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Questions tagged [tax-deduction]

To be used for any question related to tax deductions.

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Write off accrued interest from interest income

My mother purchased a US government bond maturing 2019/04/15. The purchase date was 2018/04/13, so there were 2 interest payments attributed to 2018 (2018/04/15 and 2018/10/15), but the interest ...
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Is there any reason I'd prefer having my school not report a 1098-T?

I didn't get a 1098-T from my school this year. I contacted them about it, and they said it wasn't required in my case, but they went ahead and issued it anyway since I asked. They also told me they ...
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100 views

Should rideshare drivers log mileage of individual trips, or is a daily entry acceptable?

A rideshare driver (Uber, Lyft) can deduct vehicle expenses for business use of the vehicle. Should the driver log each trip individually, or is a daily entry of beginning odometer, ending odometer, ...
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393 views

Donating to US versus Canadian charities to maximizing tax benefits

I am a US citizen and I have the option to make my charitable donations in either the US or Canada for the next few years. How do I maximize my tax benefit for a fixed donation size? My ...
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95 views

Expenses deducted on tax return with no proof. What should I do if I get audited?

I just filed my tax return for the 2018 tax year (NETFILE, with StudioTax). I work 100% at home, and I rent the place from a landlord. According to an agent of the Canada Revenue Agency, I am allowed ...
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43 views

Can I deduct mileage if I'm a contractor who works at home and at an office?

I am a contractor and get a 1099. I perform some work at home, but much of my work is done at the office of the company I contracted with, and I drive to and from this office several times a week. ...
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50 views

Can construction Soft Costs be carried forward on Canadian rental income?

I built a home and am renting it out for profit. While building, I incurred soft costs (mainly interest costs on money borrowed during construction, and insurance costs). In the years that I had these ...
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55 views

Medical premiums vs. ACA premiums on tax return

I'm currently doing my tax return. In 2017, I paid 12 months of health insurance premiums out of pocket, on my own private plan bought through the Marketplace. In the tax return, it instructs NOT to ...
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142 views

How will the new tax bill benefit an S-corp individual?

While driving, I heard on some news program that flow-through people can deduct more from direct income from their business than indirectly through payroll (such as ADP). Will the new tax bill let me ...
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133 views

Deducting travel costs for summer internship on J-1 visa

I am a full-time PhD student at a university in Germany. To get funding for my PhD studies, I am employed as a research assistant by the university (I have been continuously employed in this position ...
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39 views

Can I carryover investment interest expenses, if I didn't report them on a prior tax form

I just discovered some investment interest expenses from a broker statement that were not reported in my last year tax return. Can I "carry them over" into my new tax return? Its probably an ...
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78 views

Classification of rental property closing costs?

I understand rental property closing costs fall into 3 buckets: added to cost basis of property for purposes of calculating depreciation (title costs, transfer and government fees, inspections, etc) ...
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390 views

How do I take the state sales tax deduction if my spouse lives in another state?

My wife and I live in two different states, and I'm currently in the process of filing our 2014 income tax return. We are Married Filing Jointly. I have income from only the state that I live in, and ...
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64 views

How to deduct subway commuting and rent as a part-time remote contractor on a 1099-MISC?

I am working on a 1099-MISC as a consultant to a tech company. As an independent contractor, I decide the locations from where I provide my services. Most of the time, I am on site at the business ...
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0answers
41 views

Can you claim past unclaimed expenses from previous years on a rental property?

My question is the following: Let's say I have some repair renovations that were performed in 2016 that I never claimed in the 2017 tax year (because I had enough expenses to fully balance out the ...
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83 views

Deducting another room that isn't fully for business use

I work from home and have a bedroom that I want to deduct for business use. I already have a room that I'm deducting. The bedroom will have personal use about 7 days per year. Can I simply pay the ...
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97 views

Can I recover employer-paid health insurance premiums erroneously reported as imputed income?

Every December my employer adds some $7k of imputed income to my last paycheck to account for the cost of employer paid health insurance premiums for my domestic partner. However, my domestic partner ...
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91 views

Under new federal tax bill, can I save taxes by not doing payroll anymore for my single employee (me) S-CORP?

Will paying myself only shareholder distributions instead of payroll, and using the new 20% QBI deduction on my QBI of $300k save me more taxes under the new federal tax plan, and allow me to ...
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52 views

Can I claim a credit / deduction on my “personal income tax” for the “city corporate income tax” that my LLC company located in NYC had to pay?

I live in Chicago, which does not have city income tax. My company is a LLC incorporated in NYC, which has city income tax. So my understanding is that my company needs to pay "city income tax" over ...
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74 views

If I have a home office and report to a main office, what are the travel expense deduction rules?

I have a sales job where I have a home office and I report to a main company office twice per week. My job is to visit potential clients and visit/support existing clients. When I visit the main ...
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0answers
50 views

I have a charitable carryforward from 2011: Can I file in October 2017 (extension) and still take it?

In 2011, I made a large charitable contribution to my school. Some is still left over, despite my having taken the maximum allowable charitable deduction each year. I know that I cannot carryforward ...
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980 views

I had payroll deductions taken post-tax instead of pre-tax. What should I do?

Due to a paperwork mixup of my own doing (incorrectly added her as a domestic partner), a year's worth of insurance premiums paid on behalf of my wife were deducted post-tax instead of pre-tax. The ...
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92 views

Are gifted health insurance premiums tax deductible for the recipient?

Amanda paid some health insurance premiums for Bill in 2015. The payments were made directly to the insurer and intended as a gift to Bill. Amanda doesn't have to report payments for medical ...
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0answers
96 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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551 views

Can my UK limited company claim tax relief on donations to foreign charities?

I'm English, and run a company that's based in the UK and registered with the UK Companies House. I want to donate some money to charity, but one of the charities I have in mind isn't based in the UK. ...
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65 views

Tax Return Married NRA: Is Glacier Tax Prep fill the 1040NR out correctly?

I am an F1 student (NRA) and Married. Based on the new 1040NR(-EZ) instruction a married NRA cannot claim more than $5,000 deduction (1040NR Instruction). Glacier Tax Prep is a software provided to ...
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41 views

1098-T with scholarship listed this year 2018 as “billed” but tuition was reported on 2017 year's 1098-T as “paid”

This is very confusing. I'm required to report the Tuition and Scholarship from my 1098-T. I paid the full year's tuition in 2017 (fall and spring 2018) so no Tuition was billed for 2018 (well ...
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47 views

Does it make sense to buy municipal bond if you're not in the highest tax bracket?

Municipal bond has tax benefit. If market is efficient, doesn't that mean the wealthy investors (in highest tax bracket) will bid up the price (lower the yield) until the "tax equivalent yield (...
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47 views

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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16 views

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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40 views

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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337 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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0answers
31 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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39 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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35 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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46 views

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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62 views

If you're mostly on W-2, how much can you benefit from pass-through?

I'm having trouble understanding how the pass-through deduction works when you make only part of your income as an independent contractor. Married filing jointly this year, we expect to earn (gross) ...
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50 views

Germany tax class residence permit valid anmeldung

I was in Germany last year for more than six months and I have a valid RP as well. Now, I am planning to move back to Germany for just 2 months for a work assignment under Short-term WP. Now my ...
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0answers
37 views

Avoid wasting Canadian tuition credit with double taxation on Canadian Income in US

I live in US with income in Canada and have a large amount of unused tuition tax credits in Canada. My understanding is that when doing US Tax I should report my full Canadian income and the amount ...
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118 views

Can I write off any of my car purchase if I get an allowance?

I was offered an option to get a car allowance when I was hired on a year and a half ago. Last year, I bough a new truck to use for this purpose. I get an allowance plus a mileage rate that is about ...
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138 views

750K mortgage and 10K property tax deduction limit - applies to LLC?

Does the 750K mortgage and 10K property tax deduction limits apply only to individuals, or LLC and other corporations as well? Follow-up question: if someone split up property ownership between an ...
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0answers
21 views

How to save some tax exemption on NJ state tax?

How to save some tax exemption on NJ state tax ? Though question is broad, considering single person live and working in NJ looking to have some tax breaks on state tax?
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0answers
69 views

File as an S-Corp to retain deductions after new US tax bill

According to https://www.forbes.com/sites/groupthink/2017/11/28/small-businesses-cast-jaundiced-eye-at-tax-reform-proposals/, should the current tax reform bill pass into law: "corporations would ...
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0answers
50 views

US Federal IT: If the deductions proposed to be eliminated are eliminated, will the AMT be a toothless tiger?

The House and Senate tax reform bills between them propose to eliminate deductibility of state and local taxes and cap mortgage deductions for mortgages greater than 500K, plus eliminate the Medical ...
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Is the full monetary amount of sub-contracting tax deductible?

At the moment I effectively work for myself, contracting full-time to a single company. I invoice this company $x every month. In the near future, I would like to either hire or sub-contract other ...
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31 views

Section 179 and Closing LLC

I closed my LLC 2016 (sole, no employees), can I take section 179 tax deductions in the 2016 return? Do I need to recapture my previous section 179 deductions?
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37 views

Do wages limit amount of deductions in year with very high capital gains

Does my income from wages (24K) limit the itemized deductions I can take when my total income is mostly from Cap Gains earned from selling a longterm rental property (200K after accounting for base ...
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0answers
515 views

How to save taxes on revenue from Admob ads?

I'm a mobile developer currently living in Germany. My revenue is generated by online ads of Google/Admob. Since Google is based in Ireland, the revenue/service/value are also generated in Ireland. ...
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78 views

Steuer klasse change when my wife working in other country in EU

Does somebody know how I can change my "Steuerklasse" from 1 to 3 in case my wife works in another country in EU ( Bulgaria). Our daughter leaves also in Bulgaria. She works for a French international ...
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22 views

US Account Taxes

I'm an Australian resident with a US brokerage account. At what point would have to pay taxes in the US after realising gain through my brokerage account?