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Should I choose Itemized or Standard deduction?
15 votes

According to Maryland State Law, the Maryland standard deduction is $2,250, and you may not itemize in Maryland if you choose the standard deduction on your federal return. Therefore, choosing to ...

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Can I use an HSA to pay off medical debts incurred before the HSA was funded?
13 votes

According to the instructions for IRS Form 8889, Expenses incurred before you establish your HSA are not qualified medical expenses. If, under the last-month rule, you are considered to be an ...

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Tax reform bill: Is a section 11042 "consumer rebate" of $3700 legit, or a scam?
7 votes

Section 11042 of H.R. 1, the 2017 tax bill, is titled: SEC. 11042. LIMITATION ON DEDUCTION FOR STATE AND LOCAL, ETC. TAXES. If you read the language of that section, that is indeed the section ...

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Cancel PMI at 78% or at 75% if Fannie Mae
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5 votes

You're right that federal law does require termination for PMI at 78%--however, as with many laws, there are exceptions. 12 USC 4902 requires the cancellation of "private mortgage insurance" on or ...

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HSA distribution and medical expense deduction in the same year
5 votes

Yes, it is possible to take an HSA distribution for medical expenses without limiting your ability to deduct medical expenses incurred this year. USC 26 Sec. 223(f)(6): For purposes of determining ...

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Can COBRA-premiums be paid for pre-tax?
5 votes

COBRA premiums are an HSA eligible expense, per page 8 of IRS Pub. 696: Insurance premiums. You can’t treat insurance premiums as qualified medical expenses unless the premiums are for: ...

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What can I do with a HSA after I leave a HDHP
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5 votes

In order: Yes, you can rollover an HSA, even if you don't have an HDHP: You can roll over amounts from Archer MSAs and other HSAs into an HSA. You don’t have to be an eligible individual to make a ...

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Where can I find Bitcoin Misery Index?
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4 votes

According to Forbes, Tom Lee, Fundstrat Global Advisors' head of research, introduced a Bitcoin Misery Index, or BMI, on Friday. The Fundstrat Website includes Thomas Lee as its head of research. ...

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Itemizing deductions: Proportional tax paid for vehicle title and registration that is not sales tax
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4 votes

26 U.S.C. 164(b)(5)(E), a sub(subsub) section of the law that specifies taxes that are deductible: (E) Compensating use taxes A compensating use tax with respect to an item shall be treated as a ...

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How to categorize credit card payments?
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4 votes

Using the Transfer category is the best place to put these categories, as that accurately reflects what the transaction is. If you have your credit card and bank account linked in Mint, the debit and ...

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What is the difference between the LIBOR data from the FRB and WSJ?
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3 votes

I don't have a definitive source for this, but this looks like the Wall Street Journal quote is that of the previous day. This makes sense in the context of the processes of setting LIBOR, and ...

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Is it possible to claim the Bona Fide Residence test for part of the year?
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3 votes

You're at the wrong page to check for eligibility to claim the Foreign Earned Income Exclusion. The full eligibility test says that if you do not meet the Bona Fide Resident test, you can claim the ...

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What box on my W-2 correlates to my "earned income" for purposes of EITC?
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3 votes

401(k) contributions are not included as Earned Income. Following the instructions for calculating Earned Income for the EITC (page 56, step 5), the first component in calculating Earned Income is "...

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How to properly compare pension vs Roth IRA?
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2 votes

Generally, your math is correct. And generally, you're making an apples-to-apples comparison. There is some quibbling to be had about your assumptions (such as whether 2% salary growth is too low, ...

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Tax classification- non-real property rental income
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2 votes

The IRS states: Cash or the fair market value of property or services you receive for the use of real estate or personal property is taxable to you as rental income. In general, you can deduct ...

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Alimony deduction related to Tax Cuts and Jobs Act of 2017 (TCJA)
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2 votes

Section 11051 of H.R. 1 reads: SEC. 11051. REPEAL OF DEDUCTION FOR ALIMONY PAYMENTS. (a) IN GENERAL.—Part VII of subchapter B is amended by striking section 215 (and by striking the item ...

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1099-C question
2 votes

There's not enough information to answer your first question, "Do I need to file a 2017 income tax return?" Fortunately, the IRS provides a tool you can use that will fully answer the question. The ...

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State income taxes paid while abroad
2 votes

Guidance from Pennsylvania's Department of Revenue states (on page 11) that Nonresidents are taxed on the following types of income derived from sources within Pennsylvania. Compensation ...

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Education Credit Guidelines
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1 votes

Here's what the IRS's Pub 970 says about qualified educational expenses: For purposes of the lifetime learning credit, qualified education expenses are tuition and certain related expenses required ...

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Does the New Tax Bill Affect 2017 Taxes For Flow Through Entities / S Corp?
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1 votes

Section 11011 of H.R. 1 (pages 10-18) lays out the 20 percent deduction for pass through entities. Subsection (e) reads: (e) EFFECTIVE DATE.—The amendments made by this section shall apply to ...

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Tax reform: is the futures 60/40 tax treatment the same?
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1 votes

The 60/40 tax treatment for futures is laid out in 26 U.S.C. 1256. That section defines that 60/40 tax treatment (1256(a)), and also defines what futures are eligible for that tax treatment (1256(b)). ...

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Is a federal annuity taxable in Maryland?
1 votes

Maryland treats income from pensions and annuities in the same manner that the federal government treats such income. Consequently, pensions and annuities can be subject to Maryland's income tax. The ...

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Am I required to use form 2555 even if I earn less than the standard deduction?
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0 votes

No, you are not required to file 2555. The instructions for form 2555 explain how to choose to exclude foreign earned income. Implicitly, if you have to choose to claim the exclusion, you can choose ...

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