Is it Possible to Deduct Home Improvements on Taxes?

It is without a doubt that you will fall in love with the areas where you are going to save on your taxes. And when it comes to your home, things tend to double. Keep in mind your house is one of the biggest investments you can ever have. Therefore, it makes sense when you decide to go with options that can apply associated costs to your tax bill.  This is mostly the case when it comes to things such home repairs that tend to be costly at times. But are there tax deductible home improvements?

Well, there are some bad news and good news when it comes to this area. If you have the main intention of using your home as a personal residence, then you cannot deduct home repairs on taxes. Things are no different when you have to call in a pricey repair service to your home. The good news is that you can deduct home improvements. Some might wonder how you cannot deduct home repairs on taxes, but still deduct home improvements.

Home improvements are viewed at as capital improvements. What we are trying to imply is that any amount of money you spend on improvements qualifies as something that raises the value of your home. This in turn increases the capital gain you are set to get after choosing to sell your home in the future. Unfortunately, deducting home improvements is not that easy when compared to itemizing them on your schedule A tax form.

By now you might already be wondering about the type of home improvements that are tax deductible. Some of the most notable improvements include kitchen upgrades, wood deck addition, bathroom remodels, and siding and window replacements to mention a few. You’ve probably realized that most of these home improvements touch on the exterior of your property. This can be attributed to the fact that they have the biggest returns. For this reason, you are destined to recoup the most amount of money when compared to the amount of money you spent on the improvements.

What You Need to Know About Form 1040A

Even though the Internal Revenue Service (IRS) might seem to be stern and unforgiving, the truth of the matter is that they put in measures to ease tax time. This can be attributed to the fact that they have offered a number of personal tax returns aimed at streamlining the filing process. Among the most notable type of personal tax return is the renowned Form 1040A. The idea behind tax form 1040A is that you are not going to make many mistakes with the filing process as long as you qualify to file a simpler return.

However, changes have already been made to how we file our 1040 tax forms considering it is now a Schedule A. This new schedule A is attached to the newly designed 1040 tax form. What is even more fascinating is the fact that it is a shorter version of the original one. However, you might fail to notice the difference especially when your tax situation is very simple. Despite this, those with more complex tax situations must attach a number of schedules to the new Form 1040.

Quite a number of people are still in limbo regarding whether they qualify to file form 1040A. To clear any doubts that you might have in mind, those with taxable incomes that does not exceed $100,000 can file Form 1040A. However, this only applies when they do not want to claim an Alternative Minimum Tax (AMT) on the stocks they gain after exercising and incentive stock option. In addition, they ought to claim the standard deduction and forego itemizing.

So, why should you file form 1040A?  Well, the main reason why you should consider using Form 1040A is that it happens to be faster and easier to prepare when compared to the longer 1040. Better, it still covers more tax credits and deductions unlike the 1040EZ, another simplified return option. If you are thinking about preparing your tax return by hand, the Form 1040A is worth starting with. Luckily, you do not have to worry about the tax to use when relying on tax software.

How to Choose the Best High Risk Payment Gateway for Your Business

High-risk businesses that are unable to get a payment gateway through a traditional payment processor or their bank are often left looking for an alternative solution to processing credit card payments. In their search for the right payment gateway, most high-risk merchants end up coming across a wide range of high risk processing merchants to choose from. Below, we will take a look at some of the most important features you need to watch out for in a high-risk payment gateway. Read on and find out more.

Opt for a Payment Gateway That Accepts More Than Just Credit Cards   

Even though it is important to allow your customers to use credit cards, those who do not have one or are not into using credit cards might find it hard. This is mostly the case when they cannot pay in other ways. By making sure your high risk payment gateway allows you to accept major credit cards, mobile payments and debit cards, you will no longer have to worry about turning away paying customers. Of course, the type of payment you choose to use will depend on whether you are making sales online or in person.

