To be used for any question related to tax deductions.

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3
votes
1answer
199 views

Pay for my parent's PLUS loan - tax implications?

I recently payed off my college loans and now want to pay for the PLUS loans that my parents took out to pay for my education. Does the gift tax apply if I pay the loan provider directly? I'm not ...
1
vote
1answer
27 views

Can you lease a secondary residential apartment for a job in NYC, and declare it as expense in tax return?

Currently I commute over 2 hours to work in NYC. Thus I would like to rent a apartment close to where I work. Is there a way to have your rental payment declared as expense in your tax return? One ...
2
votes
1answer
22 views

Clarification on Taxation for Education Expense

I work as a Computer Programmer for a Healthcare Company. I am in the process of applying for Part Time - Master's Graduation Program in Healthcare. I wonder whether i would be able to get Tax ...
2
votes
1answer
69 views

H1b Visa - Any way to save taxes?

I am in the US on H1b visa for a period of 3 years. Are there any ways I can save the income-tax to be paid for the first year? If yes, then how?
1
vote
1answer
57 views

capital gains vs operating losses

Let's say an LLC owns some shares in company XYZ, and it also owns a small retailing business. The shares are sold and they make a capital gain of $1,000 this year. And the retailing business loses ...
1
vote
1answer
23 views

Taxes deducted for NRO account

Are there tax deductions while converting an existing SB a/c to a NRO a/c & also when remitting funds from the NRO a/c?
1
vote
3answers
101 views

Can standard deduction lower my tax bracket?

I am an independent college student, and I will be living on campus starting next semester. I am aware that only tuition and required fees are considered as qualified education expenses and that the ...
3
votes
1answer
43 views

Can I deduct IRA contribution even though job offers a 401k which I don't contribute to?

My job offers a 401k, but I don't contribute to it (because it doesn't have a match). Instead, I would rather contribute to an IRA where I can control what I invest in exactly. Here's what the IRS ...
5
votes
1answer
80 views

Is there an IRS “use or lose” it rule on taking charitable deductions up to the 50% limit of AGI?

In 2014, I made a large cash contribution to my school. (As cash, this contribution is subject to the 50% rule on deductions, not the 30% rule.) At my expected AGI, and my expected level of other ...
2
votes
0answers
39 views

How do I take the state sales tax deduction if my spouse lives in another state?

My wife and I live in two different states, and I'm currently in the process of filing our 2014 income tax return. We are Married Filing Jointly. I have income from only the state that I live in, and ...
3
votes
1answer
59 views

Estimating independent contracting taxes when I am ALSO separately a full-time employee

I currently have a full-time job where I make $80k/year. To supplement this I am going to do some independent contracting (evenings/weekends). I have seen advice for estimating taxes directed to ...
1
vote
1answer
48 views

Tax Exemptions: Live in One State, Work in Another

So I'm pretty young and don't completely understand how I should be handling my taxes. I've been burned year over year recently by being a contractor and have recently started to pay attention closely ...
0
votes
4answers
830 views

Tax me more: Can I pay extra to the government so I don't have to deal with all this paperwork? [closed]

Is there a way to tell the US government: Just take all the money you like and save me the effort of the yearly filing of taxes? Doing all this tax work is so annoying to me that I really would like ...
1
vote
1answer
88 views

Q2 income and TDS on TRACES form 16 includes only July salary?

My current employer has deducted TDS in July by error. I am below tax bar, so on my TRACES form-16 "amount paid" or "TDS" for Q1,Q3,Q4 TDS details are not mentioned. But it mentions only July's ...
5
votes
1answer
358 views

Can pretax lottery winnings be donated to charity?

Can pretax lottery winnings be donated to charity in the US simultaneously creating a deduction of the taxable lottery winnings and putting pretax proceeds to a productive cause?
3
votes
2answers
222 views

Who gets to write off (deduct) interest part of a mortgage payment?

On a U.S. Federal tax return, you can write off interest and property tax payments on a mortgage. Who gets to do that? Just the person in whose name the mortgage is? Or anyone on the title of the ...
0
votes
1answer
33 views

Tax form to prove state tax payment

My state tax for 2013 turned out to be larger then was withheld. As a result, the extra state tax I paid was included (by Glacier software) into the "Itemized deduction" line of my 2014 federal ...
13
votes
3answers
2k views

Is the UK 'Cycle to Work' scheme worthwhile?

