To be used for any question related to tax deductions.

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4
votes
1answer
99 views

What does this 401K statement mean?

"Your employer will match up to 10% of your compensation that you elect as pre-tax contribution. When you contribute to your plan, your employer matches 50% of the first 10% of your pay." I don't get ...
1
vote
0answers
10 views

Does dividend payments to a holding company invoke tax in Australia

I've been doing some reading about holding company tax law, and from what I've read, most of the time when dividends are paid from a operations company to a holding company there is no tax. But I can ...
5
votes
1answer
48 views

Married filing separately - Can I take standard deduction if spouse has zero itemized deductions

I read on IRS website "Your standard deduction is zero and you should itemize any deductions you have if: Your filing status is married filing separately, and your spouse itemizes deductions on his or ...
5
votes
1answer
300 views

Can I use an HSA to pay financed payments for LASIK?

I understand that an HSA can be used for qualified medical expenses, and that LASIK falls under this category. I'm considering getting LASIK done and would like to use my HSA to pay for it. However, ...
5
votes
1answer
94 views

Tax deduction for rental repairs after tenant moves out?

I purchased a home last July and began living there, while renting out a second bedroom in the property to a friend. I am now getting married in August, so the friend has moved out to his own place. ...
6
votes
1answer
63 views

Can I deduct my individual Health Insurance Premium in Tax

I have a my own LLC and working as self employee for this company. I am working on 1099 for this company. Since there is only 2 employee (including my spouse), I can't take health insurance from my ...
1
vote
1answer
60 views

Why does the IRS only allow for the itemized deduction of one type of state tax?

I was thinking about this after reading this excellent answer to another question. Excluding the obvious cynical answer (to bring in more tax dollars), what is the logic behind the IRS allowing a ...
34
votes
5answers
6k views

Why are businesses allowed to deduct expenses from their income, while individuals generally cannot?

In general, it's an accepted principle that businesses should be allowed to deduct expenses. How did this principle come about? And why doesn't it appear to apply to individuals to the same extent? ...
15
votes
1answer
2k views

Will I owe any taxes if I can write off every cent?

Does anyone know if I will owe any taxes for my small business if I can write off every cent? My business is based in the United States. I started a small web design business this year and anticipate ...
1
vote
1answer
55 views

Tax rebate on home loan

I am govt. employee & got a home loan from SBI to construct new building on my mother's property and map also passed in name of my mother . I am borrower and she is co-borrower on the the loan. ...
12
votes
2answers
1k views

If I donate depreciated stock to charity, can I deduct both the market value and the capital loss?

I have stock that's depreciated in value since I bought it. Just to make up some numbers, I paid $8000 for it, and it's worth $1000 now. If I donate the stock to charity, can I take the charitable ...
0
votes
1answer
24 views

Does hitting one type of deduction cap exhaust deductions for other types of donations?

For appreciated securities the IRS allows certain caps on how much of AGI can be deducted. Here is a chart: http://www.nptrust.org/donor-advised-funds/daf-vs-foundation/ The short version is 20% (of ...
3
votes
1answer
153 views

Claiming business expenses for a business with no income

I'm currently working on a web application on the side to turn into a business one day. I probably spend upwards of 20-30 hours a week working on it (I would like to spend more but not ready to quit ...
0
votes
4answers
63 views

Tax on Stocks or ETF's

This is a really stupid question, but just to confirm: tax (credit) is accessed only on the realized capital gain (loss) from selling of stocks or ETF's, correct? To answer the question from the ...
3
votes
2answers
70 views

Opening and funding an IRA in three days - is this feasible?

I'm doing my taxes. (I'm doing them really late this year because I became an independent contractor and I've been paralyzed by fear - I've procrastinated quite a bit.) Turbotax is telling me that I ...
5
votes
1answer
209 views

Do I need an official receipt to claim a charitable tax credit?

I made a charitable donation in December of last year, and have yet to receive the official tax receipt for tax-return purposes. Contacting the charity, I was told that the receipts had already been ...
5
votes
2answers
146 views

Is there a tax deduction for renting office space in service of employer?

