Questions tagged [tax-deduction]

To be used for any question related to tax deductions.

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4
votes
2answers
268 views

Deferring claim of significant purchase of RRSPs

If I purchase $50,000 of RRSPs this year, I believe that I can defer some of this purchase over the next several years. I could, for example, claim $16,667 on each of my next three tax returns. ...
6
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2answers
480 views

Is there any tax-deductible way to help fund my siblings' education?

My brother is in college and my sister is attending a private high school. I would like to help my parents pay for their education. Is there any way to do this that would be tax-deductible?
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2answers
194 views

Should I think of investing in infrastructure bonds right now?

I am a newbie as far as investment decisions are concerned. I will put a more detailed question later. Right now, I need to declare my investments for this financial year in advance. I will certainly ...
8
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4answers
323 views

What are the IRAs tax deduction limits when contributing to both Traditional and Roth IRAs?

If I fall into the phase-out range for a tax deduction on a Traditional IRA can I contribute to said account up to my tax deduction limits for said accounts then contribute the rest of my $ to a Roth ...
7
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3answers
7k views

How can I calculate the value of donated clothing for tax purposes?

I have many clothing items that I plan on donating to a local charitable/religious organization. I want to include the value of these items as a charitable deduction on my income tax, but I don't know ...
6
votes
1answer
146 views

what is the best way to do a freelancing job over the summer for a student

I am a full time student, studying in the UK with UK address. I would like to do a one time job for a company based in the USA. It will last about one month, and is mostly about creating a video ...
17
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8answers
3k views

How does giving to charity work?

The title of this question is hopelessly vague, but here is what I'd like to know: I've always heard that even if you don't have much money, you should give to charity. It is tax-deductible. I'm ...
4
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1answer
105 views

What things do I need to consider if I want to gift units of a fund or stock to some one who is not related?

Instead of the traditional cash gift, I want to give my gift in terms of something that could increase in value over the long term. Before doing that I wanted to ask the below questions: Do I have to ...
3
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1answer
895 views

What is the difference between adjustment, subtraction, deduction, exemption in tax forms?

In US federal tax 1040 form, there is "adjustment" on the bottom of the first page at line 36, "itemized deduction" at line 40 on the second page, and "exemptions" at line 42 on the second page. "...
3
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2answers
15k 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?
4
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1answer
428 views

Deducting medical expenses paid for someone other than yourself or spouse

Can I deduct medical expenses that I paid for my girlfriend's medical bills? She has about $1000 a month of medical bills (prescriptions etc) and is in between insurance. I've been covering it for the ...
17
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3answers
2k views

Moving from full time to contractor

For many reasons I am moving from full time employee to a contractor with an associated company in a different city. Everyone I have spoken to says contracting is great except for the taxes and lack ...
10
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1answer
2k views

Are student loans tax deductible in US?

If I have a student loan from finishing my graduate degree, can I deduct its interest payments from salary for tax purposes? Is there any education related tax credit that can be applied for payments ...
2
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3answers
2k views

Can used books bought off Amazon be claimed as a tax deduction in Australia?

I recently bought some used books on Amazon. The books are directly related to what I do for a living. In Australia, I know that if you have the receipt for books like that, you could claim it as a ...
1
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3answers
2k views

What portion of my rowing club membership fee is tax-deductible?

I am part of a rowing club in the US and pay a membership fee. The rowing club is a 501(c)(3) non-profit, open to the public, and offers learn-to-row classes. The benefits that I receive for my ...
3
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1answer
971 views

In Canada, can tuition paid by an RESP withdrawal be claimed on the income tax return?

Can tuition fees be claimed on the tax return if the money was withdrawn from an RESP we've been contributing to?
3
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1answer
2k views

In India, does a company compulsorily have to file income tax on my behalf?

I work in an IT company in India. I get my monthly salary after monthly tax deduction as per TDS law. The tax filing deadline as per Indian government is 31st July, but my company has a deadline for ...
3
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1answer
66 views

Filing for Education Expenses for Dependent

My brother is my dependent and he lives with me! He goes to university and pay international tuition fees. Since, he has to pay international tuition our whole family contributes small amounts to make ...
4
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2answers
220 views

Mortgage interest income tax deduction during year with a principal residence change

In 2010 my residency changed from the home I own to a home I'm renting, but I owned the mortgaged home all year. Is the deductable amount of mortgage interest paid pro-rated based on the date I moved?...
5
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4answers
6k views

Can I claim a tax deduction for working from home as an employee? I work there 90% of the time

I'm working for a company as a computer programmer, but 90% of my work is done at my apartment. Let's say I have an exclusive space for the work in my apartment, can I claim tax deduction for the ...
3
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3answers
1k views

What's the best secure tax deductible investment?

I will receive a lump sum amount as a voluntary departure pkg. I live in Ontario, Canada and want to know what I should invest this amount in (GIC/Mutual Fund) that will get a high return and be tax ...
4
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1answer
84 views

How do I take a loss on an IRA I converted to a Roth IRA?

Can I take a loss on conversion? If so, how do I do so (i.e. what U.S. tax form do I use)?
5
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2answers
447 views

Can you write off time like you can money?

I've spent considerable time in the last year building a portfolio for my business. This time was donated to clients, for my benefit, and theirs. There is a large opportunity cost lost. I could ...
8
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1answer
21k views

How do LLC losses affect personal income taxes in the US?

I know that LLCs have the benefit of pass-through taxation in the US and that any profits realized by the LLC are recorded as income by the LLC members, thus increasing their taxable income. What is ...
8
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4answers
3k views

Donating books to charity & claiming a deduction on my income tax: How to value the goods?

I have a large number of books. I tried selling them on Amazon, but they don't cost enough to make up for the shipping. I tried selling them at local book stores, but they barely took any of them ...
5
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5answers
6k views

When should I open a “Line of credit” at my bank?

