Now that you know how to save money on your taxes by deducting job-hunting expenses, let’s talk home businesses. According to the IRS, you may be able to save big bucks by writing off expenses related to what Uncle Sam refers to as the “business use of your home.” If you work out of your home–regardless of whether you rent or own–you may qualify for the deduction. The IRS defines a “home” as a house, condo, apartment, and mobile home, basically, any place that includes an area where you cook and sleep. A home office can be as large as … Continue reading →

In 2012, the deadline for filing personal income taxes is Tuesday, April 17th. The traditional deadline is April 15th, but since that’s a Sunday and Monday the 16th is Emancipation Day (a holiday observed by the District of Columbia), the Internal Revenue Service (IRS) delayed the date until the 17th. So, hooray, we all get an extra couple of days to procrastinate. According to the IRS, more than 144 million individual tax returns are expected to be mailed in by the deadline. Of course, there are those who will push the envelope. Still, you can avoid late filing penalties if … Continue reading →

Due to their unrelenting stubbornness and absolute refusal to embrace technology, my parents will never know the joys of filing their taxes online. Even if you are far from tech savvy, you can still successfully file your taxes from the comfort of your home office. The process is not complicated, though it requires a little bit of research. And by research, I mean reading some simple instructions, and then following them to the letter. If you do not complete the online forms correctly, there’s a chance you could be slapped with a penalty for filing late. Bottom line: Read all … Continue reading →

When it comes to filing taxes, documentation is key. Without solid proof to back up your figures, you risk getting into hot water with the IRS, especially if you are audited. In a previous blog, I gave you important information regarding the home office deduction. I detailed the requirements needed to qualify and listed caveats that could make or break your eligibility. It is critical that you realize that the home office deduction is available only to people who are operating legitimate businesses from their residence. Uncle Sam doesn’t tolerate people who file for the home office deduction when they … Continue reading →

In my previous post I listed the requirements you need to meet in order to qualify for the home business deduction on your 2011 tax form. Remember: You must be able to show that you use your home as your principal place of business. This can be accomplished by sanctioning off a portion of your house, condo, mobile home or apartment for business purposes only. You can’t use your workspace to host poker games or scrapbook crops on the weekends; rather, the space must be used exclusively and regularly for business. However, there are two exceptions to this rule. According … Continue reading →

Claim, claim, claim, deduct, deduct, deduct. That’s the name of the money-saving game when it comes to paying taxes. According to Kiplinger’s Personal Finance magazine, most of us are paying Uncle Sam way more than we need to simply because we are ill-informed. By reviewing current tax laws there’s a good chance you can cut your tax bill in half. For example, did you know that you can write off the casserole you made and donated to your local soup kitchen? Financial experts maintain that if generous Americans kept better records, they could easily increase the amount they list as … Continue reading →