The Federal Tax Credits Blog

Posts Tagged ‘credit calculator’

Where’s My Tax Refund? – The IRS Refund Timetable Explained

Question: In Florida, can I claim my school expenses like books, calculator, etc as deductions on my taxes?

I’m a full time student and I would like to know whether or not I can claim my books and other school expenses as deductions for my income tax return. I’ve qualified for the hope credit over the past few years as well, but I’m not sure if is still available this year. Does anyone know what the guidelines are or of any other education related credits that I am eligible for? I am a 26 year old independent male, no children, and a full time student of senior status pursuing my Bachelor of Computer Science at an accredited public university. I could seriously use the money, so please don’t hold back on suggestions. Thanks to all in advance!

Answer: The Hope credit was only good for you to get for two years unless you were in a disaster zone.

It’s gone now anyway, and replaced by something called the American Opportunity credit. The Hope Credit was only for tuition and fees, but the AOC also allows required books and supplies. A calculator might be a stretch, but your required textbooks can be included. You can claim AOC for up to four years, including the years you claimed the Hope credit. AOC is good only for undergrad students.

There are a few additional restrictions. See IRS Publication 970 for more info. If you aren’t eligible for AOC you’d probably be eligible for a LIfetime Learning credit for tuition and fees only, not books.

Banks say thanks for the credit

OUR national credit card debt is almost $50 billion, and we’re paying interest on $36 billion. How do we cut it?

Austan Goolsbee & the Tax Cut Calculator

Question: Should I make a lump-sum payment to pay off my mortgage?

Ten months ago I sold my house and reaped a significant profit. I bought a smaller home, and I realized that I could pay off the new mortgage (15 yr fixed @ 5%) with one lump-sum pmt from the profit from the old house. Is this wise? My thinking is, I will pay 75K in interest over the 15 yrs, or 30-40K if I prepay and reduce the 15 yr term to 8. Obviously the lump-sum pmt eliminates that debt. I’ve also always felt that paying interest, just to get 1/3 back at the end of the year as a write-off, was foolish. I’ve tried a bunch of calculators online, but I get conflicting results. Paying this off will not hurt my retirement plans, but I”m wondering if the money could grow faster if I invest it, and if so, in what. My tax bracket is 35%, monthly mtgg pmt (P&I) is about 1580. and total mtgg amount is $200K. I gross $150K+ per year, and have no other debts (I own my car, and pay all credit card bills in full).

Any help would be appreciated, thanks in advance!

Answer: I think you should talk with a CFP and / or a CPA, regarding your situation, to analyze and decide what your best options are.

Owning your home outright is a good feeling, but that’s all it is, a feeling…you get no benefits from not having a mortgage (other than not having to write a check every month).

Having a mortgage gives you a tax write off, as you said. But it also leaves you the cash you have on hand for other profitable ventures or investments.

Have you thought of using the money on hand to purchase rental properties? Using a property management company reduces the headaches involved, if that was a worry.

Investing in CD’s, Mutual Funds, or bonds might be a much more profitable avenue for you.

Again, you should consult with a CFP & a CPA about what your best approach is. I’m not a CFP or a CPA, but in my honest opinion, paying your mortgage off is not your best option available for you overall.

Confused.com Says ECJ Ruling is Effectively a Gender Tax on Women

Confused.com reveals that the recent ECJ ruling means women will pay more for car insurance premiums (PRWeb March 04, 2011) Read the full story at http://www.prweb.com/releases/2011/03/prweb5123184.htm

Affiliate Marketing and Financial Planning Made EZ

Question: tax credit question? U.K. only please?

Hi, last year my husband earned approx £18500 whilst I stayed at home with the children and took care of them. We were paid approx £3500 in tax credits over the year. This year we filled out the review pack and stated that I am now working (self employed) and our joint income would be £30000 approx. They said our award for this year would be the same as the amount hadn’t gone up or down by more than 25k. The situation has now changed and I am on my own earning £12000 roughly and I have checked the tax credit calculator online and it seems that although we have lost my husbands £18,500 the tax credits dont change? It will be a struggle on my wages and tax credits but I want to work so any ideas? Really cannot afford to get this wrong!
Cheers,
Donna.
should have said my income is £12000 before deductions.

Answer: Wish I could help you…but I think you might have better luck asking this in the tax category…good luck!

12 Important Financial Steps to Take in 2011

With the New Year right around the corner, it is time to start planning for 2011.?? Obviously, there

Maximize your Federal Income Tax Refund in 2010, 2011