Tax Credits and Deductions

Broadway’s Tony Awards highlight the shows and performances along that famed thoroughfare. But the attention also puts a spotlight on New York’s tax credit that many of the productions say is vital to their existence. But is it really?

Definitely take a break this June. But taxes don’t take vacations. So, you also should make time for some tax tasks. Some will keep you out of tax trouble. Others could mean tax savings.

Medical costs keep increasing, including insurance. A high-deductible plan, along with a tax-favored health savings account, could be the Rx, especially with the 2027 inflation adjustments.

It’s graduation season. If you’ve got some high school or college graduates in your life and you don’t know what to get them, don’t despair. Here are seven financial gifts, some with tax benefits that the recipients (and in some cases, you, too) will appreciate.

Children are expensive. So are higher education costs. But often these expenses coincide. Tax breaks can help both parents, students, and parents who are or were students.

May’s merriment may not seem synonymous with taxes, but this month is a great time to make some IRS-inspired moves. These three could get your 2026 tax situation on a money-saving track.

Saving for retirement is key to enjoying truly golden years. The Trump administration has officially launched a new savings option, dubbed the Trump IRA, for workers who don’t have a workplace retirement plan.

The annual April 15 federal tax return filing deadline doesn’t apply to all U.S. taxpayers. Tax Day is June 15 for taxpayers living and working abroad, including military personnel posted outside the United States or Puerto Rico. Residents of major natural disaster areas also get more time to file, and in some cases pay what they owe.

It’s crunch day for millions of taxpayers. In addition to finishing their current tax return, many have other April 15 tax tasks to complete. It all adds up in dollars and time.

If you’ve put off your tax filing until the very last minute, don’t panic. You still have (a little) time to finish. But get to work on that return or filing extension request. Now!

The key April 15 tasks are filing your return and paying any due tax. But there are some other tax responsibilities that must meet the Tax Day deadline.

Some taxpayers intentionally push the filing envelope. Others simply make claims that have long caught the IRS’ eye. Here are 11 instances that could be red flags for a tax auditor.

April brings not only spring showers for thirsty flowers, but also several tax tasks. Here are six April tax moves to consider.

If you didn’t file a tax year 2022 return back in 2023 and were due a refund, time is running out for you to get your money. April 15, 2026, is the deadline to submit that old filing to the Internal Revenue Service and claim your cash.

Don’t cheat yourself this Tax Day by overlooking tax deductions and credits that could cut what you owe Uncle Sam.

Here are some March tax moves that can work for both tax lions aggressively attacking their returns, as well as tax lambs who prefer a more docile approach.

Saving now can make for a better retirement later. The Trump administration is proposing a new retirement vehicle. But the existing Saver’s Credit could help you this tax filing season.

The almost two dozen above-the-line tax deductions get some company this filing season. The One Big Beautiful Bill Act added four below-the-line deductions. And in all cases, the tax breaks are available to eligible taxpayers regardless of whether they itemize or claim the standard deduction.

Married couples share almost everything, including taxes. For most, sharing taxes by filing a joint return is the best tax strategy. Here are six ways married filing jointly can pay off for wedded pairs.

Larger families do get more from the Earned Income Tax Credit. But this valuable tax break also is available to eligible single taxpayers. If you qualify, claim the EITC!

Nobody likes filing a tax return, so why should someone who isn’t legally required to file go ahead and send the IRS a Form 1040? The #1 reason is because it might get you a tax refund. Check it and five other situations where filing, even if you don’t have to, can pay off.

California is among the states that have widened the road to their film and TV tax credits. They all hope tax breaks will drive more productions to their jurisdictions as the entertainment industry continues to evolve.

Take a close look at your 2025 tax return. New tax laws created by the One Big Beautiful Bill could provide you with added savings this filing season. Here are 8 to check out.

These snow-obscured signs aren’t much help, but the ol’ blog, basking unseasonably warm January temperatures here in Central Texas, has some tax guideposts to help to help welcome the new 2026 tax year. (Photo by Christina & Peter)

If you use your car for business travel, your standard mileage deduction rate will increase 2.5 cents per mile in 2026. Other rates, however, will be lower next year.

There’s not much of 2025 left, but you still might be able to make some moves by Dec. 31 that could reduce this year’s tax bill.

Many of us donate old clothes and household goods at year’s end. For some, the charitable gifts can be a tax deduction. But you must follow IRS rules to claim the tax break, including properly valuing your donations.

If you’re planning on parking a new car with a big red bow in your driveway this Christmas, the latest tax reform bill has an added present for you. You might be able to deduct up to $10,000 in loan interest.

Changes are coming in 2026 to charitable tax deductions that could affect your 2025 donation decisions. Check them out to find ways to make charitable gifts pay off now and next year.

Being sick sucks. Having to pay a lot of out-of-pocket medical expenses can make you feel even worse. But if you have a lot of medical and dental costs, you might be able to put them to itemized tax deduction use.

Ensure your tax cornucopia runneth over by getting your tax ducks, uh, turkeys in a row this November. Moves this month include examining if the new $40K SALT cap will make itemizing worthwhile, and looking into home energy improvements.