Protect Your Business’s Best Interests

There are quite a number of features that some high-risk merchant account payment gateway includes to protect you against fraud and other damaging transactions. The best payment gateway should be fully integrated with anti-fraud software. In addition, the high-risk merchant account processing company should offer all-inclusive accounts that protect merchants. Some of the most notable features that can protect merchants include multi-bank processing and chargeback alerts. Through this action, you are definitely going to keep chargeback ratios low since you can alternate transactions in different supporting banks.

The Bottom Line

The best payment gateways are offered by companies that offer a full range of merchant services. This will include fair fees, chargeback alerts, fraud protection and 24/7 merchant support. If you are searching for such a company, then you should look no further than iPayTotal. With their help, you can easily create your high-risk international merchant account together with a customized credit card processing solution. If this is not enough, they will help you secure the lowest rate for your payment gateway high-risk business. Visit their official website today and find out more regarding what they have to offer.

What Are IRS Forms

Individuals and businesses rely upon IRS forms whenever they want to report financial activities to the federal government. This is done with the main intention of calculating their tax liability. The Internal Revenue Service is tasked with the main responsibility of creating hundreds of forms every year. However, you might only come across a handful of them from year to year. One thing you ought to remember is that there are different forms of IRS forms. Some of the most notable ones include tax return forms, obtaining tax forms, information tax forms not forgetting schedules and attachments to IRS forms.

Quite a number of people do not seem to know where they can get their IRS forms. Well, this is should never be the underlying reason why you are going through a hard time since innovations in the world of technology has made life so easy. Nowadays, you can use online tax software in downloading IRS tax forms from the comfort of your home. All you need to do is find reliable online tax software after which you should enter you information into the system.  Once you do this, the correct tax forms will be supplied automatically within the shortest time possible.

When using any online tax software, you can access any tax forms you need be it for the current or previous years. However, you must be ready to answer all questions asked after which you need to fill in all the right forms  If you are not into this, then you can consider visiting the official website of IRS. Here, you are set to come across free fillable Federal tax forms.

Keep in mind filing your tax return manually is not a piece of cake as some people think.  It is for this reason that you should let the tax software take you through the entire filling process. This way, you will not only save on time but also reduce your chance of making mistakes when filing tax returns. Make sure you look for the best tax return software if you are to reap maximum benefits.

Requirements for the Child Tax Credit

Before claiming the Child Tax Credit, you will first have to determine whether you child is eligible. Luckily, this is something you should never worry about since the information is readily available online. In fact, it will not take long before you can finally get to know more regarding Child tax credit eligibility. To give you a slight insight into the requirements for the child tax credit, you ought to know that you child must be under the age of 17 at the end of the tax year for which you are claiming the credit.

Aside from the age of your child, it is also important to carry out a relationship test. What this simply means is that the child must be your own, a foster child placed with you by an authorized agency/court or a stepchild. You are also allowed to claim your sister or brother, stepsister and stepbrother. In case there happen to be any descendants of these qualifying people be it your nephews or nieces, then you can claim the credit. However, you need to make sure they have met all the other tests.

Other notable tests you can use in determining Child tax credit eligibility include family income test, residence test, citizenship test, dependent test, support test to mention a few. However, you need to make sure you understand what each test is all about before you can finally claim the credit. For instance, you can only qualify for the support test if the child cannot have provided more than half of her or his own financial year throughout the tax year.

Keep in mind the Child Tax Credit is not refundable if at all your credit is way more than your tax liability. In this case, you tax bill will be reduced to zero and you will lose any remaining unused credit. The good news is that you can claim a refundable Additional Child Tax Credit for the balance that was not used.  Be sure to understand fully the Child tax credit eligibility before making the decision of claiming the credit.

What You Need to Know About Form W-2

IRS Form W-2, the “Wage and Tax Settlement,” has an important role to play when it comes to reporting an employee’s income from the previous year. In addition, it specifies how much tax the employer withheld together with other additional information. Employees make use of Form W-2 to prepare their tax returns and employers have to share the form in January (and a copy to the IRS). For many people, the information on the W-2 is going to determine whether they can get a refund or write a check when April comes.

