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Apr 6, 2025What Are the Requirements for Claiming a Qualifying Relative?
A Qualifying Relative is someone you may be able to claim as a dependent on your tax return, based on specific IRS criteria. A qualifying relative can be a child, sibling, parent, or even an in-law, as long as they meet the following criteria: If all of these conditions are met, the individual may be […]
adminApr 6, 2025What are the requirements for claiming a qualifying child?
An eligible child can be considered your dependent if they meet the following IRS requirements: The minor can be your son, daughter, stepchild, foster kid, adopted child, brother, sister, stepbrother, stepsister, half-brother, half-sister, grandchild, niece, or nephew. You must have contributed more than half of his or her financial support during the year. The child […]
adminApr 6, 2025Who is a qualifying dependent?
A qualifying dependent may be a qualifying child or relative. Your dependents include your: You can only claim each dependency once. If a dependent files their own tax return, they must specify that they are being claimed. IRS Standards for Claiming a Dependent: You may claim a dependent if they meet the following IRS standards: […]
adminApr 6, 2025What is filing status?
For tax purposes, the IRS demands that you include your personal relationship status at the top of Federal Form 1040.Each filing gives you with your standard deduction, which varies by tax year. Choosing the appropriate filing status is a crucial prerequisite. There are five filing statuses in total. Filing Statuses Additional Notes For more information […]
adminApr 6, 2025Individual Retirement Account (IRA)
An Individual Retirement Arrangement (IRA) is a retirement savings plan in which you can contribute a portion of your annual earnings. This is recorded on Form 1099-R. There are two common types of IRAs: Traditional and Roth. Traditional IRAs are frequent if your income exceeds the amount required to qualify for a Roth IRA, you […]
adminApr 6, 2025What is the difference between a Roth IRA and a Traditional IRA, and which one is tax deductible?
What is an IRA?Traditional IRAs and Roth IRAs are two popular individual retirement plans. That being said, Traditional IRAs are common if your salary exceeds the amount required to qualify for a Roth IRA. You are also eligible for a tax deduction and anticipate being in a reduced tax rate after retirement. Roth IRAs, on […]
adminApr 6, 2025How Do I Figure Out My Adjusted Gross Income (AGI)?
Your Adjusted Gross Income (AGI) is your total gross income minus specific deductions, commonly known as “adjustments to income.” It is an important amount on your tax return since it is used to determine your eligibility for various credits and deductions. Your gross income comprises the following: To determine AGI, deduct adjustments like: Line 11 […]
adminApr 6, 2025How Do Capital Gains and Losses Impact Your Taxes?
What Are Capital Gains and Capital Losses? Capital gains and capital losses occur when you sell an asset, such as stocks, real estate, or other investments. A capital gain is the profit you make when you sell the asset for more than you paid for it. A capital loss is the opposite—when you sell for […]
adminApr 6, 2025Tax Rules for Interest Income
Taxable interest income is any type of interest you got that was credited to an account and can be withdrawn without penalty during the year it was accessible. Some interest you get may be tax-free. Taxable interest is reported on Forms 1099-INT or 1099-OID, and you must include all taxable and tax-exempt interest on your […]
adminApr 6, 2025How Does Tax-Exempt Interest Income Affect Your Taxes?
Interest paid from particular investments not subject to federal income tax is tax-exempt. Municipal bonds, which state and local governments issue to finance public projects like roads, schools, or utilities, are the most usual source of this kind of income. Although this interest is not taxed at the federal level, depending on your location and […]
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