Questions tagged [tax-deduction]

To be used for any question related to tax deductions.

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11
votes
2answers
56k views

Donation Value Of “One Bag Of Clothing”

Early last year, I donated some clothes to Goodwill and received a donation receipt for "one bag of clothing." I have no memory or documentation of exact contents to calculate an amount. Given only ...
2
votes
1answer
79 views

Would student loan consolidation through a private party still be tax deductable?

I have a private party that would be interested in paying off my student loans and in turn, extend me a loan at a slightly reduced interest rate. This makes sense to me until I get to the point where ...
2
votes
1answer
214 views

How to Deduct Family Health Care Premiums Under Side Business

I am an employee of a company and I have health insurance through them, pre tax. My company only pays for me so I have private insurance for my wife and kids. I also have a side business, and was ...
2
votes
4answers
7k views

Property Tax Deduction in Illinois After Home Sale

We sold our condo last year in Chicago. Whether this is common knowledge or not, Illinois residents pay property taxes in arrears. At the closing, the seller pre-pays a prorated amount of taxes for ...
0
votes
2answers
87 views

Will a contribution towards Traditional IRA be deductible for 2012?

I switched to a job in 2012 which didn't offer a retirement plan in October, 2012. Prior to this job, I was covered with an IRA account from my previous employer. I will be filing the returns with my ...
1
vote
1answer
697 views

If I make 66K per year (US-Pennsylvania, Single filer) and I give 3000 to a 5013-c organization How much in tax relief should I expect

Last year I calculated my taxes using Turbo-Taxes online edition. When asked to enter in my Charitable donations (I did itemize) there was no place for me to enter the charities ID number, and I didn'...
2
votes
1answer
577 views

Financed medical expenses and tax deductions

I am currently making payments on a ~4k loan that was paid directly to the doctor for laser eye surgery. Can I deduct the 4k loan as a health expense? Or the payments I am making on the loan? Or ...
2
votes
1answer
7k views

Tax deduction helping a friend pay tuition

I'm helping a friend pay for tuition. On my taxes, will I be able to make any deductions or get any money back when I file my taxes? This is in the US.
1
vote
1answer
438 views

What are the tax rules of owning a vacation rental property?

I am considering purchasing a vacation property and renting it out for a majority of the season. Best case scenario I could generate about 50% of the annual cost (mortgage, tax, utilities, ...
14
votes
5answers
2k views

What are the common income tax deductions used by “rich” salaried households?

With one of the hot election topics in the U.S. being increased taxing of the so-called "rich" (those with a household income > $250,000), I'm curious about the options such households have for ...
6
votes
2answers
2k views

Can I deduct the cost of licenses for tools/utilities and services come tax time?

I'm employed full-time (not a contractor). I own my own licenses for tools like ReSharper, Beyond Compare, etc. In addition, I pay for various training and learning resources like Safari Books ...
11
votes
6answers
15k views

Why should one only contribute up to the employer's match in a 401(k)?

On a recent edition of Jim Cramer's Mad Money, he urgently (does he do things otherwise?) recommended that you ONLY contribute up to the employer's match in your 401(k) and put the rest of what you ...
6
votes
3answers
790 views

What are the ins/outs of writing equipment purchases off as business expenses in a home based business?

I'm currently self-employed doing computer programming work. As part of self-employment I'm learning about filing taxes quarterly (not fun) and also writing things off as business expenses (...
9
votes
2answers
6k views

What are the costs to establish an LLC and to maintain it?

What's the average (approximately) cost to open a basic LLC in Florida state or in NY state? (FYI in my case is to buy an house in Miami and rent it. I already have a bank account in the U.S.) What's ...
0
votes
2answers
66 views

What tax advantage should I keep an eye for if I am going to relocate?

I am about to start a relocation process across the US. I will be moving about 1,000 miles away from my current city. What should I be looking for to benefit from my relocation?
0
votes
2answers
2k views

Is it customary for foreign companies to add Indian TDS tax to quotations

With the TDS being a deduction 'at source' and therefore not really the responsibility of the foreign company, is it customary to mention it when quoting and Indian client? Thanks very much.
0
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2answers
1k views

Tax planning for Indian TDS on international payments

I have a prospective Indian client on a reasonably big project (enough to warrant this question). India seems to have a 'TDS' tax on outgoing business payments of 21%, that is to say that any payments ...
2
votes
1answer
2k views

Does a garage's square footage count equally toward home business deduction use percentage calculation?

