To be used for any question related to tax deductions.

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1answer
120 views

1040NR-EZ: Previous year's paid state tax & Itemized deductions

I am a using the online-tax software (Glacier) to generate my 1040NR-EZ or 1040NR form, and have paid a state tax in the previous year tax return. For this year's return, I am unsure whether I should ...
1
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1answer
43 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 ...
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1answer
162 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
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1answer
20 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 ...
1
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1answer
68 views

Tax Exemption on Home loan on property on Father's name in INDIA

We have an independent house registered on my father's name. I took a loan for construction of first floor. The bank has granted the loan after submission of documents and verifications. My father is ...
0
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1answer
92 views

Can I get home loan and claim tax benefit if I repay the loan for a property in India which is in my mother's name?

We are planning to buy a new house in India of which my mother will be the sole-owner. At present, she doesn't have any source of income. Now I have two questions in it. Is it possible for me to ...
2
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1answer
40 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 ...
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1answer
38 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 ...
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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
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0answers
76 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
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1answer
37 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 ...
2
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2answers
4k views

Are donations to public schools tax deductible like a 501(c)(3) organization?

In the United States, are donations to public schools like a local elementary school deductible in the same way that donations to a 501(c)(3) charity or a church are deductible?
2
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2answers
78 views

Under what circumstances is a membership a deductible donation?

I'm a member of the Chicago Children's Museum, which is a 501(c)(3) cultural organization. I pay $115 a year in membership dues. That membership includes free admission and a 10% discount on food ...
0
votes
1answer
41 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 ...
3
votes
3answers
226 views

How to treat miles driven to the mechanic, gas station, etc when calculating business use of car?

I have a home-based business. If during the 2014 tax year I drove a car: C miles for car-maintenance errands, B miles for business errands, and P miles for personal errands, if the total miles ...
0
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1answer
67 views

Reporting 988 transactions on tax returns?

How do you report a 988 transaction on a tax return (on which IRS form) and how do you elect it as ordinary income/loss vs. capital gain/loss? I believe its covered in: 26 U.S. Code § 988 - Treatment ...
1
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1answer
56 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 ...
0
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1answer
48 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 ...
0
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1answer
58 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 ...
4
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1answer
56 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 ...
3
votes
1answer
97 views

Unused Education Tax Credit carryover amounts in ON Canada

I am filing taxes in Ontario, Canada, using simpletax.ca which has been a super useful platform. I am struggling to understand how it is calculating my refund, however. From 2013, I have $16,473 in ...
2
votes
1answer
668 views

Tax implication for Indian citizens working in US on L1 visa

I am a citizen of India, currently working as a software engineer in India. Thus I am paying income-tax to Indian-Govt. I am moving to US in November-2014 on L1-Visa. I had following questions in ...
3
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1answer
49 views

What home expenses can I claim back from working full time at home for a business in the UK?

Our company is considering no longer having an office and making all the staff work from home. We all work primarily online running a website, so our work is done purely on a computer. With working ...
2
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0answers
49 views

Can my UK limited company claim tax relief on donations to foreign charities?

I'm English, and run a company that's based in the UK and registered with the UK Companies House. I want to donate some money to charity, but one of the charities I have in mind isn't based in the UK. ...
0
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1answer
30 views

Federal treatment of recaptured depreciation paid to DC?

Can I deduct from 2014 federal taxes the amount of recaptured depreciation paid to DC for 2013 on the sale of a property that was part rental/part principal residence?
2
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3answers
130 views

Number of postsecondary schools attended?

I use TaxAct to prepare my tax return for year 2014. Now I am working on education/tuition part. There is a field Number of postsecondary schools attended under Student Information - Qualifications. ...
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2answers
49 views

Tuition from tax deduction

I paid $2714.00 tuition for my son in 2014. But my company reimbursed me 100%. Should I skip the tuition part? My initial thought was to ignore it, but I did purchase a lot textbooks. So I have to ...
0
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1answer
85 views

Determine if my foreign taxes resulted from ordinary or qualified dividends?

My 1099-DIV lists an amount in box 6 for 'foreign tax paid'. These are a result of an emerging markets ETF I own. However, TaxAct is asking whether these are Foreign source ordinary dividends or ...
0
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2answers
54 views

Paid My Property Taxes Late--In Which Year Do I Get the Deduction?

I paid the second installment of my property taxes late for 2014. They were due 2014, but I paid them in 2015. Can I deduct them on my 2014 taxes, or do I need to wait until I file in 2015? In ...
8
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6answers
6k views

Are COBRA premiums deductible when self-employed?

Been Googling all day and can't find anything definitive. I left my job in January of 2010, and have been working on a 1099 basis since then (as a sole proprietor). I have been paying COBRA premiums ...
3
votes
1answer
216 views

Mortgage interest deduction isn't affecting total income tax refund/owed?

