Year-end Tax Tip. Make 401(k) and HSA contributions. People can make tax-deductible contributions to traditional IRAs up to April 15 of next year. However, the door closes on Dec. 31 for 401(k) and health savings account contributions.
Tag Archives: Tax Deduction
I Wonder…?
You can always deduct standard business expenses, but can you deduct hidden and unusual expenses to reduce your tax burden? With imagination and proactive tax planning, the answer to that question is: “Yes you can!”
Thomas Vincent Cuomo, EA, CTC – When is a Charitable Contribution Appraisal Required?
A commonly overlooked requirement of taking a tax deduction for donating clothing and household goods to charity is the substantiation requirement, for both what is donated and the value placed on the donation. Because the IRS has encountered so much abuse in this area, it has increased the donation verification requirements over the years, and taxpayers risk losing the deduction if their donations are not correctly documented and reasonably valued.
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Thomas Vincent Cuomo, EA, CTC – Hobby or Business?
Millions of people enjoy hobbies that are also a source of income. From catering to cupcake baking, crafting homemade jewelry to glass blowing — no matter what a person’s passion, the Internal Revenue Service offers some tips on hobbies.
Taxpayers must report on their tax return the income earned from hobbies. The rules for how to report the income and expenses depend on whether the activity is a hobby or a business. There are special rules and limits for deductions taxpayers can claim for hobbies. Here are five tax tips to consider: Continue reading