Your primary residence is more than just a place to hang your hat—it’s the cornerstone of your financial and legal identity when it comes to real estate. A primary residence refers to the main home where you live for most of the year. It’s the address you use on official documents like your tax returns, … Read more
Yes, prescription glasses do count as a medical expense under IRS guidelines. The cost of prescription glasses, along with related expenses such as eye exams and contact lenses, qualifies as a deductible medical expense. However, there are specific conditions you must meet to claim this deduction. For example, your total medical expenses—including the cost of … Read more
If you’re wondering “Where can I find my settlement statement?”, the good news is that there are several reliable sources to obtain this essential document. A settlement statement, also known as a closing disclosure in modern real estate transactions, provides a detailed breakdown of all costs and credits associated with the deal. Whether you’re a … Read more
When selling a property, understanding how property taxes and capital gains interact is crucial for managing your tax liability. Many homeowners and investors ask, “Can you deduct property taxes from capital gains?” The short answer is no—property taxes are not directly deductible from your capital gains. However, they can still play a role in reducing … Read more
COBRA payments, which allow individuals to continue their employer-sponsored health insurance after losing a job, can be tax-deductible under certain circumstances. These premiums qualify as medical expenses and can be deducted on your federal income tax return if you itemize deductions and your total unreimbursed medical expenses exceed 7.5% of your adjusted gross income (AGI). … Read more
When someone passes away and leaves you money or assets, the question of whether you have to pay taxes on that inheritance depends on several factors. Generally, inherited money is not considered taxable income at the federal level, so you don’t need to report it on your federal tax return. However, there are exceptions, especially … Read more
When it comes to homeschooling, many parents wonder if they can claim homeschool expenses on taxes to offset the costs of curriculum, supplies, or tutoring. Unfortunately, under current federal tax laws, homeschooling expenses are generally considered personal and are not tax-deductible. The IRS does not classify homeschooling as a “school” for tax purposes, which means … Read more
When it comes to managing your finances, knowing how to deduct investment service expenses can be a game-changer for your tax strategy. Investment-related fees, such as advisory charges, account management costs, and even certain legal or accounting services tied to your portfolio, can often be deducted under specific circumstances. By understanding the rules set by … Read more
When purchasing a home or securing a loan, one of the most significant upfront costs you may encounter is the origination fee. This fee, charged by lenders for processing your loan application, is often included in closing costs and can range from 0.5% to 1% of the loan amount. But can you deduct origination fees … Read more
If you’ve received a CP05A letter from the IRS, you’re likely wondering what it means and what happens next. This notice is sent when the IRS needs additional documentation to verify certain items on your tax return, such as income, tax withholding, or credits. While this may delay your refund, it doesn’t automatically mean you’ve … Read more