The IRS Deductions Blog

Archive for the ‘Tax Deduction Limits’ Category

Question: INVESTING AND RETIREMENT QUESTION! 10 pts!?

The deductibility of contributions to a traditional IRA can be limited by:

a. age or adjusted gross income (AGI).
b. whether or not a person has earned income.
c. whether or not a spouse is covered by a retirement plan at work.
d. All of the above factors can limit the deductibility of contributions
to a traditional IRA.

If a contribution to a traditional IRA is not deductible:

a. there is no point in making the contribution because it will not
save any tax.
b. the contribution must be used for higher education expenses
if it is withdrawn before age 59 1/2.
c. the income from the contribution will be compounded tax
deferred until the money is withdrawn.
d. it should be converted immediately to a Roth IRA.

Answer: 1- d

2- c

Items on Amazon Right Now for Deductible Contribution Limits:

Changes For Employers, Health Insurers Coming With Health Reform Implementation

Starting in September, changes to health insurance could significantly alter how insurers operate and how employers provide coverage for workers. The Milwaukee Journal-Sentinel: “Starting Sept. 23, health insurers must file annual reports that summarize what percentage of customers’ premiums went to pay medical bills. Health insurers who pay out less than 80% of the premiums they collect from …

Financing A College Education

Question: Max’d Roth IRA contributions & 401k. Can I contribute to non-deductible IRA, too?

I contributed the max $15,000 to my company 401K. With an adjusted AGI $102,880 for Single taxpayer, the IRS spreadsheet indicates a maximum ROTH IRA contribution of $1900 is allowed.

My question is whether a non-deductible contribution to traditional IRA in the amonut of $2100 is allowed. This keeps IRA contributions to $4000… is this allowed?

thanks,

Chaz

Answer: Better check with a ” real” tax guy…I’m thinking $ 4000. in the Traditional would bring your Adj Gross down…yes? ..no?
….and the ROTH ( seeing as you are paying tax on THAT money) should be able to take another $ 4000. (max).
One thing about our gov geniouses…they sure make things ” easy” on someone who’s trying to ” take care of themselves” instead of counting on them ( and their broken down ” we’ll take care of you” Social Security system!)

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High income protection

Jon de Fries explains why income protection insurance can be just as important for higher income earners and discusses some policy ownership issues.

Support Equal Rights in Florida Join in the fight against radical Republicans

Question: Job Related Move Tax Deduction?

Has anyone claimed this deduction under the 50 mile limitation? Were you audited?

Answer: Read the section where you sign your return. It says “under penalty of perjury, I declare that I have examined this return and accompanying schedules…they are true, correct and complete.” People do lie on their tax returns. It’s a crime, but that doesn’t bother everyone. Some of them get away with it, some don’t. Your call…….

The year I deducted moving expenses, I was audited because of the moving expenses. I ended up not owing anything, even got a small (around $50) additional refund – but my move was a legal deduction under the law.

Items on Amazon Right Now for Tax Deduction Limitations:

No taxable income limitation for excess investment interest expense carryover.: An article from: The Tax Adviser $5.95 This digital document is an article from The Tax Adviser, published by American Institute of CPA’s on January 1, 1994. The length of the article is 679 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.From the supplier: T…

1991 instructions for Form 6198 : at-risk limitations (SuDoc T 22.51:6198/inst./991) …

Exceptions to limitation on meal and entertainment expenses.: An article from: The Tax Adviser $5.95 This digital document is an article from The Tax Adviser, published by American Institute of CPA’s on July 1, 1995. The length of the article is 942 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.From the supplier: Exce…

Employer mistakes can be costly for tax preparer

By Edward J. Loughrey Let’s assume that the employer hires workers and actually pays with checks and then records and deducts these payments. He knows that they will only be needed for afew months and wants to save some money on payroll taxes. So he lists them as independent contractors (ICs) and does not take any payroll taxes from these payments.

Can I Deduct New Windows For My Home?

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Friends of Library continue membership drive

The Friends of the Winston County Library have their membership drive for 2010 underway. The group encourages anyone interested in making the local library better to join the group.

Question: superannuation question?

Laura recieved the following super contributions during the 2008/2009 financial year she turned 49 on the 1 june 2008

Employer a $35,000
employer b $20,000

in addition she made a non concessional contribution of $465,000

a) how much contribution tax is payable?
b) when can she make another non-concessional contribution and for how much?
c) she will be self employed in 2009/2010 what is the maximum superannuation contribution she for which she will be able to claim tax deduction?

Answer: is this home work?

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PricewaterhouseCoopers Guide to Charitable Giving $6.00 Get the Most Out of Giving with PricewaterhouseCoopers’ Guide to Charitable Giving Private philanthropy is the cornerstone of charitable organizations in the United States. This support provides numerous benefits to society as well as a tax-efficient means for you, the donor, to transfer wealth. Understanding the tax implications of your donations can be confusing as well as financially detri…

Nick Robinson

Why Ashcroft case differs from other non-dom donors

2. Economy—Reports on Imbalances