Mortgage Interest Deduction : 7 FAQs

mortgage interest deduction

The mortgage interest is one of the most commonly utilized tax breaks under Internal Revenue Code  by  an Individual. In fact , most individual who takes loan for buying home , has to deal with the concept of mortgaging the home against the loan .Section 163(h) of the US Code 26  deals with interest deduction …

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Child Tax Credit is Different Than Child & Dependent Credit !

child tax credit

child tax creditOften taxpayers are confused about the two quite similar looking tax credits – Child Tax Credit and Child & Dependent Credit . This post is devoted entirely to the Child Tax Credit under which the maximum amount you can claim for the credit is $1,000 for each qualifying child. For knowing about Child & Dependent Tax credit , please read this article

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How to Get Tax Deduction for Home Improvement ?

tax deduction for home improvement

Frankly , no express law for tax deduction for home improvement exist. However, there are indirect ways by which your cost of home improvement can be deducted while computing taxable income. These are creative tax planning that require careful consideration .Here are the four such idea that you can consider 1. Do Home Improvement at …

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Alternative Minimum Tax Calculator for 2017 & 2018

alternate minimum tax calculator

 Alternative minimum tax is automatically imposed on a taxpayer earning beyond a threshold. If you are wondering about various rules and conditions related to AMT tax , please read FAQs on Alternative Minimum Tax or AMT ? Section 55 of US Code 26 deals with the AMT and the number of  conditions  this provision contain really makes …

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First Time Home Buyer Tax Credit : How to Get it from States?

first time home buyer tax credit

first time home buyer tax creditThe answer to the often asked question “Is there a tax credit for first time home buyers?” is a definite no as far as tax credit while computing Federal Income Tax is concerned because  first-time home buyer tax credit provision was applicable for taxpayers who  purchased a home as your primary residence in 2008, 2009 or 2010.  Therefore , as of now ,this program still applies to some people but not to others who did not buy the home during 2008 t0 2010. But , there is some hope under State tax law as most of the states in United States still provides some kind of tax credit for first time home buyers.

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What does Being Audited by the IRS Mean ?

what is an irs audit

Really every taxpayer has this question ” what does being audited by the IRS mean? in his/her mind . Psychologically taxpayers are generally scared of tax audit. The IRS audit of your tax return is nothing but close scrutiny of your income declaration and the claim of exemptions and various tax deductions. The IRS checks whether the claim is correct and as per the US Code 26 and other Rulings.

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Who Needs to File Tax Return ? Check This Calculator

who needs to file tax return

who needs to file tax returnAs per US Code 26 , section 6012 , every individual having for the taxable year gross income which equals or exceeds the exemption amount. So an Individual who has Gross Income of 4050 or more for Tax Year 2017 , he /she needs to file the tax return.I have created an easy calculator way to find out who really needs to file tax return to IRS as per US Code 26

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Filing Taxes Late Penalty Calculator

filing taxes late

Filing taxes late penalty calculator is based on the law under section 6651 of the US Code 26 that provides that if any taxpayer who files tax after the due date for filing of return , he/she/it will pay a penalty @ 5% per month for the period of delay. I have written in detail …

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