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.

Filter by
Sorted by
Tagged with
0
votes
1answer
62 views

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 ...
3
votes
1answer
210 views

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 ...
0
votes
1answer
224 views

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 ...
8
votes
1answer
156 views

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 ...
0
votes
1answer
61 views

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 ...
5
votes
1answer
338 views

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 ...
1
vote
1answer
62 views

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 ...
0
votes
1answer
110 views

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, ...
-1
votes
1answer
121 views

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 ...
2
votes
0answers
147 views

Can an owner who rents rooms write-off an unoccupied, unfinished basement that is open to all residents as a common area?

If a rental situation is owner-occupied and areas shared by lodgers and the owner are prorated for tax purposes, can an unfinished basement, treated as a common area to all equally, also be written-...
0
votes
2answers
96 views

In GnuCash, how can I create a line item in an invoice that uses an expense account as the transfer account instead of an income account?

I am a freelancer; some of my clients pay me as an employee and some as a contractor. I have separate expense accounts for expenses I incur as a contractor and as an employee because as an employee, ...
3
votes
1answer
74 views

Setting up an HSA

I am trying to set up an HSA (obviously this is in the USA.) I have a small business with a single employee and I am pretty sure my heath insurance plan is considered high deductible (individual/...
5
votes
2answers
133 views

What is the advantage of making charitable contributions (CCs) from one's IRA over just writing checks?

From time to time, I see an enthusiastic tip about how neat it is to make one's charitable contributions from one's IRA, in lieu of taking all or a part of one's RMD. I don't see the point. The ...
2
votes
1answer
60 views

Do state payroll taxes qualify for SALT deductions?

Some states in the United States such as Washington state disguise income taxes as payroll taxes. Do payroll taxes qualify for State and Local Tax (SALT) deductions?
3
votes
0answers
44 views

Germany - Nebenbeschäftigung under 450 EUR classified as Steuerklasse 6 instead of Minijob all the time. Retroactively fixable?

I started a second employment in November 2019, with a monthly pay below 450 Euros, and I don't have any other second employments. I'm now doing my tax declarations, and I have just realized that all ...
3
votes
1answer
138 views

Cross-country mileage deduction?

My situation is not common... my lifestyle... not common. Recently the company I worked for was bought out and the two "divisions" were split into 2 companies. I assisted the 2nd division on ...
0
votes
1answer
50 views

Can a company with a non-citizen/not green card holder board member taxed as an S-Corp?

If a company has 2 or 3 board members that one of them isn't a US citizen nor green card holder, is it possible for this company to be considered as a S-Corp in the tax season? Or at least citizen/...
2
votes
2answers
90 views

Is the donation of billable or paid time of a contractor or employee tax-deductible?

In California, USA, for federal and state taxes, are services performed by a paid employee or contractor (who receives compensation for that time from the company as regular/overtime wages/salary or ...
1
vote
1answer
74 views

How to respond to CA 2020 tax penalty notice? I forgot to indicate I had health coverage

I received this mail yesterday: PICTURE OF MAIL I am a student with F1 visa status and filed both federal and state taxes for 2019 and 2020. I do have an external scholarship that includes a very good ...
3
votes
0answers
49 views

Can I deduct expenses from rental income on my principal residence without making it not a principal residence?

TLDR: can I still claim 40% of all of these expenses (screenshot from simpletax) on my taxes when renting a portion of my Principal Residence and it still be considered principal residence? and ...
0
votes
1answer
102 views

Is there an incentive for entities to take advantage of tax deductions that don't direclty benefit them?

I'm trying to validate or correct a perception I have. I believe that there is a financial benefit for entities (companies or people) to take advantage of tax deductions that don't directly benefit ...
0
votes
0answers
49 views

Is a tax deduction possible for tuition fees in Germany?

If I already have a degree, and then pursue a second degree in an unrelated field, do the tuition fees lower my taxable income? What does it depend on? For example, assume that in 2022 I have an ...
2
votes
1answer
101 views

Is the employee-paid premium on a health insurance plan that is shared with a non-dependent tax deductible?

My health insurance premium for just me is $0. If I add my domestic partner, however, the premium goes up to $190. I know I have to account for imputed income, on the basis of the additional employer-...
0
votes
0answers
18 views

If I already had taxes withheld, will I get a refund for investing in a Qualified Opportunity Zone (QOZ)?

When I sell any NSO or ISO (long and short term mixed) there are taxes withheld by the company/brokerage. In my understanding, investing in Qualified Opportunity Zones for a long term has benefits in ...
1
vote
1answer
94 views

How soon can I use 529 for paying college

I enrolled into college. I'm thinking to enroll into 529 plan to pay my college fees for the coming semester. This is with an intent that I will be able to save tax on the money used for tuition. Is ...
0
votes
4answers
164 views

Considering investing money intended for charitable donations in buying a rental property. Can I realistically make the rental a non profit?

So I currently have a large amount of money 'allocated' to charitable donations. It will include two inheritance and probably be around $200,000. In fact it's more then my annual income (around $145,...
2
votes
1answer
64 views

Can I claim tax relief for money I spend at the dentist?

(I apologize if the terminology I use is not appropriate, but finance is a topic I'm definitely not into. And I'm not native English speaker. For instance, I used the term relief because that's what I ...
4
votes
2answers
135 views

Tax implications of a UK company (owner of my US employer) paying for my rent in the US?

Let me get right to the chase. Situation: My employer offered to pay for my rent, giving me a few options to consider, and I'm not sure of the tax implications for each. Details: I live in Florida and ...
13
votes
4answers
4k views

Boyfriend buying a property and girlfriend renting, what are the possible tax write-offs?

