Frequently Asked Questions

• What’s the Best Way to Use Credits and Deductions to Minimize Your T🦂ax Bill?

  Tax credits offset the taxes you owe on a dollar-for-dollar basis, but deductions are offset against your income. Make sure you don’t miss a single credit you are eligible for. Then add up the 澳洲幸运5官方开奖结果体彩网:deductions you could itemize and see if they will amount to more than the 澳洲幸运5官方开奖结果体彩网:standard deduction.

  Learn More: How to Get the Most Money Back on Your Tax Return
• What Are the💞 Ways That Having a Dependent Can 💜Lower Your Taxes?

  A dependent child or other relative can be worth thousands of dollars of reduction in your tax bill through benefits such as the child tax credit, 澳洲幸运5官方开奖结果体彩网:earned income tax credit, 澳洲幸运5官方开奖结果体彩网:child and dependent care credit, and other tax breaks. Learn them all. D🙈ꦐivorced parents have to decide which parent gets the tax benefit.

  Learn More: How Much Does a Dependent Reduce Your Taxes?
• Do You 🅘Save on Taxes if You File As Head of Household?

  If you’re single or in some stage of separation you could benefit financially from filing as head of household. Key benefits are a more favorable tax rate and a higher 澳洲幸运5官方开奖结果体彩网:standard deduction. To qualify, you must provide more than 50% of the cost of supporting a 澳洲幸运5官方开奖结果体彩网:dependent such as a child, parent, or sibling.

  Learn More: What Does Filing 💦as Head of Hou﷽sehold Mean for Your Taxes
• What’s the ✃Best Way to Use Above-t🎃he-Line Deductions—and Who Gets Them?

  You can take these special deductions even if you don’t itemize your taxes and instead take the standard deduction. These include deductions for retirement plan contributions, contributions to Health Savings Accounts and Archer 澳洲幸运5官方开奖结果体彩网:Medical Savings Accounts, health insurance premiums 澳洲幸运5官方开奖结果体彩网:if you’re self-employed, and expenses if you’re an educator.

  Learn More: Increase Your Tax Refu🍰nd With🏅 Above-the-Line Deductions
• What Can You Deduct on a Rental Property?

  As the owner of a rental property, you can deduct the costs of owning, maintaining, and operating it. Depreciation for most residential property is at the rate of 3.636% per year for 27.5 years—the IRS’s definition of a property’s “useful life.” You can’t depreciate the land, only the building. Tax treatment of income and losses depends on your level of involvement in property management—澳洲幸运5官方开奖结果体彩网:material participation, active participation, or passive activity.

  Learn More: Rental Property Tax Deductions
• Can Iꦫ Deduct Mortgage Insuranc🍌e Payments From My Taxes?

  Private mortgage insurance (PMI), sometimes kn꧒own as the mortgage insurance premium (PMI) was first banned starting in tax year 2018. The Further Consolidated Appropriations Act🐠 of 2020 allowed MIP and PMI tax deductions for 2020 and retroactively for 2018 and 2019. But after that, these insurance payments are not deductible unless Congress acts again. Other limitations to taking the deduction apply, including income limitations.

  Learn More: When Is Mortgage Insurance Tax Deductible?