The IRS Deductions Blog

Archive for March, 2011

Question: Affordable insurance w/ NO deductible and low premium?

I need you to tell me names of insurance not quote sites cuz they don’t help. i need one for 2 ppl a mom and daughter. it shouldnt have a deductable or be more that 200 monthly.
live in fl but what about 250

Answer: A policy with no deductible and less than $200 monthly for two people does not exist.

You’ll want to contact a local independent agent. This person can explain the policies available. In most individual policies the deductible does not come into play unless you go into the hospital. The doctor visits and prescription co-pay are not subject to the deductible. The agent will be able to find a policy like this and explain the deductible to you.

Depending upon your ages and current health a $1000 deductible probably will cost more than $200.

You may get answers here concerning medical discount cards (with no deductible). Be very wary of these cards. They say they have no deductible because you pay everything exept the possible 10% discount you might get.

They are not regulated by the Department of Insurance nor do the people that sell them need to be licensed. This means you have little recourse when you have problems with the plan. If you are tempted by the low price and claims of “save up to 80%” be aware that very few doctors actually take these cards. It does you little good if you have to drive 4 hours to find a doctor that will accept the card. Montana couldn’t find any doctors in the whole state that actually took the card and only one dentist who was on probation for unlawful activities so they banned the sale of the card and fined the company. See this link http://www.insurancejournal.com/news/west/2006/11/22/74554.htm for more information. Many other states are starting to ban these cards as well.

Items on Amazon Right Now for Premium Deductible:

Vacant Dwellings Require Different Kind of Insurance Policy

RISMEDIA, March 19, 2011—(MCT)—More and more houses sit unoccupied these days, left behind by their owners in this still-tough economic climate. In 2010′s fourth quarter, the Census Bureau reports 12.1% of all U.S. residences, or 18,394,000 homes, were vacant. Record…

Evanston adoption agency must increase deductible to balance skyrocketing premiums

Question: What is this about buying real estate in your tax-deductible IRA?

I know you can buy reits.
I don’t think that’s what they are talking about.

Answer: Real estate is already a tax advantaged investment. Buying it for its rental income and appreciation carries all sorts of tax breaks. You get deductions against its rental income for the expenses of carrying the property. These include maintenance, mortgage interest payments, and depreciation. If deductions exceed your rental income, you can use the excess against your other income. Lastly, the sale of your property is subject to capital gains tax which is low for long term (greater than 1 year) holding periods.

Real estate in an IRA loses all these tax advantages. You’re left over with only IRA tax characteristics. For a deductible IRA, that includes deductible contributions to it, tax-deferred growth of its yearly earnings, but its distributions are subjected to income taxation. The latter can be quite severe.

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5 Ways To Receive Your Tax Refund

Taxpayers in the United States are confronted with a number of different methods to receive their income tax refund for the year. These include checks, a debit card, direct deposits of funds into a bank account and even purchasing government savings bonds. Each of these methods has advantages and disadvantages that taxpayers should be aware of. (For related reading, also take a look at 10 Most …

Self Directed IRA Overview

Items on Amazon Right Now for Ida Collision Deductible:

NEW MLM COMPANY – Auto Insurance Savings!

Question: Taxes? Please Help?

Okay so I just moved out on my own on Jan 2nd. I have been living with my parents and they have claimed me on their taxes each year.

Well, after the up coming taxes I will be claiming myself from now on.

I know there are receipts and such that you are supposed to save that are tax deductible. I know about the stuff that you donate to Goodwill is but what other types of things should I save? And is there any other advice that you could give because I don’t know too much about this stuff so I can use all the help I can get

Please and Thank You!
If anyone knows of a website that would be helpful as well…
I moved in with my boyfriend’s sister after leaving my parents house so I’m not renting nor do I own my own house.

Answer: Actually unless you own a house, have high medical bills or are self-employed, you do not need to save receipts at all. You will not itemize on your taxes, but take a standard deduction (which comes up to far more than you could save receipts for).

If you are selling stuff of Ebay, Amazon, or other sites, you WILL need to keep those invoices and your mailing receipts, but if you aren’t, your taxes will be a piece of cake. You can use the 1040EZ.

If your parents are claiming you this year, they will probably help you with your tax form so it is correct (this year). Next year just pick up the 1040EZ with instructions and follow it. Until you get married or have property or have high medical, the EZ will suit your needs.

By the way, charitable donations are not deductible unless you itemize. Give those receipts to your parents if they itemize.

Items on Amazon Right Now for Goodwill Tax Deductible:

FP Newspapers Reports Fourth Quarter 2010 Results

WINNIPEG, MANITOBA– – FP Newspapers Inc. announces financial results for FP Newspapers Income Fund for the quarter ended December 31, 2010. The Fund was converted into the Corporation pursuant to a plan of arrangement effective after the close of business on December 31, 2010.

Goodwill Detroit-Cuisine for a Cause 2008

Question: Will health insurance premiums ever be tax-deductible?

I purchase my own health insurance. The one thing in health reform that would have helped people like me would have been to allow the deduction premiums from our taxes, just like people with employer-provided insurance and self-employed individuals can do.

Now that people will have to be purchasing health insurance, will they have to pay with after-tax dollars too? I haven’t heard of anything in the bill that addressed this. You’d think with 2000+ pages they could have squeezed this in.

Answer: They already are, as medical expenses. Unfortunately, most people don’t have enough to deduct medical expenses even if they do itemize, which is also required.

Items on Amazon Right Now for Insurance Deductible Taxes:

E-File or Else: What’s New for Tax Season

Uncle Sam is making it harder for you to file your tax return on paperbut is offering some sweet deductions.

Tax Deductible Losses