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Dependents

For the 2017 tax year, the dependent exemption amount is $4,050. Each year, the exemption typically goes up $50 to $150 dollars, depending on the size of a required inflation adjustment. Qualifying child A qualifying child for purposes of the dependency exemption must satisfy four tests relating to relationship, age, abode, and support. Relationship test. Qualifying children must be the taxpayer's children, siblings, stepsiblings, or their descendants. Children include the taxpayer's natural children, stepchildren, legally adopted children, children who are lawfully placed in the taxpayer's household for legal adoption, and eligible foster children (that is, children placed with the taxpayer

Deducting Employee Business Expenses

While your employer may be reimbursing you for some of these expenses, there may be others for which you are bearing the cost yet not utilizing the tax benefit. Through proper substantiation, it is possible that you may be able to obtain greater reimbursement from your employer. Alternatively, you may be entitled to deduct such expenses as miscellaneous itemized deductions. In order to be reimbursed and/or deducted, trade or business expenses must be ordinary, necessary, and reasonable. They also must be properly substantiated. Examples of qualifying expenses include: Travel, transportation, meal, or entertainment expenses Safety equipment, small tools, or supplies Uniforms required by your

Making Sure Entertainment Expenses Yield Deductions

Many businesses consider the occasional wining and dining of customers and clients just to stay in touch with them to be a necessary cost of doing business. The same goes for taking business associates or even employees out to lunch once in a while after an especially tough assignment has been completed successfully. It's easy to think of these entertainment costs as deductible business expenses, but they may not be. As a general rule, your company can deduct meals and entertainment as a business expense only if specific conditions are met. What's more, the deduction for either type of expense generally is limited to 50 percent of the cost. Meals and entertainment directly connected to busin