Save Money on Your Taxes – Tax Exemptions in MA
Every year Americans have to file for taxes. Luckily for some people, you can look into various tax exemptions options to relieve some of the money that you owe. An exemption can either relieve you completely of your taxes, or reduce part of your taxes. Each state has various rules and laws that specify tax exemptions and who they pertain to. If you live in Massachusetts, see if you can save some money with these possible tax exemptions:
Residential Tax Exemptions:
Taxpayers that own their own home can save money on their tax bill with a tax exemption. To qualify for this exemption you will need to have owned and occupied the home since January 1st of that year.
Homestead Tax Exemptions:
The homestead tax exemption is a sector of the residential tax exemption designed to protect the value of homes. It is designed by excluding a portion of home’s value assessment. By doing this, it reduces the property tax that you’ll need to spend. Each state may be different, but for example if your home is valued at $300,000 and you’re allowed a homestead exemption of $50,000, then you only have to pay property taxes on the $250,000.
Moving Tax Deduction:
If you’re moving yourself or your family for the reason of employment or business income that is subject to Massachusetts tax, then you can have your moving expenses deducted.
If you get any sort of moving reimbursement from an employer then you cannot claim the move as a deduction; only if you pay out of pocket. To claim the deduction you must follow the criteria of:
* The taxpayers new job must be 50 miles further from his/her old home.
* The taxpayer has to be a full-time employee that works at least 39 weeks during a 12 month period directly after the move occurs. If the taxpayer is self-employed then they must employed or working full time for 78 weeks during a 24 month period directly after the move occurs and 39 weeks during the first 12 months.
* The amount spend on the move as to be reasonable
Home Office Tax Deduction:
If you have a home office or if you use part of your home for business, then you may be eligible to deduct some expenses for business use at your home. This deduction is available to homeowners and renters and also applies to all different types of homes.