Questions tagged [tax-deduction]

To be used for any question related to tax deductions.

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What are simplest examples of buying or spending money to reduce income taxes in Ontario?

What personal (not corporate) tax examples like the quote underneath appertain to Ontarians? Please focus on examples that can appertain to as many Ontarians as possible, thus don't focus on high ...
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1answer
69 views

US Citizen working in Japan for a Japanese company, and also remotely for a US company. What's my tax situation?

I've searched a few queries, but didn't find many people in a situation quite matching mine. Starting in October, I will work full-time for a company in Japan, and I will also put in some part-time ...
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124 views

Can side startup cost to build an app offset my income for tax purpose?

I have a full-time job and am interested in forming an LLC paying a foreign company in China to build a website or app prototype for my side startup. Can I deduct this cost against my income from my ...
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1answer
73 views

How do Ontarians calculate optimal RRSP contribution?

Pls see my dad in Ontario's facts. He maxed out his TFSA, and his annual pre-tax income (henceforward "APTI") is $50K. CRA website shows his 2019 RRSP deduction limit is $100K. If I understood this ...
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1answer
31 views

House property loss adjustment with carry forward loss from previous year

I have a query regarding situation below for tax implication : Carry forward loss from previous year under head house property loss : 60000 Current year house property loss : 120000 With above, ...
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1answer
68 views

Can my student loan interest apply for an above-the-line deduction when I'm on my grace period?

I was reading this article on 2019 tax deductions: https://www.fool.com/taxes/2019/01/13/your-2019-guide-to-tax-deductions.aspx I recently graduated college in May and started work in July 1st. I ...
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2answers
98 views

Do I still file taxes when I make less than the standard deduction? What about withholdings?

I will be filing as single this year with no dependents. I might aim to make $10,000. I searched that the standard deduction for this year is $12,200. Do I still file my taxes? Do I get the full ...
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2answers
82 views

Tax relaxation for Indians in Germany

I have recently employed in Germany for one year. I am from India. Is there any tax relaxation for Indians in Germany? I am married.
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2answers
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Is the Qualified Business Income (QBI) deduction computed with or without the Standard Deduction removed from business income?

I received a notice from the IRS this month: We changed the amount claimed as your Qualified Business Income Deduction because there was an error in the computation. The difference is in the ...
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1answer
38 views

How much is paid in taxes if the Homeowners Tax Deduction equals a person's Income Tax amount (USA, FL)

I was wondering how much of a yearly tax payment could be deducted using the homeowners tax deduction. I know that the policy allows for a deduction of the interest payments amount for up to $750,000. ...
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1answer
185 views

First salary in UK

I hoping to get some informations on how the tax system works in UK. Basically, this is my first job here, I haven't worked before April. I have a basic gross salary of £41,600 and I pay 4% as a ...
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1answer
67 views

Do you need to pay taxes on income paid outside the US?

Non american here. I currently work in a country outside the US in Country A. I have a company training for 10 weeks coming up that is in the US office. During the time, I will be getting paid the ...
2
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1answer
162 views

Can medically required blood donations (phlebotomy) be tax deductible?

Can medically required blood donations (phlebotomy) be tax deductible when the blood center sends it to area hospitals? This isn't a typical blood donation that I know is not tax deductible. I have to ...
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2answers
1k views

How much of a mortgage should I take on to maximize my 5 year financial plan?

I'm trying to insure that I understand US tax laws with regard to itemization and mortgage interest, in order to calculate whether to take out a mortgage in order to maximize my 5 year gains with the ...
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1answer
103 views

Can one claim charitable contribution deduction for data donation?

If one paid some amount of money to acquire some data, then donate the data to a qualified tax-exempt organization, can one claim charitable contribution deduction for it in the United States? ...
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1answer
20 views

How does NPS Tier - 1 80CCD work?

Conditions: NPS Tier-1 contribution from salary per year > 60000 NPS Tier-1 contribution from company per year > 60000 Question 1: How much amount is counted for 80CCD? Is it just salary or also the ...
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1answer
93 views

Can I transfer, in 2019, my tuition tax credits from 2009-2015 to my parents who paid all tuition?

