The IRS Deductions Blog

Posts Tagged ‘expenses’

Question: In Canada, is international volunteer work tax deductible like in the US?

I’m looking at volunteering next year in Cambodia or Tanzania and the organization I’m currently reading about claims that all volunteer expenses (including airfare, accommodations, etc) are 100% tax deductible in the US. I’ve tried to find information online about Canada’s volunteer Tax Deductions but I haven’t been successful. Just wondering if anyone out there knows if/what any options for Canadians wanting to volunteer abroad are! Thanks.

Answer: The only time expenses are tax deductible by an employee is when your employer completes the form T2200 that stipulates that they are employment expenses. However, if you are a volunteer and not being paid, there is no income to deduct the expenses from. Also, because it is for outside of Canada, it would have to be recognized by the Government of Canada, ie: UN worker.

There is no such thing as a “volunteer work tax deductible”.

Items on Amazon Right Now for Tax Deductible Expenses Canada:

Koppers Holdings Inc. Reports Third Quarter 2010 Results

Sales Increase 16% as CM&C Business Continues to Show Growth; Third Quarter EPS of $0.75 Negatively Impacted by $0.06 Due to Change in Estimated Taxes

Jan 6, 2010 – David Ingram – Tax Deductible Mortgages in Canada 5/5

Question: what were the medicare premiums in 2009 for both A and B?

I’m preparing 2009 taxes for my father was was deceased in Jan 2010. He had many medical expenses in 2009, so I’m claiming them for deductions. In the grand paperwork shuffle, I cannot seem to find any paperwork denoting the premiums for Medicare part A & B for 2009…anyone know what the monthly or yearly costs were?
…he was not my dependent…I am filing HIS return, not mine. You are correct though that Medicare premiums are NOT allowable deductions…I misread the turbotax prompt.

Answer: Do you mean that he was your dependent in 2009? Are you claiming his medical costs as your out of pocket expenses?

The Medicare premium is deducted from his Social Security check before he receives it. Thats why you don’t see any paperwork. The amount was $96.40 per month and now it is $96.50 per month for one person. He also must have paid the 20 per cent that Medicare does not pay, or he may have had a gap insurance policy. That costs about $150 a month unless he had zero share of cost Medicaid which pays that.

I hope you are correct about using his out of pocket costs as a deduction on your tax return.

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Woman pleads guilty to falsifying tax returns

A woman who was a manager for Jackson Hewitt has pleaded guilty to aiding and assisting in the filing of false returns.

Tax Forms & Deductions : Can I Deduct My Pet’s Medical Expenses on My Taxes?

Question: What tax Deductible Expenses can I claim?

I am thinking of registering a US LLC, although I’m a non-resident alien.
Will I be able to claim expenses that are incurred in my home country when I file my returns next year? These expenses could be the following:
1. Medical expenses for myself
2. Rent of office space
3. Business related mileage

Answer: If you do not have a partner, then you are a sole proprietor. You will report your income and expenses on schedule C or C-EZ (Form 1040). This income is subject to SE tax at 15.3%.
For more info about your deductions and taxes: http://taxipay.blogspot.com/2008/04/tax-filing-by-self-employed-sole.html

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School district sets administrative, classified staff salaries

The Grand Island school board has approved administrative and classified salaries for the coming school year.

Tax Tips & Information : Are Hobby Expenses Deductible Under Federal Income Tax Laws?

Question: Paid with Guaranteed Payments – can I deduct SE business expenses?

I am getting paid as an independent contract in a business that I own a small portion of, and my K-1 reports this payment as Guaranteed Payments to Partner. I know the method of reporting is correct, but since I am filing as a self-employed independent contractor, I would hope to be able to take my self-employment business expenses (expenses that the company did not reimburse me for) as deductions. Expenses such as car, travel, meals & entertainment, advertising/promotional, etc.

The argument that I would make is that the earnings I received as Guaranteed Payments to Partner would not have been possible without incurring business expenses along the way, thus the expenses should be deductible. My expenses equate to 18% of my Guaranteed Payments income, so this will be a significant deduction.

Is this logic correct? Can anyone point to somewhere in the code that allows this, or just give me clarity? I can’t find anything online or in the code that allows or disallows this.

Answer: I believe that you are correct. I would further suggest that you go to the IRS website and look for Schedule C and its accompanying instructions. I have reason to believe that if you examine this schedule and the instructions for filling out this form the answer(s) to your question will become self apparent.

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Tax Law Change Could Hit Small-business Owners

Tax Law Change Could Hit Small-business Owners

The Savior

Question: Moving Expenses Tax Deductible?

Are moving Expenses still tax deductible if I am relocating to a new city but for the same employer. The relo is 250 Miles away.

Answer: They are deductable if you are not reimbursed for them.You will meet the distance test if your new workplace is at least 50 miles further from your former home than your previous workplace was from that home. For example, if your old job was 5 miles from your former home, your new job must be at least 55 miles from that home.

The time test requires you work full-time for at least 39 weeks during the 12 months immediately after your move. If you are self-employed, the time test requires you to work full-time for at least 39 weeks during the first 12 months and for a total of at least 78 weeks during the first 24 months after your move. You can deduct your moving expenses on your tax return even though you have not met the time test by the date your return is due if you expect to meet the 39-week or the 78-week test as required.

http://www.irs.gov/newsroom/article/0,,id=173193,00.html

Christine EA Master Tax Advisor

This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided.

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Police and Community Briefs for April 15, 2010

Staff and wire reports Police and Community Briefs for April 15, 2010

Ivory and Her Ebonies Part II