TaxAudit Blog

Tag: Credit

Solar Panels on House Roof

How do I write off solar panels for rental properties when I claim as a real state professional to run a rental business?

Read More ›

school book with graduation hat and jar of coins on it

With all the required tuition, books, and fees for college students, not to mention the cost of room and board - what education expenses are tax deductible?

Read More ›

Man opening a letter

IRS CP06A notice asks you to verify the Premium Tax Credit you claimed on your tax return with documentation. How should you properly respond to this notice?

Read More ›

Bags of money and stacked coins with a graduation hat

The short answer is yes, you can deduct education expenses for your dependents, but some limitations and qualifications must be met. Let's explore more.

Read More ›

Woman Reading Letter

IRS CP80 notice explains you have a credit on your account for the tax year in question but have not filed a return. The credit will apply to any amount due.

Read More ›

Window Installer

Yes, you can indeed receive a tax benefit for installing new energy efficient windows on your house – provided that certain conditions are met.

Read More ›

College add daughter moving out of parent's house

To claim a dependent on your tax return (and all the credits that come with that dependent), your child must meet a set of requirements.

Read More ›

Earned Income Credit

Not all IRS letters are bad news, and the CP09 is one of them. The IRS noticed you did not claim the Earned Income Credit and believe you might qualify for it.

Read More ›

Hand holding a credit card

Yes, you can deduct interest on your business and personal credit cards to the extent that the interest relates to business expenses. Let's explore more.

Read More ›

United States Treasury Check

You’d like to know if you can file an amended tax return to claim the Recovery Rebate Credit if you did not receive the economic stimulus payment.

Read More ›

Two Preschoolers Reading

The 2021 expense limit for this credit is $8,000 for one qualifying child, and $16,000 for two or more qualifying children. The credit is a % of those expenses.

Read More ›

IRS check with money surrounding it

Now that you have your Letter 6475, what should you do with it? The letter will inform you of the amount that the IRS paid to you for the third EIP payment.

Read More ›

Child Tax Credit

To claim a child for this credit, the child has to meet several tests. Biology isn’t a disqualifier in claiming dependents, but other factors must be met.

Read More ›

Child Tax Credit

The IRS will issue Letter 6419 to provide the total amount of advance credit that was paid to the taxpayer -  keep this letter for your 2021 tax return!

Read More ›

Woman reading a letter

There are hundreds of different types of letters and notices you can receive from the IRS. Let's focus on a few of the more common IRS notice types we see.

Read More ›

Solar Panels on Roof

There are several different tax breaks available for solar panels used either in the home or in a business. Let’s look at a couple of examples.

Read More ›

File Folders with one labeled Taxes

If I haven't worked in a couple of years and didn't file taxes or get the first stimulus check, then where do I start or how do I file?

Read More ›

Tax Professional going over audit letter with couple

When you purchase Audit Defense from TaxAudit, you’re purchasing more than just assistance with your IRS or state notice. You are choosing peace of mind.

Read More ›

Baby with bottle

The cost of baby formula for your own infant is generally not considered something you can write off on your taxes. However, there are exceptions.

Read More ›

Piggy bank with graduation hat on

A tax deduction for qualified tuition expenses has generally been available for many years. However, it has never been a permanent part of the tax code.

Read More ›

credit cards

Credit card interest for personal expenses is generally not deductible. However, credit card interest connected to trade or business expenses can be deductible.

Read More ›

Warning tax scam sign laying on a keyboard

The IRS has published a “Dirty Dozen” list to warn taxpayers to beware of joining the thousands of people who lose millions of dollars to scammers each year.

Read More ›

Money with a graduation hat laying on top

Paying for college tuition is an expensive endeavor. Fortunately for those who qualify, there are some tax breaks available.

Read More ›

Tax Deduction written on a sticky-note

Tax deductions and credits serve the same purpose − to reduce the amount of a taxpayer's tax owed. The way that each serves this purpose is different.

Read More ›

Tax Credits

Non-refundable credits can reduce your tax liability to zero. Refundable credits can give you money back if the amount of the credit is more than you owe.

Read More ›

Internal Revenue Service sign next to traffic light

Returns are being processed, and refunds are being issued. Things seem back to normal.

Read More ›

Graduation Hats

For the American Opportunity Credit, a student is required to be in pursuit of a degree or recognized education credential and be enrolled at least half-time

Read More ›

Tax Credits written on a Sticky Note

This may seem like a strange question, but with over 1.1 billion dollars of unclaimed money at stake, it's a question worth asking.

Read More ›

Child and Dependent Care Credit

The Child and Dependent Care Credit is available to help offset some expenses of childcare or daycare costs.

Read More ›

books

Are Education Tax Credits Available When the Education Expenses are Covered by a Scholarship or Grant?

Read More ›

books

We wanted to let you know that, yes, there are some tax benefits to hitting the books.

Read More ›

Calculator and pen on top of 1040 tax forms

My wife made a $5,000 contribution to her IRA in last year. Through using TurboTax, we learned that we don't have the earned income to support a deduction...

Read More ›

woman on the phone holding baby

I am a policy and procedure writer for a company. Due to my long commute, my boss lets me work from home one day a week. Can I write off my home office?

Read More ›

Earned Income Credit

The Earned Income Tax Credit is available to workers who earn $52,427 or less from wages or self–employment.

Read More ›

books, diploma, and graduation hat

If you have started a family, you know there are many things to take into consideration, including planning for your child’s education. 

Read More ›

houses

We had solar put on our house this year. Is it tax deductible? A tax credit is available for qualified solar electric property costs and qualified solar water..

Read More ›

Student desk with books and apple on it

I have a daughter who is eligible for the American Opportunity Tax Credit of $2,500.00. Can she also use the Lifetime Educational Tax Credit of $4,000.00?

Read More ›

stacked books, diploma, and graduation hat

We adopted our grandson three years ago - he is now a freshman in high school. When he goes to college, will his tuition be tax deductible? 

Read More ›

Handcuffs laying on a 1040 form

We took out a home equity loan to redo our basement. The contractor did not perform the work as agreed and what was performed had to be torn out...

Read More ›

Woman until holding up key by model of house

I have a good friend who owns two rental homes here in California. The tales he tells regarding these “assets” are not for the faint of heart.

Read More ›

church

Is there a tax benefit to making a charitable contribution to my church directly from my IRA rather than writing a check and deducting it from my tax return? 

Read More ›

Piggy bank with handcuffs hanging on it

Continuing on with Scams 8-12, let’s look at the third set of scams in The Dirty Dozen. False Income, Expenses or Exemptions: Another set of scams...

Read More ›

Tax Day and April 15th stamps by stack of papers

The April 15th deadline is approaching. Taxpayers are most likely to make errors on returns when they are rushing to finish their returns before the deadline.

Read More ›

Hand holding stack of 100 dollar bills giving it to another hand

In order to qualify for an Earned Income Tax Credit (EITC) of up to $6,044, you must first meet these two qualifications: You must have earned income...

Read More ›

This blog does not provide legal, financial, accounting, or tax advice. The content on this blog is “as is” and carries no warranties. TaxAudit does not warrant or guarantee the accuracy, reliability, and completeness of the content of this blog. Content may become out of date as tax laws change. TaxAudit may, but has no obligation to monitor or respond to comments.