HR Block Tax Tips PSAs

we honor before December 31st you are considered  single for the full year and thus cannot file a joint return alimony can be taxable to the  recipient and deductible to the payor while child support is neither taxable or deductable  the divorce decree is often the governing factor in determining who may claim dependency exemptions  as you can see divorce and separation can create a multitude of tax problems contributions to charity  are some of the most frequently overlooked tax deductions in addition to gifts of cash items such  as youth clothing or furniture are also deductible at fair market value if you use your car for  church work Scouts or other charities deduct 6 cents a mile gifts of stocks bonds or works of  art may greatly reduce your tax burden however be sure you keep records to back up all planes here's  good news for taxpayers who use credit cards for purchases amounts levied as finance charges on  revolving charge accounts are fully deductible according to an Internal Revenue Service ruling  simply by keeping track of these charges on your monthly statement you may substantially reduce  your tax this tax saving is retroactive for three years if you have not taken this deduction  before you may file for a refund for prior years [Music] if you are divorced and have children from  a previous marriage and if you are remarried amounts contributed by your new spouse for the  support of your children are considered as being furnished by you in determining major support for  the children there are various effects which this ruling has on divorced parents and every concerned  taxpayer in this situation should investigate these rules again this year taxpayers have the  option of filing the regular 1040 long form or the 1040 a short form care should be used in  exercising this option the IRS is carefully stated that the short form has limitations it does  not offer the deduction advantages of the long form deduction such as medical expenses charitable  contribution interest taxes casualty losses child care expenses and many others are not available  to users of the short form the loan form allows for adjustments to income such as excludable sick  pay moving expense and employee business expense also lacking on the short form are valuable  tax credits including retirement income and investment credits before you use the short  form be sure you're not costing yourself money [Music] [Music] taxpayers who move from one location to  another because of their job are often entitled to certain tax advantages to qualify you must  meet the 50-mile distance and the full time requirement taxpayers who qualify for the moving  expense deduction may take the cost of moving to the new job and house hunting trips prior to  the move within certain limits expenses of selling or leasing the old residence as well as  the new one are also deductible within certain limits if you move to a different state you  may have additional problems of how to handle moving expenses the moving expense deduction is  a welcomed tax break remember the reimbursement is income and to avoid paying the tax on this  you must claim the necessary deduction mother nature is sometimes responsible for creating  disasters our tax system offers a helping hand to the victims you may deduct a loss from a  disaster occurring this year on last year's tax return even though it has already been  filed here's how it works you filed your 1973 tax return by April 15th in July 1974 you  suffer a casualty loss by tornado hurricane flood and so forth and the president proclaims  that you're in an official disaster area you have the option of deducting the loss on next  year's tax return or on your 1973 return even though it has already been filed simply file an  amended return should such a disaster occur in 1974 prior to filing your 1973 return you may  still include the loss on your 1973 tax return [Music] if you are retired or aged 65 or over there are  special tax laws which are to your advantage one important benefit is that certain types  of retirement income such as pensions and annuities are not completely taxable also with  certain qualifications your tax may be reduced by a credit of 15% of your retirement income this  credit is doubly important because it's a direct dollar-for-dollar reduction of your tax liability  if you sell your residence for more than you paid you may be able to exclude all of the games and  in addition you are entitled to a double personal exemption these are some of the tax breaks you  qualify for by being 65 years old or retired there are many other benefits that can greatly ease  your tax burden you should seek competent tax help [Music] the common term child care can be misleading  because the deduction for this applies not only to dependent children under age 15 but also to  the care of a disabled dependent of any age if these expenses are caused because of your job  you may deduct for the care of the dependent as well as expenses for household services such  as a maid or cook you can even deduct expenses for a day school nursery or care in another  home for tear outside the home the deduction can be as much as $200 a month for one child  $300 for two and $400 for three or more your income level can be as much as eighteen thousand  dollars before limitations begin many taxpayers will have the benefit of an itemized deduction  for childcare expenses up to a maximum of $4,800 [Music]