Starting January 1, 2021, the standard mileage rates for the use of a car, van, pickup, or panel truck are as follows:
Standard Mileage Rates for 2021
Topics: Taxes, Record Keeping, Tax Deduction
Employee Business Expense Deductions: Who Qualifies?
Prior to tax reform, an employee was able to deduct unreimbursed job expenses, along with certain other miscellaneous expenses, that was more than two percent of adjusted gross income (AGI) as long as they itemized instead of taking the standard deduction. Starting in 2018, however, most taxpayers can no longer claim unreimbursed employee expenses as miscellaneous itemized deductions unless they are a qualified employee or an eligible educator.
Topics: Taxes, Tax Deduction, Business Expenses
Charitable Donation Deduction Could Lower Your Tax Bill
The Coronavirus Aid, Relief and Economic Security (CARES) Act, enacted last spring, includes several temporary tax changes that help charitable organizations. One such provision allows taxpayers to deduct cash donations of up to $300 made before December 31, 2020.
Topics: Taxable Income, Personal Finance, Taxes, Tax Deduction, Tax Return, Nonprofit, Tax Preparation
Final Regulations for 100 Percent Bonus Depreciation
Final regulations have been issued by the Treasury Department and the Internal Revenue Service implementing the 100% additional first-year depreciation deduction that allows businesses to write off the cost of most depreciable business assets in the year they are placed in service by the business.
Topics: Business Ownership, Tax Deduction
The Home Office Deduction
With more people working from home than ever before, taxpayers may be wondering if they can claim a home office deduction when they file their 2020 tax return next year. The short answer is that self-employed taxpayers who use their home for business may be able to deduct expenses for the business use of it whether they rent or own their home. If you are an employee, however, you are not eligible to take the home office deduction - even if you are working remotely in your home office.
Topics: Taxes, Tax Deduction, Small Business, Tax Return, Tax Preparation, Business Expenses
RIC Shareholder Dividends Qualify as Section 199A
Section 199A, enacted as part of the Tax Cuts and Jobs Act (TCJA), allows individual taxpayers and certain trusts and estates to deduct up to 20 percent of certain income (section 199A deduction). It is available to eligible taxpayers with qualified business income (QBI) from qualified trades or businesses operated as sole proprietorships or through partnerships, S corporations, trusts, or estates, as well as for qualified REIT dividends and income from publicly traded partnerships. The deduction is not available for C corporations.
Topics: Taxes, Tax Deduction
Tips for Deducting Medical and Dental Expenses
If you, your spouse, or dependents have significant medical or dental costs in 2019, you may be able to deduct those expenses when you file your tax return this year. Here are eight things you should know about medical and dental expenses and other benefits:
Topics: Personal Finance, Taxes, Managing Your Tax Liability, Tax Deduction, Tax Return
Home Equity Loan Interest Still Deductible
The Tax Cuts and Jobs Act has resulted in questions from taxpayers about many tax provisions including whether interest paid on home equity loans is still deductible. The good news is that despite newly enacted restrictions on home mortgages, taxpayers can often still deduct interest on a home equity loan, home equity line of credit (HELOC) or second mortgage, regardless of how the loan is labeled.
Topics: Personal Finance, Tax Deduction, Tax Return, Home Ownership
Do You Need to File a 2019 Tax Return?
Topics: Taxable Income, Taxes, Tax Deduction, Tax Credit, Tax Return, Tax Preparation
Standard Mileage Rates for 2020
Topics: Taxes, Tax Deduction