If you’re a member of the U.S. Armed Forces, there may be many tax benefits that apply to you. Special tax rules apply to military members on active duty, including those serving in combat zones. These rules can help lower your federal taxes and make it easier to file your tax return.
Below are 10 of those benefits:
Do you work from home? If so, you may be familiar with the home office deduction, available for taxpayers who use their home for business. Beginning this year, there is a new, simpler option to figure the business use of your home.
This simplified option does not change the rules for who may claim a home office deduction. It merely simplifies the calculation and record-keeping requirements. The new option can save you a lot of time and will require less paperwork and record-keeping.
Your 401(k) plan may allow you to borrow from the plan. However, you should consider a few things before taking a loan from your 401(k).
If you don’t repay the full amount of the loan, including interest, according to the loan’s terms, the unpaid loan amount is a distribution to you from the plan. Your plan may even require you to repay the remaining amount of the loan in full if you stop working for the employer sponsoring the plan. Otherwise, the unpaid amount is considered a plan distribution to you.
Do you plan to travel while doing charity work this summer? Some travel expenses may help lower your taxes if you itemize deductions when you file next year. Here are five tax tips the IRS wants you to know about travel while serving a charity.
Here are some things you can do now to make April 15, 2014 easier:
Adjust your withholding
Each year, millions of workers have far more taxes withheld from their pay than what is required. To make sure this doesn’t happen to you, review your withholding and adjust it to make the taxes withheld from your pay closer to the taxes you’ll owe for this year. This is especially true if you normally get a large refund and would like more money in your paycheck.
If you owed tax when you filed, you may need to increase the federal income tax withheld from your wages. Use the IRS Withholding Calculator tool at IRS.gov to calculate the proper withholding.
Late spring and early summer are popular times for weddings. Whatever the season, a change in your marital status can affect your taxes.
Here are several tips from the IRS for newlyweds:
