Mortgage insurance premiums (PMI) are not deductible for the 2024 tax year, as the deduction expired at the end of 2021. It is not available for subsequent tax years.
Is mortgage insurance premium (PMI) deductible this year?
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AI Tax Answer Library
Can I deduct expenses for adopting a child in 2025?
In 2025, adoption expenses can be claimed through the adoption tax credit, offering up to $17,280 per child, subject to income limitations. This credit reduces your tax liability dollar-for-dollar.
Are legal fees deductible on my taxes?
Legal fees may be deductible if they are business-related, tax-related, or tied to rental properties. Personal legal fees, including divorce costs, are typically not deductible.
Can teachers still deduct classroom expenses, and what is the limit?
Teachers can deduct up to $300 in classroom expenses in 2024, including supplies and professional development costs. Married educators can claim up to $600 jointly.
Are union dues deductible this year?
Union dues are not deductible on federal income tax returns for 2024 due to the TCJA suspension, lasting through 2025. Deductions may resume in 2026.
Can I deduct moving expenses in 2025?
In 2025, most taxpayers cannot deduct moving expenses, except for active-duty military members moving under military orders.
Can I deduct home office expenses if I work remotely?
Yes, you can deduct home office expenses if you work remotely, but you must meet IRS criteria like exclusive use and regular business activity.
How do I deduct charitable donations on my taxes?
To deduct charitable donations, itemize on Schedule A and give to qualified charities. Keep receipts and follow IRS rules for documentation.
Can I claim medical expenses as a deduction, and what qualifies?
You can deduct medical expenses that exceed 7.5% of your AGI if you itemize deductions—qualified costs include insurance, treatments, supplies, and more.
Can I deduct student loan interest in 2025?
Yes, you can deduct up to $2,500 in student loan interest for 2025, subject to income limits and other eligibility rules—even if you take the standard deduction.
What is the standard deduction amount for 2025?
The standard deduction for 2025 is $15,000 (single), $30,000 (joint), and $22,500 (head of household), with additional amounts for age or blindness.
How are capital gains taxed in 2025?
In 2025, long-term capital gains are taxed at 0%, 15%, or 20% based on income, while short-term gains are taxed as ordinary income up to 37%.
How do I report rental income on my tax return?
Report rental income and expenses on Schedule E (Form 1040). Include rent, deposits kept, and deductible costs like mortgage interest and depreciation.
How do I report stock options or restricted stock units (RSUs)?
Report RSU and stock option income on Form W-2; sales go on Form 8949 and Schedule D. ISOs may also require AMT reporting on Form 6251.
How do I report cryptocurrency transactions on my tax return?
Report cryptocurrency sales, trades, or income on IRS Form 8949 and Schedule D; mining and staking rewards go on Schedule 1 or Schedule C as income.
Do I need to pay taxes on an inheritance received in 2025?
No, you don’t pay federal tax on an inheritance in 2025, but income from inherited assets or state-level taxes may apply depending on your location.
Do I need to report income from foreign countries?
Yes, U.S. citizens and resident aliens must report all worldwide income, including foreign income, on their U.S. tax return, unless legally exempt.
Are life insurance payouts taxable?
Life insurance payouts are generally not taxable, but interest, installment payments, employer-owned policies, and some transfers may trigger taxes.
Do I need to report interest earned on savings accounts?
Yes, you must report all interest earned on savings accounts as income on your tax return, even if you don’t receive a 1099-INT.
Is alimony received in 2025 taxable?
Alimony received in 2025 is taxable only if your divorce agreement was executed before 2019 and hasn’t been modified to exclude it from income.
Are scholarships or grants considered taxable income?
Scholarships and grants are tax-free if used for tuition and required expenses by degree candidates, but amounts used for room, board, or compensation for services are taxable.
Do I need to report gambling winnings, and can I deduct losses?
Gambling winnings are fully taxable and must be reported; losses can be deducted only if you itemize and cannot exceed your reported winnings.
Are unemployment benefits taxable in 2025?
Unemployment benefits remain taxable in 2025 under current IRS rules—recipients should report them as income and consider tax withholding.
Are Social Security benefits taxable?
Social Security benefits may be taxable depending on your income—up to 85% could be taxed if your combined income exceeds IRS thresholds
Do I need to report income from selling items online (e.g., eBay)?
Selling items online? Report all income—business sales go on Schedule C, personal gains may be taxable, and losses generally aren’t deductible.
How do I report income from a side hustle or hobby?
Report side hustle income on Schedule C if it’s a business, or Schedule 1 if it’s a hobby—track all income, even without a 1099 form.
