Car and truck expenses: The cost of operating the vehicle for business is deductible. In deducting costs, the need to keep records of costs (e.g., gasoline, oil changes) is eliminated if you rely on the IRS standard mileage rate of 58 cents per mile instead of deducting your actual outlays. Salaries and wages: Payments to … Continue Reading
Coordinate with Parents- parents may have been claiming their graduate as dependents. This will probably need to change once they enter the workforce. Student Loan Interest- subject to limitations, interest paid on outstanding student loans after graduation is deductible. Continuing Education While Starting Work- Work-related continuing education is no longer deductible as a miscellaneous itemized … Continue Reading
Not unless you’ve used the money to buy, build, or substantially improve your home. Before the tax law changes, homeowners were able to take out a home equity loan and spend it on things other than their residence. Now, you can only deduct interest on acquisition indebtedness, meaning a loan used to buy, build, or … Continue Reading
How do small businesses owners use the new 20 percent qualified business expense deduction? Small business owners structured as sole proprietors, S corporations and partnerships can deduct up to 20 percent of their qualified business income. That percentage can be reduced after your taxable income reaches $157,500 (or $315,000 as a married couple filing jointly). … Continue Reading
Deductions- Standard deductions are nearly doubled to $12,000 for single filers and $24,000 for married joint filers. The code still says dependents can claim a standard deception limited to the greater of $1,050 or earned income plus $350. Kiddie Tax– Unearned income of children under age 19 (or 24 for full-time students) above a threshold of … Continue Reading