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15 Aug |
Prior to 1997, student loan interest was considered personal interest, and therefore not deductible. With the idea of alleviating some of the burden of these loans, the tax law was updated to allow for a deduction for some of the interest incurred. Currently, the taxpayer can deduct up to $2,500 in student loan interest paid […] |
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19 Apr |
In general, a hobby can be defined as what one does regularly for pleasure in their leisure time. The IRS, however defines a hobby as a revenue generating activity that lacks a profit motive. Any profits from hobbies are subject to income tax. These profits are reported on Line 21, of Form 1040 under “other […] |
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15 Feb |
The Net Investment Income Tax (NIIT) came into existence in 2013. The tax is imposed on high income earners in an effort to fund the Affordable Care Act. The NIIT is an additional 3.8% surtax on taxpayers whose income is greater than $250,000 for married filing jointly or $200,000 for single filers. The additional tax […] |
