AGI (Adjustable Gross Income) – DougFreemanCPA.com

You don’t have to be in business to deduct certain vehicle expenses

AGI (Adjustable Gross Income), Charitable Mileage Deduction, Itemized Deduction, Medical Deductions, Self Employed, Tax Cuts and Job Acts (TCJA), Tax Deduction, Vehicle Expenses / Douglas Freeman

When you think about tax deductions for vehicle-related expenses, business driving may come to mind. However, businesses aren’t the only taxpayers that can deduct driving expenses on their returns. Individuals may also be able to deduct them in certain circumstances. Unfortunately, under current law, you may be unable to deduct as much as you could […]

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Make year-end tax planning moves before it’s too late!

AGI (Adjustable Gross Income), Business Deductions, Federal Taxes, Itemized Deduction, Small Business, Small Business Owners, Tax Planning / Douglas Freeman

With the arrival of fall, it’s an ideal time to begin implementing strategies that could reduce your tax burden for both this year and next. One of the first planning steps is to ascertain whether you’ll take the standard deduction or itemize deductions for 2024. You may not itemize because of the high 2024 standard

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Certain charitable donations allow you to avoid taxable IRA withdrawals

AGI (Adjustable Gross Income), Charitable Donations, IRA, Qualified Charitable Distribution (QCD), Required Minimum Distributions (RMD) / Douglas Freeman

If you’re a philanthropic individual who is also obligated to take required minimum distributions (RMDs) from a traditional IRA, you may want to consider a tax-saving strategy. It involves making a qualified charitable distribution (QCD). How it works To reap the possible tax advantages of a QCD, you make a cash donation to an IRS-approved

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You may be entitled to tax breaks if caring for an elderly relative

AGI (Adjustable Gross Income), Care for Aging Parents, Dependent Tax Credit, Itemized Deduction, Medical Deductions, Medical Expenses / Douglas Freeman

There are many rewards for taking care of an elderly relative. They may include feeling needed, making a difference in the person’s life and allowing the person to receive quality care. In addition, you could also be eligible for tax breaks. Here’s a rundown of four of them: 1. Medical expenses. If the individual qualifies as

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Beware of a stealth tax on Social Security benefits

(ATI) Adjusted Taxable Income, AGI (Adjustable Gross Income), Federal Taxes, Social Security, Social Security Tax, State Tax / Douglas Freeman

Some people mistakenly believe that Social Security benefits are always free from federal income tax. Unfortunately, that’s often not the case. In fact, depending on how much overall income you have, up to 85% of your benefits could be hit with federal income tax. While the truth about the federal income tax bite on Social

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Can you deduct student loan interest on your tax return?

AGI (Adjustable Gross Income), Deductions, Federal Tax Deductions, Student Loans, Tax Deduction, Tax Return / Douglas Freeman

The federal student loan “pause” is coming to an end on August 31 after more than three years. If you have student loan debt, you may wonder whether you can deduct the interest you pay on your tax return. The answer may be yes, subject to certain limits. The deduction is phased out if your

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Moving Mom or Dad into a nursing home? 5 potential tax implications

AGI (Adjustable Gross Income), Care for Aging Parents, Nursing Home Deduction / Douglas Freeman

More than a million Americans live in nursing homes, according to various reports. If you have a parent entering one, you’re probably not thinking about taxes. But there may be tax consequences. Let’s take a look at five possible tax breaks. 1. Long-term medical care. The costs of qualified long-term care, including nursing home care,

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The best way to survive an IRS audit is to prepare

AGI (Adjustable Gross Income), Doucment Retention, IRS Audit, Tax Record Retention, Tax Return / Douglas Freeman

The IRS recently released its audit statistics for the 2022 fiscal year and fewer taxpayers had their returns examined as compared with prior years. But even though a small percentage of returns are being chosen for audits these days, that will be little consolation if yours is one of them. Recent statistics. Overall, just 0.49%

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Are you married and not earning compensation? You may be able to put money in an IRA

AGI (Adjustable Gross Income), IRA, Retirement, Roth IRA, Spousal IRA, Tax Return / Douglas Freeman

When one spouse in a married couple is not earning compensation, the couple may not be able to save as much as they need for a comfortable retirement. In general, an IRA contribution is allowed only if a taxpayer earns compensation. However, there’s an exception involving a “spousal” IRA. It allows contributions to be made

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The IRS clarifies what counts as qualified medical expenses

AGI (Adjustable Gross Income), Federal Income Tax, FSA, HSA, Itemized Deduction, Medical Deductions, Medical Expenses, Qualified Medical Expenses / Douglas Freeman

If you itemize deductions on your tax return, you may wonder: What medical expenses can I include? The IRS recently issued some frequently asked questions addressing when certain costs are qualified medical expenses for federal income tax purposes. Basic rules and IRS clarifications. You can claim an itemized deduction for qualified medical expenses that exceed

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