Category: Deductions

Tax Benefits For Parents

When doing your taxes there are so many things to remember that mostly everyone forgets about tax benefits for parents. You could receive benefits for your kids. Here are some ways to see if you apply.

  • As of March 29, 2010 you can reduce premiums you paid for health insurance, but that’s only if you were self employed. If your child is under 27 even if they have never been your dependent you can claim them. Meaning if you have a child you have never claimed and he or she is under the age of 27 by December 31, 2010, then you can make them one of your dependents that’s only if you paid premiums on any health insurance, and you were self employed then you can minus the premiums you paid for it.
  • If you have ever been laid off work and had to hire someone like a baby sitter or a nursery and daycare center. If your kid is under 13 years of age you might be able to claim them as one of your dependents. Meaning if you got fired and you have a kid under the age of 13 and you had to hire someone to watch them as you look for work, you could claim them as a dependent.

-The EITC is a program where you could benefit from incomes you have earned from farming, wages, and self-employment. Actually it takes down the wage of tax you owe and can possibly give you a refund. Therefor certain people can get rewards for incomes they have earned.

  • When you have children and they have income that comes to them by working they possibly can have to file a tax return.

-Interest from student loans. If you have a kid that is in college and you pay qualified student loans you can reduce the interest you paid.

Before doing your taxes remember to check up on things and make sure if you have kids to research all the benefits available to you. Your tax return will benefit greatly from your knowledge of child tax credits.

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Tax Return Mistakes To Avoid

For someone who is getting ready to file their personal income taxes, it is easy for them to be eager about the money that may be coming their way. This can cause someone to make mistakes on their tax forms, and to make mistakes that may end up costing them money, or getting them into trouble. One thing that not everyone wants is a tax audit, and this can often be caused by improperly filed taxes. There are many different things that you will want to remember when filing your 2010 taxes, to avoid an audit or additional problems after you submit your return.

The first is to make sure that you claim every single source of income that you have. This can be many different things that you do not think of, such as babysitting, garage sales, having a roommate, or if you do any freelance work on the side of your regular job. You will also want to have all documentation and paperwork for these different things, so there is no confusion when you need to provide documentation. People also make mistakes when they calculate their tax forms, so to avoid any hassles you want to double and triple check all of your calculations.

Other things that may catch the attention of the IRS is when someone tries to claim their own home as their personal office, or for other business purposes. There are limitations to the amount of money that you can write off for your own personal business, so you want to look into all of them before you file your 2010 tax return. You never want to be audited by the IRS, especially if you have done something wrong, because there are severe consequences. Double-check your work, and your documentations, to avoid and 2010 tax return mistakes.

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Calculating for the Future: Understanding the Low Morgage Rates of Today

While seeing into your financial future can be difficult. Understanding a few key assumptions and numbers associated with your mortgage will allow you to get a good idea of the money you can be spending or saving in the years to come.

Today’s mortgage rates are the best in years, due to the slow economy and the housing market. Those wishing to apply for a loan may be pleased with the deals that are available. For instance, what is known as a jumbo loan now costs consumers less then ever. The current average rate for a thirty year fixed rate loan is approximately five percent. There are also rates available, depending on your personal circumstances, for as low as three and a half and four percent. To be eligible for these low rates, you will need to have a steady, good income, a down payment and a fairly low amount of debt.

How Do Consumer’s Qualify For Lower Rates?

To qualify for the lowest available rates, most consumers will have to pass several tests. There are a few general things that finance companies look for before first considering you for these low rates. One such qualification most banks and financial institutions require is for the prospective homebuyer to have proof that their total debt is not over forty percent of their income, before taxes. This includes debts such as car payments and credit card bills. You must also be able to show proof of your income and steady employment for up to several years. Your credit score has to be good, usually near seven hundred or better, which is quite high. And you almost always need to have a down payment of at least ten percent.

How to Use a Free Mortgage Calculator to Help Estimate Costs:

Using free mortgage calculators is fairly easy if you have the needed information on hand. If you are working with a realtor, they will be able to do the calculations for you. If not, you can easily use the tool yourself. The first step is to determine the principal amount that you will be paying on. Enter the amount on the mortgage or principal line of the calculator, which is almost always the first line. Next enter the number of years the loan is for. Enter the interest rate you’ve been given and click on the calculate button. The mortgage calculator should then give you the estimated mortgage you will be paying.

