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: IRS Form 843 is utilized for claiming refunds or requesting abatements on overpaid non-income taxes, penalties, fees, or interest. It applies in scenarios like incorrect penalty assessments, employment tax corrections, specific credits, and trust fund recovery penalties. To complete, pr…
At a Glance: U.S. persons must file Form 926 if they transfer property to a foreign corporation and meet certain ownership or value thresholds. Transactions that require reporting include property or cash transfers for stock or interests when specific conditions are met. The filing process involves …
At a Glance: IRS Form 706 is essential for estates over certain values, detailing tax obligations under Chapters 11 (estate tax) and 13 (GST tax) of the Tax Code. Executors must file it timely, report assets fairly, claim deductions, avoid common mistakes, and consult professionals for accurate comp…
At a Glance: IRS Form 2441 lets you claim the Child and Dependent Care Credit for eligible childcare or dependent care expenses, necessary for you to work or seek employment. Qualifying costs include payments for care services for children under 13 or incapacitated dependents. Correctly identifying …
At a Glance: Deductible dental expenses exceed 7.5% of AGI and must be itemized on Schedule A (Form 1040). Costs include preventative care, treatments, and surgery—excluding cosmetic procedures. Keep detailed records; non-reimbursed, necessary expenses qualify. Consult IRS guidelines for updates. De…