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Questions tagged [tax-deduction]

To be used for any question related to tax deductions.

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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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1answer
25 views

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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Property purchase Abroad. Tax deductions

I live in US. I purchased a couple properties a few years ago abroad. I did not take mortgage. I paid it from my savings account abroad. I heard we can claim tax deductions even for the past purchases ...
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1answer
214 views

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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1answer
39 views

Standard deductions for resident alien J1 w/ tax treaty

Someone with a J1 Scholar visa becomes a resident alien for tax purposes in the US on Jan 1, 2018 (following the two calendar years' rule). Still, under the saving clause, it may be possible to claim ...
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1answer
40 views

Business losses for expenses incurred by a foreign contractor

I am a resident of California (Green Card holder), and started a new business in 2018 to evaluate an idea I had. It was not registered in state of CA as I was not sure how far the idea can go. Anyway, ...
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3answers
82 views

Deferring a W2 income to another year for tax return filing

I worked for 3 companies in two states. I moved to my current company on Dec 1, 2018. I got bonuses and sign-on bonus from all 3 companies (although I returned the sign-on bonus to one because I left ...
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0answers
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Is there a personal tax liability on corporate ESA contributions?

According to the IRS publication on Coverdell ESA, https://www.irs.gov/taxtopics/tc310: You may be able to contribute to a Coverdell ESA to finance the beneficiary's qualified education expenses. ...
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2answers
152 views

Can I deduct wages I pay to my personal assistant?

Imagine I have a personal assistant, ie, an employee or independent contractor who helps me with my personal tasks, eg, booking personal travel, running personal errands, purchasing personal products &...
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Is the principal on student loans tax deductible in Canada?

A friend was suggesting to me that it would be wiser for me not to spend money that I am currently earning, since as a student, I am in a very low tax bracket / below the lowest tax bracket. Their ...
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1answer
78 views

Freelance Writer / First Year Paying Self Employment Taxes

This year I pay taxes on income earned in 2018 for freelance work I did for a foreign company. According to the IRS, because this was my first year, I didn't have a previous years income for quarterly ...
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1answer
78 views

Do I report gross income or the total after taxes when reporting earnings?

When reporting to the Social Security Administration do I report gross income or the total after tax deductions? I will be holding the amount for taxes until "tax season". I report monthly to the SSA ...
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5answers
987 views

charitable donation values for medical devices/gear

I made a donation to Goodwill that included 2 back braces and a foam wedge used for exercising. How can I estimate a value? Most of the valuation guides cover clothes / appliances / furniture / ...
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2answers
79 views

Better if parents claim me as a dependent or I get the education credits?

Which route would offer more tax credits for the family? I claim $10k+ of education expenses and receive credit by filing as parents can claim me but won't. My parents claim me as a dependent and ...
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3answers
101 views

Non Tax Deductible funds accidentally put into traditional IRA

This last calendar year (2018) I opened up a traditional IRA and contributed $5500. However I did not do all my homework and discovered, after the fact, that money is only tax deductible if I don't ...
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2answers
341 views

Why do we pay taxes on something that we can later deduct from taxes?

I live in Germany and have been asking myself this for quite some time. When I hire and pay a craftsman in Germany, I pay taxes. These taxes are paid by the craftsman to the state. At the end of the ...
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207 views

Form 8936 for 2018- Qualified Plug-in Electric Drive Motor Vehicle Credit

I have been looking for form 8936 for 2018 in order to file my tax returns but have been able to find only the one for 2017 as below. https://www.irs.gov/forms-pubs/about-form-8936 Is there an ...
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1answer
36 views

Contribution limits and deadlines for HSA clarification

Taken from here. Partial Year Contributions If you establish an HSA by at least December of any year, your maximum contribution is the maximum amount (described above) for that calendar year. ...
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1answer
65 views

Two jobs in two cities - tax deductible travel expenses?

I'm considering the following scenario for employment and wondering how it will affect my taxes. I am a resident of a large city, say Las Vegas, and am considering commuting to another distant city, ...
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1answer
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Will I have to pay taxes if there are more than 10 lakhs worth of transactions?

