Report any gambling winnings as income on your tax return. Be sure you itemize
to deduct gambling losses up to the amount of your winnings. If you are a
casual gambler, these tax tips can help:
- Gambling income. Income from gambling
includes winnings from the lottery, horse racing and casinos. It also
includes cash and non-cash prizes. You must report the fair market value
of non-cash prizes like cars and trips.
- Payer tax form. If you win, the
payer may give you a Form
W-2G, Certain Gambling Winnings. The payer also sends a copy of the
W-2G to the IRS. The payer must issue the form based on the type of
gambling, the amount you win and other factors. You’ll also get a form
W-2G if the payer must withhold income tax from what you win.
- How to report winnings. You normally
report your winnings for the year on your tax return as “Other Income.”
You must report all your gambling winnings as income. This is true even if
you don’t get a Form W-2G.
- How to deduct losses. You can deduct
your gambling losses on Schedule
A, Itemized Deductions. The total you can deduct, however, is limited
to the amount of the gambling income you report on your return.
- Keep gambling receipts. Keep records of
your wins and losses. This means keeping items such as a gambling log or
diary, receipts, statements or tickets.
Source: Internal Revenue Service
contact@officetaxservices.com
(858)247-1680
Certain energy-efficient home improvements can cut your energy bills and
save you money at tax time. Here are some key facts that you should know about
home energy tax credits:
Non-Business Energy Property Credit
- Part of this credit is worth 10 percent of the cost of
certain qualified energy-saving items you added to your main home last
year. This may include items such as insulation, windows, doors and roofs.
- The other part of the credit is not a percentage of the
cost. This part of the credit is for the actual cost of certain property.
This may include items such as water heaters and heating and air
conditioning systems. The credit amount for each type of property has a
different dollar limit.
- This credit has a maximum lifetime limit of $500. You
may only use $200 of this limit for windows.
- Your main home must be located in the U.S. to qualify
for the credit.
- Be sure you have the written certification from the
manufacturer that their product qualifies for this tax credit. They
usually post it on their website or include it with the product’s
packaging. You can rely on it to claim the credit, but do not attach it to
your return. Keep it with your tax records.
- You must place qualifying improvements in service in
your principal residence by Dec. 31, 2016.
Residential Energy Efficient Property Credit
- This tax credit is 30 percent of the cost of
alternative energy equipment installed on or in your home.
- Qualified equipment includes solar hot water heaters,
solar electric equipment, wind turbines and fuel cell property.
- Qualified wind turbine and fuel cell property must be
placed into service by Dec. 31, 2016. Hot water heaters and solar electric
equipment must be placed in to service by Dec. 31, 2021.
- The tax credit for qualified fuel cell property is
limited to $500 for each one-half kilowatt of capacity. The amount for
other qualified expenditures does not have a limit. If your credit is more
than the tax you owe, you can carry forward the unused portion of this
credit to next year’s tax return. • The home must be in the U.S. It
does not have to be your main home, unless the alternative energy
equipment is qualified fuel cell property.
Use Form
5695, Residential Energy Credits, to claim these credits.
Source: Internal Revenue Service
contact@officetaxservices.com
(858)247-1680
If you are looking for a job in the same line of work, you may be able to
deduct some of your job search costs. Here are some key tax facts you should
know about when searching for a new job:
- Same Occupation. Your expenses
must be for a job search in your current line of work. You can’t deduct
expenses for a job search in a new occupation.
- Résumé Costs. You can deduct
the cost of preparing and mailing your résumé.
- Travel Expenses. If you travel
to look for a new job, you may be able to deduct the cost of
the trip. To deduct the cost of the travel to and from the area, the trip
must be mainly to look for a new job. You may still be able to deduct some
costs if looking for a job is not the main purpose of the trip.
- Placement Agency. You can deduct some job
placement agency fees you pay to look for a job.
- First Job. You can’t deduct job
search expenses if you’re looking for a job for the first time.
- Time Between Jobs. You can’t deduct job
search expenses if there was a long break between the end of your last job
and the time you began looking for a new one.
- Reimbursed Costs. Reimbursed
expenses are not deductible.
- Schedule A. You normally
deduct your job search expenses on Schedule
A, Itemized Deductions. Claim them as a miscellaneous deduction. You
can deduct the total miscellaneous deductions that are more than two
percent of your adjusted gross income.
- Premium Tax Credit. If you receive
advance payments of the premium
tax credit, it is important that you report changes in circumstances
– such as changes in your income, a change in eligibility for other
coverage, or a change of address – to your Health
Insurance Marketplace. Advance payments are paid directly to
your insurance company and lower the out-of-pocket cost for your health
insurance premiums. Reporting changes will help you get the proper
type and amount of financial assistance so you can avoid getting too much
or too little in advance.
Source: Internal Revenue Service
contact@officetaxservices.com
(858)247-1680