Why tax-deductible items are not what they appear

Why tax-deductible items are not what they appear

| Written by Brett Porter, EA for Winter 2020 Edition of OurSeniors.net Magazine | Every year you hear it. You may even say it yourself. “I can just write it off on my taxes,” but can you really? Most people are completely confused as to whether or not all their tax deductions are even making a difference. Why is this? Most people find their tax return to be a huge burden—they do not want to think about it throughout the year, they do not want to do it come April, and they most certainly do not want to review what all those numbers are on their 1040. They just want to hand in their information to their accountant and be done with it. Do you know if you itemized last year? A lot of people do not even know that there are two options—itemizing or the standard deduction, or what these options mean. They just hear throughout their life that certain items are...
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It is not too soon to think about your tax return for 2018

It is not too soon to think about your tax return for 2018

It is not too soon to think about your tax return for 2018. Here are some important dates: Early Filing of 2018 Taxes has already begun January 28, 2019 IRS Started Processing Tax Returns (shutdown has ended) April 15, 2019 is the Tax Filing Deadline for 2019 October 15, 2019 is the Deadline for Extension Filers Even if a senior does not owe any income tax, it may be a good idea to file an income tax return. Many state and local programs that benefit seniors use the IRS tax return as a qualifying document. For example, seniors may qualify for an additional homestead exemption on local real estate taxes based on income, and eligibility for senior housing programs may require an income tax return. Don’t forget to look in the OurSeniors.net Directory of Approved Vendors to find help. In South Daytona, Port Orange and surrounding areas, contact Brett Porter, E.A. His page on Ourseniors.net is linked here: Brett Porter E A....
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Start to Plan Your 2018 Tax Return

Start to Plan Your 2018 Tax Return

For some of us, it was only three months ago that we scrambled to get our tax documents to an accountant or tax preparer. “Think ahead,” may not be the advice we want to hear about 2018 taxes when the deadline for those returns is still eight months away. But wait a minute!  Now is the time, especially if you are in some special situations. For 2018, the standard advice about saving receipts for medical expenses, mortgage interest payments, local taxes, charitable deductions and other deductible outlays still applies, but there is a big catch, and you should think about this in your tax planning.  Last year, the Congress passed and President Trump signed the “Tax Cuts and Jobs Act of 2017,” a law that can substantially change tax planning for some people. That law significantly raised the standard deduction that many taxpayers were taking, and by doing so made itemizing deductible expenses less attractive for many. The bottom line is this:...
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