The IRS Deductions Blog

Archive for May, 2010

Question: Am I being charged too much from my mortgage broker?

Underwriting fee 450, application fee 275, commitment fee 250, processing fee 550.

Answer: The fact that they’re charging you anything at all for all those fees is a sign that it’s too much. When a mortgage broker secures a loan, they get paid a commission from the lender (thousands of dollars and the amount depending on the type of loan). No-cost mortgage brokers will put you into a loan that might have like a half-percentage-point higher interest rate. But, that gives him a higher commission. They then take part of that commission and pay all of the closing costs for you.

Since your rate is so low, the broker may not have gotten much of a commission. So, he’s passing those costs on to you. I would contact a different broker and see how much it costs for a similar loan product, and then go with the one that makes the most financial sense.

BTW – I recommend that people always go with mortgage brokers rather than dealing with lenders directly. Brokers get daily rate sheets from numerous lenders for various loan products. If you go to a specific lender, you’re pretty much stuck with only the products they offer, which might not be the best priced product available.

Also, if the underwriters hold up your loan and even disapprove it, you have to find another lender who will approve the loan and you start over again from square 1. Mortgage brokers can submit multiple applications for loans and you can then choose from the ones that were approved.

Items on Amazon Right Now for Origination Point Tax Deductible:

Radian Reports First Quarter 2010 Financial Results

PHILADELPHIA—-Radian Group Inc. today reported a net loss for the quarter ended March 31, 2010, of $310.4 million, or $3.77 per diluted share. This compares to a net loss of $217.4 million, or $2.69 per diluted share, for the prior-year quarter.

Question: Student loan interest deduction causing negative adjusted gross income?

Hi, I am in my 20′s and I’m a student first time filing my 2009 taxes. I worked one week, and earned 760. I paid 5000 in student loan interest and the IRS allows students to claim up to 2500 student loan interest deduction. So if i enter 2500, my adjusted gross income is -1740 (adjusted gross income) and my effective tax rate is 0%. If i leave out the student loan interest deduction, the effective tax rate is -7.76%. My federal tax refund is the same $186 whether i input my paid student loan interest or not. Should i take out or enter the student loan interest deduction? It doesn’t seem to look good to have a negative adjusted gross income. Any advice would be greatly appreciated. Thanks!

Answer: scholarships.onlinewebshop.net – it provides some tips about applying to US federal and state grants for college students.

Items on Amazon Right Now for Tax 2009 Standard Deduction:

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TurboTax Home & Business Federal + State + Federal efile 2009 $42.89 TURBOTAX HOME & BUSINESS WITH…

Alange Energy announces financial results for the year ended December 31, 2009

Alange Energy Corp. announced today the release of its audited consolidated financial results for the year ended December 31, 2009, together with its Management’s Discussion and Analysis and its 2009 Statement of Reserves, Form 51-101F1.

Tax Tips from the IRS – Why E-File?

Question: What type of donations are LEGALLY tax deductable?

Please kindly advise the type of donations to charity that are tax deductable? I’m thinking of donating a used car and some used clothes and used computers. Are this deductable. And what will i get on the deductions? Will i get the current value?
Also please tell me what else we do in our daily lives that are tax deductable.
Please advise.

Answer: Donations can only be deductible if they are made to authorized non-profit charities, and you need a receipt to prove it. There are literally thousands of types of Tax Deductions. You should look at what is relevant for you at the IRS website.

Items on Amazon Right Now for Donation Tax Deduction Values:

TurboTax Home & Business Federal + e-File + State 2010 – [Old Version] $8.07 Designed for sole proprietors, self-employed, consultants, 1099 contractors, and single-owner LLCs. Expanded interview walks you through entering business income and expenses to help you maximize business and personal deductions, home office deductions, depreciation and more. Create W-2 and 1099-MISC forms for your employees and contractors. The Intuit TurboTax Home & Business Tax Year 2010 Softwa…

TurboTax Home & Business Federal + State + Federal efile 2009 $42.89 TURBOTAX HOME & BUSINESS WITH…

TurboTax- ItsDeductible $19.95 …

ItsDeductible Workbook for Tax Year 2005: The Blue Book for Donated Items $7.99 Every year, millions of Americans forfeit hundreds of dollars in legal tax savings simply because they underestimate the value of their charitable item donations. ItsDeductible, from the makers of TurboTax®, provides a simple solution to determining fair-market values. Updated annually, with assessments for over 1,000 categories, including jewelry, clothing, baby supplies, small appliances, exerc…

House Prices: What Next?

IMPORTANT WARNING: The contents of this report have been compiled in good faith by Investorsoffshore.com to provide assistance to investors, but do not constitute investment advice or recommendations.

Warren Buffett P3

Question: deductible and not deductible services in health insurance..?

what dose it mean for certain services to be deductible?
what dose it mean for certain services to be “not deductible”?
What is benefit level? It says benefit level: schedule on my benefit summary…
It also says benefit level: $31 in my other summary..
don’t understand it

Answer: You probably need to talk to a local agent about this, who can help you understand your coverages.

Items on Amazon Right Now for Health Insurance Deductible Explanation:

Flood of sewage destroys local home

    It sounds like something that would happen in a nightmare.

What is “Leveraging”?

Question: Are there better options for individual health insurance – from a tax standpoint.?

My employer does not provide health insurance. After extensive research, my wife and I found a suitable policy for ourselves that provided sufficient insurance coverage without breaking the bank. The major downside I see is that we are paying for the coverage with post tax money – yes our premium goes toward our Itemized Deductions, but that is no where near comparable to paying with pre-tax money. Am I wrong about this? Is there a better way to approach this?
It just doesn’t seem right that I am punished merely because my employer is a small business, not able to participate in a group insurance plan.

Answer: poster numbe two sounds good — but it sounds like an HMO if so your can run into all kinds of problems since you no longer have control over your medical chooses. buyer beware!!!

Items on Amazon Right Now for Tax Deduction Health Insurance Premiums:

Employer reimbursements to employees for salary-reduction amounts used to pay health insurance premiums were not excludible.: An article from: The Tax Adviser $5.95 This digital document is an article from The Tax Adviser, published by American Institute of CPA’s on February 1, 2002. The length of the article is 866 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.Citation DetailsTit…

Private health insurance estimates of a proposed health insurance tax credit for those who buy individual health insurance (SuDoc GA 1.13:HEHS-98-221 R) …

The income tax as insurance: The casualty loss and medical expense deductions and the exclusion of the medical insurance premiums (NBER working papers series) …

Pharmaceutical, Healthcare & Life Sciences

Kenneth Jenero is a partner in our Chicago office. James W. Michalski is a partner in our Los Angeles office.

New Paycheck Deduction