The IRS Deductions Blog

Posts Tagged ‘deductions’

Question: What can I do about this personal income tax situation – 2008 1040 help!?

I just got a letter from the irs. Seems I didn’t claim about $2300 in interest income and so they want an additional $2100.

I looked back over my return today and saw that I also didn’t include a capital loss amount of over $3500 for sale of stock in 2008.

With out knowing enough about income tax (obviously), will this reduction of my adjusted gross income (?) likely help my situation?

My Itemized Deductions far exceeded my income for 2008 as I only had 2 months of rather low wages.

Any help or suggestions welcome.

Thank you in advance.

Answer: Find your records showing the price you paid for the stock.
Then prepare a 2008 schedule D showing that it was a loss.

If you just got the CP2000 letter, submit this schedule D to them (the fax number is in the corner).

The way $2300 of interest morphed into a $2100 bill is because they apparently included the gross proceeds from the stock sale and used $0 as the basis. Using the correct basis will reduce the bill.

Items on Amazon Right Now for Irs Tax Deductions 2008:

Avoid IRS Hit List Of Tax Scams

Most people don’t think of the IRS as a consumer protection agency.  But the IRS warns the public off tax ideas that can only get them into trouble.  This is a good time of year for the IRS to release its annual “Dirty Dozen” of the worst tax scams.  The IRS has even gone Hollywood with a video.

How to Avoid an IRS Tax Audit : How to Organize Receipts for Tax Deductions

Question: Can I claim travel Tax Deductions between work and uni?

I work full time and have recently started uni. IF I drive from my workplace directly to uni am I able to claim travel expenses?

Answer: If your uni studies are related to your current job, then you will be able to claim study costs, books and stationery, and the travel directly to uni from your work. The key point is that the studies must be directly related to your current job e.g. you are a nurse and undertaking study to become a theatre nurse.

If you are working in a different job to your studies e.g. working in a shop but training to become a teacher, then there is no direct connection between your job and your studies and the travel is deemed to be private; the study costs and books and stationery would also be classed as a private expense and Not Tax Deductible.

Items on Amazon Right Now for Deductions Claim Taxes:

6 Ways To Write Off Your Car Expenses

Cars are one of the most expensive items to own, both in terms of the initial investment we make in

Can I Claim the Music I Buy As a Tax Deduction?

Question: Taxes? Please Help?

Okay so I just moved out on my own on Jan 2nd. I have been living with my parents and they have claimed me on their taxes each year.

Well, after the up coming taxes I will be claiming myself from now on.

I know there are receipts and such that you are supposed to save that are tax deductible. I know about the stuff that you donate to Goodwill is but what other types of things should I save? And is there any other advice that you could give because I don’t know too much about this stuff so I can use all the help I can get

Please and Thank You!
If anyone knows of a website that would be helpful as well…
I moved in with my boyfriend’s sister after leaving my parents house so I’m not renting nor do I own my own house.

Answer: Actually unless you own a house, have high medical bills or are self-employed, you do not need to save receipts at all. You will not itemize on your taxes, but take a standard deduction (which comes up to far more than you could save receipts for).

If you are selling stuff of Ebay, Amazon, or other sites, you WILL need to keep those invoices and your mailing receipts, but if you aren’t, your taxes will be a piece of cake. You can use the 1040EZ.

If your parents are claiming you this year, they will probably help you with your tax form so it is correct (this year). Next year just pick up the 1040EZ with instructions and follow it. Until you get married or have property or have high medical, the EZ will suit your needs.

By the way, charitable donations are not deductible unless you itemize. Give those receipts to your parents if they itemize.

Items on Amazon Right Now for Goodwill Tax Deductible:

FP Newspapers Reports Fourth Quarter 2010 Results

WINNIPEG, MANITOBA– – FP Newspapers Inc. announces financial results for FP Newspapers Income Fund for the quarter ended December 31, 2010. The Fund was converted into the Corporation pursuant to a plan of arrangement effective after the close of business on December 31, 2010.

Goodwill Detroit-Cuisine for a Cause 2008

Question: Tax deduction (itemized or standard) rules in Arizona?

I file as “head of the household” and my wife files as “married filing separately”. For federal return, I can take standard deduction while my wife itemizes deduction. Can I do the same thing for Arizona State return?

Answer: State returns are based on the federal return and must be filed the same for status.
You and your wife can only file married-Joint or Married-Filing separately on both returns.
The joint return has a lower tax liability,but the separate filing allows one spouse to take deductions that they can’t take jointly-ie:medical expenses.
The spouse with a lower income may meet the requirements to take such medical deductions and may therefore actually get a bigger refund overall.
It is best to figure all possible filings to see if a larger refund can be found or a smaller tax liability.

Items on Amazon Right Now for Federal Tax Itemized Deductions:

Woman with Weston ties sentenced for mortgage fraud

Mary Ellen Durso, 54, of Milford, was sentenced on Wednesday, March 9, for her role in a mortgage fraud case that also allegedly involved Steven Kottage and Genaro Hathaway of Weston. David B. Fein, United States attorney for the District of Connecticut, announced in a written statement that U.S. District Court Judge Mark R. Kravitz sentenced Ms. Durso to three years of probation, the first six …

Itemized deductions extended

Question: what are the income Tax Deductions in insurance agent’s (both Life & General) commission? Is any writing off?

tax on insurance commission

Answer: Life Insurance Agent
first year commission 50%
2nd year commission 33%
Subject to a maximum of Rs. 20,000.00 in a year.

There are no such adhoc deductions available in GIC.

Items on Amazon Right Now for General Tax Deductions:

5 Ways To Receive Your Tax Refund

Taxpayers in the United States are confronted with a number of different methods to receive their i

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