Can I Claim My Parent as a Dependent?
Caring for an elderly parent can be a financial toll, especially when you also have children to care for. Claiming a parent as a dependent can provide significant financial benefits, but there are specific IRS rules and requirements that must be met to qualify. If you’re supporting an elderly parent, understanding these rules can help you save on taxes. This article explores the eligibility requirements, benefits, and considerations for claiming a parent as a dependent.
How Data Breaches Affect Your Taxes
Over 2.9 billion records of personal data, including Social Security numbers, were leaked on the dark web, putting taxpayers at risk of tax identity theft. Optima CEO David King and Lead Tax Attorney Philip Hwang explain what tax identity theft is, how it can affect you, and how to resolve it!
Are Political Donations Tax Deductible?
Political donations are a vital part of democratic systems, empowering individuals to support their preferred candidates, parties, and causes. People often wonder whether their contributions to political campaigns, committees, or candidates can be deducted on their tax returns. This question arises frequently, especially in the context of other charitable donations, which are typically deductible. To clear up this common confusion, let’s explore the specifics of political contributions and their tax implications.
How Does Self-Employment Tax Work?
If you’re self-employed, you likely know that managing your taxes can feel more complicated than simply having an employer deduct them from your paycheck. One of the most critical aspects of your tax responsibility is self-employment tax, which covers Social Security and Medicare contributions. In this guide, we’ll break down what self-employment tax is, how it’s calculated, and provide examples to help you navigate this key aspect of tax compliance.