The IRS Deductions Blog

Archive for the ‘Standard Deductions’ Category

Question: Is standard deduction still available in India for income tax?

Answer: Standard Deduction has been withdrawn effective Financial year 2005-06

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Niko Reports Results for the Quarter Ended June 30, 2010

CALGARY, ALBERTA– – Niko Resources Ltd. is pleased to report its financial and operating results, including consolidated financial statements and notes thereto, as well as its managements’ discussion and analysis, for the quarter ended June 30, 2010, the first quarter of Niko’s fiscal year.

Preparing India Income Tax Return – Part 3

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Tax Cuts to Expire?How It Will Affect YOU

SPECIAL: Unless Congress acts soon, almost all Bush-era tax cuts and credits enacted in 2001 and 2003 will expire at the end of the year. What kind of impact will this have on you, the American taxpayer? | VIDEO Full Coverage: Bush Tax Cuts Report: College Dropouts Cost Taxpayers $$

House Session 2010-04-20 (12:30:02-12:55:28)

Question: Buying a house and just got married… what does this mean for us next April?

(we normally do our taxes as soon as we get the forms, so this is actually before April…)

So we close on our first house Aug 15 and we got married May 3. What does this mean for us when it comes time to do our taxes? I am not sure of the benefits of filing joint vs separate, and I am not sure what it means for us with the house. I always hear about tax breaks for buying a home… but does that still count when we own it less than half the year? And, we have always taken the standard deduction… should we do itemized now? I am just pretty ignorant of tax stuff in general. I normally just use the do it yourself tax software…

Answer: First of all, you can deduct the mortgage interest charged by your mortgage lender. You will received by January 31st 2009 form 1098 showing how much interest you paid in 2008. It does not matter if it was just one month of interest, it is still deductible.

You can also deduct the Real Estate taxes you paid. THey should also be on form 1098 or you should received a statement from the county you live in showing how much tax you paid. You should also deduct any prorated taxes collected from you at closing. They may not be on form 1098, but you should have a copy of what you paid on the closing statement. Local taxes, if any, are also deductible.

You can deduct any points you paid or the seller paid. These should also be shown on the closing settlement statement. You can not deduct attorney fees, broker commissions, etc, but they can be added to the basis of the home when it comes time to sell.

One of the best ways to see how mortgage interest changes your tax liability, is to take your tax software and open your tax return from 2007. Change from standard deduction to Itemized Deductions. You did not say which tax preparation software you are using, but I am assuming it was Turbo Tax. Open last years return and go to deductions an credits and go to the place in the software where you enter mortgage interest. In Turbo Tax it is under deductions and credits and it is the first in the list, “your home.” Make a note of what your owed or received as a refund in 2007. Then go to the mortgage interest section and add what you feel your mortgage interest will be for 2008. Recalculate the return and see what the difference is in your refund or your liability. This will give you an idea of what your taxes would have looked like in 2007 had you bought the house one year earlier. By doing this you will also get an idea whether the interest deduction will be big enough in 2008 for you to switch from the standard deduction to itemized deductions. Don’t worry about ruining last years return, because when you exit the software, it will ask if you want to save the return. Click on NO.

Using tax software is an excellent way to learn how the tax return works and how different deductions effect how much tax you owe. If all of this is just too confusing for you, I suggest you use a tax preparation service for 2008 just to make sure you are getting it correct.

Here is a good internet link to help you go through what is and is not deductible regarding the purchase of a new home. Jackson Hewitt tax service. http://www.jacksonhewitt.com/?ResourcesLibraryTopicsHomeownership You can go to H&R Block or any tax site to get the information.

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Evading taxes? Here’s how you could get caught

Tax evasion is an illegal activity which entails not filing income tax returns altogether or misrepresenting the tax payable amount.

Maxine McKew budget message

Question: Why do I owe 2009 tax?

I just found out that I owe IRS $5K for year 2009. Last year I got refund $2K. My husband and I claim zero exemption. Why I still owe 2009 tax? How can I avoid and reduce owing tax FY 2010? For both Year 2008 and 2009, we have W-2, $200 interest income, no mortgage, no kids. Nothing changed. Below are tax info of year 2008 and 2009. Please help.

Year 2009
zero exemption
Status: MFJ
No dependent
Gross income 108,615
Standard deduction 11,400
exemption 7,300
taxable income 89,391
Total tax 14,719
Total payment 9,885
Amount owe 4,834

Year 2008
zero exemption
Status: MFJ
No dependent
Gross income 31,653
Standard deduction 10,900
exemption 7,000
taxable income 28,194
Total tax 0
Total payment 2,344
Federal refund 2,344

Thank you.

Answer: I would suspect it has something to do with Obama’s new tax laws but…..Seriously when you make 100k you can afford to hire a professional to do your taxes and answer your tax questions I would not rely on the info you get on yahoo answers..

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State releases details on 2010 tax brackets

The state Franchise Tax Board on Monday released its 2010 income tax brackets, adjusted to reflect recent changes in the California Consumer Price Index.

The Law Show With Brian Dailey – Tax Deductions, Dependents

Question: How do deductions work?

In the 2010 tax year I will be, for the first time ever, itemizing and not using standard deductions. I’m going to have many deductions, from moving expenses, to job finding expenses, to job-related depreciation expenses for cell phones and desks. I will also qualify for the first time home buyer’s tax credit. How do deductions affect tax obligation?

Answer: They reduce your taxable income. Whether itemizing will be more advantageous than claiming the standard deduction is an unknown until you “run the numbers” both ways.

Tax credits are a separate thing. A tax credit directly reduces your total tax owed.

Items on Amazon Right Now for Standard Deductions 2010:

Remedent Reports Fourth Quarter and Year End Results and Remedent to Host a Conference Call at 11:00 A.M. EST, Tuesday …

DUERLE, BELGIUM–(Marketwire – July 15, 2010) – Remedent, Inc. ( OTCBB : REMI ), an international company specializing in research, development, and manufacturing of oral care and cosmetic dentistry products, reported results for the final quarter and for the year ended March 31, 2010 (in US Dollars).

Standard Deduction 2010, 2011