Questions tagged [tax-deduction]
A tax deduction is a deduction that lowers a person’s tax liability by lowering his taxable income. Deductions are typically expenses that the taxpayer incurs during the year that can be applied against or subtracted from his gross income in order to figure out how much tax is owed.
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Is the Qualified Business Income (QBI) deduction computed with or without the Standard Deduction removed from business income?
I received a notice from the IRS this month:
We changed the amount claimed as your Qualified Business Income Deduction because there was an error in the computation.
The difference is in the ...
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How much is paid in taxes if the Homeowners Tax Deduction equals a person's Income Tax amount (USA, FL)
I was wondering how much of a yearly tax payment could be deducted using the homeowners tax deduction. I know that the policy allows for a deduction of the interest payments amount for up to $750,000. ...
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First salary in UK
I hoping to get some informations on how the tax system works in UK. Basically, this is my first job here, I haven't worked before April. I have a basic gross salary of £41,600 and I pay 4% as a ...
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Do you need to pay taxes on income paid outside the US?
Non american here. I currently work in a country outside the US in Country A. I have a company training for 10 weeks coming up that is in the US office. During the time, I will be getting paid the ...
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Can medically required blood donations (phlebotomy) be tax deductible?
Can medically required blood donations (phlebotomy) be tax deductible when the blood center sends it to area hospitals? This isn't a typical blood donation that I know is not tax deductible. I have to ...
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How much of a mortgage should I take on to maximize my 5 year financial plan?
I'm trying to insure that I understand US tax laws with regard to itemization and mortgage interest, in order to calculate whether to take out a mortgage in order to maximize my 5 year gains with the ...
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Can one claim charitable contribution deduction for data donation?
If one paid some amount of money to acquire some data, then donate the data to a qualified tax-exempt organization, can one claim charitable contribution deduction for it in the United States?
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How does NPS Tier - 1 80CCD work?
Conditions:
NPS Tier-1 contribution from salary per year > 60000
NPS Tier-1 contribution from company per year > 60000
Question 1:
How much amount is counted for 80CCD? Is it just salary or also the ...
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Can I transfer, in 2019, my tuition tax credits from 2009-2015 to my parents who paid all tuition?
From 2009-2015, I was studying in Ontario universities, and made no income. My parents paid all my tuition. I filed my taxes, but didn't know that I could claim tuition tax credits.
u/pfc-toss ...
user40269
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Can GST tax input credits be claimed for Meals and Entertainment which are 100% deductible for income purposes?
Typical meals-and-entertainment operating expenses for business are limited to a 50% deductible towards income calculation. There are exceptions. The rules listed by the CRA allow higher percentage to ...
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Student loan tax deductions when married filing jointly in United States
My spouse and I received a chunk of cash that we would like to use to pay off student loan debt. The cash is not enough to pay off both of our loans. If we simply put the cash towards the highest ...
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Is it possible to change the second (or residual) beneficiary of a CRUT?
A CRUT is a Charitable Remainder Unitrust, which usually has as its first beneficiary the person who set up the CRUT (the settlor), and which may (but is not obliged to) have as a second beneficiary a ...
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Is it possible to refund semester fees via income tax return in Germany?
Colleagues at work mentioned that semester fees for the Master studies can be declared for the tax return as for the position that we have at work, having a Master degree is mandatory.
Can someone ...
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How much can I deduct for my home office?
I'm a sole proprietor with an office in my apartment and I'm confused on how to calculate my deductions. Suppose the office is 300 sq ft. The apartment is 600 sq ft. Rent is $2000 per month.
I see I ...
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Understanding how the german tax system works [duplicate]
I hope that you can help me understand how the German tax system works.
I recently found a job in Berlin with a yearly gross salary of 68000. I am married (we are both Spanish) but my husband is ...
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What's the point of a 20% (alias 16.5%) VAT flat rate in UK?
The normal VAT in UK is already 20%.
Note that 16.5% VAT flat rate for £100 is not £16.5 but £20.0. HMRC does not calculate like any other country I know. The 16.5% is calculated on the invoiced ...
