The IRS Deductions Blog

Archive for the ‘Itemized Deductions’ Category

Question: Never used Turbo Tax before – what;s CD version like – tips sought – taxes a little complicated?

Need to do estimated quarterly & Itemized Deductions. How does cd version work?
Thanks!

Answer: I’ve used TurboTax for years. I use the basic version and my return is somewhat complicated – household employee, sold stock, mortgage interest, etc. It’s simple to use. It asks a series of questions, starting with who you are, your address, ssn, then your income, then your expenses. Even the basic version can handle all your itemized deductions. When it’s done, it prints out or gives you the option of e-filing, then prints out a copy for you along with 4 payment coupons for next year’s quarterly payments. Hope this helps.

And, I always use the cd version. I’ve been burned with buying downloads in other programs when my computer crashed – so I’m paranoid.

I have a friend who always goes online to Turbotax, uses the online verson to complete his return, then copies it onto the forms he gets from the IRS. I’m not sure how complicated his returns are, but you could try it.

Items on Amazon Right Now for Itemized Deduction Estimate:

Judd Gregg: Paying our taxes – There is a better way

Our tax code â 3.7 million words and growing â is a patchwork of loopholes and exemptions. Simply put, our tax laws are out of date, unfair and overly burdensome for the American taxpayer.

Question: Rental property – how to report Mortgage interest paid and insurance paid?

If I have a rental property, when I file the income tax return, for the mortgage interest and insurance paid, should I report under (1) “Rental Real Estate”, 1040, line 17, or (2) Schedule A, Itemized deduction?

Thanks

Answer: How many days have you rented the home? Have you used the home for personal use.

If strictly a rental property then report on Schedule E.

Items on Amazon Right Now for Itemized Deduction Mortgage Interest:

Learn from your tax return

Whether you eagerly completed your taxes in late January or will just slip in under the April 15 deadline, savor the relief you feel once your return is finally in Uncle Sam’s hands.

Question: Should I itemize deductions to claim state sales tax?

I am 24 and will be filing jointly with my wife. We have no house, kids or major deductions. We live in Texas which has no state income tax. Is it worth it to itemize our deductions just so we can claim state sales tax?

Answer: You need to have greater than 11000 dollars of deductions to make it worth your time to itemize your deductions. Otherwise just used the standard deduction.

Items on Amazon Right Now for Income Tax Itemized Deductions:

Tax breaks for the unemployed

Looking for work? The tax code has a few things to help those who don’t have jobs.

Last Week for to make 2009 donations towards Haiti Relief

Question: Do contributions to the Oregon state 529 Plan count as an itemized or standard deduction?

I’m trying to figure out what the tax savings are if I set up a 529 plan through Oregon College Savings and make a $2000 contribution each year. This will help me decide if this is a better or worse option than setting up a 529 through Vanguard whose 529 plan is with the state of Nevada.

Answer: You do not get a deduction on your federal return for contributions to a 529 plan. The benefit of the 529 plan is when the money is withdrawn. If it is used for education purposes, the earnings in the 529 plan is tax free for federal tax purposes.

Depending on the state, there may be current tax benefits, but that depends on the state, and it also typically requires you to be resident in that state. For example, I live in NY. If I contribute to the NY 529 plan, I can deduct the amount of the contributions, up to a maximum of $10,000 per year, on my NY state return. I do not get the deduction if I contribute the money to any other state’s 529 plan, it has to be NY.

Items on Amazon Right Now for Itemized Deduction State Tax:

Miscellaneous Tax Deductions

These catch-all expenses offer another way to cut your tax bill, but only if you have enough of them.

Budget close to being finalized

Question: If I choose to have more taxes taken out of my paycheck now, am I definitely entitled to that $$ when I file?

I didn’t really know how to fill out the worksheet when I hired on at my new job. My friend here makes the same rate as I do, but more taxes are withheld for me. I get about $300 taken out of a $1200 paycheck. I think I chose to have more taxes taken out now, so I will get a larger return – versus having less taken out now, and getting a smaller return. Can anyone share their knowledge on the subject? I’m getting lost in all the “Itemized Deductions“, etc. as I research and I need some help. I would appreciate any good links as well! Thank you!

Answer: Your annual tax return is where you and the IRS settle up for the year. You calculate how much you should have paid in for the year, and then whoever owes whom pays up. If you overpaid, you get a refund from the IRS. If you underpaid, you write the IRS a check.

Many people treat their refund as “found money”. I personally hate to get a refund, because it means I lent money interest-free to the government. I much rather write them a check in April, because it means I borrowed money from the government all year. And as long as you don’t owe more than $1,000 there is no interest or penalty involved.

Items on Amazon Right Now for Itemized Deductions Worksheet:

Using Sales Taxes to Trim Your tax Bill

Filers who claim the standard deduction get the chance on 2009 returns to write off sales taxes on a new vehicle purchase. And some taxpayers who itemize could find themselves getting an additional sales tax deduction this filing season.

UNBOXING THE SEAGATE 500 GB EXTERNAL HARD DRIVE !