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Tax Filing Tips Every Parent Should Know

If parenthood could be summed up in one word, that word would be responsibility. Being a parent means not only are you responsible for yourself, but also another human being.

With new responsibilities comes new pressures. However, RapidTax wants to help take that pressure off your shoulders, at least when it comes to the responsibility of filing your taxes.  That’s why we have created this list of top tax tips for parents filing taxes. These tips will not only save you money, but also save you time when filing your taxes.

How to Increase your Tax Refund when Claiming Your Child:

The credits below apply to you if you are claiming a child on your taxes. Be sure to read through the entire list or you might mix some extra tax dollars!

1. Each child is a dependent exemption: When filing, each child you claim is counted as a tax exemption of $3900.

2. Claim the Child Tax Credit: For each child you claim (under the age of 17), there is a non-refundable tax credit of $1000. This credit is phased out if your modified adjusted gross income is over $75,000 if your single or over $110,000 if married filing jointly.

3. Child Care is a Tax Credit:  The Child and Dependent Care Credit allows filers to claim up to $1,050 of child care related expenses paid for one qualifying dependent, as long as the child is under 13 years old. Did you spend money on child care expenses for two or more children? You can claim up to $2,100 for two or more dependents with this credit. Continue reading “Tax Filing Tips Every Parent Should Know”

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How To File Taxes for the First Time

If you’re filing your taxes for the first time, you’re most likely a college student, have your first job and probably not overly excited about it.

In fact, your parents might have been nagging you since January to file by April 15th. But let’s be honest, you don’t exactly know where to start.

All that aside, RapidTax understands and we’re here to help you through the process. If you need help filing taxes for the first time, here’s what to do.

Before Filing:

  • Get Organized: Gather your W-2s, 1099s, 1098-E (this shows the interest you paid on student loans), 1098-T (tuition payments and qualified expenses), etc.
  • Know Your Filing Status: There are many filing statuses; Single, Head of Household, Married Filing Jointly, or Married Filing Separately. Most likely, if your filing status may just be Single.
  • The Standard Deduction vs Itemizing: Everyone who files has the option to take one of two tax deductions; itemized deductions or the standard deduction. Itemizing deductions means you will list all your eligible deductions, and the combined total is deducted from your taxable income. Most are only eligible for the standard deduction. This amount depends on your filing status. Continue reading “How To File Taxes for the First Time”
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Top 5 Tips for Reducing Your Real Estate Taxes

Life as a homeowner has it’s ups and downs.

Transforming a new house into a unique space to call your home is a perfect example of the upsides to being a homeowner. On the downside, there’s the painful chores of fixing broken appliances and of course, paying the dreaded ongoing costs and taxes associated with owning a home.

Whether you have just entered the home owning universe and bought a home over the last year, have been a homeowner, or recently sold your home, there’s no doubt you have faced  home owning costs and taxes. Although there’s no way to escape them, there are tips to help lower your taxes when filing your 2013 taxes.

Top 5 Real Estate Tax Tips, Worthy of Writing Down 

The following tips for real estate taxes will leave you with more money (and energy) to instead use towards transforming your home into your dream estate.

1. Mortgage Interest- As you (hopefully) know, a large chunk of your monthly house mortgage payment, goes towards interest. As long as the loan for your home is under $1 million, this interest is tax deductible. You can also generally deduct equity debts of $100,000, or less.

Continue reading “Top 5 Tips for Reducing Your Real Estate Taxes”