In the United States, if you run a home business, you may file Form 8829 to deduct the cost of a home office in your income taxes. This form has you calculate the percentage of the home used for the ...
0
votes
1answer
78 views

How will a company restructuring itself into a REIT impact me as a shareholder?

One of the stocks I own is considering changing into an REIT. The company normally does government consulting and construction. Any thoughts on the pros/cons of it? I know that this decreases their ...
4
votes
3answers
1k views

Cash flow implications of converting primary mortgaged residence to rental

I'm considering the net monthly cost of moving from a mortgaged home to a rental, and converting my current primary residence to a rental property. (Note: the reason for renting instead of selling is ...
6
votes
1answer
361 views

Can I write off expenses during a contract-to-hire period?

In a few weeks, I will be starting at a position where I will be a contract employee for 30 days and then hired on as a "normal" employee, assuming I meet the expectations of my new employer. I will ...
5
votes
2answers
592 views

W-4: Is the “Estimate of State and Local Taxes” just for myself, or for me and my spouse?

I am married, filing jointly. I am about to re-file my W-4 because I have been overwithholding. I'm working on Field 1 of the "Deductions and Adjustments Worksheet". A big part of this field is ...
3
votes
1answer
102 views

Tax deduction for job search

According to IRS pub 529, it is permissible to deduct some job search expenses, such as recruiter fees, resume preparation, and travel. I'm curious about the resume preparation in particular. Does ...
2
votes
1answer
1k views

Can I deduct 2011 state income tax paid from my Federal taxes?

I moved back to California in 2010 after several years away, and I've forgotten or am mis-remembering some things. Can I deduct the amount that I paid in state income tax in 2011 from my Federal ...
3
votes
1answer
208 views

Can I deduct mortgage interest in Kansas with a standard deduction?

I'm working on filling out my U.S. income tax forms, and am confused by the mortgage interest credit. It seems more complicated than I remember it being last year (perhaps because it is? Or maybe my ...
1
vote
1answer
116 views

Should I contribute to my RRSP or wait?

I am Canadian and I have a large amount of RRSP contribution room. I do have money to contribute, but I will have no taxable income this year. Should I make my RRSP contributions now, or save the ...
2
votes
1answer
756 views

Taxes and childcare expenses deduction for a dual-income couple in Alberta?

We live in Alberta and need to know if we should obtain a receipt for childcare. We paid $2400 last year. My common law husband made $49000 last year and I made $28500. Is this worth it? Will our ...
0
votes
1answer
2k views

If I move from one state to another for graduate school, then should I fill out my moving expenses on next year's IRS form?

Here is the IRS form. And if I fill out my moving expenses, then what counts as moving expenses, and what doesn't count? Does buying boxes for moving count as a moving expense? Also, should I keep ...
3
votes
2answers
2k views

When can I deduct commuting expenses?

I'm reading through Form 2106 and I can't figure out if I can deduct: Bus fare that I use to get to/from work Mileage etc. driving to/from work When can you deduct these things?
4
votes
1answer
222 views

Where do tax deductions “deduct” from?

My understanding is that tax deductions "deduct" from the Adjusted Gross Income value. Is that right? As a very simple example, let's say I have an AGI of $10 and I owe $3 in taxes (before any ...
7
votes
3answers
16k views

cost basis of donated clothing?

(similar but NOT identical to How can I calculate the value of donated clothing for tax purposes? ) My wife donated several boxes full of old clothing to Goodwill, and calculated the total thrift ...
0
votes
1answer
133 views

Self paid Insurance Premiums and taxes

Currently my employer proivdes a Health Insurance Allowance (which I understand is really just added compensation), but I am wondering if it is possible to somehow shield that money similar to a pre-...
3
votes
1answer
66 views

Tax assessment paid last year

Last year I had to pay a income tax assessment for a W2 I forgot to report from 2009. Can't I report that on my taxes this season? Where would I put this in H&R Tax at Home (Taxcut)?
9
votes
1answer
477 views

Moving expenses: dog kennel

I had to kennel my dogs while moving. Is this deductible as a moving expense (temporary storage of household items)?
1
vote
1answer
46 views

How do I deduct payments to others out of a single payment to the group for contract work?

