Some Common Tax Deductions And Exemptions

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Some Common Tax Deductions And Exemptions
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• Paying more than you ought to the IRS, is
  something every individual or business owner will
  try to avoid, and while everyone must pay their
  taxes, understanding some common tax exemptions
  and deductions, can help minimize the total and
  ensure that the end amount is accurate.
• What are tax exemptions?
• A tax exemption is money that youve lawfully
  earned, but which you dont have to pay taxes on,
  and they differ to tax deductions.

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• If you claim every exemption that you qualify
  for, you can significantly reduce your tax bill,
  and the amount that youre allowed to claim, is
  dependent on your filing status.
• As a single taxpayer a personal tax exemption
  can be filed if youre single, but being listed
  on another persons tax return, means that you
  will not qualify.
• As a married taxpayer who files jointly with a
  spouse if youve filed a joint tax return with
  your spouse, then you may claim a personal
  exemption for them as well.

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• As a married tax payer filing separately from a
  spouse only one exemption can be claimed in this
  case, but if your spouse hasnt filed a return,
  doesnt have income tax for the tax year and
  hasnt been claimed as a dependent by any other
  taxpayer, you may be able to claim an exemption
  for them.
• If youre classed as a head of household
  taxpayer to qualify for this exemption, you must
  be unmarried as of the last day of the year, must
  have a child living with you who is a dependent,
  and must have contributed to more than half of
  the costs associated with maintain your household
  during the relevant tax year.

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• If youre a taxpayer with dependent children As
  a parent, you may claim an exemption for each
  child that is under your care and is being
  supported by you, whether they be by birth,
  stepchild and/or foster child. The child must be
  no older than 19, must have lived with you for
  more than half a year, and must not have
  supported themselves for more than half of that
  year.
• If you have other dependent relatives if youre
  providing for a parent or even sibling, you may
  be able to claim them as a dependent relative,
  this will depend upon their gross income and
  whether you provide more than half of their total
  support for the year. You may have to take an IRS
  test to determine whether a person qualifies as a
  dependent relative.

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• What are tax deductions?
• There are two types of deductions, 'standard
  deductions' and 'itemized deductions'. If you
  choose to file a standard deduction, then the
  amount will be based upon your filing status.
• You may not always be eligible to file a standard
  deduction, but if you are able to, then you may
  be able to save money by itemizing your
  deductions.
• Itemized deductions can get complicated, so to
  avoid missing out or incurring costly penalties,
  it would be wise to hire the services of a tax
  professional.

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• Here are a few common itemized deductions
• Charitable donations cash or check donations to
  charities must be recorded in a bank record or
  written record from the charity itself, detailing
  their name, the amount and the date of the
  contribution. Doing so can help you to lower your
  tax bill.
• Medical and dental expenses any costs associated
  with medical and dental care for you and your
  family, may be deductible, but you can only
  deduct expenses that exceed 10 of your adjusted
  gross income or 7.5 if you or your spouse is
  older than 65.

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• Homeownership home mortgage interest may be
  deductible when you itemize your taxes, along
  with property taxes and mortgage insurance.
• Education expenses tuition, book fees, supplies
  and even travel costs may be able to be deducted.
  
• Taxes can be complicated whichever way you
  approach them, but hiring the services of a tax
  professional will ensure that you get every
  deduction and exemption that you are eligible for.

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• At Heyer Associates, we proactively assist our
  individual and small business clients in meeting
  their goals. Our key area of focus is ensuring
  that our clients remain compliant with federal
  and state tax laws by providing them with high
  quality accounting and tax service Coral Gables.
  If you are looking for individual tax preparation
  in Miami, Heyer Associates would be a right
  option.