Tax Bite: Could deducting state and local sales taxes save you more?

For   the last several years, taxpayers have been allowed to take an itemized   deduction for state and local sales   taxes in lieu of state and local income   taxes. Although this break hasn’t yet been extended to 2014, it is available   for 2013.It   can be valuable...

2013 Higher Education Breaks May Save Your Family Taxes

Tax credits can be especially valuable because they reduce taxes dollar-for-dollar; deductions reduce only the amount of income that’s taxed. A couple of credits are available for higher education expenses: The American Opportunity credit — up to $2,500 per year per...

It’s not too late to make a 2013 contribution to an IRA

Tax-advantaged retirement plans allow your money to grow tax-deferred — or, in the case of Roth accounts, tax-free. But annual contributions are limited by tax law, and any unused limit can’t be carried forward to make larger contributions in future years. So it’s a...

Can I claim my elderly parent as a dependent?

For you to deduct up to $3,900 on your 2013 tax return under the adult-dependent exemption, in most cases the parent must have less gross income for the tax year than the exemption amount. Generally Social Security is excluded, but payments from dividends, interest...