8 types of income the IRS can't touch
Don't overpay taxes on
income that's protected by the U.S. tax code. Here are the major categories to
watch, including five types of raises that don't add a dime to your taxable
income.
Want to keep the tax man away from your money? It's
easier than you think. There are lots of ways to increase your wealth without
having a chunk gobbled up by the IRS.
Good tax news about your stock losses
Many of us are sitting on
stocks and funds whose losses are so big that it's depressing. Take heart. The
loss may be worth more than the stock. If so, here's how to benefit from your
misfortune.
After another lousy year on Wall Street, investors are
tallying up some depressing negative returns. But before you weep into your
year-end statements, take heart: With some careful planning, you may be able to
use your losses to your benefit.
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Take a working vacation -- and a deduction
The IRS says you can deduct
expenses for taking a business trip or business convention. And there’s no
reason the trip shouldn’t coincide with your vacation.
Pack a laptop with your bathing suit on your next
vacation.
There is no law prohibiting you from combining a
business trip with a vacation. And if you do mix and match, don’t forget to
keep your receipts.
The Internal Revenue Service concedes that you’re
entitled to deduct expenses for taking a business trip or attending a business
convention. While such trips must benefit or advance your business to qualify as
a tax deduction, there’s no reason why the trip or convention couldn’t
coincide with your vacation. Why do you think that most large conventions are
held in cities like New York, Palm Springs and Miami?
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America's favorite loophole: Mortgage interest
You can save yourself and
your family money by knowing what the laws allow. Here's how to convert
nondeductible interest into deductible interest.
Interest is the fee you pay for the use of someone
else's money. But you can, in effect, lower that fee by writing it off as a
deduction on your taxes. As with anything else involving taxes, there are rules
and stipulations you must know.
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How to get the most out of itemizing
A little planning can help
maximize your deductions -- and put money back in your pocket.
Itemizing is an
incredibly easy concept to understand, but the strategies behind it can be
complex and myriad. The rule for when to itemize is simple -- you do it if the
total of your itemized deductions is greater than your standard deduction.
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Tax records you can toss
Unless financial nostalgia brings
you a warm feeling on a cold night, you’ll want to dump your old records as
soon as possible.
But you “know” that within two weeks of your
bonfire, the IRS is going to demand exactly those documents you burned. So what
are the rules? What information do you have to keep and for how long?
read more...
Get your return done right: a 15-point tax checklist
It’s time to start thinking about
getting those taxes done. Maybe you’re in a panic. Not to worry. Just follow
these 15 steps to getting your taxes done, and you’ll be much happier. Ready.
Here they are:
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Various Questions and Answers
What’s the difference between a tax exemption and a tax deduction?
Can I get a
credit for my expenses for adopting a child?
Can I take the
Hope or lifetime learning credit in the same year that I take education IRA
distributions for the same student?
What is the
Lifetime Learning tax credit?
What is the
Hope credit?
Who is eligible for a Hope tax credit?