Sentences with phrase «one's federal tax liability»

This is not to be confused with your effective tax rate, which is determined by dividing your total federal tax liability by your total income.

If the home you purchased is worth $ 350,000 and you borrowed $ 315,000 at 4 percent interest, you can deduct $ 12,000 from your income which will result to a reduced federal tax liability.

The new tax law caps a deduction for state and local taxes at $ 10,000, a move that will increase federal tax liabilities for many homeowners in high - tax states like New York.

On line 1 of the Residential Energy Efficient Property Credit Limit Worksheet section enter your total federal tax liability on line 47.

Cuomo's federal tax liability for 2017 was $ 41,765, his returns show — nearly $ 10,000 more than estimates show he'll pay under the new law with the same income.

Some financial institutions will withhold federal taxes before distributing your money, but it may not be enough to cover your federal tax liability and you may still owe state income tax on distributions.

Businesses that qualify to participate in the WOTC program can reduce their federal tax liability up to $ 2,400 per hire.

The Welfare - to - Work tax credit provides an incentive to businesses to help individuals move from welfare to work, and companies that hire under this category of the WOTC can reduce their federal tax liability up to $ 9,000 over two years for each qualified new employee.

The problem with deductions is that they would be a tax benefit for high - income families while providing no help to those lower - income families because they have no federal tax liability.

Of the remaining 56 % of people who receive some tax credit that results in a net zero federal tax liability a full 30 % receive credits for children and the working poor.

Shifting to a state payroll tax instead of an income tax is seen as one way to reduce employees» federal tax liability.

However, beneath the rhetorically charged terms such as «get - rich scheme,» «double - dipping, «tax shelter,» and «tax loophole,» is a rather boring reality: under certain conditions, some taxpayers subject to the Alternative Minimum Tax can reduce their federal tax liability by a larger amount if they make a charitable donation rather than paying their state taxes.

State treasuries are unaffected by the difference in taxpayers» federal tax liabilities, and state policymakers have no control over federal tax policy.

However, taxpayers who itemize could have deducted their state taxes from their federal tax liability instead of donating — a longstanding policy that no one would consider «double - dipping.»

Whether a donor reduces her federal tax liability by deducting the $ 1000 she paid in state income taxes or by making a tax - credit eligible donation of $ 1000 and taking the federal charitable donation deduction makes no difference with regard to the amount of federal taxes she pays.

Homebuyers who have not owned a home in the past three years are eligible to claim the Mortgage Credit Certificate and receive a dollar - for - dollar reduction against their federal tax liability for 20 % of their yearly mortgage interest payments.

If you are sure you will not have a federal tax liability, you can claim «exempt» status to prevent your employer from withholding federal taxes from your paycheck.

When a corporation elects REIT status, it is permitted to deduct dividends paid to its shareholders from its federal tax liabilities.

You pay it towards your federal tax liability, so it won't be «deducted» from your earnings for tax calculations, it will be credited towards the tax that you owe.

MCC (Mortgage Credit Certificates) Combine a Start Up Program loan with Mortgage Credit Certificates (MCC), which can be used to lower your federal tax liability up to $ 2,000 per year.

For 2015, federal personal tax credits are calculated as 15 % of specified «personal amounts» and are allowed as a deduction in calculating your federal tax liability.

Generally, the IRS caps the credit amount at the taxpayer's federal tax liabilities.

The Internal Revenue Service doesn't allow you to deduct private school tuition to lower your federal tax liability.

If you settle on private K - 12 schooling, there are a few benefits that can help to reduce your federal tax liability and, in some states, your state tax as well.

If the IRS garnishes your wages as payment for your federal tax liability, up to 25 % of your disposable income on each paycheck can be confiscated to pay off your debt.

It is a dollar - for - dollar reduction against your federal tax liability.

In addition to this you can reduce your federal tax liability.

This is not to be construed as a final determination of your federal tax liability; a tax professional should be consulted.

The IRS made its last official tax ruling on rewards points in 2002, when it said that «the IRS will not assert that any taxpayer has understated his federal tax liability» by using miles earned on business trips for personal use.

Specifically, the IRS «will not assert that any taxpayer has understated his federal tax liability by reason of the receipt or personal use of frequent flyer miles or other in - kind promotional benefits attributable to the taxpayer's business or official travel.»

IRS announcement 2002 - 18 is clear: «The IRS will not assert that any taxpayer has understated his federal tax liability by reason of the receipt or personal use of frequent flyer miles or other in - kind promotional benefits attributable to the taxpayer's business or official travel.»

«Consistent with prior practice, the IRS will not assert that any taxpayer has understated his federal tax liability by reason of the receipt or personal use of frequent flier miles or other in - kind promotional benefits attributable to the taxpayer's business or official travel,» the announcement read.

After deducting other incentives 30 % of the remaining cost can be taken off of your federal tax liability.

The federal ITC allows for 30 % of the system costs to be claimed as a deduction to your federal tax liability, there is the option to use this incentive in increments.

With the federal ITC 30 % of the system cost can be claimed as a deduction to your federal tax liability, this incentive can be stretched over several years to suit anyones financial standpoint.

For those of you who receive a W2, more likely than not you will have already paid your federal tax liability through your withholdings.

Such guidance would allow taxpayers opting to follow the safe - harbor guidance to be safe from understating their federal tax liability due to their forked coins.

U.S. Representatives Anna G. Eshoo (D - CA) and Mike Thompson (D - CA) have introduced a measure that would allow homeowners in community associations who earn $ 115,000 or less in annual income to deduct up to $ 5,000 of their community association fees and assessments from their federal tax liability.

To provide developers an incentive to build or acquire for rehab affordable for - sale housing, another bill, the Community Development Homeownership Tax Credit Act, S. 875, would make available a credit that developers could apply against their federal tax liability.

You want to reduce state and federal tax liability, or you want to benefit directly from the tax credits and rebates that are available.

This credit is refundable: The full amount will be paid out, even if you have zero federal tax liability or the credit is bigger than your federal tax.

This allows you to reduce your federal tax liability by the amount of your credit, which reduces the overall amount of taxes that you are required to pay for the year.