Do gig workers need to file Form 1099-NEC for income reporting?
Gig workers don’t file Form 1099-NEC themselves; it’s issued by payers. Still, all income must be reported, even without receiving the form.
Do I need to report income from freelance or gig work (e.g., Uber, Etsy)?
Yes, income from freelance or gig work like Uber or Etsy must be reported and may require paying self-employment tax if earnings exceed $400.
What are the rules for claiming dependents in shared custody situations?
Learn the rules for claiming dependents in shared custody situations, including the custodial parent’s rights, Form 8332, and noncustodial parent exceptions.
Can I claim my elderly parent as a dependent?
Yes, you can claim your elderly parent as a dependent if you provide more than half of their support. Learn the requirements and benefits of claiming them.
Can I file as Head of Household if I’m unmarried but support a dependent?
Yes, you can file as Head of Household if you’re unmarried and support a dependent. Learn the requirements and benefits of this filing status.
How do I file taxes if my spouse passed away in 2025?
Learn how to file taxes if your spouse passed away in 2025, including options for joint returns and qualifying surviving spouse status. Seek professional help if needed.
Can I file jointly with my spouse if we were married in 2025?
If you marry in 2025, you can file jointly for the 2025 tax year. Filing jointly offers tax benefits but comes with shared responsibility for the tax debt.
How do I determine my filing status (e.g., single, married)?
To determine your filing status, consider options like Single, Married, Head of Household, or Qualifying Surviving Spouse. Status affects tax rates and deductions.
Do all states have an income tax, and how do state tax laws differ from federal laws?
Not all states have income tax. Seven states, like Texas & Florida, don’t tax wages. State tax laws differ from federal in rates, deductions, and structures.
How do I file state taxes if I moved between states in 2025?
Moved between states in 2025? You’ll likely need to file part-year resident tax returns for both states. Learn how to allocate income, claim credits, and file correctly.
What is the deadline to file state taxes in 2025?
For most taxpayers, the deadline to file state taxes in 2025 is April 15, 2025, which aligns with the federal tax filing deadline for the 2024 tax year.
Are state refunds taxable on federal returns?
Whether a state tax refund is taxable on your federal return depends on whether you itemized deductions in the year the taxes were paid and received a tax benefit from them.
Do I need to file state taxes if I worked in multiple states in 2025?
If you worked in multiple states in 2025, you may need to file tax returns in each state where you earned income and claim credits to avoid double taxation.
What should I do if my employer hasn’t sent me a W-2?
If your employer hasn’t sent you a W-2, contact them first. If unresolved, call the IRS or file using Form 4852 with estimated wage and tax info.
Can I still file my return if I lost my W-2?
Yes, you can still file your tax return if you lost your W-2. Learn how to request a replacement or use IRS Form 4852 as a substitute to file on time.
How do I set up a payment plan with the IRS?
Learn how to set up a payment plan with the IRS, including online applications, available options, eligibility, fees, and what to expect after enrolling.
What happens if I don’t pay my taxes on time?
Missed the tax deadline? Learn what happens if you don’t pay your taxes on time—penalties, interest, IRS enforcement actions, and how to get help.
How do I file an amended return if I made a mistake?
Learn how to file an amended tax return if you made a mistake. Use Form 1040-X, file electronically or by mail, and track your status online.
What documents do I need to gather before filing my taxes?
Gather essential tax documents before filing in 2025, including W-2s, 1099s, income records, deduction receipts, and ID info. Be prepared and organized.
What are the income thresholds for filing taxes in 2025?
Find out the 2025 income thresholds for filing taxes based on your filing status, age, and deductions. See who must file and when it’s required.
How do I know if I need to file a tax return?
Wondering if you need to file a tax return? Find out based on income, filing status, and special circumstances. Learn when it’s required and when it’s beneficial to file.
What are the penalties for filing late?
Filing your tax return late can lead to a penalty of 5% per month, up to 25% of the unpaid tax. Learn how to avoid penalties and what to do if you’re late.
Does filing an extension give me more time to pay taxes owed?
Filing a tax extension gives you extra time to file, but not to pay. You must pay any taxes owed by the original deadline to avoid penalties and interest.
Can I file for an extension, and how does it work?
You can file a tax extension by April 15 to extend your deadline to October 15. However, taxes owed are still due by April 15 to avoid penalties and interest.
What is the federal tax filing deadline for 2025?
Federal tax filing deadline for 2025 is April 15. Extensions available until Oct 15, but taxes must still be paid by April 15 to avoid penalties.
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