From 2009-2015, I was studying in Ontario universities, and made no income. My parents paid all my tuition. I filed my taxes, but didn't know that I could claim tuition tax credits. u/pfc-toss ...
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Can the repayment of the Advance Premium Tax Credit be deducted in the year paid?

IRA withdrawals kicked me out out of ACA. I had to repay over $14,000 Advance Premium Tax Credits with my 2018 tax return. The answers I am seeing seem to say I can take it as a 2018 medical expense ...
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52 views

Can GST tax input credits be claimed for Meals and Entertainment which are 100% deductible for income purposes?

Typical meals-and-entertainment operating expenses for business are limited to a 50% deductible towards income calculation. There are exceptions. The rules listed by the CRA allow higher percentage to ...
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1answer
76 views

Student loan tax deductions when married filing jointly in United States

My spouse and I received a chunk of cash that we would like to use to pay off student loan debt. The cash is not enough to pay off both of our loans. If we simply put the cash towards the highest ...
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23 views

Is it possible to change the second (or residual) beneficiary of a CRUT?

A CRUT is a Charitable Remainder Unitrust, which usually has as its first beneficiary the person who set up the CRUT (the settlor), and which may (but is not obliged to) have as a second beneficiary a ...
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1answer
101 views

Is it possible to refund semester fees via income tax return in Germany?

Colleagues at work mentioned that semester fees for the Master studies can be declared for the tax return as for the position that we have at work, having a Master degree is mandatory. Can someone ...
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1answer
174 views

How much can I deduct for my home office?

I'm a sole proprietor with an office in my apartment and I'm confused on how to calculate my deductions. Suppose the office is 300 sq ft. The apartment is 600 sq ft. Rent is $2000 per month. I see I ...
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1answer
111 views

Understanding how the german tax system works [duplicate]

I hope that you can help me understand how the German tax system works. I recently found a job in Berlin with a yearly gross salary of 68000. I am married (we are both Spanish) but my husband is ...
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1answer
162 views

What's the point of a 20% (alias 16.5%) VAT flat rate in UK?

The normal VAT in UK is already 20%. Note that 16.5% VAT flat rate for £100 is not £16.5 but £20.0. HMRC does not calculate like any other country I know. The 16.5% is calculated on the invoiced ...
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1answer
30 views

HMRC Tax Returns for following year

If my startup business is running at a loss after adding costs of supplies and money come in, how would this affect income tax in the following year? As any gains in the following year would need to ...
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0answers
20 views

Can I withdraw Small Overcontribution from RRSP?

My contribution room for my RRSP is 23.5k, I accidentally contributed 25k though. I realize my over-contribution is within the 2k that CRA allows, but I would prefer to keep the extra $1,500 outside ...
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1answer
29 views

Understanding tax benefits of NPS in India

This link says following: Under Section 80CCD (1b): In budget 2016, the government had introduced additional tax benefit for investment up to Rs 50,000 in NPS. If the taxpayer contributes more than ...
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1answer
111 views

Can one deduct lawyer consult fee less than $1000 for ex-employer's threat letter related to confidentiality in 2018 taxes?

Someone I know paid around $1000 last year to consult lawyers regarding a threatening letter from a former employer related to company confidential information where they threatened lawsuit and ...
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6k views

Is the Standard Deduction better than Itemized when both are the same amount?

For 2018 the standard deduction is $12,000 for individuals, $24,000 per household. If someone's itemized deductions equals the standard deduction, or is very close, which one is better to take? For ...
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1answer
39 views

Can an IRA contribution be made on the same date of the tax deadline and still count for that tax submission?

The deadline for taxes and IRA contributions for FY2018 in USA is April 15, 2019. If I haven't made a contribution yet for FY2018, can I go to a bank on Monday, April 15, 2019 and make a contribution ...
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2answers
522 views

In the U.S., can I deduct coffee as an expense if I am a self-employed software developer?