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HMRC Tax Returns for following year
If my startup business is running at a loss after adding costs of supplies and money come in, how would this affect income tax in the following year?
As any gains in the following year would need to ...
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Can I withdraw Small Overcontribution from RRSP?
My contribution room for my RRSP is 23.5k, I accidentally contributed 25k though. I realize my over-contribution is within the 2k that CRA allows, but I would prefer to keep the extra $1,500 outside ...
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Understanding tax benefits of NPS in India
This link says following:
Under Section 80CCD (1b): In budget 2016, the government had introduced additional tax benefit for investment up to Rs 50,000 in NPS. If the taxpayer contributes more than ...
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Can one deduct lawyer consult fee less than $1000 for ex-employer's threat letter related to confidentiality in 2018 taxes?
Someone I know paid around $1000 last year to consult lawyers regarding a threatening letter from a former employer related to company confidential information where they threatened lawsuit and ...
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Is the Standard Deduction better than Itemized when both are the same amount?
For 2018 the standard deduction is $12,000 for individuals, $24,000 per household. If someone's itemized deductions equals the standard deduction, or is very close, which one is better to take?
For ...
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Can an IRA contribution be made on the same date of the tax deadline and still count for that tax submission?
The deadline for taxes and IRA contributions for FY2018 in USA is April 15, 2019. If I haven't made a contribution yet for FY2018, can I go to a bank on Monday, April 15, 2019 and make a contribution ...
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In the U.S., can I deduct coffee as an expense if I am a self-employed software developer?
I work in coffee shops every day as I develop. Coffee shops have an unwritten (sometimes written) rule that you cannot use their wifi, power, and bathrooms without buying something. Because of that I ...
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Can a full time employee who also owns a side LLC claim "self-employed" deductions?
I am working full time for a corporation in NYC (I have w2). I also own my own side Educational LLC (EdTech) which has claimed $0.00 in income for 2018, but has accrued several thousand in startup ...
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Can a nonresident alien claim the NY State Standard Deduction (2018)?
Can a nonresident alien (Form 1040-NR-EZ) claim the NY State standard deduction or does he/she need to claim itemized deduction (like on the federal return)?
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Tax preparer for my parents claiming me as a dependent
My parents run a family farm, and use a professional accountant to keep track of the business, and also prepare their taxes. However, he (the accountant) wants me to amend my tax return so my parents ...
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Are out of pocket hotel expenses deductible in this case?
My wife and I both have professional jobs and make pretty good money. My wife also got a part time job (W-2) at a ski resort this winter, mostly for fun, and was paid hardly anything (and only worked ...
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Are tax years 2016 & 2017 back taxes deductible for tax year 2018?
If someone, in 2018, pays taxes, including interest and penalties, owed for tax years 2016 and 2017, then can that person claim a deduction for the paid taxes, only the original amount and no the ...
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Expenses deducted on tax return with no proof. What should I do if I get audited?
I just filed my tax return for the 2018 tax year (NETFILE, with StudioTax). I work 100% at home, and I rent the place from a landlord. According to an agent of the Canada Revenue Agency, I am allowed ...
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Standard deduction V. mortgage interest deduction - is it basically only for the rich?
In the USA experience:
I find the whole "mortgage interest deduction V. standard deduction" issue confusing.
Here's how I understand it:
Everyone gets a $24,000 deduction. Great so far.
If you like,...
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Using the gift exception to get more money to charity
Like most middle class families after the 2018 tax code changes, even with a mortgage I'm very far from being able to itemize. Looking at how to optimally give to charity, it seems like a shame to not ...
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If you take the standard tax deduction, can you still claim the Child Tax Credit?
If you take the standard tax deduction, can you still claim the Child Tax Credit? I can't find the answer with Google.
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Sold wall map as fundraiser for a 501c3 non-profit. Need to report on tax returns? How?
In my spare time outside of my full time job, I produced a wall map for as a fundraiser for a 501c3-registered non-profit organization. I then sold the maps via FundRazr.com and money from sales was ...