How to Use a Mortgage Calculator for the Future:

Most mortgage calculators are fitted with a tool that will allow you to estimate the possible value of your home in the future. To do this you will need to enter the home’s current value. You can usually get this information from real estate sites that include recently sold homes in your neighborhood, with houses that are similar to yours in age, size and appearance. Choose the year you would like to check to see what your home value might be, and enter it. Click on the key for appreciation rate. You can choose whether you would like to see the rates for several options, or for one just in your area.

Why Now is a Good Time to Get a Mortgage:

Recent marketing reports state that the prices of houses are becoming more stable. This is good news for those wishing to purchase a new home, or for those buying their first home. Although it is never possible to predict the outcome of the economy, today’s mortgage rates are some of the best ever for those who qualify.

Love Your Work And Make Money From Home

What does it mean to be financially independent? What is retirement and why are you seeking it? If you don’t enjoy your job why are you doing it? How about trying to make money from home?

Some very interesting questions here and for many the answer seems obvious. I think that we go on autopilot and forget what it means to search for the truth on our own. We get to thinking that what others tell us is “how things are”. The reality is that most people have no clue what money is, how its created, or what to do with it. Want an example you say? ok, here you go. YOU are the example. You are chasing money, thinking its something you can go out and gather up.

Money is an idea. The idea that you and I can go and do the things we love to do and in sharing what we do with others we will be compensated for the VALUE that others think we have provided.

Retirement is like a virus because its in our nature as humans to try and do the least possible and be rewarded in return. So go and work for 40 years, then your 401k, employer, or other qualified plan will provide for you in the future. Well if you don’t like the work you did for that time period then why did you do it at first? Just for the end result of a paycheck?

Sounds like a waste of your precious time. Rather than spending your time suffering through life trying to “get by” go and do what you love.

Making money from home is a great option for stay at home parents, people that don’t want to work the regular job, want to be self employed, or for those simply looking for extra income. There are lots of scams on the internet so be careful of what you look into. My advice there is not to pay money on something that says you will make $X in a certain time without ever saying what you will do, and then going on to say they cant because it will ruin it. Every real business is very clear what they do and they make money because others value their service.

Turbo Tax Presents Overlooked Tax Deductions

TurboTax recently listed some common overlooked tax deductions that tax payers should consider when filing their taxes. Some of the often forgotten tax deductions included property taxes, the Child Care Credit, the Earned Income Tax Credit (EITC), and refinancing points. As long as you itemize your tax deductions, you should consider claiming the deductions that apply to your situation.

Property Taxes

The standard deduction can be enhanced if you pay property taxes during the year and do not itemize your deductions on Schedule A. Add an additional $500 to the standard deduction for both 2008 taxes and 2009 taxes.… Read more at 2010 Tax.

TurboTax recently listed some common overlooked tax deductions that tax payers should consider when filing their taxes. Some of the often forgotten tax deductions included property taxes, the Child Care Credit, the Earned Income Tax Credit (EITC), and refinancing points. As long as you itemize your tax deductions, you should consider claiming the deductions that apply to your situation.

Property Taxes

The standard deduction can be enhanced if you pay property taxes during the year and do not itemize your deductions on Schedule A. Add an additional $500 to the standard deduction for both 2008 taxes and 2009 taxes.

Child Care Credit

Make sure to claim child tax credits up to $6,000 when you work have your children in child care. Often an employer will provide a plan that will pay for child care pre-tax but not up to the $6,000 limit. If this is the case, take the extra amount up to the limit on your tax return.

Earned Income Tax Credit

Lower to middle income tax payers can claim the Earned Income Tax Credit and receive a tax refund greater than the taxes they paid during the tax year. Many miss out on the tax credit as they do not realize it is available to them. If your income has changed during the past year, make sure to study the EITC to see if you qualify. The tax credit varies depending on your income, filing status and family size. If you find that you are eligible, amend your past returns to claim this very generous tax credit.

Refinancing Points

If you purchased a home during the past tax year and paid mortgage origination points, you can claim all the points when you file your taxes and obtain a very good tax deduction. If you refinanced your home and paid points, you can claim the points you paid as a tax deduction spread out over the life of the loan.