Refundable and Non-Refundable Tax Credits

In order to understand the difference between refundable and non-refundable tax credits, you must first understand what exactly a tax credit is.  A tax credit reduces the amount of tax you must pay, so if you owe $3,000 and receive a $1,000 tax credit, you now only owe $2,000 in taxes.  Here’s where the difference between these two types of tax credits becomes significant.  Once a refundable tax credit brings your total tax liability to zero, you will receive a refund of the additional amount … [Read more...]

Travel, Meals and Entertainment Business Tax Deductions

If you are a business owner, chances are you spend a significant portion of your business money on entertaining potential clients, current clients, colleagues, and on travel expenses such as hotels and meals away from home.  Although most business owners are aware that they can take a tax deduction for meals, travel and entertainment expenses, many of them are unaware of the specifics of this tax code. When it comes to entertainment expenses, you are only allowed to deduct half of the total … [Read more...]

Getting a Copy of an Old Tax Return

In some cases, you will need to access your prior year tax information.  For example, it was mentioned in the previous post that you can file an amended return up to three years after the originally filing date if you have discovered an error.  If you had a professional do your taxes for you, that person may have copies available.  If this is not an option, you will need to contact the IRS to access your tax information. Your first option is a Tax Return Transcript, which is available for the … [Read more...]