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Release of Dependency Exemption – Form 8332

This form can release a child’s dependency exemption to the noncustodial parent

Children can be a great boon to your tax situation, because they often mean a larger refund. But in cases of divorce or separation, children can also make tax returns much more complicated than they would be otherwise.

In these cases, certain decrees or settlements may necessitate the custodial parent signing over the child’s dependency exemption to the noncustodial parent.

In order to do this, you must file Form 8332 [Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent].

Use this form if you are the custodial parent and you want to Continue reading “Release of Dependency Exemption – Form 8332”

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What Is the Last Day to File Taxes?

Each year, “Tax Day” is April 15th & E-File Shuts Down on October 15th.

Each year, the deadline to file a tax return is April 15th. However, the e-file tax season doesn’t officially end until October 15th.

October 15 also marks the due date for filers who requested a tax extension.

That means, you must either file your return or request an extension by April 15th.

You can either e-file your return or mail in a paper return by the tax deadline. Note that if you are filing a paper return, your return must be postmarked by April 15th in order for it to be considered on time.

Continue reading “What Is the Last Day to File Taxes?”

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Itemizing Deductions on Income Tax for Truck Drivers

Deductions for truck drivers could significantly reduce their overall tax burden

Truck driving can be hard and expensive work. Thankfully you may be able to lower your tax burden by deducting some of your expenses.

If you are an employee, you can take these deductions on Schedule A [Itemized Deductions]. If you are a statutory employee or are self-employed, you can take these deductions on Schedule C [Profit or Loss from Business].

Here are some of the deductions you can claim:

  • vehicle expenses – you can deduct parking fees and tolls, standard mileage rates (or else the actual expenses), as well as maintenance, repairs, and supplies, which can include oil changes, tuneups, vehicle inspections, tie-down straps, jumper cables, chains, tarps, fuel, bungee cords, floor mats, etc.
  • personal care items – things you need to take care of yourself when you’re on the road including shaving supplies, tissues, laundry detergent, fabric softener, towels, toiletries, pillows, sheets, sleeping bags, grooming supplies, and hand cleaners, as well as shower and laundry facilities Continue reading “Itemizing Deductions on Income Tax for Truck Drivers”