There is a cycle to work scheme my work is offering which works roughly like so: Change some of your pre-tax salary into vouchers to use to buy a bicycle, and bicycle equipment (helmets, lights etc). ...
3
votes
2answers
175 views

Is there a way to claim a car purchase in the tax return?

I purchased a car for $19K; $6K was paid upfront, and the rest is financed over 3 years. Is there a way I can deduct the car purchase in certain circumstances? This vehicle is primarily used for work. ...
1
vote
1answer
467 views

Income tax paid in India as well as in U.S. Anyways to claim double taxation?

I had been on Short Time Assignment for 92 days (1-Jan-2014 to 1-Apr-2014) in U.S. During this period income tax on my salary (for duration of my stay in U.S) has been deducted in India. I also ...
1
vote
1answer
60 views

What is approximate tax deduction for this scenario?

I am working as software Er and my finance status is like this: Basic salary:18750 House rent allowance:7500 Medical allowance : 800 Conveyance Allowance : 1250 Special allowance : 9200 Total earning ...
3
votes
2answers
76 views

Is it possible to use a 529 plan solely for myself, without any educational expenses?

I was setting up an Illinois 529 plan recently. Contributions to the plan are state income tax deductible up to $10,000 per tax payer per year. It got me thinking: What is to stop someone with no ...
3
votes
1answer
207 views

How to correctly deduct purchase of a laptop dedicated to my consulting work?

I was thinking about buying a laptop to use dedicated for consulting. Currently I've been using the same laptop that I do my personal stuff on for my consulting work but I'd like to have a separate ...
12
votes
8answers
3k views

Mortgage or not?

I am 57, spouse 53. I lost my 30+ year business in 2009, decelared personal bankruptcy and now have only $4K in retirement accounts. The positive news is that I am employed; my income is 110K, hers is ...
2
votes
1answer
37 views

How to list child care for taxes when not married and splitting the costs?

My girlfriend and I have one child and it is my understanding that only one of us can list our child as a dependent on our taxes since we are not married. She lists him as a dependent, I do not. We ...
0
votes
1answer
40 views

Can I deduct state and local taxes on a 1040A form?

I just finished filing my 1040A tax form when I read that I may be able to deduct state and local taxes from my federal filing. I can't tell though if there is a way to deduct this on a 1040A form or ...
2
votes
0answers
22 views

Where do I deduct convention registration expenses?

My wife does direct sales as a home business and I am trying to figure out the proper place to deduct the expense of a convention registration associated with that business. It seems to me that there ...
3
votes
2answers
1k views

Underpaid federal tax by $5K in 2014 when claiming 0 with very “standard situation” (married filing jointly). Why?

Assumptions If I look at the tax brackets for 2014, if you're a couple filing jointly you have to have an AGI of more than 178,700 to start to see federal tax savings over if you were both not ...
8
votes
5answers
3k views

Do I owe taxes if my deductions are higher than my income?

My total income this year was $16,604 (wages, interest, and business income). My deductions (including IRA, personal exemption, standard deduction, and self employment tax) was $17,404. TurboTax ...
1
vote
0answers
110 views

Claiming apartment rent as unreimbursed employee expense

a friend of mine visited a tax consultant in USA. The friend is an employee of a software firm and is on a non-resident alien category visa. The consultant told him to mark the apartment rent as ...
0
votes
1answer
57 views

Resident Alien after substantial presence test, and employer did not deduct FICA for that year. What to do?

My F1 visa started in Aug 2009, so 5 years ended in 2013 inclusive. 2014 counting 183 days, I would be considered a resident, but my employers exempt me from FICA on the pretext that I was on F1 visa, ...
1
vote
1answer
56 views

Changing jobs but ended up in same city after moving away for a month. Can I deduct both ways?

I'm referring to the moving expenses deductions listed here: http://www.irs.gov/publications/p521/ I lived in City A for 1.5 years, briefly moved to City B for about a month (never established ...
2
votes
1answer
47 views

Is my contribution to my company pension plan (not RRSP) considered tax deductible?

My employer (a big bank in Canada) has a pension plan where I am allowed to make optional contributions. There is no matching contribution from the employer, but they do already contribute a tiny ...
0
votes
1answer
81 views

Personal loans and their tax consequences?

