Tax Matters - The Top Tax Defenders Blog

*This post has been updated to reflect tax changes

If you are headed back to school as an adult, it’s nice to know you’ll get more out of it than an education. You could also save money on your taxes. 

As medical costs climb, it’s nice to think you could deduct them from your taxes. And you can, but there are limits. 

The American Rescue Plan Act or ARPA was signed on March 11, 2021, and provides around $1.9 trillion in federal spending.

Tax credits are like “found money” that turns up when you fill out your tax form. Unlike deductions, credits are awarded dollar for dollar. In other words, if you are eligible for a $300 tax credit, you get $300 off your tax bill—kind of like a sale at the grocery store.

Don’t you think we should all get natural disaster relief after the year we’ve had? If you made it through 2020, you deserve it. Just label the whole year a disaster and give everyone the tax year off.

Property taxes are a significant portion of the cost of owning real estate, usually one percent to three percent of the home’s value to be paid annually. Since property taxes are permanent, anything that can reduce your tax liability will probably perk your ears right up. So, get your ears ready to perk, because the tax reduction term for today is tax abatement.

It’s always a good feeling when you can lower your tax burden. One way that may be open to you is through a vehicle sales tax credit. Since a car, boat, or other vehicle is a significant expense, the amount of tax credit could potentially erase your tax payment.

The COVID-19 pandemic has pretty much turned the world upside down. In a surprising but welcome move, the IRS has moved Tax Day to July 15, 2020. But that isn’t the only difference COVID-19 makes to your 2020 taxes and tax activity.

Unusual times call for unusual measures. The federal government passed a $2 trillion (that’s trillion with a “T”) relief act to mitigate the impact of SARS-CoV-2, the virus that causes COVID-19.