The IRS Deductions Blog

Archive for May, 2010

Question: Are health insurance deductibles based on PLAN year or CALENDAR year? What if a new plan starts Dec. 1?

If based on CALENDAR year, do I get screwed every year on all expenses incurred during December? We always have a new plan on Dec. 1…so any out-of-pocket costs during December won’t add up to the calendar year deductible. Then, does the meter reset to zero on January 1, and nothing I spent in December counts? Please tell me this ain’t so!

Answer: Bad news about that: Calendar Year Deductible for about 99.999% of the plans out there.

Say you started in Dec 2007. You got a little hosed on your medical expenses counting to your deductible last year. This year your expenses in December will count on your 2008 deductible. So, the money you’ve spent on your health care throughout the year still applies in December… it doesn’t get zeroed out Dec 1 AND Jan 1.

Well, no plans do that to my knowledge, but I don’t know what you have, or what State you are in. You should be able to call your carrier (the number will be on your insurance card) and ask for clarification on anything.

Items on Amazon Right Now for Deductible In Health Insurance:

Deadly Spin: An Insurance Company Insider Speaks Out on How Corporate PR Is Killing Health Care and Deceiving Americans $4.99 Wendell Potter is the insurance industry’s worst nightmare.In June 2009, Wendell Potter made national headlines with his scorching testimony before the Senate panel on health care reform. This former senior VP of CIGNA explained how health insurers make promises they have no intention of keeping, how they flout regulations designed to protect consumers, and how they skew political debate with mult…

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…

Impact of Type of Insurance Plan on Access and Utilization of Health Care Services for Adults Aged 18-64 Years With Private Health Insurance: United States, 2007-2008 $1.99 National attention to consumer-directed health care has increased following the enactment of the Medicare Prescription Drug Improvement and Modernization Act of 2003 (P.L. 108-173), which established tax-advantaged health savings accounts (HSAs) (1). Enrollment in consumer-directed health care products has increased over the past several years (2). Consumer-directed health care may enable individu…

County health insurance rates to increase

The cost of providing health insurance to county employees will rise July 1, but taxpayers won’t see the increase. County employees will pay higher premiums, meet higher deductibles and face more…

What is a health insurance deductible?

Question: this is a tax related question.?

I just got my california real estate license. I was informed by several interviewing brokers that in addition to franchise or desk fees, i will be paying membership fees on local or national realty association as required by my state. Are these fees tax deductible? your reply is greatly appreciated.

Answer: Yes, they are deductible. If you are self employed, then the fees will be deducted on your Schedule C when determining your business net income.

If you are an employee of someone else, they are deductible on Sch. A if you itemize your deductions. In this case, the deduction is limited to the amount greater than 2% of your Adjusted Gross Income. For instance, if your adjusted income is $50,000 and you pay fees totaling $1500, then you would get a deduction on Schedule A in the amount of $500 (50,000 x 2% = 1,000 disallowed).

Items on Amazon Right Now for Deductible Franchise:

Franchise costs, including goodwill, deductible.: 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 December 1, 1992. The length of the article is 1271 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.From the supplier:…

No Tax Increase Budget For East Ridge Includes Raises

East Ridge City Manager William Whitson on Thursday night made a budget proposal which calls for no new property taxes, yet would grant two percent salary increases to city employees and continue last year’s pay adjustments for East Ridge police officers.

Items on Amazon Right Now for Sales Tax Deduction On Vehicle Purchase:

Cluttered closets may harbor Tax Deductions

Now might be the perfect time to clean out your closets and garage. If you give your gently used clothing and household items to charitable organizations, the New Jersey State Society of Certified Public Accountants (NJSCPA) advises you don’t discard potentially valuable tax deductions with your donation.

Question: Tax Deductions for a former RE agent?

I was a real estate agent at the beginning of the year of 2009, but unfortunately due to the slow market, I made no sales but racked up a ton of related bills. I understand that these things are tax deductible, but I made no income from my brief time there. Am I still eligible for any deductions seeing as how I made no income from the job and still had to pay bills and taxes, etc. Thanks in advance for any and all pertinent answers.
To clarify, I only started as an RE agent this year and since I made no headway I had no choice but to find a new job in order to recoup my losses incurred while being an RE agent.