I'm new to the concept of "line-of-credit", and my banker says I should be able to open one based on the number of stocks I own. I have no mortgage. I'm told that I'm able to deduct my interest on ...
6
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1answer
5k views

How does tax work for an overseas contractor on a split year contract?

I am currently working as U.S. DoD contractor in Afghanistan. I arrive in Afghanistan late October 2010. I will be over here until at least October 2011. I know that when working overseas for 330 days ...
9
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3answers
292 views

Is there any advantage to using a FSA instead of claiming medical expense on tax returns?

Using my FSA is pretty annoying. I have to submit claims and scramble to use it or lose it. Is there any advantage (aside from perhaps cash flow) of using an FSA over just claiming my medical/...
9
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6answers
14k 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 ...
2
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3answers
259 views

Why opening a traditional IRA is not helping my tax forecast for 2010?

I am using the IRA Calculator from one of the main tax software. Link here After I put the information of my spouse and I, it comes out saying that there is no marginal tax saving for neither of us. ...
4
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2answers
515 views

Do other countries have the equivalent of Australia's Negative Gearing?

Negative Gearing is a feature of Australian taxation where losses from real estate or share investments can be offset against assessable income. In simple terms, the difference between rent, and ...
8
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2answers
489 views

Do I have to list a SSN to take a child exemption?

Do I have to list my child's social security number on my income taxes to take a child exemption? What if my child doesn't have a social security number?
3
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3answers
332 views

Under IRS rules, After what tax bracket or income range student loan interests are not effective?

Student loans generally have very low interest rates. Those interests paid work in your favor at tax time, for certain income and tax bracket group. In the US, if you make more than what amount, ...
4
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2answers
129 views

Should I invest in a Health Insurance +1 policy from my Employer?

Hi Personal Finance Fans, Here is an easy question for all the economic gurus in this forum. I am currently working for one global corporation. My wife is working for a big USA organization. ...
5
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3answers
3k views

If I go to a seminar held overseas, may I claim my flights on my tax return?

i am an IT contractor and I would like to go to a seminar overseas. I'm paying for this by myself, however, I believe it is related to what I do and could be classed as an educational expense. The ...
3
votes
3answers
329 views

Is an old UGMA account loss tax deductable?

In 2008, my father-in-law let us know about a UGMA account that was for my wife. We gladly took control of the assets and noticed the value of the account crashed at some point. At the end of 2008, ...
3
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2answers
9k views

Formula for calculating real cost of a deductible expense

Nice round numbers: say I perform a job that gets $1000 gross (call this g) in which I incur $100 in expense (call this e). The expense is fully deductible. Assume my marginal tax rate is 25% (call ...
12
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3answers
12k views

If I pay someone else's property taxes, can I use it as a deduction on my income tax return?

I'm planning on paying the property taxes of a home my mother-in-law owns. She owns the house, but I live there. As part of the bargain, I agreed to pay the property taxes. If I write the check ...
5
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1answer
1k views

Can dues and subscriptions expenses be deducted 100% to calculate taxable income in an LLC company?

I'm using Quickbooks Online, "Dues & Subscriptions" is one of the expense accounts we have. I would like to know if this expense can be deducted 100% for calculating my taxable income. Our company ...
10
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3answers
736 views

What are the ins/outs of writing-off part of one's rent for working at home?

Suppose I rent a 100 square foot apartment (just to keep the numbers easy). Now suppose I use a 30 square foot area exclusively for working-at-home. In that 30 square foot area there'a desk ...
3
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1answer
1k views

What would be the impact of a fourth child on taxes?

Should I expect the tax effect of a fourth child to be similar to that of the third, or is there a point of diminishing financial benefit?
7
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3answers
557 views

Can I write-off Visual Studio 2010 on my taxes if I want to learn it?

I doubt I can write it off, but I just figured I'd check anyway. What if I took a class in it and needed the software to take the class?
4
votes
2answers
324 views

Why are we not getting a rebate when we declare zero allowances?

Both my wife and I file zero allowances for both Federal (W-4) and State (CA). For Federal we checkbox married and for State we checkbox single/married with two or more incomes. To the best of my ...
6
votes
3answers
5k views

What types of receipts do I need to keep for itemized tax deductions?

Do I need to keep all of my receipts or only receipts of a certain type or amount for itemized deductions? I've also only taken the standard deduction, but this year I plan to itemize. I keep almost ...
5
votes
1answer
1k views

Is mortgage interest tax deductible for not only federal but state income taxes?

Does anyone know if mortgage interest, mortgage insurance and property taxes are deductible for not only federal but state income taxes? This may be a state-by-state issue, but if anyone has ...
4
votes
2answers
437 views

Is there a tax deduction for a loss due to theft of inventory in a start-up business?

I acquired an inventory for a business start-up. The owner of the building died. An executor wrongly sold off the inventory and did not turn over the funds. The reasoning, if the person would ...
4
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1answer
291 views

Can you claim child care expenses on your tax return in the UK?

Can you claim child care expenses on your tax return in the UK?
6
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1answer
419 views

Can I get a tax deduction for giving towards my grandchildren's education?

I have 4 Canadian grandchildren. Can I get a charitable tax deduction if I give towards their education?
4
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1answer
2k views

Can I claim a UK or foreign charity donation as tax deductible in Canada?

Can I claim a UK charity donation as tax deductible in Canada? More generally, are charitable donations to foreign charities tax deductible in Canada?
6
votes
1answer
383 views

Can I deduct equipment that I'm required to purchase by my employer?

If my employer requires that I own a laptop and other computer equipment, but does not provide them, am I able to deduct the expense of purchasing the equipment? I know that I definitely would deduct ...