Are you looking to renovate your home? There is a host of local, state, and federal incentive programs as well as tax relief options and low-interest loans that you can take advantage of. Tax information blog, American Tax Service details how you can easily take advantage of any of these options in its latest post – Federal Remodel Incentive Programs and Tax Relief Options.
For Government incentive programs, there are a few key rules you will need to adhere to if you are to take advantage of any of them. First, you will need to apply for the program before starting renovations and home improvements otherwise you might not be counted eligible. Also, it is worth noting that most of the incentive programs only support basic changes that improve the quality of your property and not luxury changes like home spas and outdoor kitchens. Finally, there must be an oversight in the form of scheduled inspections.
Aside from government incentive programs, taxpayers who are renovating can find out if they are eligible to join a property tax exemption program. This can save them some thousands of dollars during the whole time of renovation or part of it. Eligibility requirements differ between every town and county and as such you will need to find out what qualifies in your local area.
Taxpayers looking to renovate can also benefit from the Home Improvement Programs (HIPs). These programs offer low-interest or no-interest rate loans to homeowners who want to improve the quality of their home. Depending on where your home is situated, there are different eligibility requirements.
However, one rule that cuts across no matter where you are located is that you must be remodeling an existing building, your gross income must be below a set limit, and you can’t be using the money to install luxury items. Another loan option taxpayers can utilize is the FHA Rehab Loans. With this option, you can easily approach many loan providers as the US government will be guaranteeing your loan.
To read the original post, please visit https://americantaxservice.org/federal-remodel-incentive-programs/
Every year the IRS tweaks the federal income tax brackets to accommodate changes in inflation and this year 2019 is no different. This is mostly done to prevent inflation from pushing people into higher tax brackets known as the bracket creep. And up to 40 different provisions are taken into account to stop this from happening. Confused? Don’t know how this is set and which federal income tax bracket you fall in? A new post on Efile Tax Advisor clears all the confusion and provides all the information you need to find out which tax bracket you fall in this year 2019.
As long as you earn a taxable income, you will be automatically taxed at the standard rate of 10% irrespective of your filing status. Single taxpayers will need to earn a taxable income of $9,700 to fall within the 12% bracket. They will move into the 22% tax bracket if they hit $39,475 and can end up in the 24% tax bracket once they make as much as $84,200. But for Married taxpayers filing jointly, they will fall within the 12% bracket when their earnings are up to $19,400. They then move to the 22% tax bracket when they reach a $78,950 income and finally will move into the 24% tax bracket when they make a joint taxable income of $168,400.
The tax bracket is calculated different for high-income earners and depending on their income, their tax bracket range will fall within 32% to 37%. Also, long-term capital gains are calculated differently from other forms of income. The rates are 15% on $39,375 for single taxpayers and $78,750 for married taxpayers filing jointly. This could rise up to 20% for single taxpayers gaining $434,550 and $488,850 for married taxpayers filing jointly.
Credits and deductions can force low and middle-income taxpayers into lower tax brackets since these brackets do not consider them. It is best to make use of online tax preparation software to file taxes to ensure you are making the most of every tax credit and deduction.
For more information about the IRS tax brackets and to find out which tax bracket you fall into, please read the original blog post by Efile Tax Advisor here, https://efiletaxadvisor.com/2019/04/17/irs-federal-tax-brackets/