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Apr 3, 2025A net operating loss (NOL) occurs when your deductions surpass your taxable income. It can lower your taxable income in future tax years. They can still use the 2-year carryback rule. for tax years before 2018. The Tax Cuts and Jobs Act (TCJA) removed this for future tax years, save for certain agricultural losses and […]
adminApr 3, 2025By deducting the amount of alimony given to an ex-spouse, the alimony deduction lets taxpayers lower their taxable income. Understanding the qualifying requirements and how recent modifications—especially from the Tax Cuts and Jobs Act (TCJA)—affect this deduction for divorces completed after 2018 is therefore vital. Alimony is? Alimony is a payment of financial support from […]
adminApr 3, 2025A tax advantage letting students deduct some of the interest they pay on eligible student loans from their taxable income, the Student Loan Interest Deduction. This may lessen the tax liability by maybe reducing the amount of income subject to federal income tax. Key points are summarized here: Qualifications The borrower has to satisfy some […]
adminApr 3, 2025As a trained teacher, you might qualify to deduct unreimbursed expenses for supplies and other teaching-related charges. You must have labored at least 900 hours during the school year for a school that offers elementary or secondary education, as defined by state law, to qualify. Eligible teachers are K–12 teachers, professors, counselors, principals, and aides. […]
adminApr 3, 2025Unreimbursed employment expenses are work-related expenses individuals incur out of pocket and their employer does not compensate them for. Historically, if these costs surpassed 2% of their adjusted gross income (AGI), workers may deduct them as miscellaneous itemized deductions. The Tax Cuts and Jobs Act (TCJA) of 2017, however, blocked this deduction for most workers […]
adminApr 3, 2025A government tax benefit meant to promote the acquisition of electric cars (EVs). This nonrefundable credit can help lower a taxpayer’s responsibility when purchasing a qualifying EV. Qualifying for the Credit A car has to satisfy the following requirements to be eligible for the credit: Amount of Credit Applying for the Credit Phase-Outs and Limitations […]
adminApr 3, 2025Introduced under the Tax Cuts and Jobs Act (TCJA) of 2017, the Qualified Business Income (QBI) Deduction lets qualifying self-employed people and pass-through business owners deduct up to 20% of their taxable income from their qualified business income. Small business owners, freelancers, and some investors benefit from this deduction in terms of tax load. Who […]
adminMar 28, 2025Though the regulations can be convoluted, certain criteria allow for the deduction of casualty and theft losses. Usually, these losses are from harm or loss of property caused by unanticipated, abrupt occurrences like fires, storms, floods, theft, or accidents. Losses from CasualtiesWhen your property is damaged or destroyed by an unanticipated occurrence such as: To […]
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