If you are a volunteer worker for a charity, you should be aware that your generosity may entitle you to some tax breaks. Although no tax deduction is allowed for the value of services you perform for a charitable organization, some deductions are permitted for out-of-pocket costs you incur while performing the services (subject to the deduction limit that generally applies to charitable contributions).
You may be able to turn part of the higher education expenses you pay for yourself, your spouse, or your dependents into tax savings. You can do this by claiming the American Opportunity tax credit and the Lifetime Learning credit for tuition and related expenses.
The purpose of this letter is to discuss the tax aspects of taking on the care of an elderly or incapacitated individual.
As a business owner, you should be aware that you can save family income and payroll taxes by putting junior family members on the payroll. You may be able to turn high-taxed income into tax-free or low-taxed income, achieve social security tax savings (depending on how your business is organized), and even make retirement plan contributions for your child.