To be used for any question related to tax deductions.

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1answer
14 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 ...
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1answer
183 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 ...
5
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1answer
340 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?
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2answers
211 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 ...
2
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1answer
158 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 ยง 988 - Treatment ...
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1answer
105 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 ...
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1answer
23 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 ...
2
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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 ...
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1answer
57 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 ...
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1answer
72 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 ...
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2answers
429 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 ...
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2answers
168 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. ...
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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). ...
1
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1answer
139 views

Principal amount on house loan shown in saving 80C

I booked a property in April 2014. This property is under construction. I got a loan on this property and paid EMI from May 2014 with Principal amount and interest I want to know:- Can I get benefit ...
1
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1answer
139 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 ...
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1answer
74 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 ...
3
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2answers
74 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 ...
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1answer
167 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 ...
3
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1answer
199 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
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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 ...
0
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1answer
39 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 ...
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3answers
133 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 ...
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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 ...
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4answers
2k views

Property Tax Deduction in Illinois After Home Sale

We sold our condo last year in Chicago. Whether this is common knowledge or not, Illinois residents pay property taxes in arrears. At the closing, the seller pre-pays a prorated amount of taxes for ...
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2answers
966 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 ...
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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 ...
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0answers
93 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
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1answer
51 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, ...
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1answer
54 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
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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
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1answer
74 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
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1answer
106 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
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2answers
293 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 ...
0
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0answers
14 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 ...
4
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1answer
21k views

Tax implications in India for sending money to India from US

I am planning to transfer around $8K-10K in my parent's bank account(Joint bank a/c) in India . I have read a lot of posts(like Will I have to pay taxes in India when I transfer money from a US bank ...
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1answer
55 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
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1answer
25 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
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1answer
82 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
50 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
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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 ...
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0answers
104 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
41 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?
0
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1answer
46 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
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3answers
261 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 ...
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1answer
80 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 ...
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1answer
124 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
72 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
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1answer
288 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 ...
3
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1answer
66 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 ...