Voting For Big Game’s Final Four In Last Days posted at 2014 Taxes, saying, “On Feb. 2, 2014, Intuit, the home company of TurboTax Canada, will make one small business a star in the biggest commercial game of the year.”

tips

Bill Smith presents Twitter IPO Vs. Facebook – FastSwings.com posted at FastSwings, saying, “At first glance, it would seem Twitter had no intentions of posting such a high IPO, but their current policy of growth says otherwise.”

Bill Smith presents Burger King Worldwide 2013 Third Quarter Results posted at FastSwings, saying, “Over the years, Burger King have been steadily going from strength to strength, so it comes as no surprise that the third quarter results are so impressive.”

Bill Smith presents Halliburton Profit Jumps 17% posted at FastSwings, saying, “Halliburton beat its earnings expectations with a seventeen percent profit jump this week, owing largely to its operations on a global scale”

Mark Wang presents Which assets produce passive income? posted at The Money MailThe Money Mail, saying, “When it comes to taxes, passive income assets can be completed as in how much they are taxed, how is the income treated and what accounts as income from tax purposes. Let us take a look at the various passive income producing assets in this article.”

Bill Smith presents How Secured Loans Can Help posted at Debt Consolidation, saying, “Consumers who need to rebuild their credit histories can take secured loans to start the process. A secured loan is an advance that a lender gives to a person who is willing to offer some type of collateral.”

That concludes this edition. Submit your blog article to the next edition of tax carnival ecstasy using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

Free SCORE Tax Tips

Free SCORE Tax Tips

Having your own small business can be a rewarding experience. There are many aspects that can be difficult to accomplish on your own though. The most important issue that needs to be watched and completed correctly is taxes. Ten free tax tips offered by the Score business website can be helpful to any business owner.

Deductions are the most important thing to remember with your own business. Do not overlook those deductions that may not be the most obvious. Even trips that combine business and pleasure can be used as a write off, just make sure more than half is business related. If your business has employees, you need to worry about getting the correct taxes out of paychecks. Social security, medicare, state and federal taxes all must be withheld. Also unemployment taxes and employer matching are also important.

Keep all of the tax documents for at least seven years. Good record keeping could save money in the end. Business tax returns and licenses should be kept indefinitely though.

Make sure that all of the business tax deadlines are met. April 15 may be the personal deadline but it is not the same for business. All business owners know that estimated taxes are due four times a year. And they remember that sales taxes are due either monthly or quarterly or their bookkeeper keeps track of the dates for them. Employee taxes are even more difficult, they are due either weekly, monthly, or quarterly. This will decide manly on the size of the business. All of these different rules can affect the business greatly. Keep on top of your taxes to avoid tax penalties and interest charges from the IRS.

New Tax Relief For Education

New Tax Relief For Education

The Lifetime Learning Credit 2010 gives a tax credit of up to $2,000 dollars for types of higher learning. It differs from the American Opportunity Tax Credit because it can be claimed for part-time students  and even for courses that don’t count towards a degree. This credit has been made available through 2011, 2012, and again this year. Eligible Expenses include Tuition but not room and board, Books, Equipment, and fees that may be required by the University. The Lifetime Earning Credit isn’t eligible with tuition paid fro by a scholarship, employer funds or a grant. Even if multiple students are eligible the Lifetime Learning Credit can only be claimed once a year per household. The tax credit reduces taxes by 20% for non qualified expenses for up to $10,000 dollars for a total of up to $2,000.

A construction project to repair and update th...
A construction project to repair and update the building façade at the Department of Education headquarters in 2002 resulted in the installation of structures at all of the entrances to protect employees and visitors from falling debris. ED redesigned these protective structures to promote the “No Child Left Behind Act”. The structures were temporary and were removed in 2008. Source: U.S. Department of Education, (Photo credit: Wikipedia)

You may claim the credit if you, a dependent or your spouse attends an eligible university or educational institution. even if only one class is taken, the tax credit may be claimed. All accredited colleges and universities are eligible as well as vocational schools as long as their also eligible for the US Department of Education’s Federal Student Aid Programs. Single head of households and qualifying widows earning between $53,000 and $63,000 have been phased out for 2013. If you’re married and filing jointly, the phase amount is $107,000 to $127,000. This amount is up from 2012’s phase out range of $52,000 to $62,000 for qualifying widows and single, head of household and a range of $104,000 to $124,000 for Married couples filing jointly.