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. ..

How to Cheat on Your Income Taxes – Legally

IRS logoThe day taxes are due (April 17th) is fast approaching, and tension is in the air. No one likes sending more money to Washington than they absolutely have to.

Even though most of us pay our taxes on time and in full, few of us don’t always consider how we could bring down our tax bill, and do it legally.

With that in mind, consider home improvements where you can actually get a tax deduction.

Home Improvement Write-Offs on Taxes

You can actually get a break on your taxes for alterations that make your home more energy efficient. This break, the Energy Efficiency Tax Credit, can be claimed by home owners who replace or upgrade portions of their house’s envelope. If you improve the windows, walls, roof, insulation, siding — basically any part of the home that touches the outside air, you can claim some portion on your taxes.

That’s not all: If you switch out your water heater or air conditioning system for a more efficient model, you might be able to take the credit. On the bright side, this deduction is still available for 2011. Unfortunately, though, you can only take it for one year, which means that if you applied for it in 2006, 2007, 2009 or 2010, you’re out of luck.

But even if you’ve already used the Energy Efficiency Tax Credit, you have a few other options for home improvement breaks on your taxes. For example, if you install fuel cells, solar cells, geothermal systems, or solar hot water heaters, you may be able to claim a deduction of up to 30% of the total installation price.

Home improvements can even be a money maker: If you produce more electricity than you use, you can often sell it back to the electrical grid. To sweeten the pot, the federal government doesn’t tax this income, so if your fuel cells, solar cells and geothermal system leave you with more electricity than you need, you might find yourself running a tax-free business!

Other Deductions Often Overlooked on Taxes

One other often forgotten write-off involves charity. Everyone knows you can claim a deduction for all those clothes you cart to Goodwill or the Salvation Army, but you can also claim the cost of the gas you spent hauling your stuff over there. Whenever you drive somewhere to perform volunteer work, you can claim the standard mileage rate for deductions, which varies from year to year. Check the current tax allowances for such deductions at the IRS Website.

Finding all the little breaks you have coming to you can be rewarding — both emotionally and financially. Good luck, and happy hunting!