The IRS Deductions Blog

Archive for the ‘Tax Deduction Limits’ Category

Question: Can I still contribute to a non-deductible IRA (not traditional or Roth) now, and have it count towards 2008?

If so, what is the contribution limit for 2008? Are there any income limits associated with contributing to a non-deductible IRA?

Answer: Your IRA contribution limit for 2008 is 100% of earned income or $5,000, whichever is less. Taxpayers age 50 and older may contribute an additional $1,000. You may contribute to your IRA for 2008 until the tax-filing deadline (without extensions), in this case, April 15, 2009.

The deductibility of the contribution to a Traditional IRA is based on two factors: (1) whether the taxpayer is an active participant in a company retirement plan, and (2) the taxpayer’s Modified Adjusted Gross Income (MAGI). Please check with your professional advisors to see how these regulations apply to you.

Hope that helps.

Disclaimer. The information above is for general purposes only and is not be be construed as tax, legal, investment, or specific advice for any individual. Please consult with your professional advisors before you make any decisions regarding your finances.

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Robert Powell: Eight ways to fix the U.S. retirement crisis

Paul Volcker and his troupe, the President’s Economic Recovery Advisory Board, are unlikely to appear on the “America’s Got Talent” stage any time soon. But retirement experts are giving the group, which just issued a 188-page plan to fix the nation’s complicated retirement system, mostly high marks for their effort.

Question: Can I receive Tax Deductions for contributing to a charity if I am claimed as a dependent?

My parents are claiming me as a dependent on their taxes. I made a monthly tax deductible cash contribution to a charity. I was wondering if I could itemize the deductions, or if my parents could since they claim me.

Answer: No, only one can take that deduction…………Jr..

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ItsDeductible Workbook for Tax Year 2005: The Blue Book for Donated Items $7.99 Every year, millions of Americans forfeit hundreds of dollars in legal tax savings simply because they underestimate the value of their charitable item donations. ItsDeductible, from the makers of TurboTax®, provides a simple solution to determining fair-market values. Updated annually, with assessments for over 1,000 categories, including jewelry, clothing, baby supplies, small appliances, exerc…

ItsDeductible 2002 Cash for Your Used Clothing $25.00 Tax Year 2002 Workbook, 13th Edition of Cash For Your Used Clothing. Cash for Your Used Clothing is the only product on the market today that determines and assigns the actual fair market value to your charitable donations and guarantees you will increase your tax refund or your money back! An independent study showed that 91% of people who donate even one bag of clothing to charity value th…

Start investing in your future now; Ten good reasons to begin regular contributions to a tax-deductible savings plan.(Business): An article from: Winnipeg Free Press $9.95 This digital document is an article from Winnipeg Free Press, published by Thomson Gale on February 15, 2007. The length of the article is 928 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.Citation DetailsTitle: Start …

Vermont landscape auction links city and country

The first landscape auction in the United States will give people who value Vermont’s working landscape a chance to make a direct financial contribution to the farmers and foresters who keep the state green.

Tax Deduction Tips : Tax Deductions for Cash Contributions

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

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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.

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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…

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…

Instructions for Form 8582, passive activity loss limitations (SuDoc T 22.51:8582/INST./) …

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?