Two Tax Credits for College

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Just when you thought the IRS was all about audits, penalties and taking your money, along comes the education tax credit to ruin the bad rep.  This tax credit gives you a break for taking college courses.  There are two types of education tax credits, one for getting your degree and one for taking job-related courses.  They are different in their limits, their tax credit Read More →

You Don’t Have to Live Abroad to Claim the Foreign Tax Credit

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Don’t think the  foreign tax credit is for diplomats and ex-pats only.  You don’t have to live in a foreign country in order to be eligible for the  foreign tax credit.  How is the world can that be possible?  Well think about your investments: you may not live overseas but your money might be!  If you own a mutual fund that has holdings in a Read More →

A Tax Credit for Going to College

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If you’re going to college to make your life better then Uncle Sam wants to give you a reward.  It’s the IRS college tax credit, which comes in two forms.  One is the American Opportunity Tax Credit and the other is the Lifetime Learning tax credit.  The former is for getting a four-year college degree.  The latter is for job-related college courses that are taken Read More →

What is the R&D Tax Credit?

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The R&D tax credit can usually be claimed if your business is involved in anything that requires an engineer.  This tax credit encourages invention of new products but it also can be applied to companies who spend money to improve production, make things faster or make things cleaner.  In other words, if you spend money on figuring out how to make an existing product better, Read More →

The Mortgage Interest Tax Deduction: Not What You Think!

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Got it? Might as well use it.  The mortgage interest tax deduction, that is.  While it’s not going to change your life, it will save you a few hundred dollars on your tax bill, on average.  What, not what you were expecting?  Thought the mortgage interest tax deduction was going to spur you to wealth and forever financial security?  Think again. Mortgage Interest Tax Deduction: Read More →

The American Opportunity Tax Credit: A Teensy Bit of Help From Uncle Sam

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Smart but not rich?  Then maybe you’re one of the few for whom a four-year college education might still be worth it.  Because going to college requires big money these days, some are considering whether a four year degree even makes any sense anymore unless you’re a truly serious student willing to study hard and make it all worth the money in the end.  The Read More →

The Student Loan Tax Deduction

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There goes the IRS again…trying to help Americans improve their lives.  This time it’s the student loan tax deduction: encouraging us to to attend college, get loans, and deduct the interest on those loans.  Now don’t get me wrong: going to college can be a great thing.  And yes sometimes debt is necessary: in this case for the greater career goal you have in mind.  Read More →

If You Are Permanenty Disabled, This Tax Credit May Work for You

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One of the reasons people are afraid to do their own taxes is they are afraid they’ll miss out on some deductions and credits.  It’s true, while there are a lot of prominent tax credits and deductions out there, there are even more lesser-known tax breaks to be claimed. One of these is the disability tax credit.  If you are disabled you may qualify.  However, Read More →

How to Donate Your Old Car and Get a Tax Deduction

Time for a new car- well that can bring feelings of joy or dread.  It’s not cheap to purchase a car, even if it’s a used car.  But if you need to reduce your tax liability, there’s one bright light in the darkness ahead: the car donation tax deduction.  You can donate your old car to a qualified charity and deduct money on your tax Read More →

Adopting a Child is $$$$, Therefore the Adoption Tax Credit

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Another family tax credit is the Adoption Tax Credit.  Adopting a child is very expensive- most people don’t have a clue as to how expensive it is to adopt a child.  Add that to the average cost of raising a child to the age of 17 (over $250,000) and we’re talking some serious money.   It costs somewhere around $25,000 to adopt a child, with Read More →