Residents of parts, and in some cases, all of these states dealt with real-life scares earlier this year. This post-Halloween weekend, they are facing a Nov. 3 disaster-delayed tax filing due date.

One easy way to cut your tax bill is to claim tax deductions and tax credits. There is a wide variety of these tax breaks, and the amounts generally get annual inflation bumps. Here are 2026’s.

The tax provisions in the One Big Beautiful Bill (OBBB) Act also accelerate the termination dates for a variety of other energy-related tax credits. Many home-related ones end Dec. 31, 2025.

Photo by Jess Bailey Designs  Tax law changes, even when they benefit you, can be frustrating. Not only do we have to get up to speed on what’s new, we have to know when they take effect. Generally, making tax laws retroactive is, at best, sloppy tax policy. When it’s done late in a tax year, it can scramble tax moves that the new laws might necessitate. But our tax planning problems sometimes aren’t top of mind for Congress. They too often go ahead and make a tax law effective back to the start of a tax year, even at…

You can help your favorite nonprofit by donating and, thanks to the new one big tax law, get a tax break next year even if you don’t itemize.

The One Big Beautiful Bill made the 2017 tax reform law’s income tax rates permanent. It also increased the 2025 tax year standard deduction amount.

Photo by olia danilevich   The senior bonus is one of the new tax breaks in the One Big Beautiful Bill Act that became law on July 4. It’s not tax-free Social Security benefits that Donald J. Trump promised. But the $6,000 maximum tax break, or $12,000 for married jointly filing couples where each spouse is age 65 or older, will provide some tax relief to the country’s senior citizens. The new tax break is available to taxpayers regardless of whether they itemize or claim the standard deduction. The tax bonus also is age-related, not tied to the federal retirement…

UPDATE, July 16, 2025: The Trump Administration’s One Big Beautiful Bill Act became law on July 4. Among its provisions is the end of the electric vehicle tax credit for EVs purchased after Sept. 30, 2025. Credit: Unsplash+ in collaboration with Diana Light The Senate is in the midst of its marathon to pass its version of the One Big Beautiful Bill (OBBB) full of tax and other Trump administration domestic policies. The so-called vote-a-rama is expected to go into Monday (June 30) night on the 940-page bill, with Senators trying to revise or remove various provisions that could negatively…

Photo by Polina Tankilevitch Special needs individuals and those who work with them are understandable concerned about many of the changes being made or proposed by the Trump administration and its Department of Government Efficiency (DOGE) henchmen partners. But the Internal Revenue Service, even though it is dealing with its own DOGE issues, is reminding people with disabilities of how an Achieving a Better Life Experience, or ABLE, account can help. The accounts were created in 2014 by the eponymous Achieving a Better Life Experience (ABLE) Act, a federal law that allows states to create tax-advantaged savings programs for eligible…

Getting to a doctor’s appointment is challenging for many patients. But the travel costs could count as an itemized tax deduction.

The Earned Income Tax Credit (EITC) turns 50 this year. The official date is March 29, in case you want to throw a party. The Internal Revenue Service isn’t waiting that long. With tax season 2025 underway, the tax agency again is celebrating this tax benefit created to help lower- and moderate-income workers with the annual Jan. 31 EITC Day. Today marks the beginning of efforts to get the word out to eligible taxpayers and encourage them to take advantage of the EITC. The EITC can be worth from hundreds to thousands of dollars for qualifying filers. While the larger…

Millions are getting ready to file federal tax returns so they can collect refunds. Crooks are among them. And things get even worse for the taxpayers whose identities were stolen and used to file false returns claiming fraudulent refunds. The average time it took the Internal Revenue Service to resolve identity theft cases and issue refunds to the affected victims in fiscal year 2024 was two years, according the National Taxpayer Advocate’s 2024 annual report to Congress, issued today. These delays impacted nearly half a million taxpayers, noted National Taxpayer Advocate (NTA) Erin M. Collins, and were even worse than…

Deductions can help reduce your taxable income. And the annual inflation adjustments to these amounts, like these for 2025, can help make your annual bill even smaller.

The Internal Revenue Service in 2024 offered some U.S. taxpayers a new, online, free way to complete their tax returns and e-file them. The option, known as Direct File, is IRS-created and operated tax preparation software. Eligible taxpayers can use Direct File and avoid having to pay for commercial tax software. For the first Direct File tax season, 12 states participated in the pilot. The Treasury Department and IRS evaluated results in those locations and in May announced that Direct File would be a permanent tax filing option. Federal tax officials also invited all the other states to join Direct…

Reliable child care can be expensive. Uncle Sam can help cover some of the costs via the Child and Dependent Care tax credit.

Workers who don’t make much money might be able to get some help via special tax credits. Here are six to consider.

IRS Commissioner Danny Werfel speaks at an Earned Income Tax Credit Awareness Day event as part of the agency’s annual effort to promote the valuable tax credit.

It’s spring break time for many students. But it’s also time for a refresher on how the tax code can help them (or their parents who are footing at least some university costs) pay for those classes they’re taking a respite from now.

