At a Glance: Adoption expenses can be offset by the Adoption Tax Credit provided by the IRS. While expenses themselves are not deductible, the credit helps lower tax bills and covers adoption fees, court costs, and travel expenses. Eligibility criteria apply, and detailed record-keeping is necessary…
At a Glance: Prospective adoptive parents often wonder if adoption tax credits are tax deductible. While tax deductions reduce taxable income, adoption tax credits lower the tax bill on a dollar-for-dollar basis. The IRS provides non-refundable credits for qualified adoption expenses, helping offset…
At a Glance: Alimony payments’ tax deductibility depends on the execution date of the divorce or separation agreement. Pre-2019 agreements follow old rules, allowing deductions, while post-2018 agreements don’t. Visit the IRS website for details. Seek professional advice and consult IRS …
At a Glance: Contributing to archaeological site preservation can be tax deductible. Donations to eligible nonprofit organizations working in this field may lower taxable income. Guidelines for claiming deductions include itemizing donations, providing documentation, and considering limitations. Con…
At a Glance: Bad debt losses may be tax-deductible depending on IRS guidelines. Business bad debts must be related to trade or business, while nonbusiness bad debts are deductible as short-term capital losses. To claim the deduction, establish the debt as uncollectible and provide necessary document…
At a Glance: Proving undue hardship for student loans is a challenging process. You must meet the strict criteria of the Brunner Test, demonstrating an inability to maintain a minimal standard of living, persistent financial difficulties, and good faith efforts to repay loans. Alternatives to bankru…
At a Glance: Student loans offer an opportunity to build credit and achieve financial goals. Making on-time payments, exploring affordable options, and considering refinancing can establish a strong credit history. However, careful management is essential. Communicate with loan servicers, research r…
At a Glance: Paying rent can positively impact credit scores, but it’s essential to report payments to credit bureaus or use a rent reporting service. Self-reporting and rent reporting services help build credit. Consider costs, reporting frequency, data privacy, and customer support when choo…
At a Glance: Discretionary income and student loans have a significant impact on each other. Understanding their connection is crucial for managing loans. Discretionary income, the money left after essential expenses, can be used to speed up loan repayment and explore refinancing options. It also al…
At a Glance: Understanding the tax implications of financial aid and student loans is crucial. While grants and scholarships are usually tax-free, work-study earnings and part-time job income are taxable. Student loans are generally not taxable, but loan forgiveness programs may have tax implication…