Let's assume: Boyfriend (bf) will be purchasing a 1MM condo in San Francisco, CA. Borrowing 750K from the bank. Girlfriend (gf) lives on the property with boyfriend. GF will be paying rent. ...
0
votes
1answer
70 views

Substantiality of Economic Effect of paying 100% of all LLC expenses out of pocket by one managing member

Two partners with 50% interest in an LLC. One partner is paying 100% of all LLC expenses for the first year so expects to take 100% income or loss. This allocation is done because the other partner ...
2
votes
0answers
38 views

Is telecommuting due to covid valid for taking the home office deduction for W-2 employee for New York State Tax Return?

For W-2 employees, as far as I know, you cannot take the home office deduction for your federal return, if the reason is telecommuting due to covid. It must pass the "convenience of the employer&...
1
vote
1answer
56 views

Can you declare home office use for New York State return but not Federal?

Due to the 2018 IRS Tax Law, W-2 employees lose out on most work expense deductions including home office deduction, as I understand it. And for this year, you cannot use the home office deduction due ...
2
votes
1answer
44 views

What re the federal and Calif. solar tax credits or deductions for a solar power systems and batteries purchased in California in year 2019 and 2021?

Bought a new solar power system for my primary residence for $65k in July 2019. Then moved this year and bought a $90k system Nov 2021. I'm using Turbo Tax.
3
votes
1answer
78 views

Health Insurance Premium deduction for Husband/Wife LLC

Assume the following situation: My wife and I own a LLC in a community property state. (50/50) We are self-employed and have no employees. Under this arrangrement, business income flows through to ...
0
votes
1answer
72 views

How is the Professional Tax which I pay is used?

Doing a quick research on Income Tax, I found this on: Government utilizes this revenue for developing infrastructure, providing healthcare,education,subsidy to the farmer/ agriculture sector and in ...
-1
votes
2answers
98 views

If we form an investment company, then are the expenses deductible?

It is commonly known that if we are individual investors in the USA, then if we need to investigate smartphones and see how they work with the 7nm, 5nm chipset, or attend shareholder meetings, it is ...
1
vote
0answers
40 views

How to calculate Net Investment Income Tax: Expenses Allocation (IRS Form 8960)

In an answer to this question, @dave_thompson_085 quotes the section from the Form 8960 instructions dealing with line 9b - allocation of state tax investment expense. Reading the answer and the ...
2
votes
1answer
51 views

Can I claim EIS tax for previous years?

I wasn't aware of EIS until recently. I have some small investments through crowdcube from 2019/2020 which I haven't claimed for in my tax return. Can I include them retrospectively on my current tax ...
7
votes
3answers
2k views

Put lump sum into HSA

I have an HSA account that I currently have setup through my employer to do that max bi-weekly contribution possible, however, I have recently had some medical issues come up, and I have nearly ...
2
votes
1answer
69 views

Can charitable donations offset W-2 income taxation?

This is a bit specific for my situation but I thought giving some context could clarify what I'm trying to achieve. I live in the United States. I've always dreamt of funding my own non-profit (501c3) ...
5
votes
0answers
81 views

For 2021, What is the most Tax-Advantageous Way to Make a Charitable Donation that is Larger than my AGI?

I may be making a charitable donation this year (2021) to my school; it will be about 1.5 times my AGI. What is the most tax-advantageous way to make this donation? If I make the donation in stock ...
0
votes
0answers
24 views

How do I get tds refund when the processed ITR mentions 0 as tds refund? (India)

While filing itr the auto populated information showed that I am eligible for a refund but after the itr has been processed by the officer there is no indication of tax refund in the processed ITR. ...
3
votes
1answer
134 views

Tax deduction working from grandparents home

I am a self employed freelancer, and received several 1099-NEC from my clients. I live and work from my grandparents home (for free), and also care for them (for free), and was wondering if this would ...
5
votes
2answers
492 views

Can I deduct travel expenses even if I received a W-2?

I have a full-time job. I also work as a freelance musician playing for local theaters. One of the theaters I work for is in another city and they gave me a W-2 for the ~$1000 I made in 2020. ...
3
votes
1answer
67 views

Can an LLC be used to pay for expenses incurred before any revenue?

I want to establish an LLC for contract/consulting work, but there will be a fair amount of expenses incurred before I can hope to get some revenue. (e.g. hosting to build website, cost of software, ...
0
votes
1answer
50 views

Am I required to use form 2555 even if I earn less than the standard deduction?

I am trying to file my U.S. taxes as an expat in Sweden to try to claim the stimulus check money. I received around $5000 in student grants (which do not need to be repaid) and $5,000 in loans. I am ...
2
votes
1answer
66 views

Can the expense of one sole proprietorship be written off against the profit of another

I have a successful rental business, it's regularly profitable and it's an llc If I start another business, and that business records a loss for the year, can I write off that loss against the profits ...
7
votes
3answers
751 views

Which is best: Invest HSA money using employer sponsored account or old HSA account

Our company was recently acquired. I'll call it Company A acquired Company B. I have an HSA account with Company B. There is around $6,000 in there. Company A acquired Company B and now we have a new ...
0
votes
0answers
96 views

Can home solar power installations be deducted as a business expense?

I run computer servers at home 24/7, and my home is in California. To power them, I would like to install solar panels and home battery backup system. Can I deduct this as a business expense for my ...
1
vote
1answer
283 views

IRS Form 8960 line 9b

This is the Net Investment Income Tax to finance Obamacare. Line 9b provides that I can deduct a large part of my state income tax (the part attributable to investment income, which is most of my 2020 ...

1
2 3 4 5
19