Archive for Tax Credits

Paying for College Tuition? Don’t Miss Out on These Tax Credits

Education Tax creditsPutting yourself or kids through college is very expensive, so don’t miss out on these 2 education tax credits if you’re eligible.

Tax credits reduce your taxes dollar for dollar, so they can take some of the bite out of your tax bill.

The credits are available for you, your spouse or claimed dependents. But you can’t take both credits for the same expenses or same student.

The American Opportunity Tax Credit:

• has a maximum credit of $2,500
• is available for all taxpayers but is subject to certain income limits which adjust annually
• is a credit for tuition, some types of fees and course materials
• applies to the first four years of post-secondary education expenses
• applies to the taxpayer, spouse or dependents

For more information and current income restrictions, check out the IRS FAQ page.

The Lifetime Learning Credit:

• has a maximum credit of $2,000.
• is available for taxpayers with modified adjusted gross incomes (MAGI) up to certain limits that change each year. It can be used for expenses such as tuition, certain fees & course supplies

Get more information on the IRS website.

To see if you are eligible for either credit, use the IRS education tax credit calculator tool.

To claim the credit you must complete Form 8863 & attach it to your tax return.

Visit the IRS website or talk with your tax preparer for more information. There are numerous rules about which educational institutions are eligible and how to calculate the credit.

© AskConny.com

Eligible for the Small Business Health Care Tax Credit?

Small business Health Care tax CreditsEmployers with fewer than 25 employees may be eligible for the health care tax credit. The credit can be carried back or forward to other tax years if you don’t fully use it for 2014.

Check with your accountant for specifics, but if your staff is covered under a qualified health care plan offered through the Small Business Health Options Program Marketplace and you are paying for at least 50% of the premium, you may qualify.

You can find more information on the IRS small business site or watch this IRS video on the Small business Health Care Tax credit.

© AskConny.com

Time’s Running Out for Tax Savings

tax block lettersProcrastinating about taxes is more the rule than the exception. You just have to see the long lines at Post Offices on April 15th every year to appreciate the truth of that.

But 2012 is right around the corner. So while it’s not as much fun as making plans for your New Year’s Eve celebration, you need to get serious about taxes right now – both business and personal. Take stock of your business and personal finances and decide what moves you need to make in the next couple of weeks.

Don’t miss out on tax breaks that will save you money. Some tax deductions will disappear at midnight on December 31st. One of them is the bonus Section 179 depreciation deduction. This year you can deduct up to $500k – next year it will be limited to $125K. If you’re thinking of getting new equipment, check it out with your accountant to see if it makes sense to do so now, rather than in 2012.

If you provide employee health care benefits, don’t miss out on the Small Business Health Care Tax Credit if you’re eligible. And don’t forget basic tax saving moves, such as, using investment losses to offset investment gains, thereby lowering your taxes.

The New Year will look better to you if you maximize your tax saving options in 2011.

© AskConny.com