In the year of 2014, I had some personal loans from friends, family members, ranging from $1000 to $10,000 for each loan. As a result, my business net was negative because I used the loans to expense ...
0
votes
0answers
15 views

How to book past year's transaction, performed in the current year?

I have a small business. I contributed $1000 towards SEP IRA for year 2014. However, the transaction was done in January of 2015 using the retained earnings of 2014. Obviously, this money is tax ...
0
votes
1answer
152 views

Are 401K loan repayments considered tax deductible?

I took out a 401k loan 1.5 years back for a home down payment. The loan had a 36 month term, and I was making payments thro' payroll deductions from my employer. I recently quit that job, and I am ...
4
votes
2answers
334 views

Is it true that if I work 6 months per year, it is better than to work for 1 calendar year and take a break for 1 year?

For USA taxes, if I have two choices of either working from January 2015 to January 2016 and not work for a year, versus working from June 2015 to June 2016, and not work for a year, isn't the second ...
1
vote
1answer
90 views

Is there a way to make the mortgage interest or deduction apply towards next year's tax?

This is related to USA and California tax: in 2012, I can deduct $40,000 of mortgage interest for personal income tax, and the same for 2013. However, since I worked only for 2 months in 2012, and ...
1
vote
1answer
58 views

Deducting home costs if I work from home on the side?

I have a question on how to claim deductions if I use my home as a home office. See http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns206-236/229/cmmssn/hm-eng.html Let us say ...
0
votes
1answer
29 views

Form 4797 for listed property that never exceeded 50% business use

My tax software is setting up an IRS Form 4797 for business property that is no longer being used for business. The asset in question is a vehicle that is also listed property and has never been used ...
2
votes
1answer
91 views

Can self-employed individuals deduct their mileage spent commuting to events?

I'm a self-employed individual who works in the event setup/execution/teardown industry. I am preparing my taxes and I'm trying to figure out if I can deduct my mileage spent commuting from my house ...
1
vote
1answer
54 views

Contribute to RRSP without deducting?

I am in a lower income bracket, however, like the idea of contributing to an RRSP because any earnings within the plan are tax-exempt. Is it possible to contribute to my RRSP, but not have it deduct ...
13
votes
3answers
2k views

Can I deduct a 2013 donation to charity on my 2014 tax return?

In 2013 I made a donation to a charity. In early 2014, I included a copy of the donation receipt with all the paperwork I sent to my CPA. When he filed my 2013 tax return, he forgot to deduct the ...
1
vote
0answers
114 views

Moved with my girlfriend for her new job, I paid moving expenses, which she later repaid. Can she claim moving deduction? (USA)

Moved with my girlfriend for her new job, I paid moving expenses, which she later repaid. Can she claim the moving deduction? (We're in the US)
0
votes
1answer
42 views

When filing taxes can I apply deductions of the current year for a future year instead?

I have some substantial deductions via donations and medical expenses. Unfortunately it does not seem like my income is high enough for them to be considered this year. After going through the steps ...
0
votes
1answer
48 views

Investing in EIS and SEIS

Does anyone have experience with EIS or SEIS-qualifying investments? I know the principle , I've seen a lot of videos on YouTube but how does it work for real? for example: - I'm investing money on ...
1
vote
1answer
85 views

Are health insurance premiums obtained through ACA deductible for the self employed?

This IRS article, and this answer on money.se seem to indicate that health insurance premiums are deductible for the self employed. However, turbo tax, when entering this deduction, specifically warns ...
1
vote
1answer
122 views

Recapture (repay) all or part of that credit or deduction

I use TaxAct to prepare my tax return for 2014. I got the warning below. Warning: Form 1098-T Prior Year Entries One or more of MySon's 1098-Ts contain entries in box 4 for prior year ...
4
votes
1answer
74 views

How do I deduct state tax overpayment when going from “married filing jointly” to “single”

In 2013 I was married filing jointly. We had underpaid our state taxes by $24,000 so we wrote a check to the state for $24,000. In 2014 we divorced, and are filing separately. The $24,000 can be ...
1
vote
1answer
148 views

Can I claim a child as a dependent on my tax return as a J-1 visa holder?

I'm at loss how to proceed here. I'm a J-1 student graduating with a Ph.D. in May. The whole previous academic year I've been abroad working on my dissertation. My wife has had a J-2, which expired ...