The IRS Deductions Blog

Archive for July, 2010

Question: Is your annual town motor vehicle tax deductible on federal taxes?

Answer: There are some who deduct them , after all it is a tax and it would be a double taxation,
A tax is a fine or penalty ; EEOC vs Corporate Systems , it isn’t hard to find several hundreds

Items on Amazon Right Now for Annual Deductible:

Nonprofit news

MILLWOOD: The Food Bank for Westchester recently hosted its second annual Give Back Olympics.

How to meet your annual deductible by January

Question: Independent contractor in Michigan – will having EIN change how much my income will be taxed?

I currently work for a couple of companies and get 1099s at the end of the year. I have an offer from another company but they require me to have an EIN. My concern is that I will end up paying more in taxes by working under an EIN than I am now working under my SSN. (My husband is primary wage earner and we have 2 children – we file long form and claim our home for a deduction as well). It looks like my tax office may have permanently shut down so they aren’t available to ask. Thanks in advance!

Answer: Having an EIN should not affect your taxes. If you obtain the EIN but do not create a corporation, or if you create an S corporation, then you will continue to report all the income on Schedule SE and on either Schedule C or Schedule C-EZ. However, if you create a C corporation, then it will be required to file its own return and to pay tax.

Items on Amazon Right Now for Income Tax Home Office Deduction:

Ahead of the Bell: Budget deficit

The federal budget deficit likely will top $1 trillion through the first nine months of this budget year, a slightly improvement from last year’s record pace.

Tax Deduction Tips & Advice : How to Claim Home Office Deductions

Question: My wife has an HSA with a $5000 deductible. I have an IRA account. Can I roll over my IRA to her HSA?

The maximum contribution to a single-person HSA is $3,000, and my IRA is worth more than that. I’ve read that the IRS allows a one-time rollover from an IRA to an HSA without taxes or penalties, but if it’s MY IRA and HER HSA, does that still qualify? Thanks. I have the IRA check in my hand, but I figured I’d check and make sure this is legal before I deposit it into her HSA. Thanks.

Answer: No. You might be able to roll it into YOUR HSA, but not another person’s.

Items on Amazon Right Now for Maximum Deductible Ira Contribution:

Jackson Hewitt® Shares Top 5 Areas to Review as Part of Mid-Year ’5-Point Tax Check-Up’

In celebration of the Company’s first-ever “Big Tax Check-Up Day,” Chief Tax Officer Mark Steber of Jackson Hewitt Tax Service® shares the top five items to consider now as part of a mid-year tax review:

Tax Deduction Tips : Charitable & Contribution Tax Deductions

Items on Amazon Right Now for Auto Insurance Deductible Definition:

Litigation, Mediation & Arbitration

Larkin Hoffman’s Business Litigation Department has compiled a summary of the important laws enacted by the 2010 Minnesota Legislature. This update is organized by areas that will be affected by laws passed during the 2010 session.

Security And Privacy Requirements To Support Exchange of Health Information

Question: Where do I deduct my auto sales tax when filing?

I purchased a car in 2008 and now that I am filing my taxes online, I can’t find the option to deduct my sales tax. I live in TN. Does anyone know if I can make this deduction and where?
I am itemizing this year. I am using H& R but am not sure where in that process I would enter my sales tax information.

Answer: You may only claim sales tax if you do not deduct state income tax. If you itemize, you would checkout Publication 600 from the IRS to get the amount of sales tax you can claim and then add the sales tax generated by the auto. If the total is more than you paid in state/local income tax, then you should take the sales tax deduction, if not, you would want the income tax deduction.

All this assumes that you itemize your deductions. If you do not itemize, then you can’t claim the sales tax or income tax deduction.

Items on Amazon Right Now for Tax Deduction Auto Sales Tax:

Press Briefing by Press Secretary Robert Gibbs, 7/14/2010

See below for answers to questions(marked with an asterisk) posed in the briefing that required follow up.   *The meeting lasted roughly an hour, and Valerie Jarrett also attended.     **By the day of groundbreaking, Compact Power estimates it will employ 70 in construction jobs.  This will rise to 200 by September and 300 at the peak of construction.  The factory will hire more than 300 full …

Recovery: Vehicle Tax Deduction-Claim It January 2010