The IRS Deductions Blog

Posts Tagged ‘2009’

Items on Amazon Right Now for Sales Tax Deduction 2009 Car:

Green highlights Recovery Act tax cuts for Texans

U.S. Rep. Gene Green encouraged all Texans to take advantage of numerous tax cuts in the Recovery Act.

3 Tesla Motors Workers Dead in Plane Crash – Palo Alto, CA

Items on Amazon Right Now for Standard Deduction 2009 Irs:

Economic incentives aid taxpayers

The deep recession that hung over the nation in 2009 has led to new tax credits and deductions _ attempts by Congress to boost consumer spending and get the economy moving again. These, along with increases in the standard deduction, personal exemption and… Tax – Tax credit – United States Congress – Standard deduction – Taxable income

Question: How to claim mileage for an employed sales person – WAY confused by the IRS explanation!?

I am an employee of a greeting card company. I am paid salary, not commission. I am given a $400 a month expense check to cover office supplies, gas, phone, etc. However, with the cost of gas, this is not covering even gas. I am tempted to claim business mileage, however, I’m not sure I even can as, technically, I am given money for gas. My tax lady said that it wouldn’t be worth it – as my deductions would have to be more than $10,600 (my deduction for being married on my federal taxes). I’m so confused. I’m pretty sure that I should be able to keep a log and claim business mileage, but I would hate to do all that work only to find out I don’t qualify. Can anyone help me by putting this in laymans terms? Thanks a bunch!

Answer: An employee can deduct unreimbursed business expenses. However, the amount of unrembursed business expenses has to be greater than 2% of your income. You can include mileage as part of your expenses at 50.5 cents per mile.

Example: You earn $50,000, so 2% of this is $1,000. Your expenses are $500 a month, and you are reimbursed $400 a month. Your unreimbursed expenses are $100 a month. Your unreimbursed expenses are $1,200 for the year. However, you can deduct only $200, the excess of 2% of your AGI, on Schedule A.

However, the total Schedule A deductions must be greater than $10,700 to give you any tax benefit.

So, your tax lady was correct, unless you have lots of other Deductible Expenses like home mortgage, state income taxes, or medical expenses, your unreimbursed business expenses are not going to benefit you.

Items on Amazon Right Now for Federal Tax Deduction Mileage:

Beacon Hill Roll Call

By Bob Katzen THE HOUSE AND SENATE. There were no roll-call votes in the House or Senate last week. Beacon Hill Roll Call this week examines the 2009 salaries and other benefits received by the Bay State’s 160 state representatives.

Tax Tips & Information : Tax Deductions for Business Use of a Car

Every single small and home-based business owner can easily save thousands of dollars each year in tax savings alone. “You have got to be cRaZy not to have one” says me.

Congress passed legislation that allows HUGE tax savings to encourage your success. They’ll even let you take Tax Deductions on losses from your home-based business, year after year, as long as you are actively and legitimately pursuing to make a profit.

Individuals who run a part-time or full-time home-based business qualify for a greater range of tax deductions than any other category of taxpayer! Even the super-rich can’t get the tax savings that YOU can get, simply by managing a home business that in all actuality may only take a small amount of your time to run. You could be saving yourself a lot of cabbage!

Did you know that in most cases the majority of wealthy individuals, along with the “rich and famous,” pay less than 15% in taxes, while the “average North American” pays upwards of 50% in Federal, State and Social Security Taxes? (This infuriates me!)

However, did you know that 70% of the job growth is coming from small businesses? Yeah that’s right! People are starting to catch on and the home-based business, industry has never seen such highs! People are really starting to take advantage of these tax savings and that’s always fantastic to see! Power to the people!

For the most part people, just like yourself are overpaying their taxes by thousands of dollars, or more, every year, and they don’t even realize it! Get this, the average tax payer actually believes that getting a refund from the IRS is a good thing!

The fact of the matter is, if you are getting a refund every year you are actually giving Uncle Sam an interest-free loan. Yep! He gets to keep your hard earned money (tax refund) throughout the year and can use it for whatever the legislators feels fit to do with it. This is money you could be putting back in YOUR own pocket to help YOU build and grow YOUR own home-based business! These are YOUR tax savings people, wake up! Stop complaining and do something about it!

I’m sorry…I’m screaming at the computer now, I’m just trying to get my point across here, actually NO, I’m not sorry. Can you tell I’m passionate about this? I’m not an overly religious person but this quote just seems fitting. “God Helps Those Who Help Themselves”

In order to ensure that you don’t miss some large tax deductions that could save you a great deal of money, it is wise to consult with an income tax professional so that you don’t miss any of commonly missed tax deductions.

Go get what is rightfully yours….Tax Savings!

Items on Amazon Right Now for 2008 Tax Itemized Deductions:

Charities benefit from end-of-year giving

A constant stream of cars and SUVs approached the loading dock at the back of the Goodwill store in Annapolis early yesterday afternoon, and employees were gearing up for even greater numbers today.

TaxPlus – Tax Information By Subject

It is however known to all that the health insurance or the Medicare insurance plans are made to pay for the costs that you may need to bear in the course of your lifetime. Usually the Medicare plans are for men and women of 65 years of age and older. But the fact is that even if you are having an Original Medicare policy, it is not going to pay for all your medical costs. There always remain some gaps between the policy coverage of the Original Medicare coverage and the actual cost payable therefore there is the need of having a Medicare Supplement Plan so that you may not have to bear those extra costs that are left behind by your original Medicare plan. Medicare Supplement Plans are supplementary insurance plans sold by the private insurance companies to fill up those gaps left behind by the Original Medicare policies. It is perhaps for this reason these plans are also known as the Medigap policies. In the recent studies it is seen that about 18% of Americans are going for the Medicare Supplement Plans along with their Original Medicare policies.

There are twelve standard Medigap policies. These policies are under the total administration of the private insurance companies. All of the Medigap policies from A through L have their own set of benefits. But along with that it is to be remembered that the Medicare Supplement Plans under the same letter cover should provide the same benefits irrespective of the company selling them. Therefore from whatever company you may purchase the Medicare Supplement Plans you are going to get the same benefits. But the amount of premium may vary with each company.

It is however needed that you go through all the offer documents of all the policies before you may choose the right one for yourself. In that case you may need to seek the help of some insurance agent so that he may guide you through the plans and help you choosing the right one. Insurance agents are much more aware about the pricings of the premiums of the different insurance companies, therefore seeking the help of an insurance agent can prove to be much helpful for you. Moreover it should be kept in mind that the Medicare Supplement Plans do not work with the Medicare Advantage plans therefore if you are already having Medicare Advantage plan you cannot enroll yourself for any Medicare Supplement Plan unless you switch over to the Original Medicare.

Choosing the right Medicare Supplement Plan is very much essential. The fact is that almost all the Medigap policies provides the basic benefits of the Plans A and B therefore you need to choose such a plan that can provide you those benefits that you would be needing the most. There are some plans like the plans from J through L seems to provide lesser benefits but in original saves a lot of your money in the form of yearly deductibles. This you should notice very carefully before choosing your Medicare Supplement Plans.

Items on Amazon Right Now for 2009 Medicare Premiums And Deductibles:

Retirees Snared by Medicare

Many seniors who postpone retirement are getting ensnared in complex rules when signing up for Medicare. Those who miss enrollment deadlines may face a fine and risk going without coverage for months.

Sheila Hicks Labor Day Healthcare Rally