I am a CSE student in a college Andhra Pradesh, India. My friend and I have created a web application to automate hostel payments with which students can pay their bills monthly. We use the PayTM web ...
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2answers
70 views

IRS Tax Rules for Capital Gains on Sale of Stock

Bob has a stock that is worth 50% more than what Bob paid. Bob would like to avoid paying tax on the gain so he donates 10% of the shares shares to a charity through a donor-advised fund. Bob decides ...
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1answer
52 views

Can I deduct 529 college savings plan contribution from California income tax as a gift?

When I contribute to a 529 college savings plan, can I deduct the contribution from my California income tax as part of the gift tax exclusion (up to $15000)?
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1answer
33 views

How Much tax we can save by investing in ELSS Mutual Funds

If Mr.ABC's Taxable income is 3Lakh , than his Auditor telling he need to pay 22,000Rs tax in FY 2018-19, so if he invest 50k or 1 Lakh in ELSS Mutual funds, than how much tax he will save ?
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8answers
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Why did the federal government ever allow taxpayers to deduct their state taxes from their federal taxes? [closed]

At the end of 2017, President Trump signed into law the Tax Cuts and Jobs Act with among other things eliminated the federal tax deduction for state taxes paid. Essentially, the federal government ...
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0answers
49 views

Roth IRA Conversion vs Recharacterization

Despite trying to hit the nail on the head, I managed to put more into my Traditional IRA for 2018 than I will be able to deduct due to Traditional IRA phaseout limits. The last thing I want is to ...
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1answer
60 views

Does a gain in one brokerage account and a loss in another brokerage balance each other out for tax purposes?

I have different investments in two different brokerage accounts A and B. Investments in A are up 500 and in B are down 500. If I were to sell both of these in the same year (without any other losses ...
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1answer
39 views

Reduce LLC profits by putting towards spouse's IRA?

I have a full time job. I also own a LLC (sole proprietor). I have some profits from my LLC this year. My spouse and I file jointly. My spouse is not currently employed. Can I move the profits from ...
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0answers
30 views

Can I Expense Reimbursements To An Employee Who Received Medical Treatment In A Foreign Country?

I have an employee who was sent to a foreign country on a business trip. He got in an accident while he was there and had to be treated at a hospital. Since he was there on a company trip, we ...
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1answer
96 views

Medical expenses tax deductions - billed vs. paid

In the USA, total medical expenses above a threshold may be deducted from taxes. If a medical expense occurs in December and the bill is paid in January, for tax purposes, does this expense occur in ...
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2answers
440 views

Can I purchase gift cards this year and deduct as a business expense, and spend the cards next year?

If my friend was to buy 5k in Amazon gift cards for himself before the year end knowing that he was going to spend those during the 2019 fiscal year, with the idea that he would be writing this off as ...
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1answer
50 views

On what amount am I supposed to pay VAT for sales?

My question comes after reading this article about Amazon paying just £15 million in tax for European revenues of over £9 billion. Here, I am confused about when businesses pay VAT (VALUE ADDED TAX). ...
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1answer
125 views

Taxes - Extra money at the end of the year

Background I run a small business and we have a fortune 500 company as one of our clients. This is great and all except that they push us around as far as finances are concerned. They always pay, but ...
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1answer
29 views

Identifying the field for Lohnermäßigung/Steuerfreibetrag in the official German tax deduction spec

In Germany, you can get kind of discount on your tax if you are paying for a Kindergarten. This is called in general Lohnsteuerermäßigung and gives you a Steuerfreibeitrag (there are obviously also ...
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1answer
65 views

Which is the correct source for the correct German Lohnsteuer deduction?

Coming from here, I have now the following data and must say I'm quite puzzled. Which value is correct now? #1 Given the reference data from a German software company specializing on tax software. ...
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1answer
125 views

Calculated 30% return from opening 0% promo credit cards for charitable contributions, is this right?

