The IRS Deductions Blog

Archive for September, 2008

Question: How can I calculate my total tax liability for 2008?

Using the tax brackets I found on the wiki:
10%: from $0 to $8,025
15%: from $8,026 to $32,550
25%: from $32,551 to $78,850

I’m filing single for this year and I expect an income of roughly $59,000. From what I understand, this makes my taxable income (gross less standard deduction of $8,950) to be about $50,000. So if I use those brackets, I should owe
10% on $8,025 = $802.5 +
15% on $24,525 = $3,678.75 +
25% on $17,260 = $4,315
—————————————–
$8796.25 total in taxes for this year.

Are these calculations correct? I had originally claimed zero dependents and so more than necessary was taken out of my paycheck ($5,230 so far). Does this mean that for the rest of the year I will only need to pay $3566.25 in taxes? Should I adjust my number of dependents so that only this amount is taken from my remaining paychecks?

Answer: Complete Form 1040-ES for 2008. If you have your income right, you should be fine.

I would put in the link but Answers is choking on links right this minute.

Items on Amazon Right Now for Standard Deduction Amount 2008:

E-filing saves paper, time: R.I. to mail out fewer tax forms

R.I. won’t mail as many tax forms, will save on processing; new guidance on jobless benefits, auto purchases

MeltDown #425 EMERGENCY ECONOMIC STABILIZATION

Question: Are there tax advantages to an at-home business?

I’d like to start a photography business from my home. I am a stay at home mom. I had overheard that you must keep tabs on mileage, expenses etc. for tax purposes. Are utilities and things like that tax deductible? How will this affect taxes? I will be purchasing the TurboTax for Home Business after I get started – but I’d like to understand first the implications. Thanks in advance!

Answer: Yes, there are great tax advantages to a home business. However you must keep very good records. You can claim mileage for any miles driven for the business, whether it’s to pick up supplies or deliver a product/service. You can deduct household expenses such as utilities, part of your mortgage etc, however, you must have a space in your home dedicated to your business.

Buying turbo tax is a good start. It is better to start out organized! I personally use Quickbooks Pro for my home business.

I’d suggest you go to the irs website. IRS.gov and do a search on home business deductions. You will find a ton of information.

Debbie
ladilight@yahoo.com
www.berkscandleshop.com

Items on Amazon Right Now for Deductible Mileage Expenses:

Every Landlord’s Tax Deduction Guide (2nd Edition) $25.00 This bestseller is the only book on tax deductions specifically for residential landlords! If you own rental property, you should be taking advantage of the many tax write-offs available. Every Landlord’s Tax Deduction Guide gives residential landlords the plain-English guide they need to save money on taxes — without the services of a high-priced accounting firm. This book explains how to ma…

Maximizing your medical deductions

These often-overlooked write-offs can make your doctor’s bills pay off at tax time.

2008 Lexus IS 250 in Virginia Beach, VA 23452

Question: What can you deduct if…..?

My husband and I own a business. We are sponsoring a T-Ball team this year. What all will be considered deductible when we file taxes next year? (ie…sponsorship fee, uniforms, water cooler for team, first aid kit…etc) We are an LLC, Sole Propriertship company.

Thanks.

Answer: All your expenses will be deductable. If you pay for the team to eat, only 50% is deductable. I am sure the kids thank you

Items on Amazon Right Now for Llc Deductibles:

Panasonic-3 Year Accidental Damage Coverage for Cameras/Camcorders 500 – 749.99 $89.99 DON’T buy a Service Contract on your digital camera unless you get Accidental Damage Coverage! That’s what we offer you! We make a good camera; and you will try your best to take care of it! But accidents do happen! Unless you buy accidental damage coverage; it’s not covered! On a digital camera, don’t let someone’s low price for an extended service contract distract you from what it really covers…

Panasonic-3 Year Accidental Damage Coverage for Cameras/Camcorders 350 – 499.99 $69.99 DON’T buy a Service Contract on your digital camera unless you get Accidental Damage Coverage! That’s what we offer you! We make a good camera; and you will try your best to take care of it! But accidents do happen! Unless you buy accidental damage coverage; it’s not covered! On a digital camera, don’t let someone’s low price for an extended service contract distract you from what it really covers…

