Tag: Tax deduction

How Education Tax Credits Can Help You Get To College!

Many students are scared away from pursuing postsecondary education by the perception that they cannot afford it. It is important to know that the federal government is currently offering two different types of tax credits – The American Opportunity Credit and the Lifetime Learning Credit – that may help you to offset high education costs. Both of the available education tax credits pay for eligible expenses up to a given amount, including tuition, books and equipment or material fees.

The Lifetime Learning Credit is also good for up to $2,000 in credit each year, and covers not only degree-seeking students, … Read the rest

How to Choose a Tax Accountant for Your Business

While you may have been doing taxes on your own in the beginning, a growing business usually needs an accountant. Unfortunately, not all accountants are the same. While some may know a lot about your type of business, others may not. Then there’s the fact that some accountants may be too busy to work with you one on one. If you’re starting to feel overwhelmed, don’t. Here are a few tips on how to choose a tax accountant for your business.

Find an Accountant That Understands Your Business

There are many different fields of work out there and different accountants … Read the rest

Unemployment Insurance Is Taxable

2011 unemployment insurance benefits are taxable

Millions of Americans are without regular work despite a steadily dropping nationwide jobless rate. Being in this unenviable situation inheres a major tax implication: Unless federal income tax withholding was previously requested by the payee, unemployment insurance benefit recipients face an unwelcome surprise when calculating their 2012 taxes.

Previous Congressional exemption of the first $2,400 in unemployment insurance payments no longer exists. Although all 2011 unemployment benefits are taxable, other allowable deductions are available to offset out-of-work taxpayers’ public pecuniary obligations.

The Earned Income Tax (“EIT”) credit may be claimed by taxpayers whose household … Read the rest