Money Saving Tax Tips

Whenever someone asks me if they can deduct medical expenses, my standard answer is “Yes, but….” The “yes” part is easy: expenses for doctors, dentists, hospitals, prescription medications and so forth are tax deductible. And the “but” part? There’s a limit on how much can be deducted. We can only deduct the amount of medical... Continue reading→

Creditors record canceled debts on a form 1099-C, which is then sent to the debtor and the IRS.  Most people are in for a surprise when they receive a 1099-C, not knowing that the canceled debt on this form must often be included as income on their tax return resulting in a big tax bill. ... Continue reading→

Being your own boss, setting your own hours, enjoying the full fruits of your labor without interference —- that’s the self-employed dream! The self-employment tax is a great example of one of the trade-offs that comes with working for yourself.  If you get a regular paycheck from an employer, you will notice the deductions labeled... Continue reading→

Picking the right installment agreement to pay off your federal tax debts A monthly payment plan is generally the easiest way to set up an arrangement to pay off any taxes owed to the Internal Revenue Service. There’s four different types of installment agreements offered by the IRS. The important thing is knowing which installment... Continue reading→

An extension is your way of asking the Internal Revenue Service for additional time to file your tax return. The IRS will automatically grant you an additional six months to file your return. An extension basically extends the filing deadline for personal tax returns from April 15th to October 15th. Businesses can also request an... Continue reading→

We recently learned that many of the 1095-A forms sent out to individuals who purchased health insurance through HealthCare.gov, the federal health insurance exchange are incorrect.  The problem is that the Centers for Medicare and Medicaid Services issued incorrect Forms 1095-A to 800,000 people in 37 states who enrolled in health insurance through HealthCare.gov.  The... Continue reading→

Head of Household is one of five filing status options from which a person must chose when filing their taxes. A person can claim the Head of Household filing status on their tax return if the person passes three tests: Unmarried Test, Support Test, and Qualifying Person Test. A person filing for head of household... Continue reading→

Individuals who pay for day care expenses for their children or disabled adult dependents may be eligible for a federal tax credit of up to 35% percent of the cost of day care. To qualify for the child and dependent care credit, you must have a dependent child age 12 or younger, or a dependent... Continue reading→

Married Filing Separately or Not Married taxpayers can choose between filing a joint tax return or a separate tax return. The Married Filing Separately filing status provides fewer tax benefits than filing joint returns, so taxpayers will need to weigh the pros and cons and decide for themselves which is the best filing status. The... Continue reading→

If you had coverage through the Health Insurance Marketplace in 2014, you can renew or change plans for 2015. The deadline for enrolling or changing plans is February 15. Most people with 2014 coverage were automatically enrolled in a health plan, with coverage starting January 1. You can change plans until February 15, even if... Continue reading→