The IRS Deductions Blog

Archive for June, 2009

Question: Can I Deduct Clothing Donations to Charity?

Can I donate clothing to the Salvation Army and take a tax deduction?’

I had heard that the IRS had gotten tougher on clothing donations as deductions.

What things should I consider so that I don’t have any problems with the IRS?

Answer: If you itemize your deductions on Schedule A rather than taking the Standard Deduction then yes you can claim a deduction for Clothing donations. Keep in mind that you need to make a list of the donated items, and get a receipt from the organization. The IRS publication 526 states that the clothing must be in Good usable condition.

http://www.irs.gov/publications/p526/index.html

Items on Amazon Right Now for Irs Deductions For Clothing Donations:

Last-minute donations help both charities and donors

The last days of the year are busy for charitable organizations like Goodwill Industries as people look for last-minute Tax Deductions. Officials say they often receive more than 10 percent of their yearly donations during the end of the year.

Los Angeles is on the cutting edge of hair system technologies

Yes, there is plenty of technology involved in making hair systems and since Los Angeles is one of the most advanced cities in California it only stands to reason that Farrell California would be in forefront of new hair system technologies. Visit Farrell California today, find out how you can look incredible for much less than you might think.

Great hair systems that blend perfectly into the skin, have perfect color and texture and even last years are no longer the preferred hair system, today they are the standard hair system. With the combination of technological advancement in materials and skilled craftsmanship Farrell California produces what can only be deemed as the absolute finest hair systems made anywhere in Los Angeles and even California.

If your wearing a hair system then you’ll love Farrell California…

Farrell California understands the intricacies involved in fitting you for your hair system, we understand that men and women require a different approach and that’s why we want to offer you a free consultation. We want you to feel 100% confident that your going to get the finest hair system made and the best customer service and support for as long as your wearing your Farrell California hair system.

If you have never worn a hair system…

Before you buy a hair system from anyone you should schedule a no cost consultation with a Farrell California hair systems specialist. We’ll give you all of the details you need to make an informed decision and answer all of your questions in a private and confidential environment. At Farrell California we don’t have any sales people, we only have people who understand your need and who are patient, professional and caring enough to listen to all of your concerns about wearing a hair system for the first time. Visit Farrell California today, find out how you can look incredible for much less than you might think.

We invite you to come and see for yourself how Farrell California Hair Systems can completely change your life, we have videos, photos and real life testimonials from clients who have made the decision to change their lives with a hand-made custom hair system. Come see the videos and photos of real Farrell California hair system clients and book a no cost consultation in Orange County, Los Angeles or San Francisco today

Items on Amazon Right Now for California Standard Deduction Table:

Across the USA News from every state

News from every state

Governor Signs Smaller Budget – Full Remarks

Question: Please tell me if these things are deductible?

Credit card interest
Auto loan interest (auto was paid for by a home equity loan on residence)
Auto insurance
CPA for preperation of last year’s taxes
Safety deposit box for storage of stocks and tax data

Answer: Credit card interest – No and yes. No if it’s a personal credit card, yes if it’s a credit card for your business (Schedule C).
Auto loan interest, yes because of the interest being home equity loan interest. But it would also be Deductible Interest if you used an auto for a business (Schedule C) you had.
Auto insurance – No and yes. No if it’s your personal vehicle, yes if it’s an auto you use for a business (Schedule C), and you take actual expenses (gas, repairs, auto loan interest, insurance, excise taxes, registration, cost of the vehicle itself), no if it’s an auto you use for a business and you take mileage.
CPA – yes, but it would have to be reported on Schedule A – Itemized Deductions under Miscellaneous Itemized Deductions and your total miscellaneous itemized deductions would have to exceed 2% of your AGI for the excess to be deductible. If you have a business (Schedule C), a farm (Schedule F), or rental property (Schedule E) then you can take some of the CPA fee and expense it in those schedules.
Safety Deposit Box fee – Yes, but it also has to be reported on Schedule A – Itemized Deductions under Miscellaneous Itemized Deductions, and your total miscellaneous itemized deductions have to exceed 2% of your AGI for the excess to be deductible

Items on Amazon Right Now for Deductible Home Equity Interest:

Pros and cons of cash-out refinance

When used responsibly, a cash-out refinance provides benefits that other types of loans do not.

