Tax Law

Timber can be held for "personal use," as an "investment" or as a "business." Holding timber for personal use disallows expense deductions and makes it the least desirable timber holding for tax...

The mortgage tax deduction is one of the most valuable financial benefits to owning your own home. On your annual income tax return you can deduct the amount of all interest paid on a mortgage on...

Tax deduction limits vary according to the type of deduction claimed, and the tax laws that apply for the current tax year. Tax deduction limits can change from year to year as new laws are passed...

Tax reduction refers to any method that reduces or eliminates taxes. Tax reductions can be temporary or permanent, can be applied individually or to the masses, and are almost always the result of...

Labor union and public employee union members may be able to deduct their union dues as a miscellaneous deduction on their U.S. federal income tax form if they itemize their deductions. While...

Filing taxes can be a daunting task for anyone. Every year, thousands of taxpayers either owe the IRS or do not get the full refund they deserve because of common mistakes on their tax returns....

Self-employed people have to supply the work tools and equipment they use on the job. For them, tools are just part of the cost of doing business and are fully tax-deductible. Unfortunately, many...

Your tax burden is not determined by your total income; it is determined by your taxable income. Taxable income can be reduced by making liberal (but honest) use of the many available Internal...

IRS Form 1040 is not particularly difficult to master with the benefit of some basic guidance. However, there are some important tips that you need to take into account in order to avoid common...

To claim a tax deduction on a tax return, the deduction must be authorized by the tax laws or IRS regulations; knowing the most commonly claimed deductions could save you a significant amount of...

There is one simple rule in tax preparation: deduct everything you can legally deduct, and don't deduct anything else. It seems simple enough in theory, but in practice, it can be hard sometimes...

Law enforcement officers can deduct certain out-of-pocket job-related expenses on IRS Form 1040Schedule A if those expenses have not been reimbursed by their employer and if the amounts exceed...

Legal expenses may be tax deductible. Whether or not a legal fee is tax deductible depends on why the legal fees were incurred. Most fees related to personal legal advice are not deductible, while...

Legal fees may constitute tax deductions when they are incurred for business purposes. While most personal legal expenses are not deductible, some can be claimed as miscellaneous Schedule A...

As a truck driver, whether you are self-employed or an employee, you can claim some deductions on a Schedule C to reduce tax liability if there are any out-of-pocket non-reimbursed expenses...

The Alternative Minimum Tax law started out as an increase in the tax liability for those with the highest annual income, those who typically used itemized deductions to vastly reduce their...

The best guideline for preparing taxes is to claim every single deduction, credit and income exclusion that you are legally entitled to claim, but don't claim anything else. While the chances of...

"Dear Taxpayer, you have been selected for an audit by the Internal Revenue Service." These fourteen words strike dread into the hears of many Americans, usually resulting in rapid heartbeats and...

Filing a federal individual income tax return can be a tricky business for beginners. Overestimate your taxes and you may never see a refund of your overpayment, particularly if you don't realize...

Each year, the federal government gives taxpayers the opportunity to deduct certain expenses from their taxable income to reduce their tax bill. These deductions can be divided into two...

Taxes are the responsibility of all American citizens. By keeping good records and having all necessary documents available at the time of filing, the process can run much smoother. While it is...

To "write off" something on your taxes generally means to claim that something as a deduction or credit on your tax return. A tax credit is different than a deduction. And, there are different...

Using the correct form to prepare your federal tax return will not only please the Internal Revenue Service, but can ensure that you pay the least amount of tax to the government. Form 1040A is a...

According to Money magazine in 2007, only 1 percent of all taxpayers are audited each year. The IRS processes most tax returns with computers, and if the computers notice anything unusual...

The Internal Revenue Service (IRS) standard deduction is a fixed amount that can be deducted from your adjusted gross income to arrive at your taxable income on Form 1040. You are not required to...

Different people often have different ideas about tax relief. If you owe back taxes and you want to negotiate a lower settlement with the Internal Revenue Service (IRS), you may say you are...

All taxpayers can and should claim every deduction that the law allows. It's important, however, to understand the difference between itemized deductions and deductions taken above the line.

There are numerous tax benefits for education expenses, including deductions for work-related education expenses, education credits and student loan interest.

Simply stated, deduct everything you can legally deduct on your income taxes. Deductions reduce your taxable income, which directly reduces the amount of tax you pay. For example, if you have...

The IRS sets a standard mileage rate on which you can base several tax deductions linked to the use of your car. The standard mileage rate can change annually, and the rate also varies depending...

April 15th is like d-day to many people who dread filing their taxes. It's a chore that some of us put off until the absolute last second, and then frantically try to finish before the deadline...

A surprising number of small businesses significantly overpay their taxes each year for one of two reasons. First, many small business owners don't understand the rules; second, they fail to plan...

Itemized tax deductions are a set of predefined expenditures the IRS allows a person to deduct from his taxable income. Itemized deductions are normally used to lessen the pool of taxable income...

Tax deductions and credits make filing taxes complicated. However, they are also how you can lower the amount of your tax liability. It can be well worth it to spend a little time seeking out...

A tax deduction is not a direct deduction in your tax liability, but a reduction of your taxable income. Thus, the savings created by a deduction is equal to the amount of the reduction multiplied...

What could be worse than a visit to the dentist? How about determining which of your dental expenses qualify as a deduction on your personal taxes? A step-by-step approach will help you not only...

The more you make, the more you can give. It seems obvious, but actually the IRS limits the amount anyone can deduct for charitable donations based on their income. Those with high incomes not...

Mortgage payments and income taxes are two of the biggest drains on the pocketbook of the average person. Thankfully, the U.S tax code allows interest paid toward a mortgage to be deducted from...

Calculating your U.S. tax liability can be relatively simple or very complex, depending on your income and the number and complexity of your financial transactions. Nevertheless, it pays to get it...

Any donations you make to your church during the year qualifies for a tax credit if you have the documentation to prove it. Deductions include the donation of material goods, time and money. When...

Business owners and operators incur a number of expenses related to the running of their businesses. Many of these expenses are tax-deductible. Taking advantage of the full range of available...

Arguably the most important set of tax laws and regulations in the United States are those regarding U.S. income taxes. This is because it is the only federal law that compels each and every...

If three simple letters ever had the power to conjure a maximum amount of dread in the minds of American workers, it would be "IRS." This abbreviation for the Internal Revenue Service is the...

Corporations are discrete legal entities with unique tax laws and regulations. Unlike other business structures, such as partnerships, sole proprietorships, LLCs and corporations are not taxed at...

The audit is the most dreaded tool of the Internal Revenue Service, a word that many fear and loathe more than almost any other. This is due to the fact that receiving an audit from the IRS is a...

Medical expenses, even for those with good health insurance, can add up over the course of a year. U.S. Federal tax law allows you to deduct certain medical expenses, which lowers your tax bill. ...

Everyone wants to save money on their taxes. No one wants to pay Uncle Sam more than is absolutely necessary. One of the best ways to do this is to be able to take deductions on your tax return....

Changing jobs is never easy. There are so many steps to take, such as preparing a professional resume, finding potential jobs, traveling to the interviews and losing time from your current job to...

Lots of people overlook casualty deductions with the IRS. Many do so out of fear of being audited should they take their legal deductions. In turn, many others simply do not know how to get tax...

There are times when you can deduct the cost of purchasing professional literature from your taxes. You must be able to document and justify the purchase, but it can be done. You don't have to be...