The IRS Deductions Blog

Archive for January, 2011

Question: Taxes paid contributing to an HSA with pre-tax dollars versus post-tax dollars?

My wife and I are covered by an HSA-qualifying high-Deductible Health insurance plan. My employer offers an HSA and they can deduct from my paycheck and make pre-tax contributions to it on my behalf, but it has high fees and no interesting-earning potential. Our credit union offers an HSA with no fees and very competitive interest rates, but I can only contribute to it on a post-tax basis. We would rather use our credit union’s HSA, but want to make sure we get the taxes right. Will we pay the exact same amount in taxes contributing X post-tax dollars to an HSA and deducting those on our return as we would contributing X pre-tax dollars to an HSA?

Answer: There are two components here.

The HDHP through work. You pay the premiums through payroll conversion and the money isn’t taxed, including fica/mc. If you do the HSA through work, you may be required to use their HSA. If you buy your own HDHP somewhere eles, the premiums would be with after tax dollars and only deductible on schedule A (and then only if your total medical expenses exceed 7.5%.).

The HSA is separate (though you have to have an HDHP to do it). My HSA prefunds $720 a year (out of those pre-tax dollars above) and I can add to it. The additional money is deductible on the front side of the 1040.

If you are allowed to open your own HSA and contribute to it, the contributions can be deducted on the front of your tax return.

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Unemployed can contribute to health saving account

Today I’ll answer questions about contributing to a health savings account when you are unemployed, and property tax relief for seniors. Q: Tim I. writes, “I am a little over age 59 1/2 and unemployed. Cobra is running…

Health Savings Account Deadline Dec 1 – Save Money

Question: On what amount rs 547 is deducted as Income tax?

There is a deduction of 547 from my Apr 08 salary as income tax. it is said that the new 2008-09 slabs are not applied(Parliment is not confirmed the new slab) can any body tell me on what amount it is calculated?

Add Info: CTC 3.25 l
Investment Declaration 40 k
House rent 72k
please see the link for details

http://www.geocities.com/krishna_yess/untitled.JPG

Answer: Dear Krishna, my sincere advise, not to put this on the yahoo questions, it is better if you can consult an auditor.

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Couples can claim tax benefits separately

Success and a comfortable professional life is what most of us look for in our career cycle. While rising double incomes lead to both spouses paying their taxes individually, it also enables claiming of exemption/deductions separately by the couple.

FM goes easy on personal tax

Question: Are consumer phone contracts VAT deductable?

If you take out a residential landline (connected to a offiice) and a consumer mobile phone (in one of the company directors names) rather than a business tariff, are they still VAT and corporation tax deductible?
Both lines would be soley for business use

Answer: Yes – if being used solely for business then it doesn’t have to be on a business tariff with the mobile phone provider.

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Business News, 01/17

Business news, 01/17

Cell phone floor statement

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Who wants to be rich? Here’s how to

DON’T let time run out, there are some simple steps to take to ensure you enjoy future wealth.

Funny Politics – Super Fed (Government Charity)

Question: How can I get Tax Deductable Financial Donations for a Ministry?

We have a Non-Denominational Christian Ministry that provides support for Women and their Children that have a Husband incarcerated in prison, while helping to keep the incarcerated families and marriages together. We also help provide Hope & Encouragement for anyone that has a need. We are trying to find ways to secure Tax Deductible financial donations from people and business to help fund our Ministry. We are also trying to find ways to secure speaking engagements. Do you know how we can do either one?

Answer: Charitable donations are only tax deductible if they’re given to an organization (a church, a foundation, a charitable organization, etc.).

Donations are never deductible when given to a specific person.

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Children can mean extra Tax Deductions and credits

As any parent knows, the pitter patter of little feet — and bigger ones too — can be a drain on the wallet. But when it comes to taxes, your children can mean extra deductions and credits.

Kinship Program of Family Support Services of the Bay Area