Home Equity Lines of Credit : Are Home Equity Lines of Credit Tax Deductible?

Question: Are the payroll tax and Massachusetts income tax deductible from ferderal income tax?

I know student loan interest, health care, and public transportation are tax deductible.

This in total takes $2,800 off my annual salary. There is also about another $9,000 for personal exception and standard deduction, and another $450 from losses in the market last year.

I just wanted to know if mass income tax of 5.3% is deductible and the 7.65% payroll tax are deductible.

Also are any federal, payroll, student loan interest, standard deduction, personal exception, etc.. deductible for massachusetts income tax? I haven’t been able to find any info on this while searching.

I guess I should add, is the personal exception different from the standard deduction?

Can I do Itemized Deductions and still use the $3,500 personal exemption?

Answer: You can deduct your state income tax paid if you itemize. You cannot deduct the payroll tax on your federal tax return. Half of your Medicare and Social Security withholding can be deducted on your Massachusetts tax return up to $3,000.

You can take your student loan interest as an adjustment on your 1040, not as an itemized deduction.

Health care can be deduction as long as it is greater than 7.5% of your AGI. If your health insurance premiums are taken out of your taxes pretax, you cannot deduct them as they were not subject income tax.

You cannot take both itemized deductions and standard deduction. It is one or the other.

Public transportation is NOT a deduction unless it was for work related activities and NOT commuting. It is also subject to 2% of AGI floor.

Federal taxes are not deductible on the MA tax return.

Items on Amazon Right Now for Standard Deduction Over 65:

Exemptions, standard deduction and filing information (SuDoc T 22.44/2:501/990) …

Exemptions, standard deduction and filing information : for use in preparing … returns (SuDoc T 22.44/2:501/) …

Getting the Most Out of the Mileage Deduction (Tax Saving Reports for Small Businesses, 010) This small business report will teach you why the automobile deduction is the most under-utilized of all deductions and how to get the largest auto deduction allowable….

Many changes in tax forms this filing year

When taxpayers sit down to file their 2009 returns, they will find plenty new to deal with as they look for refunds or get ready to pay the Internal Revenue Service by April 15.

Everyone wants to be rewarded; this reason is very warm among consumers to get rewards credit cards. Some are very popular rewards credit cards for instance, gas and airline credit cards. There are various forms of it, such as cash back, gift certificates, and travel miles. On the other hand, the finest way to know which rewards credit card is best for you; you need to take a look at your spending habits.

If it is important to get cash back in your hands, then this feature would be an important comparison point. Rewards are in various forms, that is, actual cash, gift certificates or applied to your monthly balance. Some companies offer as much as five percent (5%) cash on the buying of selected items. This is the most important deciding factor: how credit card holders are rewarded, that is, how do they buy back their points. Will you get real cash? Will you be forced to buy back your points by shopping at a specific place?

With rewards credit cards, APR is very important for the consumers who keep balance on their card monthly. Cardholders who use their credit cards for the payments of their bills, and they clear their monthly balance, will get better rewards from these cards. Customers who do not pay off their balance will find themselves with heavy APR interest charges since these cards are more costly.

Different card issuing organizations offer lots of benefits which are best and fit for you. If you do a batch of online shopping, then a card offers coupons and cash back for online buying and rate would be higher.

If you want to get more from your rewards credit card, you need to determine which card gives you more for your regular shopping. Like, it would not be sensible to select a card that gives you cash back on gas purchases, if you rarely buy gas because you work from home or take the bus. You should know about your spending pattern before deciding on a rewards credit card.

Items on Amazon Right Now for Deductible Rewards:

Community, local business pitch in to help Unionville man who’s had no heat or electricity for past 5 years

When Ellis Mitchell got his college degree in accounting in the early 1970s, he figured his career path was set. He landed a job in King of Prussia and things were looking good.

Deductible Rewards