IRS Publication 463 clarifies business-related expenses that an individual taxpayer can deduct to reduce their total taxable income.
Publication 463 primarily focuses on IRS Schedule C and Schedule A expenses for certain employees whose wages are listed on Form W-2.
TCJA has significantly reduced the number of categories of employees that can deduct non-reimbursable work expenses, but has provided a standard $12,000 Schedule A deduction.
The American Opportunity Tax Credit (AOTC) helps offset the cost of post-secondary education for students or their parents (if the student is a dependent).
Deductible taxes are expenses that a taxpayer or business can deduct from their adjusted gross income, which reduces their income, thereby reducing the total tax they must pay.
The Earned Income Tax Credit (EITC) is a refundable tax credit used to supplement the wages of low-income workers and help offset the impact of Social Security taxes.
As a result of the Tax Cuts and Jobs Act (TCJA), most taxpayers can now only carry forward net operating losses (NOLs) that occur in tax years after 2017 to a later year.
Form 4684 is the U.S. Internal Revenue Service (IRS) form for reporting profits or losses from accidents and thefts that occur as a result of a federally declared natural disaster that may be deductible for taxpayers who detail deductions.