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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Building furniture for charity -- what can I write off as a tax deduction?

(In the United States) If I buy tools and use them to build furniture that I donate to charity, what can I write off? I assume I could write off cost of tools, materials, electricity, and perhaps time ...
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Converting a De Minimis safe harbor business expense for personal use

My question is about self-employment business expenses. The De Minimis Safe Harbor election allows us to deduct the expense of items for a business, rather than depreciating them over several years, ...
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When we calculate "net income" of the S-Corp, do we take out "Profit sharing contribution 25%" as deduction?

I am trying to understand the "net income" for S-Corp (in case of opting for Solo 401(k). When we calculate "net income" of the S-Corp, do we take out "Profit sharing ...
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2 votes
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Wash Sale - Selling RSU Shares Before Another RSU Vest

I currently have RSUs that vested three months ago where the the current market price is lower than the value of the stock when I acquired it. I'd like to sell these RSUs (at a loss of about -$5,000) ...
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-2 votes
1 answer
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What are the financial benefits for a company to give out student scholarships? [closed]

I have been trying to figure out why a company would spend €100K - €200K on student scholarships. I just can't seem to figure it out. Is there any financial benefit through tax exemptions? Can more ...
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1 vote
1 answer
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How much tax return can I expect from a mortgage compared to standard deductible

I am only looking for a rough ballpark estimate. For a single Californian with 190k/yr income: Scenario 1 - all else being equal, I go with standard deductible. Scenario 2 - all else being equal, I ...
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1 vote
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Should my wife claim our child as a dependent when filing her NY state income taxes if we both live in CT and I claim the kid on our CT and US taxes?

My wife and I are Connecticut residents. I work in Connecticut, but my wife just accepted a new job in New York State. We're planning to file our tax return jointly as we have done in previous years....
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4 votes
1 answer
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Can you get a tax write off for providing software to a not for profit?

I developed an application that provides critical information in the event of an emergency for health care providers. The facility I designed it for uses it frequently but does not seem to have the ...
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Self-Employment: is equipment deductible as part of the home office deduction, or as a separate deduction?

I have a side gig and am setting up a separate home office area for exclusive side-gig use. I intend to take the home office deduction, but am not yet decided if I'll calculate it the simplified way (...
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3 answers
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Is this how you calculate how much you can deduct from itemized deduction for mortgage interest and property tax?

Say you have a following case. Married, filing jointly Home value: 1,000,000 Down payment: 250,000 Debt: 750,000 4%, 30 year loan Property tax: 8000 / year Using https://www.mortgagecalculator.org/, ...
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Income Tax Return filing for 2022: Home Office and W-2 Employee expense deductions for hybrid employees

I receive a W-2, as an employee, and I now work a permanent hybrid schedule but I can come into the office if I want to. I'm classified by HR as a hybrid employee. I know the federal home office ...
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1 answer
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Income Tax Return: Is the co-op's mortgage (not the lending institution mortgage) a secured or unsecured loan?

I have two 1098 forms: One from the lending institution and another from the Corporation. For the lending institution 1098 form, I deduct the mortgage interest and there are no real estate taxes. It's ...
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Need to amend my tax return to account for initial error reporting IRA contributions, even if tax return is correct after IRA withdrawal?

I contributed $6,000 to an IRA, however I discovered as I was filling out my tax return that I am only eligible to deduct $2,600. I will withdraw the $3,400 from my IRA (as allowed per Pub 590a), so ...
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1 answer
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How to correct or amend mistake on form 8829

I have a question regarding how to correct a mistake I made on my 2020 taxes on form 8829 regarding business use of my home. For line 38 for the value of land for my home, I indicated $0 instead of ...
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Should the box 10 of W2 include dependent care contributions made by an employee?

My employer has included both the contributions made by them (employer) and by me (employee) in the box 10. As I was not eligible to get the dependent care contributions deducted, I am paying taxes on ...
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Remodeling contractor went broke, didn't deliver services paid for - deductible?

In spring of 2021, I hired a remodeling contractor in Illinois and paid him progress payments totaling about 90% of the contract price. Then he went broke, leaving a mess, which turned out to be less ...
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9 votes
2 answers
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Married filing jointly, can one of us take the standard deduction while the other itemizes?

