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Questions tagged [tax-deduction]

To be used for any question related to tax deductions.

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5
votes
1answer
140 views

Selling my house and have been taking home office deduction. What will I owe?

I'm in the process of selling my house. I took a home office deduction a couple times, and I am concerned about what I may be responsible for at tax time. My profit from selling the house is nowhere ...
5
votes
1answer
483 views

Can I make a lump-sum contribution to a SIMPLE IRA?

My employer offers a SIMPLE IRA plan to which I can contribute 3% of my salary. My employer contributes a 3% match. The employee contribution limit of $12,500 is far higher than the 3% amount I will ...
5
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2answers
190 views

Is DIY car repair work deductible in any way when self-employed?

I am self-employed and I am proficient at repairing vehicles. I use my vehicle exclusively for work: my customers ask me to drive to one of their customer's location and I provide a service on site. I ...
5
votes
1answer
285 views

Adding spouse to single member LLC to reduce taxes

Suppose husband has a single member LLC, has a SEP IRA, and makes more than enough to max out annual SEP contributions. I'm curious if the wife could be added to the LLC to allow the wife to also ...
5
votes
1answer
296 views

Is it common for a one-time windfall to lead to an individual net operating loss in the following year?

Suppose that Alice ordinarily makes $100,000 a year. Then, in Year 1, she wins the lottery and experiences a one-time windfall of $2.4 million, bringing her income for that (single) year up to $2.5 ...
5
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1answer
476 views

Married Filing Separately - Who Can Deduct Mortgage Interest

Wife and I are married, but filing separately due to excessive student loans that she has. Mortgage is in my name (due to excessive student loans that she has), but we are both on the title of the ...
5
votes
1answer
14k views

IRS Useful Life of a Laptop Computer

I own an IT/software company. I'm getting ready to ramp up a new venture and want to purchase some new laptops for my remote employees and myself. According to IRS publication 945, chapter 4 (https:/...
5
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1answer
392 views

Self-employed with a second PAYE job so have no P45 to give new employer

I have been paying tax and NI contributions as a self-employed person, albeit only a tiny bit of tax as I earn just over the allowance threshold. I have now taken on additional regular work to ...
5
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1answer
120 views

How do I claim moving tax deductions in new year?

How do I claim my moving expenses incurred in 2013 in my 2014 tax return? I won't be filing 2013 tax return because I didn't work in 2013 tax year. I recently moved to US and will start job from 2014. ...
5
votes
1answer
475 views

Comparing pre-tax versus post-tax health expenses?

I understand the concepts from this question and everything I have read says that the benefit of pre-tax expenses are that they reduce your taxable income. But to keep the math simple, let's say ...
5
votes
1answer
197 views

Tax deduction macros in Python for Germany

I work to implement a set of German tax deduction macros in Python for private use and have some errors, one of my troubles is correct deduction of Lohnsteuer. There are quite many online calculators ...
5
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1answer
532 views

Creating a limited company in the UK with which to invest in real estate/stock market

I have a full-time job, and as a second job I work as a contractor for another company. Since the income I get from my first job is enough to pay for my living expenses, I am currently saving and ...
5
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2answers
94 views

Am I eligible to use a dependent care FSA if my spouse works half-time and goes to school half-time?

I work full time. If my wife worked full time we would be eligible to use a dependent care FSA. If my wife went to school full time we would be eligible to use a dependent care FSA. But my wife works ...
5
votes
1answer
990 views

Can AGI/MAGI ever be greater than gross income?

As I understand it, Adjusted Gross Income (AGI) is the gross income minus a number of deductions. Modified AGI (MAGI) is that number with some of the deductions added back in. Is the set of ...
5
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1answer
10k views

Claiming business expenses for a business with no income

I'm currently working on a web application on the side to turn into a business one day. I probably spend upwards of 20-30 hours a week working on it (I would like to spend more but not ready to quit ...
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 ...
5
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1answer
1k views

How long do I have to make an adjustment to my income tax filing?

For instance, if one were to find receipts between 2-3 years old, are they still useable? Is there a fee for a re-assessment?
5
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1answer
470 views

We get receipts from our child care provider. Can we still claim a tax benefit even though they're not licensed?

We get receipts from our child care provider. Can we still claim a tax benefit even though they're not licensed? [Note: This is my paraphrased version of a similar question I answered at moms4mom.com....
5
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1answer
118 views

Are Medicare premiums deductible on schedule C if you also have a secondary policy from previous employer?

My wife and I both receive Medicare parts A and B. We can not participate in previous employer's health plan as primary because we are on Medicare. However, we do participate in the employer's plan as ...
5
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2answers
2k views

Can I withdraw a non-deductible traditional IRA contribution without penalties in the same tax year?

I just spend two hours going through IRS Publication 590a, and reading all related question here and in some other places (none matched this question exactly). Situation: X is over 50 and ...
5
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1answer
875 views

Tax treatment of renovation costs and mortgage interest on a second house

In mid 2015 I purchased a house with the intention of completely renovating it and renting it out. The renovation is now complete with approximately half of the renovation cost incurred in 2015 and ...
5
votes
1answer
128 views

Home office deduction using simplified method & expensing of non-permanent office modification?

