The IRS Deductions Blog

Archive for the ‘Tax Deduction Limits’ Category

Items on Amazon Right Now for Deductible Super Contributions 2009:

Super contribution caps cast a shadow

Do you have a spare $50,000 that you can afford to stick into super? No, me neither.

Toledo School for the Arts, Blues Fundraiser, December 13, 2009

Items on Amazon Right Now for Tax Deductible Contributions To Super:

Who wants to be rich? Here’s how to

DON’T let time run out, there are some simple steps to take to ensure you enjoy future wealth.

Funny Politics – Super Fed (Government Charity)

Question: Are political campaign contributions tax deductible?

I was about to make one online but it said that it’s Not Tax Deductible, and the site was paid for by the person running for office, so I wanted to make sure if there are different ways to make the contribution to get it tax deducted or if they are all not tax deductible.

Answer: Nope…not tax deductable.

Items on Amazon Right Now for Political Contribution Deductible:

To amend the Internal Revenue Code of 1986 to allow penalty-free withdrawals from IRAs for certain purposes, to increase the amount of tax deductible IRA contributions, and for other purposes. $9.45 The BiblioGov Project is an effort to expand awareness of the public documents and records of the U.S. Government via print publications. In broadening the public understanding of government and its work, an enlightened democracy can grow and prosper. Ranging from historic Congressional Bills to the most recent Budget of the United States Government, the BiblioGov Project spans a wealth of gover…

To amend the Internal Revenue Code of 1986 to expand the availability of, and amount of, deductible individual retirement account contributions, and for other purposes. $10.19 The BiblioGov Project is an effort to expand awareness of the public documents and records of the U.S. Government via print publications. In broadening the public understanding of government and its work, an enlightened democracy can grow and prosper. Ranging from historic Congressional Bills to the most recent Budget of the United States Government, the BiblioGov Project spans a wealth of gover…

To amend the Internal Revenue Code of 1986 to provide for deductible contributions to medical finance accounts and to reform the earned income credit. $10.11 The BiblioGov Project is an effort to expand awareness of the public documents and records of the U.S. Government via print publications. In broadening the public understanding of government and its work, an enlightened democracy can grow and prosper. Ranging from historic Congressional Bills to the most recent Budget of the United States Government, the BiblioGov Project spans a wealth of gover…

The Charity Deduction and Tax Reform — Economic View

Any serious discussion of tax reform should examine the government’s current treatment of charitable contributions.

” Abraham ” second piano concerto, written & performed by Ven Olac

Items on Amazon Right Now for Non Deductible Ira Contribution Limits 2009:

Biggest Tax Changes for This Season

There are many important new tax breaks for U.S. individuals on the 2010 Form 1040, and several more have been eliminated, noted one tax expert.

Question: basic Health insurance questions?

Hello everyone. I come from a country where health insurance always covers everything, and I never cared of that so much. Now being in the US I find everything very confusing and would highly appreciate if someone could answer me some basic questions:

what do the following terms mean in regards to health insurances:
#1: Annual deductible: Individual/Family
#2: Out-of-pocket maximum: Individual/Family
#3: Coinsurance percentage
#4: Lifetime coverage limit
(the latter is 5000 which sounds unbelievable to me)

Further, how does a health savings account helps me. If I take a plan with HSA I seem to have to pay more so I wonder how that makes sense.

Thanks alot.

Answer: Hello.

Deductible is the amount of money you must pay first before your plan benefits begin to pay. Many plans will waive a deductible if you are only using “routine” benefits, but you need to confirm this with the insurance company.

Numbers 2 and 3 almost go together. Your plan will pay a certain percentage of agreed payment with the medical doctor or other provider you use. Some plans say 80% – 20%, some say 90% – 10%, etc. Once you confirm what your percentage of responsibility will be, the out-of-pocket maximum will tell you what total 20% or 10% you must pay. It may be low, say $500.00 or it could be higher. A typical figure may be $1500.00, but your plan could be more or less. When you spend whatever amount your limit is, then your plan will become 100%.

If your plan truly has a $5,000.00 lifetime maximum, that is a terrible plan indeed. You should check to make sure it doesn’t say $5,000,000.00 (Five Million). There are some employers out there though that would do this kind of thing to their employees so you will just have to confirm if it’s true.

HSA. The HSA may or may not help you. An HSA allows you to deduct your contributions to it from your income tax or contribute pre-tax dollars from your paycheck if your employer has what’s commonly called a “cafeteria plan” or an IRS 125 plan that offers a choice of benefits. You may also add in a contribution from your employer, and have your spouse or even your Uncle contribute too. Money from family members can be contributed. The IRS limits the total amount you can contribute. Your employer can tell you what the limits are, but my guess is, if your employer really has a 5K limit on your healthplan, the HSA probably ain’t much better.

Your HSA money earns tax-free interest and is available to you whenever you need it. You can also take the account with you if you change jobs, and the balance can keep growing for as long as you like.

There is no rule that says you have to spend the money on just health care expenses, but if you spend the money on “non-qualified” expenses, you will be taxed, and there may be added penalties.

Items on Amazon Right Now for Hsa Deductible Limits:

Tax, retirement strategies key for self-employed

Busy entrepreneurs, particularly those in one-person shops, often skip basic retirement planning. But now’s the time to coordinate your tax and health care strategies with your retirement-savings plans. Don’t let political uncertainty regarding future income tax rates stop you. The key is to be ready for any tax-rate outcome.

Tax Free Savings Account (TFSA)