Panasonic-3 Year Accidental Damage Coverage for Cameras/Camcorders 750 – 999.99 $109.99 DON’T buy a Service Contract on your digital camera unless you get Accidental Damage Coverage! That’s what we offer you! We make a good camera; and you will try your best to take care of it! But accidents do happen! Unless you buy accidental damage coverage; it’s not covered! On a digital camera, don’t let someone’s low price for an extended service contract distract you from what it really covers…

The Profit Trap: Secrets the Health Insurance Industry Doesn’t Want You to Know (First in a Series) Healthcare reform or not! If you buy, change, cancel or own health insurance of any kind (public, private or group) in your lifetime you better have this book first. America has been kept uneducated on purpose about how healthcare and health insurance really works for decades. Gain control over your quality, access and costs of your healthcare once and for all. Never be taken advantage of again by…

The Changing Face of Employee Health Benefits

While employers grapple with how the new healthcare law will affect them, brokers scramble to find innovative ways to decrease costs without cutting benefits.

Dolly Partons Homecomin 2009 train rolls in!

The only way to know if you are above average is to find out what the average is. Like it or not you get judged like this throughout your entire life starting at school and going right up to your performance at work. Even if you own your own business your customers are going to judge if you provide an above average product or service. The point is that we live in a relative world. The only way to know if you’re doing well is to compare yourself to everyone else. This becomes very apparent when you compare your body to other people. Do you have above average muscle, or strength? Is your percent body fat above or below average? To answers these questions you need to know what the average is for each of these things. You probably don’t think about yourself this way very often, and as most people do you probably think of yourself as one of a kind. And you’re right to some degree. Of course nobody else has lived your exact life with the same things happen to them. But on the other hand the look and shape of your body can be categorized and compared to everyone else. And most people are very similar. Most people are close to the average. To stand out from the crowd you need to be different, you need to be above average. If average people don’t workout with weights then you need to workout with weights to have above average muscle size. If average people eat an average diet they end up with an average amount of bodyfat. If you want to lower your bodyfat percentage you have to eat slightly less calories than average people do and do more exercise. The path to becoming exceptional isn’t that complicated. Just look around you at what everyone else is doing and do something different. There is slightly more planning that needs to go into it, but it’s not much. If I were to sum it up into the simplest sentence it would be this: Exercise more and eat less than the average person.

You might be thinking that there is also an average look of people that workout and you want to be even better than that look. If this is how you feel, then you might also want to have an above average workout and nutrition program. No matter how far you want to take your body and conditioning there is always a way to get there. You just have to look at what the people who aren’t average are doing. The people who are the biggest and strongest typically do more work at the gym and lift heavier weights more often than everyone else. The people who are very lean and have defined muscles typically pay more attention to their diet and eat less calories than everyone else. This might sound simplistic but it’s the truth. It actually isn’t that complicated at all. That doesn’t mean it’s easy, that just means it’s simple. There is a big difference between easy and simple. Things that are simple aren’t always easy. Building muscle and weight loss are two things that are simple, but not easy. The diet and fitness industry however try to tell you that they are much more complicated which allows them to sell you complicated diet and workout programs. To make a real change in your body the first steps are very simple. For weight loss just start eating less food, it doesn’t matter what the food is, it just matters that you eat less of it. For muscle building you have to lift heavier weights more often. The sets and reps don’t really matter, it just has to be more often than you’re currently doing and heavier.

This is all you need to see big time changes. Effective dieting and exercising isn’t complicated, the simpler the plan the easier it is to stick to and the faster the results will come.

Items on Amazon Right Now for Average Daily Value Deductible:

Opinion: Let’s change lens to see nonprofits

The government should take greater measures to propel the growth of the countries’ NGOs.

Items on Amazon Right Now for High Deductible Health Insurance Nj:

Christie: State budget “requires sacrifice”

TRENTON — Gov. Chris Christie unveiled a $28.3 billion state budget plan Tuesday that includes deep cuts in spending on property tax rebates and aid to municipalities, schools and colleges, as well as the layoffs of thousands of state workers.

Dr. Melba Bonelli speaks about the need for health reform at April 24 White House roundtable