Your Income Taxes Thanks to Obamacare

When it comes to filing your income taxes this year, you've probably already received all of your income tax forms in the mail, like your W-2's, 1099's and 1098's (for deductible mortgage interest), and any others you might need for filing. You may have even filed your 2014 income taxes already. But what many filers who haven't filed yet may not be ready for this year is, just how Obamacare, aka – The Affordable Care Act – may affect their income taxes.

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We have more income tax tips and articles in the Taxes section under the Long Island NY Real Estate Categories to your right. .
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And don't forget, we also post tips daily on Twitter and Facebook, sometimes pertaining to Taxes and the Long Island NY economy, or the economy in general. Find us there as well..

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First Time Long Island NY Home Buyer? Tax Considerations

If you're a first time Long Island NY home buyer, there are some tax deductions you'll want to be sure not to miss when filing your taxes this year.

If you're a long time seasoned Long Island NY homeowner, this probably won't be news to you. But a first time Long Island NY home buyer just might miss some of these deductions.

A first time Long Island NY home buyer may miss some of these tax deductions

What a Long Island NY Home Buyer Can Deduct

Mortgage Interest – A new mortgage means you'll have a little more paperwork when it's time to file your taxes. However, the extra work is usually pays off. Perhaps the most important tax deduction a Long Island NY home buyer needs to be aware of is the mortgage interest deduction. At year-end, check out Form 1098 from your lender to see how much mortgage interest you've paid for the year.

Mortgage Points – Mortgage points are simply prepaid interest. You can buy points to lower your interest rate when you take out a mortgage. By purchasing points, you can save money in the long run if you stay in the home for a certain period of time, depending on the amount of points you purchase.

For example, if you have a $200,000 mortgage and buy two points, you'll cough up $4,000 for those points at closing. (Each point is 1% of the value of your mortgage.) If buying the points lowers your payment $250 a month, you'll have to stay in your home for at least 16 months to break even. After that time passes, you'll start putting money back in your pocket.

Are you eligible to deduct money you spent on mortgage points from your taxes? Each situation is different, but it's worth looking into.

Property Taxes – The fact that you're a Long Island NY home buyer also gives you the responsibility of paying property taxes. In most cases, your taxes are rolled into your monthly mortgage payment, and your mortgage company pays them from your escrow account when they're due.

If you're a first time Long Island NY home buyer, you'll need to know the total real estate taxes for the real property tax year and the number of days in the property tax year that you owned the property.

What a Long Island NY Home Buyer Can NOT Deduct

Although you have to pay them, items Uncle Sam does not let you write off include; homeowner's insurance premiums, homeowner association dues, general closing costs, and home repairs. There are some home improvements that come with a tax credit, and some may qualify for rebates, but overall, home repairs are not deductible.

Being a first time Long Island NY home buyer can have a big impact on your overall tax liability, so do your homework and take the tax deductions you're entitled to.

Get more information about how a first time Long Island NY home buyer may be affected tax-wise in our section on Taxes to your right under Long Island NY Real Estate Categories.

We post daily to Twitter, and also on our Facebook Page. We'd love you to check us out there too.

Income Tax Preparer Tricks of the Trade

Here comes February, and here comes income tax time again. It seems like every year, income tax preparation companies try to find new ways to separate you from your money by not telling you everything. For example, if you made less than $53,000 last year, you can get your taxes prepared for you absolutely free of charge. Think tax preparers are going to tell you this?

There are more income tax tips in this video…

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We have more income tax tips and articles in the Taxes section under the Long Island NY Real Estate Categories to your right.
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And don't forget, we also post tips daily on Twitter and Facebook, sometimes pertaining to Taxes and the Long Island NY economy, or the economy in general. Find us there as well. ..

Long Island NY Short Sellers Get Last Minute Tax Break

Long Island NY short sellers who completed short sales during 2014 and had mortgage debt cancelled, got a huge 11th-hour tax break when the Senate extended the Mortgage Debt Forgiveness Act.

The average Long Island NY short sellers had a mortgage balance one and a half times higher than the market value of the house.

Long Island NY short sellers got a last minute tax break when the Senate extended the Mortgage Debt Forgiveness Act

Big Break for Long Island NY Short Sellers

Normally, the Internal Revenue Service treats forgiven debt as ordinary income going to the borrower, taxable at regular rates.

But under an exception for forgiven mortgage that took effect in 2007, qualified borrowers that saw their debt cancelled by a lender as part of a short sale, loan modification or foreclosure do not have to pay taxes on the wiped out debt. Lawmakers averted the exemption's expiration on December 31, 2014.

In a short sale, the homeowner agrees to sell the property, typically for a price well below what is owed to the bank. The difference between the sale price and the total amount owed can be forgiven by the lender.

Those Long Island NY short sellers who fall under the tax break under the Mortgage Forgiveness Debt Relief Act should receive Form 1099C (Cancellation of Debt) from their lender, if the amount of cancelled debt was more than $600.

Following the passage of the extenders bill, the IRS said that it anticipates opening the 2015 filing season as scheduled this month. The IRS will begin accepting tax returns electronically on January 20th. Paper tax returns will begin processing at the same time.

Get more information about Taxes and how Long Island NY short sellers may be affected in our section on Taxes to your right under Long Island NY Real Estate Categories.

We post daily to Twitter, and also on our Facebook Page. We'd love you to check us out there too.

How Much Do You Know About Taxes?

As we turn the calendar on yet another year, it's time to start thinking about income taxes once again. How much do you know about taxes? Take this pop quiz and see if you do as well as the guy interviewed on the street in Times Square…

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We'll have more tips for you when it comes to taxes as we move closer and closer to that dreaded date of April 15th. But we have more tips for you at the Taxes link to your right under Long Island NY Real Estate Categories.
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And don't forget, we also post tips daily on Twitter and Facebook, sometimes pertaining to taxes. Find us there as well.
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