This year (2014) I'm planning on taking a home office deduction as I have recently become an independent contractor doing computer programming. I have set up an area in the basement about roughly 300 ...
5
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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 ...
5
votes
3answers
220 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 ...
5
votes
1answer
159 views

Can I claim tax deductions when I'm living abroad?

I'm moving to the UK for a temporary job transfer and will be renting out my home in California. Since my home will become an income property, I can no longer claim the mortgage interest rate ...
5
votes
1answer
1k views

Tax deduction for rental repairs after tenant moves out?

I purchased a home last July and began living there, while renting out a second bedroom in the property to a friend. I am now getting married in August, so the friend has moved out to his own place. ...
5
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0answers
112 views

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 ...
5
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0answers
152 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, ...
4
votes
2answers
1k views

What does the IRS standard deduction amount mean?

http://www.moneycrashers.com/reselling-vs-donating-tax-deduction/ Apart from the personal satisfaction you get from helping a nonprofit, donating your extra stuff can land you a valuable tax ...
4
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2answers
2k views

Can I write off time I spent working on my business?

So, I'm a freelance web programmer by trade, which means that my time really is money. I, occasionally, work on side projects of my own and forgo the possibility of earning direct income for that time....
4
votes
5answers
416 views

Why is company provided health insurance tax free, but individual health insurance is not?

Why is company provided health insurance tax free, but individual health insurance is not? I do not understand the rationale for making health care contributions by companies non-taxable, but if an ...
4
votes
1answer
164 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 ...
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 ...
4
votes
1answer
143 views

My tax deductions are different from last year

I am working in a company for my summer internship in California, and today I noticed a weird point that raised a question: Last summer I was working in a big tech company in California. While the ...
4
votes
1answer
3k views

Overpay state income tax this year to offset federal taxable income to the next year?

This year (2016) I am a waged employee and will earn something close to $100K. Next year (2017) I don't plan to work at all so my projected income for 2017 would be $0. Since the state tax that I ...
4
votes
3answers
725 views

Splitting Hackathon Prize Money to minimize tax debt

I won a hackathon, the prize was $2000 in the form of a check made out to me. I was part of a 6-person team and we split the prize money as follows: $300 to each team member (including me) ...
4
votes
2answers
130 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. ...
4
votes
3answers
152 views

Non Tax Deductible funds accidentally put into traditional IRA

This last calendar year (2018) I opened up a traditional IRA and contributed $5500. However I did not do all my homework and discovered, after the fact, that money is only tax deductible if I don't ...
4
votes
1answer
2k views

Gym membership tax deductible?

I am a self-employed contractor. My wife and I have a paid position with our church doing campus ministry at our local university. Our position is really all about contacting people and spending time ...
4
votes
4answers
1k views

Can a company donate to a non-profit to pay for services arranged for before hand?

For example - a non-profit is in need of a website. Can a company say "StackExchange" donate to a non-profit company say $5,000 in agreement that they will spend that on paying a designer for a new ...
4
votes
2answers
2k views

How do IRS pre-tax commuter benefits work?

I'm moving to NYC for a job and my new company offers a plan for Pre-tax commuter benefits. From what I've read the federal maximum for pre-tax dollars towards this is $245/month. I'm wondering how ...
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. ...
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 ...
4
votes
1answer
407 views

Does loss in stock market count against standard/itemized deduction?

I read some articles on the internet but I am still confused. None of the articles seem to give me an answer that I am able to understand. As far as I understand, I can either apply the Standard ...
4
votes
2answers
248 views

Given the changes to income tax rates, should I change my 401(k) strategy?

With a new standard deduction of $24,000, how does that change my strategy for whether to put my $18,000 of 401(k) money in a Roth vs. a traditional account? What new strategies (particularly with tax-...
4
votes
1answer
405 views

Can I deduct donated PTO from my taxes?

My company administers a program where employees can donate Paid Time Off (PTO) to fellow employees experiencing a hardship. Can I deduct the value of the PTO I donate from my taxes? Presuming that ...
4
votes
1answer
82 views

Can I re-file an old tax return to get a refund of monies paid incorrectly in a previous year?

Let's say I screwed up and didn't claim all the deductions that I could have in a previous tax year. Can I file a new tax return for that year which is corrected, then claim the difference between ...
4
votes
2answers
139 views

Is it possible to use a 529 plan solely for myself, without any educational expenses?

I was setting up an Illinois 529 plan recently. Contributions to the plan are state income tax deductible up to $10,000 per tax payer per year. It got me thinking: What is to stop someone with no ...
4
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1answer
1k views

Can I claim my girlfriend as a dependent?

Can you claim your girlfriend as a dependent in the USA.
4
votes
1answer
575 views

Are there any tax deductions I can claim if my in-laws move in with me temporarily?

My in-laws recently found themselves in a bit of a bind after unemployment/foreclosure and will be temporarily moving in with my husband and me. All told right now there are 2 additional adults and 4 ...