HIVE TAX AI
Lotus Li
Lotus Li is a CPA who has transformed 20 years of professional experience into building products with a mission to simplifying everyone’s tax journey. She is passionate about bringing cutting-edge AI into the world of tax and finance and is deeply immersed in designing, building, and launching innovative AI-powered tax solutions.
Are commuting costs deductible for remote workers returning to the office?
Commuting costs for remote workers returning to the office are not tax-deductible, as they are considered personal expenses under IRS rules.
Can I deduct expenses for caring for an elderly parent at home?
You may be able to deduct expenses for caring for an elderly parent at home if they qualify as your dependent and the expenses exceed 7.5% of your adjusted gross income; you might also qualify for the Dependent Care Credit or claim your parent as a dependent under certain conditions.
Is mortgage insurance premium (PMI) deductible this year?
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.
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.