Tuesday, June 3, 2014

Tax Exemptions: 7 Top Facts

Nearly everyone can claim tax exemptions on their tax return to lower their taxable income.

Tax Exemptions

Here are the top 7 tax facts about exemptions to help you plan for your next tax return.

1. Exemptions cut income.  There are two types of exemptions. The first type is a personal exemption. The second type is an exemption for a dependent. You can usually deduct $3,950 for each exemption you claim on. READ MORE

Monday, June 2, 2014

2014 Tax Deduction: 6 Key Deductions That We Lost

Which key 2014 tax deduction and credits will not be available to taxpayers on this year’s tax returns?


2014 Tax Deduction: 6 Key Deductions That We Lost

1. Medical Expense Deduction Thresholds
Under the old rules, those who itemize could deduct medical expenses exceeding 7.5% of their adjusted gross income. Obamacare has now increased this threshold to 10%. For example, an individual with an adjusted gross income of $50,000 can only deduct expenses over $5,000, rather than the $3,750 limit that would have applied under the old rule.