Tax Tips

Time to Renew ITIN Numbers

Individual Taxpayer Identification Numbers (ITIN) are used for taxpayers who are required for U.S. tax purposes to have a U.S. taxpayer identification number but do not qualify to get a social security number. If you use an ITIN, you should check if it expires this year. If it does, information about how to renew your […]

Claiming Other Dependent Tax Credit (different from Child Tax Credit)

If you have a dependent who does not meet the criteria for the Child Tax Credit (CTC), you may still qualify for a $500 credit called the Other Dependent Credit. Also called the Family Tax Credit, this nonrefundable credit was created under the Tax Cuts and Jobs Act (TCJA) of 2017. Examples of qualifying dependents […]

Tracking Utilities for Home Office Expense

If you plan to claim a deduction for Expenses for Business Use of Your Home (home office expense) on your tax return, you need a reliable method to calculate your deductible utility costs. IRS rules require that you separate utility expenses that apply to only the residential portions of your home (such as cooking gas […]

20% Qualified Business Income Deduction for Self Employed

If you are a freelancer or otherwise participate in the “gig economy”, you may be able to claim a new tax deduction under the Tax Cuts and Jobs Act (TCJA). The Qualified Business Income (QBI) Deduction applies to self-employment earnings (basically, any income you receive in a setting where you are not classified as an […]

Save Tax Deduction Receipts for 3 yrs (6yrs for omitted income)

For most personal or business expenses that you claim as deductions on your tax forms, the IRS requires that you preserve written documentation of each expense. Acceptable forms of written evidence include receipts, invoices, canceled checks, and credit card and bank account statements. These documents should clearly show the date, location, amount and, if possible, […]

IRS Makes it Easier to Deduct PCs

Previously the IRS classified many computers and computer peripherals (such as printers) as “Listed Property.” If your business use of Listed Property is less than 50%, you are usually required to distribute the business portion of the property’s cost over your tax returns for multiple years, using a depreciation method that is unfavorable to the […]

This Tues (10/15) is the 6 mo Filing Extension Deadline

If you requested an extra six-month extension in April to file your 2018 personal income tax return, that deadline to file is coming up this week on Tuesday, October 15th. If you are an employer that makes contributions into employee Simplified Employee Pension IRA accounts, October 15th is also the six-month extension deadline to make […]

Tax Credits for Higher Education

If you or any of your dependents are enrolled in a higher education program this fall, you may qualify to claim one or more credits on your 2019 tax return. The American Opportunity Tax Credit (AOTC) is a credit of up to $2,500 for a student pursuing a degree or certified credential at a college […]

Age Limitations for 3 key Child Tax Deductions

Several key tax credits end when dependent children reach a particular age. Here is a quick summary of the age rules for three of the most important tax credits for parents, as well as the most important exceptions: Child and Dependent Care Credit: Child must be under 13 years of age (12 years old or […]

Teachers: Save Your Receipts for Educator Expense Deduction

During this back-to-school period when classroom expenses are most likely to occur, remember to save your receipts if you are educator. If you are a teacher, principal, counselor, or classroom aide who works at least 900 hours a year in a state-accredited school (grades K-12), you may qualify for the Educator Expense Deduction. This IRS […]