Can I get any kind of tax deduction for paying rent on office space that is entirely in the service of my employer? Let me explain: I work remotely. My company is in California, but I presently live ...
-2
votes
1answer
99 views

Roth conversion: US tax brackets for Non-resident Aliens (residing in India)

Question 1: If I move money from a traditional to roth IRA (or pretax 401k to roth) account, what are the US tax brackets? Are there any standard deductions? Will I have to pay any taxes in India for ...
0
votes
1answer
29 views

How do self employment equipment/software deductions work?

General tax-related question, here. Let's say I do freelance work and need to buy special software or equipment to do that work. When I claim that work as income and pay taxes on it, I know that I ...
2
votes
1answer
171 views

Do the FATCA laws also relate to individuals incomes?

I'm wondering about the American FATCA laws which apply various tax rules on American citizens' foreign accounts around the world. Except for tax withholdings from investment income, does this law ...
1
vote
0answers
73 views

Why isn't student loan interest deductible for married filing separately?

I understand one of the qualifiers for taking student loan interest deduction, as outlined in topic 465, among other places, is that you are not married filing separately. I always assumed this was ...
0
votes
1answer
67 views

Can I claim a tax deduction for college tuition paid but was then reimbursed by my company?

I paid the college tuition for my kid with my credit card and I have received the corresponding form for the tax deduction from the college. However, my employer has the benefit to cover the fee. In ...
7
votes
1answer
188 views

What are the consequences of being claimed as a dependent in the US?

What are the consequences of being claimed as a dependent (for the dependent that is) in the US?
2
votes
1answer
77 views

401K participant for part of year - Can I contribute to an IRA?

I have participated in my previous employer's 401K plan (traditional and Roth) for three months of 2014. My new employer does not allow participation in their plan until one year of service. Can I ...
3
votes
1answer
59 views

Can I claim a dependent care credit for a dependent autistic adult?

I am preparing 2013 tax return forms. Here is the thing: I took the kid to autism therapy several times, and a related conference. I also took the kid to an autism training organization and paid the ...
5
votes
1answer
56 views

Home office deduction using simplified method & expensing of non-permanent office modification?

This year (2014) I'm planning on taking a home office deduction as I have recently become an independent contractor doing computer programming. I have set up an area in the basement about roughly 300 ...
0
votes
1answer
109 views

If I own 50% of the house, and my partner rents the home how is the rental income taxed?

I own 50% of a home, which I would like to use to write off the taxes, as I will be paying the bills. The other person invested 50% up front and they would like to rent out a room in the house. If ...
4
votes
1answer
194 views

Rollover IRA vs traditional IRA (can I make contributions to the rollover IRA?)

I am single and used to contribute to a Roth IRA (my last contribution was years ago), but now my AGI is over the limit to contribute to the Roth. I have a "rollover IRA" that I opened a few years ...
5
votes
1answer
120 views

Is the interest on a non-bank loan for a house still considered tax deductible?

I'm trying to buy a house that's listed as not inhabitable in its current state. I want to buy it so I can repair it and live in it. I have all the financials I need, and I have excellent credit, but ...
1
vote
1answer
160 views

If you hire a tax attorney to do your OVDP paperwork, are the fees tax deductible?

I know that tax preparation fees are tax deductible in US federal taxes, but I'm not sure if the failure of FBAR and reporting international passive interest income (followed by a subsequent ...
3
votes
1answer
589 views

When claiming a moving expenses tax deduction in Canada, does order of events matter?

I know I can claim moving expenses if I move because of a new job. But does the sequence of events matter? While I'm doing interviews, I'd like to sell my house and buy my new house in the new city. ...
1
vote
1answer
83 views

Tax Deduction under section 80C for Indian with foreign family Paying International Premium

I am Ronit, indian holding indian passport. My family, my wife and kids are foreign nationals and holding foreign passport. I have purchased insurance from AIA and I am paying insurance premium for ...
0
votes
1answer
232 views

Are Credit Card statements sufficient for receipts to itemized deductions?

I was wondering what the general consensus is on using a credit card statement as a receipt. Only for purchases that are clearly for a specific vendor and/or related-expense. Not just a general ...
1
vote
1answer
50 views

Can I legally include an expense made to a school that was later refunded? (American Opportunity Tax Credit)

This is ethically questionable, I'm sure of that. However, this is an expense that was made and should be, according to the information I am provided, acceptable. This is also a purchase that will not ...
2
votes
3answers
173 views

Are tax deductions voluntary?

