Itemized Deduction – 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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Is your money-losing activity a hobby or a business?

Federal Income Tax, Hobby or Business, Itemized Deduction, Small Business, Small Business Owners / Douglas Freeman

Let’s say you have an unincorporated sideline activity that you consider a business. Perhaps you offer photography services, create custom artwork or sell handmade items online. Will the IRS agree that your venture is a business, not a hobby? It’s an essential question for tax purposes. If the expenses from an activity exceed the revenues,

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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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What might be ahead as many tax provisions are scheduled to expire?

Corporate Tax Rates, Deductions, Federal Tax Deductions, Federal Taxes, Itemized Deduction, Past-Through Entities, Qualified Business Income Deducton (QBI), Tax Cuts and Job Acts (TCJA), Taxes 2024 / Douglas Freeman

Buckle up, America: Major tax changes are on the horizon. The reason has to do with tax law and the upcoming elections. Our current situation The Tax Cuts and Jobs Act (TCJA), which generally took effect in 2018, made sweeping changes. Many of its provisions are set to expire on December 31, 2025. With this

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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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When do valuable gifts to charity require an appraisal?

Charitable Contributions, Charitable Donations, Deductions, Gifts, Itemized Deduction, Tax Deduction / Douglas Freeman

If you donate valuable items to charity and you want to deduct them on your tax return, you may be required to get an appraisal. The IRS requires donors and charitable organizations to supply certain information to prove their right to deduct charitable contributions. How can you protect your deduction? First, be aware that in

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If you gave to charity in 2023, check to see that you have substantiation

Charitable Contributions, Charitable Organizations, Federal Income Tax, Income Tax, Itemized Deduction / Douglas Freeman

Did you donate to charity last year? Acknowledgment letters from the charities you gave to may have already shown up in your mailbox. But if you don’t receive such a letter, can you still claim a deduction for the gift on your 2023 income tax return? It depends. What the law requires. To prove a

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It’s possible (but not easy) to claim a medical expense tax deduction

Federal Taxes, Itemized Deduction, Medical Deductions, Medical Expenses, Qualified Medical Expenses / Douglas Freeman

One of your New Year’s resolutions may be to pay more attention to your health. Of course, that may cost you. Can you deduct your out-of-pocket medical costs on your tax return? It depends. Many expenses are tax deductible, but there are several requirements and limitations that make it difficult for many taxpayers to actually

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Don’t forget to empty out your flexible spending account

Deductable Expenses, Flexable Spending Accounts, Itemized Deduction, Medical Deductions, Medical Expenses, Tax Savings / Douglas Freeman

If you have a tax-saving flexible spending account (FSA) with your employer to help pay for health or dependent care expenses, there’s an important date coming up. You may have to use the money in the account by year-end or you’ll lose it (unless your employer has a grace period). As the end of 2023

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What are the tax implications of winning money or valuable prizes?

Federal Income Tax, Federal Tax Deductions, Gambling Taxation, Itemized Deduction, Tax Record Retention / Debbie Davis

If you gamble or buy lottery tickets and you’re lucky enough to win, congratulations! After you celebrate, be aware that there are tax consequences attached to your good fortune. Winning at gambling. For tax purposes, it doesn’t matter if you win at the casino, a bingo hall or elsewhere. You must report 100% of your

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