TL;DR Just how good is doubling up itemized contributions in 2018, using that to meet minimum spend for credit card bonuses, and taking the standard deduction in 2019? With the US tax code changes in ...
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1answer
260 views

How to take advantage of a no-income year (taxwise) when you could sell stock with capital gains?

I didn´t have much income this year, so I was thinking of selling any stock with capital gains. The purpose of this sell is to take advantage of the standard deduction and the 0% tax on capital gains ...
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1answer
154 views

Tax deduction macros in Python for Germany

I work to implement a set of German tax deduction macros in Python for private use and have some errors, one of my troubles is correct deduction of Lohnsteuer. There are quite many online calculators ...
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1answer
60 views

Can I claim management fee as business expense?

Location is New Zealand. I have an agency that looks after a rental property for me, and they charge me management fee every two weeks. The tenants pay the agency rent, the agency deducts their ...
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1answer
132 views

Self-employed, Medicare, Retiree: Box 5 on 1099-R is empty; is health insurance deductible (1040, Line 29)?

If Box 5 on a 1099-R is empty, does that mean that health insurance premiums for a self-employed retiree can be deducted on line 29 of the 1040? (Assumption: All other requirements for 1040 line 29 ...
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2answers
73 views

Optimizing property insurance payments for tax purposes

I own a residential rental property in the United States. I recently received the bill to pay the property insurance on it. The bill can be paid in full this month, or I can pay it in monthly ...
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2answers
60 views

How are deductions divided between ordinary income and long term capital gains?

The question applies to the US federal income tax for tax year 2018. To make things concrete, let's suppose I have $50k in ordinary income and $50k in long term capital gains. I plan to use the ...
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0answers
38 views

Can I claim standard business expenses incurred earlier than the date my LLC was formed?

I want to form an LLC for my web development business. However, I incurred a bunch of expenses during the year that I'd like to be able to deduct. I know you can claim startup costs, but these are ...
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0answers
29 views

I own a corporation taxed as an S corp which hires me to do web development/consulting. Does the company income qualify as QBI under the TCJA?

In defining a "qualified trade or business", the Tax Cuts and Jobs Act (TCJA) excludes a "specified service trade or business" and lists "consulting" in its list of disqualified business types. But ...
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1answer
87 views

Do I not qualify for any education tax breaks?

I'm planning on going back to school for a graduate degree. Looking at the different tax breaks I could find related to education: The American Opportunity tax credit: This is not an undergraduate ...
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1answer
165 views

If a church does not ask for 501(c)3 exemption, are charitable contributions to it tax exempt?

In the United States, most churches file for 501(c)3 tax exemption. Some churches choose not to, sometimes as a matter of belief that they should not be "licensed" in any way by a government. It is ...
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1answer
64 views

How can all medical expenses be deducted from taxable income for a business with owner and 1 other employee?

How would I best set things up so as to fully fund my and my employees healthcare and reduce taxable income. I am am considering forming an LLC or S-Corp but don't know the pros and cons in this ...
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1answer
406 views

Mortgage interest tax deduction

I am having some issues figuring out how the tax deduction for mortgage interest works. This is for California, USA I have a home that I bought for $807,000, with 2 loans: $645,600 at 4.5% $80,700 ...
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2answers
71 views

Calculate order discount correctly when Tax is set per unit?

I'm sure this has been asked before, but I could not find an answer when I searched. Lets say I have an invoice with 3 line items shown below (All excluding tax) SomeItemOne - Cost:£2.45 | Qty:1 ...
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0answers
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Tax deduction for work-space-in-the-home expenses

For reference, I am in Ontario, Canada, I am an hourly non-exempt employee (T4 is issued every year, entitled to overtime pay if working more than 8h a day, 1.5X pay + statutory holiday pay [such as ...
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3answers
6k views

INR 10 million borrowed from friend at 7% interest per annum

If my friend transfers INR 10,000,000 into my bank account and we make a legal document for the same to return the amount at 7% per annum for next 12 yrs, should I pay tax on the same? If my salary ...