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Questions tagged [tax-deduction]

To be used for any question related to tax deductions.

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6
votes
1answer
61k views

Tax implications in India for sending money to India from US

I am planning to transfer around $8K-10K in my parent's bank account(Joint bank a/c) in India . I have read a lot of posts(like Will I have to pay taxes in India when I transfer money from a US bank ...
6
votes
1answer
2k views

How to determine fair market value for a home donated to a fire department for training exercises?

In "Scharf v. Commissioner", the US Tax Court established that donating property for use in firefighting training exercises provides a valuable service to the community. If the receiving fire ...
6
votes
1answer
1k views

Taxes overpaid when alive; file amended return after death?

While collecting data to file a return for someone who is deceased, I discovered a significant deduction that was repeatedly not claimed in previous years. Specifically, health insurance on Schedule C....
6
votes
1answer
507 views

Can I deduct moving expenses if I planned to work for a company for an amount of time but didn't?

I moved to another state for a new job at which I expected to be full-time for an indefinite amount of time. However, a few months into the position it was clear the company was not the right fit, and ...
6
votes
2answers
494 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?
6
votes
1answer
978 views

Can I deduct interest and fees on a loan for qualified medical expenses?

I took out a loan from a "medical lending" company in 2015 and paid it off later that year. All of the loan went to pay for necessary medical expenses (paid directly from the lending company to the ...
6
votes
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 ...
6
votes
1answer
384 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 ...
6
votes
1answer
76 views

Are partial IRA deductions applicable to the first X dollars or a percentage of the full 5.5k?

Consider two married individuals in the following scenario for 2017: Married filing jointly with MAGI = $109,000 Both people are participants in an employee-sponsored plan Both age 35 They both want ...
6
votes
1answer
364 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 ...
6
votes
2answers
577 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 ...
6
votes
1answer
360 views

As a contractor, if my business makes no net profits, do I owe taxes?

Have been working full time, switching to at least part time contract work. I'm looking at starting a company and having all my contract pay go through it. Assuming I'm also working at least part ...
6
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1answer
330 views

Married filing separately - Can I take standard deduction if spouse has zero itemized deductions

I read on IRS website "Your standard deduction is zero and you should itemize any deductions you have if: Your filing status is married filing separately, and your spouse itemizes deductions on his or ...
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 ...
6
votes
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?
6
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2answers
819 views

What can I deduct while assisting in caring for elderly relatives that do not live with me?

I provide all transportation to medical appointments, do their shopping, drive them to church, do their foot care, provide some meals -weekly, assist with ecercising, house cleaning. I do not want ...
6
votes
1answer
113 views

Tax deduction for stuff I bought before LLC was formed?

I bought $10,000 worth of materials (with my personal credit card) for a new business. I formed a domestic LLC (USA) about 3 weeks later. Can I "sell" or "transfer" this startup cost to my LLC (which ...
6
votes
2answers
131 views

Is there any sort of tax write off for unfulfilled pay checks?

I worked at a company for a few years who went out of business last year. My last pay check and severance pay check were not able to be cashed, totallingtotal is around $3k. It was an LLC that is ...
6
votes
1answer
137 views

Bartering Services

My brother has a friend and her two children living with him. They get to live there based on the fact that she does farm work (provides a service). They have agreed that the services and rent equal ...
6
votes
3answers
6k views

Is there a tax deduction for renting office space in service of employer?

Can I get any kind of tax deduction for paying rent on office space that is entirely in the service of my employer? Let me explain: I work remotely. My company is in California, but I presently live ...
6
votes
2answers
250 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 ...
6
votes
1answer
239 views

Band tax strategy - not paying members

I operate a band that makes under $4k a year. A few shows a year we get paid larger sums of money ($600+ per gig), and the venue uses my SSN and sends me a 1099 around tax season. So the "band" money ...
6
votes
0answers
75 views

Tax deduction for legal fee in defending my current job related to a threatening letter?

I paid around 750 dollars last year to consult lawyers regarding a threatening letter from a former employer related to company confidential information where they asked me to sign additional ...
5
votes
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 ...
5
votes
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 ...
5
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2answers
3k views

Can I claim my parents as dependents on my tax return if they stayed with me for 5 months?

My parents are retired and support themselves with pension and savings I send them. They both stayed with me for 5 months last year in the US, but mostly spend their time in India. They both have SSN ...
5
votes
3answers
2k views

New Car Tax deduction

I am filing tax in US, I purchased a brand new car. I want to add to my tax deduction. Tax software is suggested to include vehicle register fee? where can I can find it? should I enter the purchase ...
5
votes
2answers
331 views

Is there a way to claim a car purchase in the tax return?

I purchased a car for $19K; $6K was paid upfront, and the rest is financed over 3 years. Is there a way I can deduct the car purchase in certain circumstances? This vehicle is primarily used for work. ...
5
votes
2answers
450 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 ...
5
votes
3answers
284 views

Which payment plan is better to pay for tuition?