My spouse is self-employed and has significant expenses that he can write off, eg home office expenses. For him, itemized deductions makes total sense compared to standard. I'm also working from home (...
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Home Office Tax Deduction: Use split between WFH and side gig

Question: am I eligible for the Home Office Deduction, and if so, how to ensure I am figuring it correctly given the below? I am a software developer and have been working from home for several years ...
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3 votes
1 answer
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Private health insurance in Germany

I moved to Germany as a university professor two months ago. This month, I discovered that I am partially issured through the so called 'Beihilfe,' and that I have the option of choosing between ...
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Can I use one rental house's mortgage interest to deduct another house's rental income?

I have a questions regarding mortgage interest deductions. I have two rental properties in California. For property A, the rental income is $5000 more than total expenses plus mortgage interest, and ...
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How to track business mileage in GnuCash?

I have a small business which involves some driving to clients using my personal vehicle. I track both my individual auto expenses and my mileage in GNUCash but so far have only been using the ...
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Compound interest with compounding fee included

I have found plenty of compounding interest spreadsheets but none that include the relevant investment fee. example First column is the sub headings: A1/ Initial Principle A2/ Annual Interest Rate A3/ ...
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Is a New Jersey (United States) resident earning New York state income allowed to deduct New York State 529 contributions via form IT-203?

I am a New Jersey resident that earns New York State income, and so I file form IT-203. I noticed this year something I hadn't before - the New York State 529 website mentions (under Direct Plan tax ...
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How to determine average mortgage balance for two part-year mortgages

In US federal income taxes, the mortgage interest itemized deduction is reduced if the mortgage debt exceeds $1,000,000 (for loans taken out after 1987) or $750,000 (for loans taken out after 2017). ...
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I get a pension from having been a Federal Employee; I also work part-time for my family's business. Do I need to pay into EI?

So, I worked for the Federal government most of my life, I retired 2 years ago and I get my pension. In addition, I work about 30 hrs/week in the office of my family's business, do I have to pay EI? ...
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4 votes
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Are there things I can do during a year, before filing my previous year tax return, to reduce previous years taxes

This is about filing the U.S. Federal tax return for the previous year. Are there things a person can do during the first months of the new year, before filing the previous years taxes, to reduce the ...
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How to calculate or define moving expenses for California resident tax deduction?

Situation: I meet the distance & time test for California Moving Expenses Deduction. Move was within California, in 2021. Single person household. The distance one way is 181 miles, using own ...
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What is the SINGLE FAMILY RESIDENCE (Rental real estate, Royalties) as Qualified Trade or Business activity deduction

My tax software is asking if I want a "SINGLE FAMILY RESIDENCE (Rental real estate, Royalties) as Qualified Trade or Business activity deduction". What is this? I am renting out my primary ...
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3 votes
1 answer
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am I covered by retirement plan at work (for TIRA contribution deductibility)?

I retired early in 2021. I am trying to determine if I am considered "covered by a retirement plan at work" for purposes of the MAGI limits for deductibility of a TIRA contribution for ...
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What items can I deduct in my 1040 to increase my child tax credit refund?

The past few years I reported wages, capital gains, rent (about 20k/yr) and since we have 7 children, we haven't paid taxes and got a few thousand dollars child tax refund. The rent brings the total ...
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Where should I report HSA contributions from insurance (not me or my employer)

I make regular contributions to my HSA through my employer payroll, which is reported in my W2 at the end of the year. I also occasionally make contributions from my bank account up to the annual max, ...
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5 votes
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Can you claim a child as a dependent on your taxes if your divorce decree specifies you get to even if the child didn't live with you?

If your divorce decree says you get to claim a child as a dependent on your taxes but the child actually lived with the other parent the whole year, can you still claim them on your tax return?
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Non-deductible IRA contributions withdrawal

Last year (2020), I contributed for the first time to a traditional IRA from my savings, without knowing it would be non-deductible due to my 401k contributions. I think I read that I can withdraw my ...
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2 votes
1 answer
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US Federal Income Tax: Any tactic that will reduce probability of audit when Deductions are greater than AGI?