I work in coffee shops every day as I develop. Coffee shops have an unwritten (sometimes written) rule that you cannot use their wifi, power, and bathrooms without buying something. Because of that I ...
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1answer
125 views

Can a full time employee who also owns a side LLC claim “self-employed” deductions?

I am working full time for a corporation in NYC (I have w2). I also own my own side Educational LLC (EdTech) which has claimed $0.00 in income for 2018, but has accrued several thousand in startup ...
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1answer
59 views

Can a nonresident alien claim the NY State Standard Deduction (2018)?

Can a nonresident alien (Form 1040-NR-EZ) claim the NY State standard deduction or does he/she need to claim itemized deduction (like on the federal return)?
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1answer
157 views

Tax preparer for my parents claiming me as a dependent

My parents run a family farm, and use a professional accountant to keep track of the business, and also prepare their taxes. However, he (the accountant) wants me to amend my tax return so my parents ...
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3answers
214 views

Are out of pocket hotel expenses deductible in this case?

My wife and I both have professional jobs and make pretty good money. My wife also got a part time job (W-2) at a ski resort this winter, mostly for fun, and was paid hardly anything (and only worked ...
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3answers
1k views

Are tax years 2016 & 2017 back taxes deductible for tax year 2018?

If someone, in 2018, pays taxes, including interest and penalties, owed for tax years 2016 and 2017, then can that person claim a deduction for the paid taxes, only the original amount and no the ...
3
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0answers
126 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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4answers
611 views

Standard deduction V. mortgage interest deduction - is it basically only for the rich?

In the USA experience: I find the whole "mortgage interest deduction V. standard deduction" issue confusing. Here's how I understand it: Everyone gets a $24,000 deduction. Great so far. If you like,...
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2answers
224 views

Using the gift exception to get more money to charity

Like most middle class families after the 2018 tax code changes, even with a mortgage I'm very far from being able to itemize. Looking at how to optimally give to charity, it seems like a shame to not ...
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1answer
86 views

If you take the standard tax deduction, can you still claim the Child Tax Credit?

If you take the standard tax deduction, can you still claim the Child Tax Credit? I can't find the answer with Google.
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1answer
122 views

Sold wall map as fundraiser for a 501c3 non-profit. Need to report on tax returns? How?

In my spare time outside of my full time job, I produced a wall map for as a fundraiser for a 501c3-registered non-profit organization. I then sold the maps via FundRazr.com and money from sales was ...
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0answers
39 views

How do Rent Concessions affect the DC Renter Tax Credit?

I live in a rent-controlled apartment in Washington DC, and my landlord engages in a scheme to get around Washington DC’s rent control laws. How it works is that my nominal rent is $2000, but I get a ...
2
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1answer
93 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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5answers
290 views

Are cash contributions to my church tax deductible?

Last year I contributed to the offering in church every week. I have few questions regarding this. I am not that rich, so I contribute whatever cash I have in my wallet. Can I enter this amount on my ...
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0answers
46 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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0answers
23 views

How to claim motor vehicle expenses on taxes with incomplete information?

I am currently doing my sister's taxes, as stated in a previous post. She started working at this new job in May and her previous work was done at one single office location, hence she is not eligible ...
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2answers
189 views

Why is it mandatory to depreciate a rental property?

I don't understand why an investor is forced to depreciate a rental property. In many cases (say for an investor with one rental unit only) the depreciation amount is less than the standard deduction ...
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1answer
73 views

Should I pay off my home mortgage due to TCJA cutting SALT deductions?

Definition Under prior law, in addition to being allowed to deduct 100% of state and local income (or sales) taxes, homeowners could deduct 100% of their state and local personal property taxes. ...
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3answers
366 views

How can a $10M deduction be worth $4-5M to a wealthy taxpayer?

I have a question about an answer that I read on Reddit's r/eli5 (Explain like I'm five) subreddit. The question was "How do rich people use tax donations as write-offs to save money? Wouldn't it be ...