Andy Asks… I dont know what to believe when it comes to tax rules… How can I be sure I wont mess up my filing?

There are many widely-held myths about our tax system that cost taxpayers money every year.  Four of the bigger untruths are:

  1. I’m a student, so I don’t have to pay taxes.  Although students may receive special taxcredits, there is no blanket exemption for those enrolled in higher education.
  2. My child is working, so I can’t claim him as my dependent.  As long as you provide more than half of that child’s support, and they meet relationship and citizenship qualifications, you may claim them as your dependent.
  3. I’m married, so I have to file a joint return. It may be advantageous to file “Married Filing Separately”, for instance when one spouse has substantial medical deductions (subject to the 7.5% floor).  Run the numbers and see which  results in the lower tax bill.
  4. I can sell my home tax-free once I’m over age 55.  Regardless of your age, you may exclude $250,000 in gain from the sale of your primary residence. 

My best advice is always get a professional to help you navigate unfamiliar territory!

 

Meet Cheryl!

About Cheryl

As a successful business owner and community leader, Cheryl Braunschweiger is known and respected for getting things done with a degree of skill and enthusiasm that bring out the best in those around her - colleagues, clients and friends. The name of her business, ALMC Mortgage, reflects Cheryl's philosophy and personality. She says it stands for All Loans Must Close –a reflection of her determination to do whatever it takes to serve her clients. Cheryl has been in the mortgage lending business for 20 years. Read More About Cheryl
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