College Financial Aid

College Financial Aid

College in the United States is expensive. In the 21st century alone the cost has doubled and only continues to rise (6.8% in 2021). The average cost is 35,331 per year and for most Americans, this is impossible to pay without financial aid. So, let’s say you are in college, have a student loan, a few grants, and scholarships, and a work-study job through your college. These all affect your tax return and future financial liabilities, especially with student loans. Then it’s time to complete your tax return, you may find yourself asking what payments are considered income, what can be deducted, and how can I make sure I’m planning my taxes to minimize financial responsibilities in the future. 

Grants and Scholarships

First, let’s look at the effects scholarships and grants have on your tax liability. Financial aid in the form of grants and scholarships doesn’t need to … Read More

Home Office Deductions

Home Office Deductions

You’re eligible to claim deductions related to their home office if you’re self-employed and working from home, even if it’s only part-time. Unfortunately, If you are an employee who is working from home, you aren’t eligible to deduct any expenses. Although you cant claim tax deductions many employers are currently helping cover the cost of working at home for their employees. If your employer currently isn’t covering these costs, I would recommend reaching out to your HR department or manager to see if they would be able to help cover the costs or reimburse you for any related expenses.

What is a Home Office?

You are eligible to deduct qualified home office expenses if you are self-employed and work from home. you must use an area regularly and exclusively for your self-employed business for an area in your home to be considered a home office. Also, the area … Read More

MN Department of Revenue tax form error for 2019 and 2020

Recently Minnesota residents in the highest tax bracket have been receiving letters from the Department of revenue about taxes owed from 2019 and 2020. This was equally surprising for both tax preparers and taxpayers. The issue was caused by the MN Department of Revenue. So, despite tax preparers following the rules provided, taxpayers still owe this amount because the Department of Revenue provided the wrong information to the tax preparers. 

In 2019, a change was made to the standard income tax deductions. Unfortunately, the MN Department of Revenue didn’t update its tax forms to reflect these changes. In short, the error was that standard deduction limitations were reduced by 20% when they should have been reduced by 80%. As a result, thousands of individuals in the highest tax bracket owe taxes from 2019 and 2020 despite following the forms provided by the department of revenue. In total, 38.4 million dollars will … Read More