The IRS Deductions Blog

Posts Tagged ‘ato’

Question: Do I have to itemize because of our education expenses?

My husband and I both are attending college full time. We’ve never itemized our taxes before and are unsure if we have to itemize this year because we have Tuition/Book expenses. As far as I know we have not exceeded the Standard Deduction Amount based off our 1098-T’s. But I also paid a significant amout of money this year in dental expenses.

So I have two specific questions:
1. Do Educational costs alone mean we should itemize?
2. If not, how do we decide if we should itemize?

Answer: You can take a Hope or LIfetime Learning credit, if you are eligible, without itemizing. Use form 8863.

In order to be deductible, your total medical expenses including the dental would have to add up to over 7.5% of your income – only the part OVER 7.5% could be deducted. Then your total Itemized Deductions, including the medical that’s over 7.5% of your income, would have to be more than the standard deduction, which is $10,300 for a married couple filing a joint return.

Items on Amazon Right Now for Tax Deduction Dental Expenses:

Use or lose flexible spending account funds

These workplace accounts are a great way to save money. Don’t waste the benefit.

Canadian Medical Reimbursement Plan (PHSP)

Question: tax return australia?

what happens to tools that i purchase that need to be depreciated but they get stolen or damaged in the year.

eg tool purchased for $500 low value pool deduction = 500 * 18.75% but say it gets damaged or stolen in the first year, so i cannot claim it next year as i’m not using it for work ? what happens to the residual?

or what about someone who purchases a tool which damages quickly and a new one is purchased every year?

Answer: It depends if you are a contractor or self-employed.

If you are self employed you can do a full deduction for anything under $300 or in some cases if the lifespan can be shown to be short (less than 3 years) this may apply in your case.

If you are self-employed the cost of the items can be higher

Items on Amazon Right Now for Tax Deduction Australia:

Greencore Group PLC – Rule 2.5 Announcement

Greencore Group PLC – Rule 2.5 Announcement

Xpnsit shows how to get more tax back – Meal allowances & Tax Deductions

Question: Tax deduction for dental work?

Is dental work tax deductible as a medical expense?

Answer: Yes, it is deductible unless it is purely cosmetic.
But you can only deduct medical expenses including health insurance premiums over 7.5% of your Adjusted Gross Income.
Also you will need deductions for medical, State taxes, mortgage interest, property tax and charitable contributions that is larger than your standard deduction.
If you do not own a house or condo that you have a mortgage on, then you may not have enough.
But dental expenses can be very expensive and if you are having a lot done, then keep your receipts and you may be able to use it.

Items on Amazon Right Now for Tax Deduction Dental:

Former Jackson Hewitt Manager Pleads Guilty to Tax Fraud

A former manager at Jackson Hewitt has admitted to falsifying more than 52 tax returns.

Community Dental Foundation

Question: For U.S. federal business income tax purposes, does the federal meals and incidentals rate (M&IE) already?

reflect the 50% allowable deduction for meals/ent., or do I take half of the entire (or of some other fraction, since there’s incidentals, which I think are fully deductible, in there, too) amount?

E.g., Los Angeles MI&E is $100 a day. On taxes, deduct $100, $50, or some other amount? Thank you.
Why can’t I deduct more than 50% of ME&I, which includes incidentals, which should not be subject to the 50% deduction limitation!?

Answer: No, the rates are at 100% because they are not necessarily “halved ” on the tax return in every case. For example, truckers subject to DOT rules are allowed to deduct 75% of the M&IE rate. So you must do the math to get the allowable 50% of the tabular amount

Items on Amazon Right Now for Tax Allowable Deductions:

‘Cost segregation’ carries tax benefits

NORTH BAY – When a business is looking at purchasing a building for commercial use, one way to maximize deductions on a tax bill is to use cost segregation.

Tax Forms & Deductions : How to File an Amended Tax Return

Question: I have heard that there are Tax Deductions that men who work on ships can claim anyone know what they are?

My boyfriend works on a ship that carries raw material here in michigan and I was told there are certain things that they can claim for a tax deduction. So does anyone know what the complete list is or a link that would tell me a complete list of the things that he can deduct????

Answer: Only an attorney or your state’s shipping authority would have a complete and detailed list.

Items on Amazon Right Now for Claim Tax Deductions:

10 Commonly Missed Tax Deductions To Put Cash in Your Wallet

Everyone loves a good tax deduction. Unfortunately, as taxpayers scour their drawers for every last cab receipt, they might be overlooking more powerful deductions and credits that are not widely known. We asked five tax experts to tell us their “tricks of the trade” on deductions and credits. Here are the 10 nifty tips they offered. Tax deduction – Tax – United States – Accounting – Taxation

Recovery: Education Tax Credit-Claim It-Parents January 10