Form 1040

HOW MUCH OF MY MORTGAGE CAN I REALLY DEDUCT?

What can taxpayers deduct from their mortgage payments? What portion of a payment consisting of principal, interest, taxes and insurance, if any, is deductible? To deduct the expenses of owning a home, at least those costs paid in your mortgage payment, taxpayers must first itemize deductions.

Simply put, interest paid on a mortgage is tax deductible. Points that are paid to lower the interest rate are also deductible. Taxpayers can deduct the interest paid on first and second mortgages up to $1,000,000 in mortgage debt (the limit is $500,000 if married and filing separately). Any interest paid on first or second mortgages over this amount is not tax deductible. If the loan is not a secured debt on your home, it is considered a personal loan, and the interest you pay generally isn’t deductible.

SOCIAL SECURITY TAXES DEDUCTIONS

Is There A Right To A Refund Of, Or A Deduction For, Social Security Taxes Paid Based On The Fact That A Taxpayer Has Waived The Right To Receive Social Security Benefits Or Has Donated Social Security Taxes Or Benefits To The Government?

As long as they are taxes, there will be taxpayers that consider any and all arguments, schemes, and angles to avoid paying them. The 21st century has seen a rise in situations where some taxpayers are filing claims for refund of their Social Security taxes using meritless arguments which have consistently failed in the past and which will consistently fail in the future.

WHAT? I HAVE TO PAY TAXES ON MY LAWSUIT AWARD?

You’ve just received an award as the prevailing party in a lawsuit and it’s just a few weeks before the April 15th tax deadline. As you organize your documentation for the preparation of your taxes, you suddenly wonder if you have to pay taxes on the legal proceeds that you received a few weeks earlier. Are they indeed taxable?  Whether you must include the amount of the proceeds in your income depends on all the facts and circumstances of each individual case. It also depends upon the type of injury incurred.

Disappearing Deductions

Disappearing Deductions
As tax planning for the oncoming year 2014 get into full swing, it may be helpful to highlight some of the popular deductions that are currently slated to become unavailable to taxpayers by year-end. Of course, your New York Tax Attorney can give you fuller details and tell you how each of the deductions specifically apply to you.

1. A $250 deduction available to taxpayers, for expenses related to their jobs, is currently set to expire by December 31, 2013.

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