| Automobile Expenses |
Which is better - deducting the standard mileage rate or actual expenses? With the increasing cost of gas, it might be a good idea to revisit which tax deduction is the most beneficial - claiming 50.5 cents per business mile (58.5 cents per business mile after July 1, 2008) or your actual vehicle expenses.Claiming the standard mileage rate is easier. All you have to do is keep track of your business miles and multiply them by the current rate. In addition to the standard mileage rate, you may also deduct the costs for parking and tolls. Plus, if you are self-employed, you can deduct the interest paid on your car loan. |
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| Divorced? |
| Know the rules before claiming a dependent If you are a divorced or separated parent, the rules for determining which one of you can claim the children as dependents is confusing at best. A few years ago, the IRS created rules that provided a uniform definition of a child for purposes of claiming certain tax benefits such as the head of household filing status, the child tax credit, the dependent care credit, arid the earned income tax credit. |
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