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Tax Return Married NRA: Is Glacier Tax Prep fill the 1040NR out correctly?
I am an F1 student (NRA) and Married. Based on the new 1040NR(-EZ) instruction a married NRA cannot claim more than $5,000 deduction (1040NR Instruction).
Glacier Tax Prep is a software provided to ...
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Are cash contributions to my church tax deductible?
Last year I contributed to the offering in church every week. I have few questions regarding this. I am not that rich, so I contribute whatever cash I have in my wallet. Can I enter this amount on my ...
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Can I deduct mileage if I'm a contractor who works at home and at an office?
I am a contractor and get a 1099. I perform some work at home, but much of my work is done at the office of the company I contracted with, and I drive to and from this office several times a week.
...
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Why is it mandatory to depreciate a rental property?
I don't understand why an investor is forced to depreciate a rental property. In many cases (say for an investor with one rental unit only) the depreciation amount is less than the standard deduction ...
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Should I pay off my home mortgage due to TCJA cutting SALT deductions?
Definition
Under prior law, in addition to being allowed to deduct 100% of state and local income (or sales) taxes, homeowners could deduct 100% of their state and local personal property taxes.
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How can a $10M deduction be worth $4-5M to a wealthy taxpayer?
I have a question about an answer that I read on Reddit's r/eli5 (Explain like I'm five) subreddit. The question was "How do rich people use tax donations as write-offs to save money? Wouldn't it be ...
user10763
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In the US, is cancer medication (for a parent living in South America), tax-deductible?
The cancer medication of my parent costs 10,000 USD a month. I would like to pay for this, but I wouldn't have enough money to live off of myself. I was wondering, would the expense would be tax ...
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Should I choose Itemized or Standard deduction?
I see I am saving more when I choose Itemized deduction, even though its less than standard deduction. Is that normal? And in this case should I choose itemized and disregard recommendation of Turbo ...
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1098-T with scholarship listed this year 2018 as "billed" but tuition was reported on 2017 year's 1098-T as "paid"
This is very confusing. I'm required to report the Tuition and Scholarship from my 1098-T. I paid the full year's tuition in 2017 (fall and spring 2018) so no Tuition was billed for 2018 (well ...
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How to deduct subway commuting and rent as a part-time remote contractor on a 1099-MISC?
I am working on a 1099-MISC as a consultant to a tech company. As an independent contractor, I decide the locations from where I provide my services.
Most of the time, I am on site at the business ...
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Calculating Interest Paid for Federal Deduction on a UK Student Loan
My spouse has a UK student loan. The loan has a 1.5% interest rate, and you only start repayments once you earn over a certain threshold. They do a calculation of how much you need to repay which I ...
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Can you claim past unclaimed expenses from previous years on a rental property?
My question is the following:
Let's say I have some repair renovations that were performed in 2016 that I never claimed in the 2017 tax year (because I had enough expenses to fully balance out the ...
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Write off accrued interest from interest income
My mother purchased a US government bond maturing 2019/04/15. The purchase date was 2018/04/13, so there were 2 interest payments attributed to 2018 (2018/04/15 and 2018/10/15), but the interest ...
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Self-employed: claim CPP for self on Line 9060 of T2125?
In Canada, self-employed individuals have to contribute more to the Canada Pension Plan (CPP): we have to pay both the employee and employer amount. Whereas employees just pay their employee amount ...
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Can I take self-employed health insurance deduction?
I am trying to figure how much of my Medicare premiums and Medicare Advantage (MA) premiums qualify as self-employed health insurance deduction (SEHID) "above the line" on line 29 of Schedule 1.
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Qualified Business Income Deduction (QBI)
Where is the Qualified Business Income Deduction (QBI) calculated or deducted? I'm using a free service online, but I'd also like to manually fill out the information to double check that I and the ...
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Not entering info on tax return
My wife and I make too much to get any deduction for our student loan interest. Our situation also puts us in the Standard Deduction, and we arent itemizing. Question is, do I need to enter all our ...
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