The IRS Deductions Blog

Archive for the ‘Individual Tax Deductions’ Category

Question: Return of Insurance Deductible. I live in Massachusetts. Was involved in car accident.?

My own insur. co. concluded that I was at fault and surcharged me. I appealed the surcharge and was found NOT TO HAVE BEEN MORE THAN 50% at fault for the accident. My insur. co. reversed the surchargable points that was initially assessed against me but refuses to refund my $500 Deductible, claiming that they believe I was at fault for the accident (despite the surcharge board of appeals–a higher authority—finding the opposite). So here is my question– How can my own insur. co. keep my $500 deductible (that should be assessed against me IF I AM FOUND TO BE AT FAULT FOR AN ACCIDENT—when I was found NOT TO BE AT FAULT BY THE SURCHARGE BOARD OF APPEALS—-My understanding is I must pay my deductible when I AM AT FAULT!—-What good is it to exercise my right of appeal if my own insur. co. can ignore the finding of the appeals board? Please refer to a statute and/or reg. if you can when answering this question. I repeat, I WAS FOUND NOT TO BE AT FAULT.

Answer: Read your policy. Your deductible applies regardless of fault.

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Dallas-area homeowners insurance rates vary widely, analysis finds

A new comparison of rates in the area by The Dallas Morning News found that the five largest companies don’t necessarily offer the best prices, despite their dominance of the market.Links: |

Car Insurance : How to Calculate a Deductible for Car Insurance

Question: what were the medicare premiums in 2009 for both A and B?

I’m preparing 2009 taxes for my father was was deceased in Jan 2010. He had many medical expenses in 2009, so I’m claiming them for deductions. In the grand paperwork shuffle, I cannot seem to find any paperwork denoting the premiums for Medicare part A & B for 2009…anyone know what the monthly or yearly costs were?
…he was not my dependent…I am filing HIS return, not mine. You are correct though that Medicare premiums are NOT allowable deductions…I misread the turbotax prompt.

Answer: Do you mean that he was your dependent in 2009? Are you claiming his medical costs as your out of pocket expenses?

The Medicare premium is deducted from his Social Security check before he receives it. Thats why you don’t see any paperwork. The amount was $96.40 per month and now it is $96.50 per month for one person. He also must have paid the 20 per cent that Medicare does not pay, or he may have had a gap insurance policy. That costs about $150 a month unless he had zero share of cost Medicaid which pays that.

I hope you are correct about using his out of pocket costs as a deduction on your tax return.

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Woman pleads guilty to falsifying tax returns

A woman who was a manager for Jackson Hewitt has pleaded guilty to aiding and assisting in the filing of false returns.

Tax Forms & Deductions : Can I Deduct My Pet’s Medical Expenses on My Taxes?

Question: Corporate Tax Help with E&P?

Cayenne Corporation, an accrual basis taxpayer, has struggled to survive since its formation, six years ago. As a result it has a deficit in accumulated E&P at the beginning of the year of $310,000. This year, however, the tide was turned and taxable income was $210,000. Two cash distributions were made to its only shareholder, $130,000 on July 1 and $180,000 on December 31.
Taxable income included a NOL carryover of $45,000
Federal income tax liability of $63,000
Non-deductible fines and kickbacks $4,000
Nondeductible life insurance premiums of $20,000
Cash surrender value of corporate owned life insurance policies increased by 9,000
1231 gain of 95,000 and recapture income under 1245 of 30,000, no other 1231 transactions but a capital loss carryover of 25,000
MACRS depreciation exceeds E&P depreciation by 10,000, and a 179 election of $19,000 worth of assets

Compute E&P for the year and determine Marty’s tax consequences, assuming his basis is $65,000

Answer: I think you missed one required element.

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Happenings

MONDAY, AUGUST 16

Health Insurance: Understanding the Lingo (College Health)

Question: Can blood donation to the Red Cross be used as a tax deduction?

I donate blood several times a year. It seems to me that my blood is worth more than a financial donation because it saves people’s lives. I don’t think you can use it as a tax deduction, but I wanted to make sure.

Answer: No, as of now it is not considered a tax write off. However, there are others who agree that it should be, check out the link.

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IRS Tax Deduction Calculator for 2009, 2010.mov

Question: Can u rollover Personal Tax Deductions into the next year? Or can only businesses do this?

I was wondering if u can save tax deductions from year to year to make sure that u are paying in the most optimal tax bracket? I have hear of businesses doing this… But I want to know if this is possible for individuals. Please post links that i can read up on for more information. Your answers are appreciated. Thank you.

Answer: Yes, in a way. You can move deductions by changing when you pay them. For example, make all your charitable contributions in January and December of even years, give nothing in odd years. If you have medical bills at the end of the year, but not enough to deduct, pay them in January and maybe you will have enough to deduct in the next year. If your real estate taxes are paid in installments and one or both of them are due near the end of the year you may be able to do a similar thing (if you pay them directly).

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Kitco News

(Kitco News) — A movement is afoot in the U.S. Congress to revise or repeal a portion of the health-care act, passed earlier in the year, that critics say has costly implications for bullion and coin dealers and also raises privacy concerns.

IRS Self Employed Tax Deductions & Write Offs 2010, 2011