If you support someone – for instance, a child or an elderly relative – you may be entitled to claim a dependency exemption for that person on your federal tax return. The exemption, which is indexed annually, is $3,950 for 2014. However, this tax benefit is far from automatic.

Do you know what income is taxable and what income is not taxable? Generally, all income earned anywhere in the world is taxable unless the law specifically excludes it. That includes cash and non-cash receipts from sources such as bartering, discharge of debts, and illegal activities.

In recent years, more and more grandparents have found themselves raising their grandchildren. If you're one of them, you may qualify for one or more of these tax breaks.

Are you pondering the question of whether or not to convert your traditional IRA funds to a Roth IRA? While your decision involves many factors, one wrinkle to consider is the five-year holding period for converted assets.