I am reporting 2014 tax with TaxAct software. One question is about mortgage interest deduction. We bought the house(marriage joint) on 1998. It is our main and only residence. The rough mortgage ...
1
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2answers
92 views

Working in Saudi since aug 14, am I considered as NRI and do I need to pay tax

I am working in Saudi Arabia since aug 14, am I considered as NRI and do I need to pay tax. I applied for NRE account in ICICI bank and application was processed later I was told by officer that I ...
2
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2answers
3k views

Employer is making a student loan payment on my behalf. Does this need to be claimed as personal income?

As an incentive to employment my company is making a large lump sum payment towards my student loan debt, lets for this example say $5,000 (the real amount is different). They have inquired about my ...
4
votes
0answers
56 views

Donating to US versus Canadian charities to maximizing tax benefits

I am a US citizen and I have the option to make my charitable donations in either the US or Canada for the next few years. How do I maximize my tax benefit for a fixed donation size? My ...
37
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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? ...
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4answers
545 views

Can I gift my wife 14k to reduce my tax liability?

If I can, can she use it for things like bills or shared expenses between us? If so, why aren't more people doing this? It seems like an easy way to shelter some money.
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4answers
175 views

What can I do all year to be sure I get my best tax return or at least break even?

I don't own a house, I'm not married (but I will be by next tax season), I have no stocks or bonds. Buying a new car and paying student loan interest was the only deductions I could put down. I work a ...
2
votes
1answer
106 views

Claiming car as a business expense in the UK

I am filing my tax return as a self-employed in the UK and would like to claim my car as a business expense. I have read the "Rates for cars" section of this website: ...
3
votes
1answer
114 views

How much can I deduct as far as tax preparation costs?

Last year I paid a tax preparer to prepare some back filings as well as the filing for the year prior. How much of that is deductible? US, by the way.
3
votes
2answers
109 views

How can I calculate deductible percentage of business trip?

Here's my complicated situation. My wife is an author, and when her first book came out in January 2013, she, I and our two kids went on a 7 month book tour. This was an extreme but totally legitimate ...
3
votes
1answer
108 views

Car expense deductions with multiple work locations

I'm trying to figure out the rules on deduction of car expenses as a business expense. I'm looking at IRS publication 463. Suppose that I work from home, but do not qualify for a business use of ...
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3answers
168 views

Explain me the benefit of insurance policy

I have taken a life insurance policy from ICICI called "ICICI Pru Saving Suraksha LP". The details of my policy is given below. Term: 15 years Premium Amount: Rs 50,000.00 Sum Assured: Rs 500,000.00 ...
1
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1answer
64 views

Form 16 for 0 tax payee?

I have several questions regarding tax computation, Do we have 2 form 16 for a financial year? If his salary is below tax bar, will he get the form 16? If tax is paid for 3 quarter of a financial ...
6
votes
2answers
10k views

Donation Value Of “One Bag Of Clothing”

Early last year, I donated some clothes to Goodwill and received a donation receipt for "one bag of clothing." I have no memory or documentation of exact contents to calculate an amount. Given only ...
2
votes
1answer
1k views

If my rental property income and mortgage payment are equal, do I need to pay income tax on any rent revenue?

Let's say I have a monthly mortgage payment of $1600 on a condo I own, and the condo is rented out for $1600. Then, I'm breaking even. Hence, I would not need to pay any tax on my rental income. Would ...
0
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1answer
103 views

Can I deduct money I paid to a friend to help rent out my condo?

On this IRS page it says you can deduct management fees related to renting a property. Does this only apply to professional property managers or management companies? I paid a friend to show my place ...
0
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1answer
117 views

Can an International student of F1 VISA accept money in her US bank account on behalf of someone else?

My friend is an international student from India, studying in the US (F1 student VISA). I work from India and U.S. client is about to pay me for some writing services. The U.S client agreed to pay ...
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2answers
76 views

Does an RRSP loan provide any benefit, vs. simply making monthly RRSP contributions?

While evaluating a short term RRSP loan like this one, the numbers seem good on paper. But: If I need to save $1,000 in tax deductions, I need to put the entire borrowed money into the RRSP before I ...
2
votes
1answer
899 views

How are Canada Universal Child Care Benefit (UCCB) & related tax measures changing in 2015?

Significant changes to Canada's Universal Child Care Benefit (UCCB) and related income tax measures were announced on October 30, 2014 by the Prime Minister. What exactly is changing w.r.t. UCCB and ...
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1answer
74 views

Having more tax deductables than tax paid

my income for 3/4 of the year is tax exempt, being in the form a scholarship living allowance. I expect to have many more deductible expenses, than the amount of tax I will pay. Particularly since I ...