Another person and myself did contract work. The company sent the entire payment for the work to me and I paid the other person out of that money. How do I report this on my taxes? I received the ...
2
votes
1answer
1k views

Can BC university tuition tax credits only be applied to income earned in BC?

I completed my undergrad in BC, and I have since moved to Ontario. I have collected tuition tax credits in both provinces, so regardless of where I end up working, I will have tax credits from a ...
4
votes
2answers
102 views

Can I deduct equipment expenses for a job I began overseas?

This year I began teaching English in Japan, but I had several hundred dollars worth of preparatory expenses, including a new computer. Are these eligible for equipment tax deductions?
3
votes
2answers
98 views

How do I claim US Tax Credits for Energy Efficiency?

We bought a house last year and after the building was done my wife forced me to buy the blinds through the builder, claiming I wasn't going to buy any and put the up myself which I told her I would. ...
4
votes
2answers
410 views

Can I receive a tax deduction from working from home in a 2 bedroom apartment, one bedroom is used EXCLUSIVELY for work?

My company's base office is in another city so I work from home in a two bedroom apartment. The second bedroom is used as my office and office/work storage. Can I write off this space and any portion ...
2
votes
1answer
126 views

Are adoption expenses for an international adoption considered tax-deductible from income?

I am in the process of an international adoption. I do not qualify for the federal adoption credit because of my families income. However I am having a difficult time discovering whether or not I ...
4
votes
4answers
47k views

Do property taxes get deducted 100% from the Annual Tax Return or only a fraction of them?

Hi Personal Finance and Money, My question comes from hearing people say that you should buy a house rather than rent because you can deduct all of your property taxes on you tax return. Question ...
3
votes
2answers
163 views

In the U.S., are major dental procedures considered tax-deductible?

If someone is going to undergo a major dental/medical procedure ($40k+), is there any way to deduct the money paid for the procedure, or at least part of it?
9
votes
3answers
5k views

Buying a more expensive house as a tax shelter (larger interest deduction)?

I've heard that some people buy a more expensive house as a tax shelter. In my simple mind I imaging the scenario: Pay 10,000 annual interest on the mortgage 50,000 annual income = 40,000 taxable ...
2
votes
2answers
2k views

Benefits of a non-resident alien contributing to FICA

Being an international student on F1 visa, I am a non-resident alien who cannot claim unemployment or SS benefits. Currently I am working on an internship and my employer was not aware that FICA is ...
3
votes
1answer
348 views

Can I claim mileage for traveling to a contract position?

I am employed by a tech. contracting company(A) and travel to another business(B), where I work as a contractor (employed by A). I commute everyday to B. Can I claim my travel to B as an expense?
12
votes
5answers
35k views

Deductible expenses paid with credit card: In which tax year would they fall?

If I paid my business expenses with a credit card during the month of December, which year can I deduct them from my taxes? 2011 (when the purchase was made) or 2012 (when I paid off the credit card)? ...
7
votes
3answers
733 views

Is it possible to deduct health insurance premiums from taxes?

I currently have health insurance provided by my employer. My monthly premiums are deducted pre-tax from my salary. I'm considering canceling this health coverage in favor of an individual health ...
1
vote
2answers
539 views

Can I claim property tax & interest deduction if I pay the mortgage on my mother-in-law's house?

I currently pay mortgage (taxes, interest) on my mother-in-law's house. The house is under her name but we live in it. Can I use the interest and taxes as deductions?
2
votes
3answers
139 views

Tax Benefits for 529 Plan and Treasury Savings Bonds?

So here is my question (for tax year 2011): If I open and fund 529 College Savings Plan, do I get federal and state (Utah) tax deduction for my contributions? If I get a Treasury Savings Bond (Series ...
2
votes
1answer
194 views

Employer no longer withholds, how do I self administer 401k

My employer stopped withholding during some restructuring of the business entity, I already maxed out my 5k IRA contribution, I realize I can tax defer another 15k or so in a 401k... how do I simply ...