Category: General

10 Ways to Claim Tax Deductions

You can decrease your taxable income (and keep more money to yourself) without flouting IRS laws. According to Tax Foundation statistics, most Americans do not claim their tax deductions because they think that the procedure is too complicated or they are just unaware. Here is a list of 10 scenarios that are eligible for a tax write-off.

1. Charity

You do not have to own a charitable organization to qualify for tax deductions under the IRS’s Publication 78. If you are involved in any charitable work such as baking for a school’s fundraiser, you can write off those expenses.

2. Sales or state income taxes

If you have a choice, opt to deduct state income tax. See if your state has the sales tax or income tax and use the IRS table to make your calculations. Also, add any big purchase you make such as vehicles and building materials to the sales tax rate.

3. Casualty and theft

The federal government relieves you the pain of unexpected business losses through fire, floods, theft, or other unforeseen circumstances by allowing for deductions. Things that benefit your business such as body oil for a bodybuilder in a competition also fall into this category.

4. Health Insurance premium

Itemize your medical expenses that exceed 7.5% of your adjusted gross income for deductions. If you are responsible for your health insurance coverage, IRS might give you 100% of your premium cost.

5. Lifetime learning

Even after high school, you can claim tax deductions on education expenses. You can get up to $2,000 per year through the lifetime learning credit. However, at higher income levels, this benefit does not apply.

6. Home mortgage interest

Every year, you can deduct 100 percent of the amount of interest paid on your mortgage.

7. Real estate taxes and points

The fees charged by banks to get a home loan are converted into points and are tax deductible. If you are refinancing your mortgage, you deduct the points over the life of the loan.

8. Self-employed Social Security

It is enough hassle paying for social security and Medicare taxes when you are self-employed. Get some relief by claiming 7.65 percent deductions from your income taxes.

9. Looking for work

Hunting for your first job does not entitle you for any deductions. Once you get a placement and are moving, you can claim your deductions. If you lose your job, the costs of looking for new work in the same industry exceeding 2% of your adjusted gross income qualify for a write-off.

10. Student loan paid by parents/guardians

Money spent by your mom or dad to your student loan is eligible for a tax write-off if you are not claimed as a dependent. The amount goes up to $2,500 of the interest paid.

With these deductions you can have a little extra change in your pocket.

READ MORE

Columbia, Maryland

Columbia, MD is a created city built by James Rouse and the Rouse Company. It was built on farm land in Howard County halfway between Baltimore, MD and Washington DC. Rouse is hailed as a visionary and a great person but not everything done always met the smell test.

My cousin and aunt (great aunt actually) had a farm in Ellicott City and what many people now would consider part of Columbia. I remember going there as a kid and having lemonade on the back brick patio sitting on nice cool spring metal chairs that were very comfortable. Then we would go and see the horses and visit the barn that was teeming with cats. They didn’t have much of a mice or rat problem.

One incident I will never forget. I was running through a field and stopped abruptly just in time. There was a large spider web inches from where I had managed to stop. I has almost run right through it. In the center was the biggest spider I had ever seen. It was over an inch long and the body had yellow and black markings and when you added in the legs it was several inches across. It was a common garden spider, an orb weaver. And no this isn’t a fish story. I looked it up and that is how big they are.

Well, when you build a city in the middle of farm land, the roads can’t handle the traffic so the roads in the area were being widened and new ones were being built. I am guessing the builders never had to pay their fair share of what it cost the county and the state to do all that road work and other infrastructure work. But that is a common problem not unique to Columbia.

Although my aunt and cousin fought it, they put a road through part of their farm. They were convinced that someone had been paid off to put the road through their property since they were fighting the Rouse company. I tend to doubt that one.

Once I was older I found out more about the situation. There were salesmen for the Rouse Company that came around and made offers to buy properties. They treated my aunt and cousin like two little old ladies who weren’t very bright and didn’t have two nickels to rub together. Wrong. They were incredibly bright and well read. The salesmen tried to tempt them by saying, think of what you could do once you sell your land, you could travel to Europe and other exotic locations. This was not an enticement. More of an insult. My aunt and cousin had plenty of money to travel when they wanted to and they had.

They also paid for lawyers to help out neighbors to fight the Rouse Company. There were several with apple orchards who finally gave up and sold. Condos and apartments had been built next to their properties and the kids would come in and steal the apples. Because of the theft their profit margins were down and they decided to sell.

When James Rouse died my cousin was so pleased with herself that she had outlived her nemesis. When my cousin died we found the check for the land that was claimed by eminent domain for when the road was put through their property. My aunt and cousin had never cashed it they had such strong feelings.

READ MORE

Welcome to the Notabene Notary

The Notabene site will be up and running in a little while. More details will be coming shortly. We looking forward to serving your every need, whether it is a contract, a lease, agreements, employment contracts, powers of attorney and more. Or it could be sales and marketing.

READ MORE