Nevada Tax Credits

Your Reno Accountant Discusses The Top Two Tax Credits

Do you know what the best tax credits of the year are? If not, then you should talk to a Reno accountant. Many people are turning to tax-filing programs to take care of their taxes. The problem is that these programs don’t tell you what the biggest tax breaks of the year are. Working with a CPA is a great way to learn about things you can do throughout the year that will provide you with more write-offs.

Now back to the top two tax credits of the year. The first is the adoption of a foreign child and the second is a buying an electric golf cart.

Let’s start by looking at adopting a foreign child. There is a dollar for dollar credit for the expenses of adopting a child. Although this is a great credit, not many people are going to do this, but it is still an optional credit. Now, let’s turn to the electric golf cart. You may think I am joking, which I do from time to time, but I am not.

The second best tax credit for this year is buying an electric golf cart. Furthermore, if you have/add headlights and taillights on your electric golf cart, it fits the national criteria for an electric car. Because it is classified as a car, you get a 50% tax credit for the purchase price, presuming that it’s a new golf cart.

One of the local reporters had a news segment on the electric golf cart and figured that between the special sales tax deductions for a new vehicle, the 50% tax credit for buying a golf cart that is road ready, and all the other discounts and benefits, the cart is free. He figures that the $9500 electric golf cart that he bought was free.

For a simplified description of the credit, you can check out eHow’s guide: How to Get a Golf Cart Tax Rebate.

You probably hear about all the other energy savings stuff, like solar and wind power, but how about the electric golf cart. This one item is a great example of why you should work with a Reno accountant. We will help you understand all the credits available to you, and make sure you are getting the most money back.

Reno’s Best CPA,

Tim Nelson

Your Reno Accountant Discusses The Top Two Tax Creditsencpaswp2022-11-29T14:18:40-07:00

Reno CPA Explains The ABC’s of Education Tax Credits!

There are many tax credits available, but if you are in post-secondary school then you may eligible for more. There are education tax credits available for students in post-secondary education. However, there are different rules and regulations about each credit that you need to understand. I will do my best to cover the basics of each. If you have further questions about your eligibility for these credits, you should contact Evans Nelson & Company CPAs.

The first type of education tax credit is the Hope Credit, which applies to your first two years of post-secondary education. However, with the American Opportunity Tax Credit, the Hope Credit has been expanded to cover four years of post-secondary education. This is the larger of the two main credits and thus it is important to understand it. Visit the IRS’ website for more information about this credit and the new modification.

The second credit that is available is the Lifetime Learning Credit. This credit generally provides a tax deduction for 20 percent of the amounts paid for qualified education expenses and is good for any post secondary education you take throughout your lifetime. This credit is smaller than the Hope Credit, but there is no limit on how many years you can apply it to.

The last education tax credit that is available this year is the Tuition and Fees Deduction. This deduction can be taken above the line, or from your gross income, so there is often more tax advantage depending on your income tax rate.

As a student, you have some additional tax credits that you need to be aware of, but you need to be sure to get the most out of them. The best way to do this is to contact a Reno CPA and start taking advantage today.

Reno’s Best CPA,

Tim Nelson

Reno CPA Explains The ABC’s of Education Tax Credits!encpaswp2022-11-29T14:19:05-07:00

Certified Public Accountant In Reno Discusses The Hope Credit

One of the largest credits available for college students is the Hope Credit. This credit applies to your first two years of post-secondary education and is just one of the many credits available. To make sure you are getting all the credits available to you call a certified public accountant in Reno today.

According to the IRS “you can claim the Hope Credit if all three of the following requirements are met: You pay qualified tuition and related expenses for the first two years of post-secondary education. You pay the tuition and related expenses for an eligible student. The eligible student is you, your spouse, or a dependent for whom you claim an exemption on your tax return.”

The eligible expenses for the Hope credit are tuition, activity fees, books, school supplies, etc… The basic way to decide if something qualifies is that it has to be paid to the institution because of enrollment. Thus, books and supplies can be included if they are necessary for a class.

If you are a college student or one of your dependents is a college student, then you need to make sure you think about the Hope Credit when it comes time to file your taxes. You can deduct up to $2,000 for your college expenses.

On top of this, there are some modifications to the credit, which are provided by the American Opportunity Tax Credit. The IRS states that for tax years 2009 and 2010, the American Opportunity Tax Credit modifies the Hope Credit as follows:

1. The maximum amount of the credit is increased to $2,500.00.

2. The credit can now be claimed for the first 4 years, not 2, of postsecondary education.

3. The modified adjusted gross income limitations are increased.

4. Qualified expenses include course materials.

5. Generally, 40% of the Hope Credit is now refundable (up to $1,000).

If you are a college student, or one of your dependents is, then you need to contact a certified public accountant in Reno today and start deducting your college expenses.

Reno’s Best CPA,

Tim Nelson

Certified Public Accountant In Reno Discusses The Hope Creditencpaswp2022-11-29T14:19:10-07:00

Reno’s Best CPA Featured in NSBDC E-Newsletter

I sat down with Chuck McCumber of the Nevada Small Business Development Center (NSBDC) and talked taxes. The interview was featured in the NSBDC’s monthly e-newsletter. Here is one quote from our conversation:

“It’s also one of the best times,” said Tim Nelson, “because when the economy is down it stirs people to be more creative, entrepreneurial.”

To read the rest of the interview CLICK HERE.

Reno’s Best CPA,

Tim Nelson

Reno’s Best CPA Featured in NSBDC E-Newsletterencpaswp2016-09-22T18:09:02-07:00