Tag: Taxation

Tax Credits For Your Home

2010 Tax Credits For Your Home

For those of you thinking of buying a new home but are not sure about the 2010 tax credits, maybe this will help you. If you are buying a home and your modified gross income is less than $245,000, the house costs less than $800,000, and you’re a first time home buyer, you can receive full credit. If your modified adjusted income is more than $125,000, you will receive a reduced credit. If your MAI is more than $245,000, you will receive no credit. Also, for those of you who are remodeling, you can also receive tax credits for your home.

2010 Guide To Home Buying Tax Credits

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Many Families And Indivduals Are Eligible For Tax Credits

WASHINGTON – OCTOBER 13: U.S. President Barack Obama speaks during a Rose Garden event about the American Opportunity Tax Credit (AOTC) October 13, 2010 at the White House in Washington, DC. Obama had a meeting with college students and their families on American Opportunity Tax Credit (AOTC) and he urged the Congress to extend college tax credits. (Image credit: Getty Images via @daylife)

The 2010 tax year offered many deductions and credits for those who chose to itemize their deductions. That is good news for many taxpayer’s but the better news is that there are some new 2011 tax credits that many people may not be aware of, and better still some of these credits can be used even if you do not itemize on your tax return. One credit that some of us might overlook is an energy tax deduction.

The energy credit can be taken up ten percent on a project with a five-hundred dollar cap. It can be used on anything from gas, electric or oil water heaters to energy star windows. check with your tax professional or the IRS for information on energy related deductions and credits.

Other credit that might be overlooked are Education Incentives. One such deduction under this heading would be the American Opportunity Tax Credit. This is a credit of up to $2500.00 of the cost of tuition and related expenses. This also includes the cost of materials. There is also a deduction or credit for the interest paid on a student loan.

There are many credits for families that are worth looking into. Child tax credit as well as Dependant Care Tax credit. Dependant Care Credit allows a taxpayer credit for a percentage of childcare expenses for children under the age of 13 or disabled dependants.

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How Tax Law Changes Change Your Life

Tax law changes tend to happen at least once a year. An obscure loophole may be closed, or the tax rate on a specific type of profit may be increased or decreased. In either case, it is important to make sure that you have the right income tax advice before dealing with your own taxes. Rather than trying to go it alone, the help of a professional can aid you in making sure that all your forms are filled out correctly and that all the correct deductions have been made. Even with this in mind, though, you may still wonder if tax changes will actually have any bearing on your own situation.

Now, the truth of the matter is that most tax law changes will not actually do much to change the tax returns of most individuals. The bulk of the changes in any given year will only actually cause an effect on the taxes of a select few, but you may never actually know that these changes have gone into effect unless you actually consult with a tax professional. Unfortunately, lack of knowledge about these changes is no excuse when you file, and if you are audited you may actually face rather stiff penalties for failing to adhere to laws that were only recently passed.

There are, of course, many tax law changes that will cause major changes for more tax payers. The IRS is generally quite vocal in announcing these changes, and most are incorporated into even simple tax return programs. However, if you need to feel reassured about what effect these changes will have on your taxes or you simply wish to play it safe, it may be wise to seek out professional income tax advice. It may cost a bit more, but the associated costs are nothing when compared to the fines that may be incurred by those that file incorrectly.

The author has spent a lot of time learning about tax law changes and other related topics. Read more about income tax advice at the author’s website.

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Inheritance Loans and Interest

When you get in a bind after a relative passes away it can be extremely tempting to go to the bank and get an inheritance loan. You might think that this is a good way to get the money that you need to get you through this rough time, but don’t you think that an inheritance advance might be a little easier for you? If you are unsure about the difference between the two, you need to sit up and pay attention, because you might learn something that can help you avoid a lot of financial hardship in your immediate future.

Inheritance Loans come with Big Interest

The difficult thing about inheritance loans is that they come with a bunch of interest, and they can mess up your credit and your entire life if you miss a payment or two. And with banks making loans with terms that are so bad that you can’t pay them back, you are going to run into this problem. But an inheritance advance is completely different. You show your advance officer the amount of inheritance loan that you are expecting. He or she then gives you an advance on this money; you get it in one lump sum, so if the terms of your inheritance say that you get a monthly or yearly payment until the funds are exhausted, this is a great way to get your money now. And after you get your money from the inheritance advance company, they get the money when it becomes available.

This is a very quick way to get your needed money after a loved one passes away. A bank will have mountains of paperwork for you to sign before you get a dime. If you want to waste your time feel free, but for the rest of us, we’ll take inheritance advances for our money.

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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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