When it comes to saving money, a little know-how, some commitment, and practice all make the task easier as time goes on. Setting your child up with the opportunity to start saving money from a young age is an awesome way to ensure that they are prepared to make smart saving and investing decisions once they start working as an adult in the real world. Assigning paid tasks around the house and using jars as “bank accounts” for saving and spending is an effective foundation to start with. Here, you’ll learn tips, tricks, and techniques that can be implemented as your little one ages to accommodate their learning abilities and maximize their chance of saving success in the future.
Teaching Your Little one to Save Like a Pro
More Mortgage Relief Is On The Way With New Mortgage Insurance Tax Breaks
Claudia Bravo
If you're a homeowner at risk of missing mortgage payments resulting from the financial impact of the coronavirus confinement, several options are available to avoid default. Many homeowners have negotiated a mortgage forbearance plan with their mortgage servicer to postpone payments. If you want to lower the risk of future payment defaults, mortgage insurance protection is an option.
Providing additional financial relief. Congress has just reinstated tax breaks for mortgage insurance premiums. Understandably, while preparing your taxes, you may be confused over how expired, new, and retroactively reinstated mortgage insurance tax deductions affect what you can claim. Here's how you can benefit from the tax break.
Expired Mortgage Insurance Deductions
If you already have mortgage insurance, you likely have benefited from the tax relief in past years. From 2006–2017, homeowners with private mortgage insurance were able to declare a mortgage insurance tax deduction on mortgage insurance premiums (MIP) for mortgages taken out or refinanced after January 1, 2007. The deduction was offered to homeowners with an adjusted gross income of less than $109,000, or $54,500 for each married spouse.
In 2018, however, you would have been left holding the bag for the full mortgage insurance cost. The PMI premium deduction was disallowed from 2018.
Retroactive Restatement of MIP Tax Deductions
Like many government incentives, the PMI tax deduction has been on a dizzying rollercoaster of reinstatements and withdrawals. The deduction was first introduced with the Tax Relief and Health Care Act of 2006. Congress provided an extension for one year, 2016. Yet another extension allowed the deductions for 2017, retroactively.
The good news is Congress has permanently reinstated the MIP tax deduction. The deduction can be applied retroactively from 2018. So if you are considering taking out private mortgage insurance, you can include the tax deduction in your cost-benefit analysis.
New MIP Tax Deductions for the Self-employed
If you're self-employed, you can get some financial relief from a new MIP tax deduction passed last year. Self- employed persons with a home office can claim the tax deduction starting from the 2019 fiscal year. Your tax services preparer can help you ensure your home office space meets all the qualifications to qualify as a business expense.
For homeowners who have made a downpayment of less than 20 percent on their mortgage, mortgage insurance is mandatory. If you already have mortgage insurance, your tax preparation services can show you how to claim the tax deduction retroactively.
Reach out to a local expert today for any other questions you have about tax preparation services.
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