If I did something that I know is a deductible expense and did not deduct it, is that a sanctioned tax filing? The result is that I would end up paying MORE tax. This also results in me reporting a ...
4
votes
2answers
406 views

Can I claim my parents as dependents on my tax return if they stayed with me for 5 months?

My parents are retired and support themselves with pension and savings I send them. They both stayed with me for 5 months last year in the US, but mostly spend their time in India. They both have SSN ...
1
vote
2answers
112 views

What are some quick ways to lower tax bill due this year?

I'm married with no kids and my wife owns the house we live in. We both have claimed a withholding allowance of 1 (each on our individual jobs). We both invest in our 401(k)s. I contribute 6% of my ...
1
vote
1answer
43 views

Can I deduct “Non-Reimbursable Expenses”?

I have this item in my pay stubs: Non-Reimbursable Expenses I wonder if I can deduct it. My employer told me that it is for 'legal and accounting expenses'. My W-2 makes no mention of it. The total ...
2
votes
1answer
214 views

Roth IRA vs. Traditional for married couple with AGI over $120k?

My wife and I have an AGI somewhere between $120k - $140k depending on how much I make on side gigs throughout the year. We both started new full-time jobs within the last 12 months. Here is the ...
-5
votes
1answer
798 views

If I take a loss when I sell my car, can I claim a capital loss deduction on my income tax return?

If I sell my car off at a loss, can I write that loss off against my income to save on tax? Does it matter if the car was used just for personal leisure use, or if I used the car to generate business ...
1
vote
1answer
214 views

Can I claim my girlfriend as a dependent?

My girlfriend does not work and is on disability. I think she collects $700 a month in disability payments. We live together year round. Can I claim her as a dependent on my taxes? I live in ...
0
votes
1answer
37 views

How to fill tax return for income received to paid the health insurance premiums that my spouse pays for me?

My health insurance is provided by the employer of my spouse, but my employer wanted to provide the benefit of insurance so he paid me the money that my spouse was paying, so if my spouse pays $40 for ...
-2
votes
1answer
92 views

Is the interest on money borrowed on margin in/for an RRSP considered tax deductible?

If I borrow cash in my margin trading account which happens to be an RRSP account, does the interest on that money become tax deductible from my income? I know if I put money in my RRSP from my salary ...
1
vote
2answers
63 views

Is impounding property taxes and homeowners insurance into a mortgage cost effective?

What are the pros and cons of impounding property taxes and homeowners insurance into the mortgage, for the homeowner? Are there any economic advantages to paying them separately? Tax benefits, non ...
5
votes
1answer
78 views

Are the Social Security Tax and Medicare Tax on W-2 considered tax deductible?

Are either the Social Security Tax (Box 4) or Medicare Tax (Box 6) deductible? I don't see anywhere other than line 69 of 1040 (Excess Social Security Tax) that mentions either, so I don't think they ...
4
votes
1answer
344 views

Gym membership tax deductible?

I am a self-employed contractor. My wife and I have a paid position with our church doing campus ministry at our local university. Our position is really all about contacting people and spending time ...
4
votes
2answers
155 views

Usage of non refundable tax credits

I have spent 5 years in Canada. The first four were as an international student whereby even though I did not have any significant or no income, I filed my taxes so that I could accumulate ...
1
vote
3answers
92 views

Are stores that offer military discounts compensated by the government?

I read an article on CNN titled My grocery bill will skyrocket if military stores close about the possibility of cutting back funding to military grocery stores due to government spending cuts. I was ...
3
votes
4answers
115 views

Can a company donate to a non-profit to pay for services arranged for before hand?

For example - a non-profit is in need of a website. Can a company say "StackExchange" donate to a non-profit company say $5,000 in agreement that they will spend that on paying a designer for a new ...
5
votes
1answer
71 views

How do I claim moving tax deductions in new year?

How do I claim my moving expenses incurred in 2013 in my 2014 tax return? I won't be filing 2013 tax return because I didn't work in 2013 tax year. I recently moved to US and will start job from 2014. ...