For 2021, my charitable deductions are considerably greater than my AGI, reducing my tax owed to zero or a relatively small number. Is there a tactic that will reduce the likelihood that this will ...
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US: carrying forward home office deduction

Business expenses in excess of business income can't be deducted the same year but can be "carried forward" and deducted in future years. However, based on a plain reading of rules regarding ...
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2 votes
2 answers
106 views

Deductability of safe deposit box rental

Theoretically, the cost of renting a safe deposit box IS deductable on federal taxes "if the box is used for storing stocks,bonds, or investment-related papers and documents." Does anyone ...
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What is sufficient evidence for Dependent Care Account reimbursement?

I'm attempting to submit a claim for my Dependent Care Account. The expenses are the salary for my infant daughter's nanny. I uploaded the pay stubs I got from the payroll company I use. However, ...
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0 votes
1 answer
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If my business organized a competition and gave winners money as prize, can I deduct this?

I'm a sole proprietor and gave out around 1000$ in prizes for my business' event, either through paypal or e-transfer. How can I deduct this as a business expense? There's not really a receipt.
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5 votes
3 answers
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Is money given to parents or others in need tax deductible?

I give $500 to my parents and $200 to someone in need each month. Is there a way to deduct that amount on my taxes? I transfer the money using Venmo and $200 using Western Union. I am in the United ...
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What value should I list for a donated C-PAP machine?

I donated a new C-PAP machine to a charity. What value should I place on it on my 2021 income tax return?
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6 votes
2 answers
2k views

Limited company expenses not allowed

A small UK limited company paid out money, but it is not allowed as expenses, either because receipts were lost, or the payment was made for things that HMRC doesn’t accept as valid expenses. That ...
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How do I deduct this donation that I made to change.org?

I just donated $100 to a cause through the Change.org website. And I will continue to donate before this year ends. How do I put that on my tax returns so that it can be deducted from my taxable ...
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3 votes
1 answer
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Do I need to sell stock to effectively use the German Sparer-Pauschbetrag (and if so, how much)?

In Germany, 801 Euros are exempt from the capital gains tax ("Sparer-Pauschbetrag"). There is a small tax on unrealized gains ("Vorabpauschale") but it is afaik negligible right ...
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Why are the deductions so high on my payslip

My base salary is approximately £110,000 and I also get an annual bonus of approximately £30,000 paid in January. This December my employer gave out a flat bonus amount of £750 grossed up, so I was ...
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8 votes
1 answer
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Are donations to OSS projects necessary business expenses for tax purposes?

I run a small business and use open source software (OSS). I'd like to give money to the OSS developers to motivate them to keep doing it. I don't get anything in return. Can I claim such a payment as ...
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0 votes
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Refinancing a house in USA from investment property to primary residence tax issues

I am buying a house (I live in USA and this whole question is about tax situation in USA). But it used to be someone’s investment property and comes with the addendum that current tenants get to live ...
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5 votes
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Do freelancers who receive a W2 qualify for home office tax writeoffs in the US?

Last year I freelanced year round in the U.S. For work performed from Jan-Oct I received a 1099-NEC (Non-employee compensation tax form) from my clients. However, from Nov-Dec I worked for a new ...
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Educational Assistance Programs For Loan Repayment

I own an S corp and I am the only employee. I think I would like to create an educational assistance program for the company to pay for my student loans with pre-tax dollars. IRS publication 15-b says ...
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1 answer
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In the UK, from where does your employer take the money to put it into your pension scheme?

I have been reading about the UK workplace pensions schemes but I don't understand them very well. What I have read is that you can choose an amount of money, which is taken from your gross salary, ...
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How can increasing the max of SALT deductions from 10kUSD to 72.5kUSD cause an average tax cut of 145kUSD for the top 0.1% earners (>1MUSD) in the US?

I read an article from Fox Business (mirror 1, mirror 2) about the proposed change to the State and Local Tax (SALT) deductions: Under the latest proposal currently being considered by the House ...
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