The IRS Deductions Blog

Posts Tagged ‘deductible’

Question: Just was rear ended and smushed between 2 cars, car looks totalled. Should I work directly with her insurance?

Or just go through mine. It was 100% her fault, but I don’t know if my premium will go up if I work through my insurance, even though I wasn’t at fault. Also, I will need loaner car and possibly medical care, I just am not sure what to do. I would have to pay a deductible but would most likely get it back. Anyone in the business have some answers for me?

Answer: Is this a 3 car accident??? If so, you definitely need to contact YOUR insurance company. If as you say, I was rear ended and smashed between 2 cars, means you were in the middle and the other insurance company may believe that you are also responsible for the car in front of you;;;;;;;;;;

Your auto policy most likely has medical payment and/or PIP coverage, which means it will pay for any medical care medically necessary due to an accident. Even if proven that the guy behind you is totally at fault, THEY WILL NOT PAY FOR YOUR MEDICAL BILLS, but will reimburse you after you are done treating with a pain/suffering settlement which could be months away from now.

Anything YOUR COMPANY PAYS, including your deductible, YOUR insurance company will go after the at fault party for reimbursement since they will have a “vested interest”.

Call your insurance company and they will explain the procedures and your rights.

good luck

Items on Amazon Right Now for Car Insurance Deductible Premium:

Credit Scores May be Factored Into Car Insurance Rates, Reports Edmunds.com

Ignoring outstanding bills could raise your car insurance premiums, while paying them off may help you secure a lower rate, reports Edmunds.com, the premier online resource for automotive information.

How to Buy Car Insurance

Question: Can a small charity solicit tax-deductible donations without becoming a 501 (c) 3?

I help run a youth organization that is under the umbrella of a municipality but looking to become independent. I understand that we would first need to become incorporated. I also read that the IRS says if our annual revenue is less than $5000 a year, we would not need to filed Form 1023 to get 501 (c) 3 status. Our revenue will be less than $5000/year at this point. The IRS will automatically consider us tax-exempt without having to file a Form 1023. My question to you is can we solicit donations that individuals and businesses can write off on their taxes if the IRS says we don’t need to file Form 1023? I want to make sure folks can write off donations to our organization. But if we don’t have to file Form 1023 to do that, that would be great. Anybody know the answer to this?

Answer: You’ve misread the rules and you’re confusing what it means to be tax exempt vs being a charity.

Any organization that exists for a purpose other than making profits is a non-profit organization and they can be tax exempt. This does not mean they are a charity, it only means the organization itself doesn’t have to pay income taxes like a business would pay income taxes. The rules you read were saying that if your organization’s total revenue was less than $5000/ year, you automatically get this tax exempt status but if the revenue is $5000+ then you have to fill out form 1023 to let the IRS know that its a tax exempt non-profit.

Being a 501(c)3 organization means that the organization exists for the purpose of giving back to the community in some form. Contributions to these organizations are tax deductible for the giver as a way of encouraging people to give money to these types of organizations.

As an example of an organization that would be tax exempt (non-profit) but not a 501(c)3 charity, think of a political campaign. These organizations pop up every election year and take donation money so they can run radio ads telling you to vote yes on proposition X or No on initiative Y. The organization doesn’t make a profit so they don’t pay income taxes, but they’re not really doing anything that benefits society so the contributions people make to the organization are Not Tax Deductible.

Items on Amazon Right Now for Tax Deductible Donations:

Alumni rally to preserve Governor’s School

Supporters of the North Carolina Governor’s School are working in overdrive to make sure the longtime program doesn’t become another victim of the state budget’s cuts to education.

Bike Cam: Out of the Sky… bicycling at 14000 ft (4300 m)

Question: What is an insurance Premium?

What is the difference between these four

Premium? Deductible? Co-Pay? and Waiver

Answer: Premium is what you pay every month to buy the insurance.
Deductible is what you pay out of pocket for a claim.
Co-pay is what you pay at office visit or for meds.
Waiver is decling coverage.

Items on Amazon Right Now for Deductible And Premium:

Pet insurance: Rarely worth the price

We compared three brands of pet insurance

How to Choose the Best Health Insurance for You

Question: Would you like to donate to a great charity?

I’m involved with the Boys & Girls Club and I’m trying to raise money for their annual budget. It’s tough this year with the poor economy. The Boys & Girls Club does great things for kids world wide, like raising the grades of 75% of their failing students to passing. This is one of out their many amazing contributions to the kids in your community. If you would like to contribute, go to www.cinderellacharityball.com. Then on the right side, click “How to Donate.” Then click “Donate Now.” On the right side of the name “Mackenzie McDade” please enter the amount of your 100% tax-deductible donation! No amount is too big or too small!!! Thank you so much for your help. The more you give, the more you live.

- Mackenzie McDade

Answer: Thank you for raising money for the Boys & Girls Club. It’s such a great program! =)

Items on Amazon Right Now for Raise Your Deductible:

Woman born without sense of touch about to get new ‘hands’ — thanks in part to community fund-raising

York, PA – When Julie Malloy gets a new pair of hands, she’s going shopping. First on her list — a ring.

1 Secret Tip to Saving Money Online – How to Save Money On Car Insurance

Question: Can a TSA be rolled into a high-deductible HSA like BCBS BlueEdge HSA? Are there any penalties-what and how $?

I have a TSA from work that my employer no longer supports. It has been sitting in-limbo for about a year as I can no longer easily add money to it. My employer is offering a high-deductible HSA as a health insurance option and if allowable I would like to roll all or at least part of the TSA money into the HSA. I have approx. $11,000 in what I think is a Hartford 403(b). I have to let my employer know if I want to switch to the HSA by Dec. 16th, so I kinda need to know most of the answers before then. If I can’t roll the TSA over, I don’t know that I am as interested in the HSA? I am also a little leary about making a change with our idiot Congress screwing with health care. Is there any reason I should wait? Any help with my questions would be greatly appreciated.

Answer: A TSA (transportation spending account???) cannot be rolled into an HSA.

Only an IRA is eligible.

Items on Amazon Right Now for High Deductible Hsa:

PayFlex® Receives IRS Approval as a Non-Bank Custodian for its HSA Solution

PayFlex Systems USA, Inc., a leading technology enabled solutions provider for employee benefit programs, today announced that it has been approved by the Internal Revenue Service to serve as a non-bank custodian and trustee for Health Savings Accounts and other accounts which are required to be held only by IRS-approved custodians.

High Deductible Health Insurance and Health Savings Accounts Explanation