Monthly Archives August 2016

Do you know the difference in types of retirement plan contributions? Your employer-sponsored retirement plan may allow you to choose the types of contributions you make to the plan from your wages. Here’s a brief description of the different types of contributions your may be able to make: • Pre-tax elective deferrals – You don’t include these amounts in your gross income in the year that you make the contributions. For example, if you direct your employer to contribute $2,000 from your $30,000 salary in 2016, you only include $28,000 in your gross income. You will have to include these
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When a move is closely related to the start of a new job, moving expenses incurred within one year of the job start date can generally be deducted. The following 2 factors are used to determine the eligibility of deducting moving expenses: 1) Distance: The new job location must be at least 50 miles farther from the taxpayer’s old home than the taxpayer’s previous job location. 2) Time: Taxpayers must work full-time at their new job for at least 39 weeks in the first year of the move. Self-employed taxpayers must work full-time for a total of at least 78
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The IRS published a bulletin with tax tips about taxes on home sales. Most gains on home sales aren’t subject to tax but exceptions and exclusions may apply. Please click here to read the full IRS bulletin.
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Taxpayers who pay for college in 2016 may receive tax savings on their federal tax return. These credits are available for study abroad education, too. Education credits are subject to income limitations and may be reduced or eliminated based on the taxpayer’s income. Taxpayers may only use qualified expenses to figure their education credit. Qualified expenses include the costs paid for tuition, fees and other related expenses for an eligible student to enroll at, or attend, an eligible educational institution. Items such as computers, books, and other school supplies can also be claimed as qualified education expenses. Items such as
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