My kids go to a private school that's attached to a religious congregation. As far as paying tuition, they offered me a choice between these 2 deals: $1296 per month (for 12 months). $1156 per month ...
5
votes
2answers
136 views

Does an RRSP loan provide any benefit, vs. simply making monthly RRSP contributions?

While evaluating a short term RRSP loan like this one, the numbers seem good on paper. But: If I need to save $1,000 in tax deductions, I need to put the entire borrowed money into the RRSP before I ...
5
votes
2answers
862 views

Is it true that if I work 6 months per year, it is better than to work for 1 calendar year and take a break for 1 year?

For USA taxes, if I have two choices of either working from January 2015 to January 2016 and not work for a year, versus working from June 2015 to June 2016, and not work for a year, isn't the second ...
5
votes
3answers
395 views

When would it be better to pay my public transport ticket at once vs. in 12 monthly installments?

I live in Germany and I use public transport to go to work. I have a yearly public transport ticket which costs 1000€. The transport association offers me the choice of paying 1000€ in one transfer ...
5
votes
2answers
8k views

How much of my state income tax refund is considered taxable income?

Under the previous tax law, if you itemized and deducted your state income taxes but then got a state income tax refund, the refund was considered taxable income in the subsequent year's federal ...
5
votes
1answer
162 views

Can salary sacrifice pension contributions move you into a lower tax bracket for Capital Gains Tax?

If a person is paid over £45,000 per year then they are a Higher Rate taxpayer and pay Capital Gains Tax at 20% If that person pays into their salary sacrifice pension and reduces their taxable ...
5
votes
1answer
665 views

What does this 401K statement mean?

"Your employer will match up to 10% of your compensation that you elect as pre-tax contribution. When you contribute to your plan, your employer matches 50% of the first 10% of your pay." I don't get ...
5
votes
1answer
402 views

Is the interest on a non-bank loan for a house still considered tax deductible?

I'm trying to buy a house that's listed as not inhabitable in its current state. I want to buy it so I can repair it and live in it. I have all the financials I need, and I have excellent credit, but ...
5
votes
1answer
1k views

Can I somehow claim my live-in brother- and sister-in-law on my taxes?

For most of this year (since February of 2013) my brother- and sister-in-law have been living with my wife and me. I own my home if that matters. They moved from Alabama to Wisconsin for better ...
5
votes
2answers
130 views

Will a retirement account with more than $3,400 in it bar me from getting EITC?

EITC (earned income tax credit). Is a retirement account considered investment income by the IRS? The IRS considers these as investment income: Interest (both taxable and tax-exempt) Dividends ...
5
votes
1answer
259 views

Are the Social Security Tax and Medicare Tax on W-2 considered tax deductible?

Are either the Social Security Tax (Box 4) or Medicare Tax (Box 6) deductible? I don't see anywhere other than line 69 of 1040 (Excess Social Security Tax) that mentions either, so I don't think they ...
5
votes
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 ...
5
votes
2answers
564 views

U.S. income tax & charitable donations: How much is income tax reduced by donations?

In the U.S., how much is income tax reduced by charitable donations? When filing, are there any special requirements to qualify for the deduction or credit?
5
votes
1answer
232 views

Selling Gifted Stock - Capital Gains, Gift Tax, AGI/Deductions

My wife and I received a gift of $100k stock from a relative two months ago. Cost basis of the stock was $30k, purchased by that relative 5 years ago. We hope to sell the stock to use for a down ...
5
votes
2answers
595 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 ...
5
votes
1answer
543 views

Do I need an official receipt to claim a charitable tax credit?

I made a charitable donation in December of last year, and have yet to receive the official tax receipt for tax-return purposes. Contacting the charity, I was told that the receipts had already been ...
5
votes
2answers
3k views

UK income tax & charitable donations: How much is income tax reduced by donations?

To continue the theme... In the UK, how much is income tax reduced by charitable donations? When filing, are there any special requirements to qualify for the deduction or credit?
5
votes
1answer
765 views

In Canada, can I deduct my mortgage if running a business from my home?

If I run a home business and a portion of the home is used as an office for the business can I deduct a percentage of the mortgage?
5
votes
1answer
72 views

Is medical expense of a guest injury tax deductible?

A guest was hurt in my party. I paid his medical bill. Is this expense deductible in the U.S.? If so, where does it go on 1040 Schedule A? Thanks.
5
votes
1answer
180 views

Is there an IRS “use or lose” it rule on taking charitable deductions up to the 50% limit of AGI?

In 2014, I made a large cash contribution to my school. (As cash, this contribution is subject to the 50% rule on deductions, not the 30% rule.) At my expected AGI, and my expected level of other ...
5
votes
2answers
1k views

Rollover IRA vs traditional IRA (can I make contributions to the rollover IRA?)

I am single and used to contribute to a Roth IRA (my last contribution was years ago), but now my AGI is over the limit to contribute to the Roth. I have a "rollover IRA" that I opened a few years ...