Answer: If you had income last year from being an RE agent, the IRS is going to understand if you had no sales this year.

In fact, if you have substantial negative income, you may have a Net Operating Loss that you can carry back to prior years.

Items on Amazon Right Now for Sales Tax Deduction In 2009:

Taxes 2009 For Dummies (Taxes for Dummies) $1.44 The one-stop tax guide for the first-time or last-minute filerUpdated and revised for the 2008 tax year, Taxes 2009 For Dummies is the only tax guide on the market that walks readers through the major tax forms line by line, including the 1040 Schedules A through E. Filled with helpful tips and strategies for filing income tax returns accurately and on time, this book is aimed at individuals who w…

TurboTax Home & Business Federal + E-file + State 2011 $59.95 This tax software features the EasyStep® Interview for a step by step guide to efficient calculations in deductions, investment sales history and other tax-related issues. Ideal to use if you are a sole-proprietor, consultant, 1099 contractor, self-employed or a single-owner of LLCs; this software features ItsDeductible®, Audit Risk Meter® and Cost Basis Lookup to help accurately calcu…

TurboTax Home & Business Federal + e-File + State 2010 – [Old Version] $5.50 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…

H&R Block At Home 2010 Deluxe Federal + State + eFile [Old Version] $1.79 The right choice for customers with more complex tax situations to easily complete their federal and state returns. Includes the H&R Block tax expertise your customers trust plus our Maximum Refund Guarantee.H&R Block At Home Deluxe includes everything your customers need to easily complete their federal and state taxes with the tax expertise they trust. With an easy-to-use interface H&R Bloc…

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The U.S. House of Representatives is expected to vote soon on legislation that includes a number of tax provisions vital to farmers and rural America.

Question: If I am in college and don’t work can I write off my living expenses as a tax deduction?

Answer: The answer is no but it’s kind of a moot point. If you don’t work then you have no income and therefore you have no income tax liability and thus no reason to file a tax return.

Items on Amazon Right Now for Tax Deduction Work Expenses:

Quicken Rental Property Manager 2011 – [Old Version] $73.09 Quicken Rental Property Manager 2011 includes all of the features found in Quicken Home & Business, plus smart tools for managing your rental properties. Always know how your home-based business is doing. Helps maximize deductions and simplify your taxes. Manage Your Personal, Business, and Rental Property Finances in One Place Organizes Your Finances All in One Plac…

J.K. Lasser’s 1001 Deductions and Tax Breaks 2012: Your Complete Guide to Everything Deductible $12.39 A straightforward guide to taking tax breaks and deductions on your 2011 tax returnCompletely revised to reflect important changes in this year?s tax laws, J.K. Lasser?s 1001 Deductions & Tax Breaks 2012 will help you take advantage of every tax break and deduction that you may be entitled to. This comprehensive guide is clearly organized by subject matter so you can easily find situations that ma…

475 Tax Deductions for Businesses and Self-Employed Individuals: An A-to-Z Guide to Hundreds of Tax Write-Offs $11.59 .cs95E872D0{text-align:left;text-indent:0pt;margin:0pt 0pt 0pt 0pt} .cs5EFED22F{color:#000000;background-color:transparent;font-family:Times New Roman; font-size:12pt; font-weight:normal; font-style:normal; } Are you paying more taxes than you have to? The IRS is certainly not going to tell you about a deduction you failed to take, and your accountant is not likely to take the time …

HOME BUSINESS TAX DEDUCTIONS: Keep What You Earn $10.57 Keep your hard-earned money in your home business! Completely updated for 2008 returns Tax deductions are essential to any business, but even more so when your office is also your home. Don’t spend thousands on an accountant –turn to Home Business Tax Deductions and do it yourself! Home Business Tax Deductions will help you write off: your home office start-up and operating expense…

Mayor to re-appoint city employees

ALTON – Pleased with his staff’s work during his first term, Mayor Tom Hoechst said he plans to re-appoint all of the employees at Wednesday night’s City Council meeting.

Child Care Tax Credits 2009