The IRS Deductions Blog

Archive for March, 2008

Question: what’s the maximum amount for each itemized deduction on federal tax return? Where can I find this information

For example, What are the amounts I can deduct for Dental, job search travel expenses, food, phone, fax, internet, charitable donations, etc…

Answer: There are no maximum amounts for most of them.

Charitable donations are limited to 50% of AGI. Any charitable donation that exceeds this can be carried over to future years.

Medical deductions must exceed 7.5% of AGI.

Casualty losses must exceed 10% of AGI + $100 for personal losses or 2% of AGI for business losses.

Meals are limited to 50% of amount spent for entertainment expenses.

Itemized Deductions can also be limited if your income exceeds certain levels. Most taxpayers don’t need to worry about that but if you’re in to 6-figure territory you need to be aware.

Phone, fax & internet are only deductible to the extent that they are business expenses. If they’re employee business expenses there’s a 2% AGI limitation. If they’re direct business expenses (Schedule C) there’s no limit.

Items on Amazon Right Now for Tax Deduction Examples:

Car Sales Surging in Last Week of December, According to Edmunds.com

SANTA MONICA– Edmunds.com , the premier resource for automotive information, has noticed a tremendous boost in web activity in the past week. “We could potentially reach a December SAAR of 11.7 million units given the current site traffic trend,” noted Edmunds.com Senior Analyst Jessica Caldwell.

Rhonda Abrams

Question: This year I will make $75k and paid $14k Fed Tax. Refund Est says $500 back. What 2007 deductions can I do?

I will clear a little over $75k taxable income this year. I will have paid $14k in Federal Taxes. H&R Block Tax Estimator says $500 abck in refund (I understand a CPA will do better). What last minute deductions should I look for to help gain some of the $14k back?

Answer: business expenses!

gas for your commute
wear and tear on your car
business clothes you had to buy
business lunches / dinners you paid for

also if you donated to a charity
or if you were robbed or involved in an accident

Items on Amazon Right Now for Tax Deduction Estimator:

COLUMN: Got you covered: The financial three-step

Musicians often cover other artists and sometimes put their own spin on classic tunes. Elvis’ cover of Bill Monroe’s Blue Moon of Kentucky provides an excellent example. Even Mr. Monroe finally approved once the “mighty powerful” royalty…

Personal Financial Planning Tips : How to Estimate How Much Money You Will Need To Retire

Question: Is the deduction per child on tax return influenced by salary?

Answer: I’m sorry to disagree with my friends and colleagues on this site, but YES, the exemption amounts (the amount “per person” on the tax return) can indeed be reduced if you make ‘too much’.

Certain higher-income taxpayers are subject to a phaseout of their total exemptions. The total exemption amount is reduced by 2% for each $2,500 ($1,250 if married filing separately), or part thereof, that the taxpayer’s AGI exceeds the following amounts:
Single $150,500
Married filing jointly or qualifying widow(er) 225,750
Married filing separately 112,875
Head of household 188,150

These limitations apply to the taxpayer’s ‘total exemptions’, so it is indeed possible for the ‘deduction per child’ to be influenced by salary – you just have to make more than more of us
Blessings!

Items on Amazon Right Now for Child Tax Deduction:

Jessica regains £33,000 for reader

In mid 2008 Abbey was advertising a one-year Tactical Fixed-Rate Bond for a maximum of £30,000. Shortly afterwards, Bradford & Bingley offered much the same, except it was a three-year fixed-rate bond and again with a maximum of £30,000. I took advantage of both these bonds.

Can I Get A Refund If I Owe Taxes?

Question: What portion(s) of my closing costs are tax deductible?

For an FHA refinance mortgage loan, what portion(s) of the closing costs can I wrote off??

Answer: You can deduct on schedule A, the amounts shown for (1) interest, (2) property tax for the period after you bought the home, (3) points or loan origination fees, (4) mortgage insurance.

All of the other costs would either (1) be added to the cost basis of your home or (2) be non-deductible.

Richard K
Master Tax Advisor
Enrolled Agent

This advice is based upon my understanding of the tax law at the time it was written as it applies to the facts provided by you. See my profile for more information.

Items on Amazon Right Now for Tax Deductible Closing Costs:

Super Tax Site Saturday Provides Free Tax Help

There is still more than a month until your taxes are due, but the stress of getting the task accomplished still weighs heavily on the minds of many.

Question: What is the new Rental Taxes in India for Machinery Rent/Lease? and What TDS Deduction on Machinery Rent ?

1.Diesel Generator Set On Hiring.

Answer: yes

Items on Amazon Right Now for Lease Tax Deduction:

Taft and the Westside Facing Economic Growth and Opportunities

Kern County, CA is the heartland of the oil industry. Kern County produces up to 77% of all the oil produced in California (most of it in Westsern Kern County) and is the 4th largest producing oilfield in the Nation.

ASWN #2385 THE WEALTH OF NATIONS