The IRS Deductions Blog

Posts Tagged ‘deduction’

Question: Medical Tax Deduction Questions?

Hi. I am hoping to deduct my medical expenses from my taxes. I just have a few questions. Can I deduct medical expenses from seeing a psychotherapist who is licensed but not necessarily a psychiatrist or psychologist? I paid (pay) 90-100 a session and went to numerous sessions. Also is the price I paid for my actual insurance each month included in the medical expenses. Does it make it a difference if my employer deducted my medical insurance costs vs. me paying them directly for tax purposes? And finally I had lasik done, can I deduct the entire amount?

Answer: You can deduct any medical expenses you pay to cure or fix problems as long as you do not get reimbursed for your expenses (say you pay, then file claim with insurance company, and they pay you back).

You should be able to deduct your payments for seeing a psychologist and having lasik done.

For your employer provided insurance deducted from your paycheck, you need to find out if those deductions were made pretax or after tax. If it is pretax, then you cannot deduct them. If after tax, then you can deduct them.

Ask HR/payroll how your insurance is paid or go to www.paycheckcity.com and find the personal calculator. Enter the relevant info and check the boxes to try to duplicate your paycheck to see if your insurance was pre or post tax. Most deductions for insurance from employment are pretax and not deductible.

Items on Amazon Right Now for Tax Deduction Medical Expenses:

Medicare: Is This Deduction Still Being Taken Out of Your Paycheck?

FIRST PERSON | COLORADO SPRINGS, Colo. — What affect will Paul Ryan’s plan have on Americans who are retiring or nearing retirement?

Tips & Advice for Income Tax Deductions : Introduction to Medical Deductions for Income Taxes

Question: How much should a replacement HVAC system cost in the DC area?

Has the “SEER 13″ efficiency standard greatly increased the cost of AC replacement (a lot of the other questions I see here were answered before SEER 13 was in effect)? I live in the DC area and got a quote for $7500 for complete HVAC system replacement including installation (no ductwork, for my 2600 sq ft house). The system is rated SEER 16 and qualifies for the $1500 tax deduction. Am I getting fleeced or is this about right?

Answer: always get 3 quotes and let them know you will get back to them when all the estimates come in, this keeps them honest

Items on Amazon Right Now for Hvac Tax Deduction:

Recovery: Energy Tax Credit-Claim It – 2011

Question: What is the perfect type of Corporation tax-wise for a current self-employed?

I am currently working an Independent Contractor at an agency for my Art Direction services. This is my main source of income. Additionally, from time to time I do graphic and video work. Now I am considering diving into Event Production as a new opportunity has come to me.

My main goal is to maximize my Tax Deductions as last year I paid 30% off my income. I filed as self-employed. I know the answer is incorporating but not sure as to which type of Corporation will allow me to deduct the most (equipment, furniture, car, insurance, food, travel, hiring other independent contractors, etc – can’t think of any thing else). This is money that is currently getting out of my pocket – after taxes -. Any recommendation or past experiences?
Just a side note.
As an Independent Contractor my car expenses were only $ .44 cents per mile. Apparently, if incorporate more is deducted (car payment, gas, insurance oil change, etc).

Answer: You don’t have to be incorporated to deduct the cost of an auto used in your business. You have a choice to capitalize the auto and depreciate it over 5 yrs, add the cost of gas, oil changes. car washing, etc., or take the standard mileage rate. The deductions you’d have with a S corp are the same as you’d have with a sole proprietorship.
People usually form a corporation to protect their personal assets from law suit or if the corp goes bankrupt, it doesn’t take your personal assets down too.
If you was gonna incorporate,, /s corp would be the way to go, but not for tax reasons.
What some do is take a salary, then let the company profits flow through to them on a K1, and that profit is not subject to self employment tax, so there is a savings of 15.3% on that money. Also, a S corp can hold a board of directors meeting each year and deduct the cost of that meeting. Bot it’s not free to form the corp and if you don’t know about the tax forms, the savings is offset by cost of tax prep.(yes, it is a deduction)

If you are the only partner in a LLC, the IRS considers you to be a sole proprietorship.

Items on Amazon Right Now for Tax Deduction Self Employed:

Insurance tax break for the self-employed

If you’re self-employed, this year, a new tax break could significantly lower the cost of buying your own health insurance. If you haven’t filed your 2010 tax return, make sure you don’t overlook it.

Self Employment Tax Tips : How to Deduct Club Dues for Taxes

Question: Can he claim our child for Income Taxes???

me and my exhusband have been seperated for 20 months, we have been divorced for 7. (yes, that is how long it took me to serve him) he has not paid one dime in child support, his amount was determined 17 months ago by the courts. i was supposed to get every even year for income taxes unless he did not pay child support. MY REAL QUESTION IS, if he files for income taxes and claims our child, can he receive the child deduction and get money for her, if i have already claimed her??? that does not seem right that he should get money for claiming a child that he has never paid child support on. please help, thanks
YOUR RIGHT JAMES C. HE DOES NOT KNOW HER SOCIAL SECURITY NUMBER. THANK YOU.
I DONT REPORT HIM FOR BACK CHILD SUPPORT BECAUSE I JUST WANT HIM THE HECK OUT OF OUR LIVES, I DONT WANT TO MESS WITH HIM. I KNOW ITS WRONG, AND I KNOW I SHOULD I JUST DONT WANT TO MESS WITH HIM ANYMORE. HE IS A DEADBEAT FATHER AND JUST A SCUMBAG ALL AROUND.

Answer: Even if he paid you child support , he is also required to pay half of child care and co pays for Dr. appointments. 9 times out of ten at the end of the year there is at least one tiny bill that has been unpaid by the non-custodial parent and this entitles the custodial parent to claim them on their income tax return.

He has a right to dispute it as do you if he filed first. The custodial parent will win in a meeting with an IRS representative.

Do not hesitate to dispute this. Your pockets will be full if you do.

If he allready recieved money then he will be ordered to repay the IRS and you will get it instead.

Items on Amazon Right Now for Child Tax Deduction Divorce:

Who Can Claim a Dependent Child on Taxes After a Divorce

Q: My son lives with me for half the year. The other half of the year, my son lives with his dad. We are not married, but we have shared custody. Who gets to claim my son The parent who lives with the child the longest is considered the custodial parent for tax purposes and is

Divorce Advice : Can I Deduct Divorce Attorney Costs?

Question: Tax refund question?

We’re getting $7000 back from taxes this year. I keep wondering if it’s too much. We did it through H&R Block online. My husband make 77K and we have one young child. We had about $15K mortgage interest but really no other deductions. We paid around 10K to federal taxes over the year. I don’t work so we filed married jointly. A family member was audited one year so I guess I think about that. Does it sound like we’re okay?

Answer: I believe you’re OK. Probably, too much was taken out of your husband’s earnings.

Items on Amazon Right Now for Federal Tax Deduction Mortgage Interest:

Tax the rich! Higher rates for millionaires sought

Hey, millionaires! In case you haven’t noticed, some members of Congress think you should pay more taxes.

Government Considering Eliminating Mortgage Interest Tax Deduction: CALL TO ACTION