Quite a number of people do not seem to understand when are w2s sent out. Well, employers need to share their W2s via email or make it available online but not later than January 31st. The good news is that you can always request a deadline extension but you need to understand the new requirements regarding this. However, you ought to keep in mind that you are only entitled to a single 30-day extension. If you are planning to submit a deadline extension, then you need to ensure everything is done by January 31st.

Some might wonder why there is need for a deadline when sending out W2s. Well, there are times when the IRS may come across errors when checking individual returns.  By setting deadlines, they have ample time to go over each return. If this is not enough, submitting the W2s before the set deadline will make it easier for the IRS to prevent fraud.  Luckily, innovations in the world of technology have made it possible for individuals to submit W2s before the set deadline.

What is even moiré fascinating is the fact that you can now get your copy of W2 online.  Actually, many employers are now choosing to share the form online with their employees. For this to work perfectly, the employer needs to let employees know once they hire a payroll or W-2 delivery company. Through this action, you will find it easy in downloading the forms online from the tax filing without having to pay a single cent.

What You Probably Do Not Know About Earned Income Tax Credit

Quite a number of people are fond of overlooking the Earned Income Tax Credit (EITC) thus missing out on hundreds of dollars. This can be attributed to the fact that many find it hard in determining the tax credits they are eligible for and why. What they fail to realize is that tax credits come in handy whenever you want to benefit from an increase in tax refund. It is for this that you should make an effort to understand the EIC table if you are to have a clear idea of what is expected of you.

For those who may have no clue, the eligibility of EITC is limited to low-to-moderate income earners. However, taxpayers ought to file as individuals or joint with their spouse. If at all you happen to be married, your household member including the qualifying children must own valid Social Security numbers.  Even though the EITC is viewed as a form of credit for low-income fillers, there tend to be variations of filing status, income and number of qualified dependents that affect the eligibility.

As a taxpayer, you should keep a close eye on the eligibility of EITC each and every year since personal tax situations and tax laws keep on changing. Some of the most notable changes that might affect eligibility touch on new jobs, unemployment, change in marital status to mention a few. So, make an effort to know what is transpiring if you are to keep yourself fully informed.

To avoid going through a lot, it is highly advisable for you to use a qualified tax software system if you are to stand the chance of maximizing the earned income credit. With electronic tax programs, you only have to enter your information after which they will make it easy for you to receive tax benefits. However, you need to make sure you enter your information correctly in order to reap maximum benefits whenever you choose electronic tax programs. Furthermore, it is always important to understand how a tax software system works.

Understanding Your Tax Refund

For most people, employers collect tax at a rate that estimates your tax for the actual year. In fact, the actual earnings and deductions that one is allowed to claim might end up causing you to pay too much tax. When this is the case, the Internal Revenue Service (IRS) issues you a refund. To cut the long story short, when you pay more tax than you owe, then the IRS will be obliged to return the overpayment as your refund.

However, it is always important for you to have a clear idea of what the upcoming tax season has in store for you, thus making sure you adjust appropriately to get the largest tax refund. That is where a tax refund calculator comes into play. With this calculator, you will be able to know in advance the amount of money you will be getting as a refund from the IRS. Unfortunately, you can be overwhelmed by the high number of tax refund calculators you can choose from. For you to have an easy time, you can consider using the TurboTax calculator.

Thanks to TurboTax calculator, you will have the privilege of checking out how much of a tax refund you can expect back even before you can finally fill your file tax return. Better, you do not have to part with a single coin for you to get this information. All you need to do is answer a couple of questions regarding your wages and withholdings, homeownership, marital status etc and TurboTax calculator will take it from there.

The TurboTax calculator is freely available to every employee. This is regardless of whether or not you are fond of using TurboTax whenever you want to file your taxes. Once you share your information with them, they will do the math thus providing accurate results. Through this action, you are destined to get a bigger tax refund or even pay less in taxes. Remember to share accurate information if you are to get the most out of TurboTax calculator, since any slight mistake you make can have a greater impact.