The Earned Income Tax Credit, or EITC, is one of the most beneficial tax breaks for lower- and moderate-income workers. It’s also one of the most under-claimed.

Updated Tuesday, Nov. 28, 2023 The Tuesday after Thanksgiving has become a popular donation day. The charitable boosting effort, dubbed Giving Tuesday when it was initiated in 2012, is now the unofficial kick-off of the annual end-of-year charitable season. Most people don’t give to good causes because they get tax breaks. Thank goodness for that, since the 2017 tax reform bill made it more difficult to claim a charitable deduction for donations. And that brings us to the first of this post’s six charitable donation tax tips. 1. Itemizing required: The only way to get a tax deduction for your…

The coronavirus pandemic has prompted millions to work from home. The simplified home office tax deduction could pays off these small businesses.

Thanksgiving is the traditional time for families to gather. But not all families are traditional. That’s evident in real and tax life. The family-friendly tax break that’s been getting most attention of late is the Child Tax Credit (CTC) and the advance payments for 2021 that are going out through December. I’m guilty, as a perusal of the ol’ blog quickly shows. But some families aren’t eligible for the CTC, either the money being distributed now or when they file their annual tax returns next year. In some cases, taxpayers don’t qualify because they make a lot of money, at…

When you hit birthday milestones, like the one my Mom, the lovely lady in red, and her fellow Senior Center pals did a few years ago, you might qualify for some special tax benefits afforded older filers. (Photo by Kay Bell) …Aging is not for sissies. I definitely can attest to that since, as the saying goes, I’m now a woman of a certain age. But with age also comes wisdom (or so I’ve been promised!). And getting older also provides some tax benefits. On this National Senior Citizens Day 2020 — yes, it was made official by President Ronald…

My desk in my home office, which I deduct when I file my taxes. …Not that I’m paranoid, but sometimes it seems like unseen others somehow know what’s going on in my life. The latest example is tax related. Earlier this week, a #TaxTwitter pal asked that social media group about home office tax deductions. Granted, this is not an unusual question since the coronavirus pandemic has meant many of us have been working from home, a lot of us for the very first time. Today, the Internal Revenue Service issued a tax tip on what taxpayers need to know…

Mother Nature can turn deadly year-round. Tornadoes, hurricanes and even winter storms strike beyond their seasonal boundaries. Prepare beforehand, including by taking a pre-disaster inventory.

It’s no fun being hospitalized. But it’s more tolerable if you are insured. And there are some instances where those policy premiums are tax deductible.

Freelancing means more flexibility, such as where to work and the option to wear more comfortable attire. It also means you have some new tax responsibilities.

Many medical costs are still tax deductible, but you have to clear an adjusted gross income bar to claim them.

This is the original blog post copy that ran on Monday, March 24, 2014. It was updated on Friday, March 31, 2017. Business tax reform has been getting a lot of attention the last few years, with both President Obama on the Democratic side and House Ways and Means Chairman Rep. Dave Camp on the Republican side pushing for change. While Congress and the White House debate tax reform as it relates to big business, the Internal Revenue Service already has made a change to ease tax filing for many owners of smaller companies. For 2013 returns, individuals who claim…

The smash hit “Hamilton” is credited by some for convincing Congressional fans to include theatrical productions in a recently renewed tax deduction. Previously, it was only for films and television shows.

This post was updated March 14, 2018. Driverless cars, like the Google prototype from a few years ago pictured below, are still far from reality. But it’s something to think about, especially if you use your vehicle for business. Photo courtesy Google It has no steering wheel, accelerator or brake pedal to mess with. You use your smartphone or tablet app to summon the vehicle, set your route, get in and go. Then just sit back and enjoy as the Google machine takes you to your destination. If it’s to a business meeting, you can use the time you otherwise would be driving to…

Every tax filing season we hear the stories. Folks claim, often successfully, a variety of wacky tax deductions. There’s the bodybuilder (No, not Arnold, but c’mon, what a great poster shot! I had to use it!) who was allowed to write off body oil as a business expense. The exotic dancer whose breast implants were deemed deductible stage props for her job. (Did you really think I’d go there with the image choice for this post?) The gas station owner who gave his customers free beer and then legally deducted the brewski promotion as a business expense. As all my…

It’s one of my most favorite times of the year. Girl Scout cookies are on sale! I’m a Thin Mints addict. I could eat a whole box in one sitting. They are great alone or crumbled over a bowl (or gallon) of vanilla ice cream. This has been a tasty temptation for as long as I can recall. So every year I buy more boxes than I should. I tell myself that the purchase is for a good cause, and it is. Thin Mints and the other varieties of cookies are a fund-raising project for the local Girl Scout troops.…

It’s one of my favorite times of the year: Thin Mint Season! I admit it. I have no willpower when it comes to Thin Mints and any kind of ice cream. I could eat a whole box of these wonderful Girl Scout cookies (ideally crumbled atop a big bowl of creamy vanilla ice cream) in one sitting. So the hubby is the keeper of the GS cookies, storing them on a high shelf in the pantry. And, when we do munch them, guarding the foil sleeve containing the addictive treats. Aside from their scrumptiousness, one of the other great things…