Tag Archives: Adjusted Gross Income

Excess Rental Expenses

Today TaxMama hears from Susan in the TaxQuips Forum, who tells us. “I have more rental expenses than income, so there’s a loss of $20,000. But I can’t use it to offset any of our income.  Can I take the property tax and the mortgage interest that were on my rental house and add it to […]

Two Properties

Today TaxMama hears from Stephanie from Minnesota, who tells us. “My husband and I own two homes.  My sister is currently renting our first home from us and we live in the 2nd home.  Can we claim both homes’ interest on our taxes?  Does my sister qualify for a renters credit if we claim both […]

Computers for College

Today TaxMama hears from Linda in Kentucky with a reasonable question. “My son-in-law had on-line college classes that required him to have internet services and a computer. Do these count towards the tax credits? Also, how would he go about getting the books, supplies, gas, etc. credited?” Dear Linda, In a very odd and inconsistent […]

Tax Credit Helps Pay for Higher Education Expenses

The American Recovery and Reinvestment Act was passed in early 2009 and created the American Opportunity Credit. This educational tax credit – which expanded the existing Hope credit – helps parents and students pay for college and college-related expenses. Here are the top nine things the Internal Revenue Service wants you to know about this […]

Contributions to Relief for Haitian Earthquake Victims

Many people may wish to contribute to relief funds for the victims of Haiti’s recent earthquake. Contributions to domestic, tax-exempt, charitable organizations that provide assistance to individuals in foreign lands qualify as tax-deductible contributions for federal income tax purposes, provided that the U.S. organization has full control and discretion over the uses of such funds. […]

IRS Reminds Car Shoppers about 2009 Tax Break

WASHINGTON — The Internal Revenue Service today reminds individual taxpayers who are considering buying a new car that they have until Dec. 31 to take advantage of a tax break that may not be around in 2010. Taxpayers who buy a qualifying new motor vehicle this year after Feb. 16 can deduct the state or […]

529 Contributions

Today TaxMama hears from Rick in New Jersey with this stroke of genius. “I am a salaried employee for ABC company and will be doing a separate consulting engagement for another company in my spare time. I’d like to take the entire $55,000 I will earn and put it directly into a 529 college plan […]

Back-to-School Tax Breaks

WASHINGTON — In support of the Administration’s efforts to promote access to and the affordability of college education, the Internal Revenue Service today launched a new Web section highlighting various tax breaks and 529 plan changes designed to help parents and students pay for college. The new Tax Benefits for Education section on IRS.gov includes […]

Top Ten Tips for Taxpayers Deducting Casualty and Theft Losses

Courtesy of the IRS Taxpayers who find themselves the victim of a natural disaster or theft this summer should know the rules for deducting their casualty losses next year when they file their federal tax return. Generally, you may deduct losses to your home, household items and vehicles on your federal income tax return. Here […]