The IRS Deductions Blog

Posts Tagged ‘government’

Question: should i pay home taxes in 08 or 09?

In 2008 i will not be going long form, i will take the standard deduction. Home taxes due january 31, 2009. My question is should i hold off (not paying early to in 08)and pay in 09 and combine 2009 home taxes. Because i will be going long form for tax year 2009.

Answer: Since the tax is not due until after the new year you’ll be able to use the deduction on next year’s taxes. (Of course if the tax was due by Dec 31st, you’d need to decide if any penalties or interest that will be charged would be worth the tax benefit you’d receive. It’s not the case for you but I mention that for the benefit of the community in general.)

And if you want to “double up” your deduction — called “bunching” and perfectly legal — pay the 2009 taxes prior to Dec 31, 2009. This way you can legally deduct 2 years worth of taxes on the same tax return.

I know a few folks who bunch in one year and use the Standard Deduction in the following year and switch back and forth year-to-year. It’s all perfectly legal — and the IRS even recommends it if it will benefit you.

Items on Amazon Right Now for Standard Deduction 2008 Taxes:

Donations soar via hometown tax break

Donations to local governments via a tax incentive that encourages people to contribute to their hometowns while living elsewhere have soared in the three months since the March 11 earthquake, totaling about ¥335.2 million in the three most hard-hit prefectures, according to a Kyodo News tally. The amount received by the prefectural governments of Fukushima, Iwate and Miyagi through the hometown …

Question: So… You have been elected to change Health Care…?

You are the newly promoted person, to develope a Universal Health Care System for the entire United States, Where do you begin? How would you do it? How would this effect Insurance Companies? How are you going to pay for it? What would be covered or not covered? How about prescription drugs? Any deductibles or co-insurances?

Answer: Ok, one thing at a time. First thing I would do is try to find advisers from the highest ranks, from countrys that have it. I would also include people that are friendly to the concept. I would not accept negitivity as critisim. Simply put that would doom it for those that want it. Some of the things I would do is make it voluntary. If you wanted standard insurance you could have it but you would pay for it. I would cover basic and emegency health care for those that wanted it. I would build or buy regional hospitals and hire Doctors to staff them. They would be free to have a private practice also as long as they accepted U.H.C., Paying for it would be the easy part I believe. As it is now the insurance company’s are profiting billions while paying for substandard care. Some of that money would come to me in the form of premums. Instead of paying a private insurance you would pay into the U.H.F., if you were a member, I would allow corporations to buy into it also. Just like paying for private insurance they would pay U.H.C. to cover their employee’s. Everyone would be covered that wanted it. Currently there are an estimated 45 million people without access to affordable health care. Paying for them would be a problem. I think a value added tax would cover it, don’t know what it would take. There would be some savings due to people that don’t have health insurance now do not go to the Dr. when it would be easy to fix the problem. The wait until it is serious and then go. Costing much more. Prescriptions drugs would be bargined for. The V.A. at this times buys drugs at a rate approximetly one quarter of the cost of drugs in the general population. This also is a savings. Yes there would be reasonable deductables, based on ability to pay. Yes there would be co-insurance but out of your own pocket. U.H.C. works well in other countrys, and I feel it can work here, for the benifit of all. Rich and poor. .

Items on Amazon Right Now for Prescription Deductibles:

More than one way to trim health coverage premiums

Skyrocketing premiums have stunned some consumers who buy their own health insurance policies. People in several corners of the country are facing increases of 20 percent or more from some insurers.

(Ameriplan) The Ameriplan Money Dance

Question: What has better tax benefits for a corporation? $100 to a charity or $100 on business expenses?

I know both are tax deductible but I’m wondering which has a greater tax shield. Thanks!

Answer: Depends upon the taxable income of the corporation.

Corporate charitable donations are capped at 10% of the corporation’s taxable income. If the corp’s taxable income is more than $1,000 then it would be a wash. However if it’s less, the business expense would be worth more than the charitable donation.

Items on Amazon Right Now for Tax Deductible Benefits:

One Night at NAIAS Benefits 12 Children’s Charities for a Full Year

Detroit, MI – December 31, 2009 – The North American International Auto Show (NAIAS) will once again host the black-tie Charity Preview gala event on Friday, January 15 from 6:00-9:00 p.m. at Cobo Center, benefitting 12 children’s charities of greater Metro Detroit.

Summary of HHE’s Purpose and Benefits

Question: IRS guideline on property tax. Can I deduct 2 years of property taxes in the same year?

I currently do not have an escrow account.
My Itemized Deductions each year are shrinking and are fast approaching the standard deduction allowed by the IRS.

IF I pay my 2007 property taxes in Jan. 2008 and my 2008 property taxes in December of 2008. Can I deduct the sum of both on my 2008 Federal tax return?

Answer: Sounds like you are talking about personal income tax and not business income tax, and if I am correct the answer is Maybe.
The key to the answer is –will all your deductions on Schedule A exceed the standardized deduction for your filing status. In 2006 it was $7,500 for single and married filing separate, $10, 300 for married filing jointly, and $7,550 for head of household. So if all your home interest, state and local taxes and charity gifts, misc. deductions, casualty/theft losses, and medical(limited amount deductible) does not exceed the standardized deduction, with the property tax payments all two years, you can consider it not deductible–because you want to take the largest deduction. Schedule A or the standard. Also, if your total itemized deductions exceed $150,500(75,750 if filling married separate), the deduction maybe limited. So there is a low and high range at which you fit into to take advantage of paying both years of property taxes in a single year.

Items on Amazon Right Now for Standard Irs Deduction 2008:

Bigger Tax Breaks On Your ‘09 Return

The arrival of documents like W-2s and 1099s signals it’s time to get your tax return in gear.

The IRS Beaten into Submission by Scientology

Items on Amazon Right Now for 2008 Standard Deduction Irs:

Tax Tip: Don’t Call The IRS

Phone service deteriorates as Congress loads on complications

Wow! A first time homebuyer credit? Watch this video!