Standard Deduction

New Baby Tax Filing Tips

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The first thing to consider when filing your taxes with a new baby is your tax status. If you were single before and now support the household, you should file Head of Household instead. The tax brackets are better and the standard deduction is increased for this tax filing status. Here are some additional tax filing tips:

An old Social Security card with the "not... Tax Filing Tips
An old Social Security card with the “not for identification” message (Photo credit: Wikipedia) Tax Filing Tips

Consider informing your rich relative about the gift tax if they are thinking about gifting you over $14,000 for your new born. Normal gifts are not taxable, which is the good news.

Any uncovered medical expenses can be deducted once a 10% floor is applied to the deduction amount based on your adjusted gross income (AGI). To claim your medical expenses, use the long form 1040 and file a Schedule A Itemized Deductions form.

Claiming your … Read the rest about Filing Taxes

How To Choose The Right Filing Status For Your Taxes

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When filing taxes, it is crucial to indicate your current status. This is because this status actually determines the amount of money you should pay in taxes. It may also be important in deciding whether to file tax returns or not. How do find the right filing status for your taxes?

English: Map showing the status of same sex ma...
English: Map showing the status of same sex marriage in the USA. Same-sex marriage recognized Unions granting rights similar to marriage Unions granting limited / enumerated rights Foreign same-sex marriages recognized Same-sex marriage banned by statute Same-sex marriage banned by constitution Same-sex marriage and similar unions banned by constitution (Photo credit: Wikipedia)

Whenever you have to indicate your status, it is vital that you consider the last status you had as at 31 Dec. However, when you are in a situation where more than one status is applicable, it is safe to go with one that will require you … Read the rest about Filing Taxes