| Mortgage Interest Credit |
| Low-income taxpayers who purchase a residence may be entitled to a federal income tax credit for part of their home mortgage interest paid each year. The credit is a direct dollar for dollar reduction of taxes owed. Generally, a qualifying principal residence may not cost more than 90 percent of the average area purchase price, but it can go as high as 110 percent in some targeted areas.More... |
| Taxation of Payments Made to Volunteers |
| As a volunteer worker in the Peace Corps or similar agencies, you most likely will receive certain payments in the form of allowances or reimbursements. The Internal Revenue Service has provided guidance as to the taxability of these payments.More... |
| Tax on Unrelated Business Income of Exempt Organizations |
| Even if a nonprofit organization is granted tax-exempt status by the Internal Revenue Service, it may still be subject to taxation on any unrelated business income. Unrelated business taxable income (UBTI) is defined as income from a trade or business regularly carried on by an exempt organization if the trade or business is not substantially related to the exempt purpose of the organization. In determining whether an activity is "regularly carried on," the Internal Revenue Service looks at the frequency and continuity with which it is pursued, and it is compared to the commercial activities of non-exempt organizations. More... |
| Employment Taxes |
| As a taxpayer who runs a business, you have a million things to worry about. Customers, inventory, advertising, competition, and keeping good employees are just a few. On top of it all, the government imposes strict requirements on the collection and payment of employment taxes.More... |
| Educator Expense Deduction |
| Eligible educators are entitled to deduct up to $250 from gross income for unreimbursed out-of-pocket expenses incurred for books, supplies, computer equipment (including related software and services), other equipment, and supplementary materials used in the classroom. If the educator teaches courses in health and physical education, expenses for supplies are qualified expenses only if they are related to athletics.More... |
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