The IRS Deductions Blog

Archive for August, 2008

Question: I thought textbooks were tax deductible, however the TaxCut proam says that it is not. What to do?

This is what the Taxcut Software says:

In addition, these expenses are not considered qualifying tuition expenses:

Amounts paid for books, supplies, equipment, or nonacademic activities, except for fees required to be paid to the school as a condition of enrollment

This is straight from the software. Is there somewhere else I should be deducting textbooks? Those things are expensive, and would love to deduct them!
Were they deductible at any point? I seem to remember a time when I was asked how much I spent on textbooks and was able to add them to my deductions.

Answer: Textbooks are NOT deductable.

From publication 970:

Example 2.

Donna and Charles, both first-year students at College W, are required to have certain books and other reading materials to use in their mandatory first-year classes. The college has no policy about how students should obtain these materials, but any student who purchases them from College W’s bookstore will receive a bill directly from the college. Charles bought his books from a friend, so what he paid for them is not a qualified education expense. Donna bought hers at College W’s bookstore. Although Donna paid College W directly for her first-year books and materials, her payment is not a qualified expense because the books and materials are not required to be purchased from College W for enrollment or attendance at the institution.

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Food, Clothing Pantry Opens At Omaha Middle School

When some Omaha middle school students return to class on Monday after Christmas break, a few gifts will be waiting for them. Teachers at Lewis and Clark Middle School, volunteered during their vacation, setting up a food and clothing pantry for students and their families.

Omuthitu School Feeding Program – Promote Africa

Question: What is federal taxable income?

My standard deduction is $5350 and personal exemption is $3400. The way it was explained to me, if I add these together, it is the amount of money out of what I make during the year that is not subject to federal income tax.

If I make a few hundred dollars over this amount as gross income during the year (summer job), is all of my gross income that is subject to federal income tax or is it GROSSINCOME-(standard deduction+personal exemption) that is able to be taxed by federal income tax?
thank you all

Answer: The tax rate is applied to the taxable income, which is your gross minus the exemption and standard deduction. The rate would be 10% for the first $7,550 and 15% on the amount over $7,550 until you reach $30,650. I would guess that you would not be concerned about amount above that at this point.

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Finance and Banking

The best thing we can say about this edition of Tax Talk is that, from the standpoint of the global capital markets, things are not as bad as they were a year ago. When we published our Q4, 2008 issue, the financial world, it seemed, stood at the edge of economic collapse.

Get help with tax forms and filing- watch this video!

Question: home improvements and taxes?

I was wondering how it work and i want to be clear on this 2009 tax season is approaching quick so i just recently bought my first home this year in July.

the house was bank foreclosure and it was in livable condition but not what you would call a house that was 100% complete.

nothing major was wrong besides a crack in the foundation which i am currently fixing.

but the floors needed sanded and re-stained baseboards were needed there was water damage on the lower level which needed to be taken care of and the fuse panel needed upgraded and also the garage roof was leaking along with the outside drain system needed snaked out.

so my question is can I write the receipts for home depot off on my taxes this year.

and if so where at on my taxes do i put the deduction.

Answer: I don’t believe you can write those expenses off on a house you lived in.

You can write off any points you paid on your mortgage as well as interest paid. That much I know for sure.

As far as saving the receipts for capital gains, you won’t owe any capital gains when you sell if you’ve lived in the house at least 2 years.

Good luck with the house.

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10 ways to become financially fit in 2010

Breathe a sigh of relief. The financial rocky road of 2009 is over. USE, don’t lose, those new gift cards. Most gift cards cannot have expiration dates or fees, unless clearly stated on the card itself.

A Big Break for Making Better Choices!

Toughened glass passes through a series of chemical and thermal processes. This is done so as to enhance the strength of the glass. Toughened glass is also known as tempered glass. This glass will shatter into very small fragments upon breaking instead of breaking up into sharp pieces. Hence, this glass is less likely to cause injury. Because of this property, the toughened glass is used in various applications like glass doors, glass tables and in cookware. The glass also has a very high thermal resistance that allows it to be used in cookware like microwaves or ovens.

It is also used in rear view mirrors of various vehicles. Toughened glass is mainly used in applications where strength, safety and endurance are the main concerns.

These glasses are designed so as to ensure that they do not catch fire. However, in case of fire, this type of glass will prevent fire from expanding further. Hence ensures safety of the part of the building where it is employed.

They are used in various buildings that have to be protected against fire. But, the fire resistant glass should be installed in the buildings under proper surveillance so as to ensure its proper functioning. This glass is even stronger than the toughened glass. It is also light in weight and has good light transmitting power. Fire resistant glass is also used in fire resistant doors, restaurants, hotels, gymnasiums. Like the toughened glass the fire resistant glass also shatters into small fragments instead of sharp and pointed particles and hence do not cause injury in case of accidental damage.

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What to look for in your auto insurance policy

(ARA) – More than 186 million cars are on the road in the United States, according to The Insurance Information Institute. Most states require drivers to purchase auto liability insurance before they can legally drive a car.

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Question: A question about filing tax return?

In July of 2009, I purchased a home as a first time home buyer. What do I need to bring with me when I file my tax return?? I also put in a new furnace–and a new roof on the house. Will these two things allow for any deductions? If so, what do I need to bring as proof?? Thanks!

Answer: You need to bring record of your mortgage interest and points paid (if any) on your loan for 2009. You will need record of any property taxes you paid in 2009. Your lender should be furnishing this Information to you.

You will need a copy of your final HUD-1 settlement statement if you’re claiming the first time homebuyer’s tax credit. You can’t deduct the cost of the roof and furnace; however, there might be a energy tax credit available if the new work meets certain criteria.

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Honda searches on Edmunds Web site surge

Honda, whose U.S. operations are based in Torrance, saw searches of its vehicles on the auto information Web site Edmunds.com surge 100 percent over the past four days, compared to the first three weeks of December, Edmunds said Thursday.

Toronto Home Tax Credit 2009