The IRS Deductions Blog

Posts Tagged ‘health’

Question: Does a 529 give you a great tax deduction? Can you split it after you are divorced?

I want to set up a 529 for my son. I will be divorced soon. I would like to set up the 529 in my name only, but my son’s father DOES contribute to our child’s college savings every month. (Right now the money is in a savings account.)

Would it hurt my soon-to-be ex if the 529 is in my name only? In other words are there some sort of Great Tax Deductions that he could be getting if the account was in both of our names? Could we even split that once we are divorced?

I’m not looking to “cheat” my ex out of a tax deduction, but I would feel a lot more secure having the account under my name only.

Answer: As you probably know, a 529 plan allows your investment to grow tax-deferred and distributions made for the beneficiary’s qualified education expenses are tax exempt. This is the primary tax advantage of a 529.

For federal income tax purposes, contributions to a 529 plan receive no special treatment. Contributions are made using after-tax dollars and those contributions to not generate a deduction or tax credit.

Many states provide a state income tax deduction for contributions to a 529, especially if it is in a plan administered by that state, and the rules for that deduction will vary depending on the state. In CO, for example, anyone contributing to a qualified 529 can claim the state income tax deduction regardless of whose name is on the plan.

Items on Amazon Right Now for Divorce Tax Deductions:

Re-thinking civil unions and same-sex marriage.: An article from: The Monist $9.95 This digital document is an article from The Monist, published by Hegeler Institute on July 1, 2008. The length of the article is 12036 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available immediately after purchase. You can view it with any web browser.Citation DetailsTitle: Re-thinking civil unions and same-sex marriage….

Property settlement payment not deductible alimony.: An article from: The Tax Adviser $5.95 This digital document is an article from The Tax Adviser, published by American Institute of CPA’s on February 1, 2004. The length of the article is 1048 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.Citation DetailsTi…

Deduction of early years’ divorce payments.: An article from: The Tax Adviser $5.95 This digital document is an article from The Tax Adviser, published by American Institute of CPA’s on May 1, 1996. The length of the article is 610 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.From the supplier: The i…

Dependency Deduction Form Absolute Requirement

One of the items typically addressed in divorce agreements, is allocation of the dependency deduction.  I think it generally gets more attention than it deserves based on the money involved.  My advice to a non-custodial parent would be that if you can get any sort of concession in exchange for it, you should take the concession.  There is something emotional going on there, though.  Like …

Cache Counsel: Marital Deductions pt. 1

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:

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LG 5-Year TV Service Coverage ($1,001-$2,000 LCD/LED TV) $179.99 You’ve made the right choice in TV’s so make sure it is protected. The LG Premium Care Plan gives the peace of mind that if service is ever needed, you’re covered. The plan provides protection during and after the manufacturer’s warranty period. When you need support, we provide service conveniently and quickly. Our number one goal is to make it simple and hassle-free….

Pet insurance: Rarely worth the price

We compared three brands of pet insurance

How to Choose the Best Health Insurance for You

Question: Are business expenses deductible if paid for with personal money?

My boyfriend and I recently started up a small home business, and being that tax season is coming we were wondering on something.

1. What percent of a tax preparer’s and accountant’s fees are tax deductible for our business?

2. The tricky part- my boyfriend (he is the business owner) would be paying for these expenses with his own personal money, not money profited from the business. Does this matter?
We are a C-Corporation as well.

Answer: Congratulations, you are a partnership.

1. All partnership income is reported first on the form 1065, then on your individual tax returns. You report all professional fees on this form.

2. The business expenses paid with personal funds are accounted for depending on your written partnership agreement. If that agreement say you pay for items yourself, you deduct them on schedule E. If that agreement doesn’t (or there isn’t one), then it’s considered to be paid by the partnership (with corresponding funds adding to capital) and reported ont he 1065.

Items on Amazon Right Now for Not Deductible:

SquareTrade 3-Year Appliances Warranty ($75-100) $13.99 SquareTrade Care Plans are great value and cost 70% lower on average than traditional warranties.  Upon purchase, you will get an email confirmation.  You will not be mailed a paper contract.  If you have questions, please call: 1.877.WARRANTY….

SquareTrade 3-Year Appliances Warranty (Below $50) $7.99 SquareTrade Care Plans are great value and cost 70% lower on average than traditional warranties.  Upon purchase, you will get an email confirmation.  You will not be mailed a paper contract.  If you have questions, please call: 1.877.WARRANTY….

SquareTrade 3-Year Fitness Equipment Warranty ($600-800 Items) $89.50 SquareTrade Care Plans are great value and cost 70% lower on average than traditional warranties.  Upon purchase, you will get an email confirmation.  You will not be mailed a paper contract.  If you have questions, please call: 1.877.WARRANTY….

SquareTrade 3-Year Fitness Equipment Warranty ($2000-$3000 Items) SquareTrade Care Plans are great value and cost 70% lower on average than traditional warranties.  Upon purchase, you will get an email confirmation.  You will not be mailed a paper contract.  If you have questions, please call: 1.877.WARRANTY….

IRS Helping Ease the Pain at the Pump

You can write off more the second half of the year for each mile you drive for business, moving or medical purposes.

Homeless Giveaway #3 Part 1 Austin Atheists Helping the Homeless

Question: What is HRA and is Deductible a part of HRA or a different entity?

I understand that HRA funds are contributed by Employer and funds can rollover Yearly.
What im confused is with the deductions part
How does the deductions from HRA start to take place??
What is deductible and when does it come into effect.Does it happen in PPO?

Answer: A deductible is a set dollar amount, that you have to accumulate in medical services in one year. Once you meet that dollar amount, your percentage based coverage starts to apply.

Most insurance companies will automatically take money from your HRA, and apply it to your yearly deductible. So, you don’t actually end up ‘paying’ all of your deductible… The money that comes from your HRA will need to be paid to the doctor/hospital for the service that applied towards your deductible. Meaning either you or the insurance company will need to pay it. You pay it with the funds rec’d from your HRA or your insurance pays directly to the provider. Usually you pay the amount yourself.

Most PPOs have a deductible. Yes.

Items on Amazon Right Now for Deductible Rollover:

New school administrator contracts have changes

PORTSMOUTH — The school committee and district administrators’ contract negotiations ended last week with the sides agreeing to multiple changes.

Question: Are interests on personal loans deductible (against income tax) if it is used for investment purposes?

Say I borrow money from my brother at a reasonable market rate (so that the IRS will not call it a “gift” (say I borrow at 5% or 6%)) to invest in stocks, bonds, or real estate, would that interest I pay to my brother be tax deductible? Assume that I will draft up an official loan agreement defining interest, term, etc. Also, assume that I deposit the entire amount I borrow from my brother directly into an account completely separate from my current accounts (say I open up a new bank or brokerage account) so all cash flow could be traced.

Answer: Brian G is wrong (and right…he’s right that you cannot deduct typical personal loan interest however…). Since you are using the borrowed funds for investment purposes, you CAN deduct the interest against your tax. However, you cannot deduct interest if you use the funds to purchase non-taxable securities (such as tax-exempt municipal bonds). IRS has strict guideline regarding debt and the purchase of tax-exempt investments.

Items on Amazon Right Now for Deductible Defined:

Newport Borough Council, mayor continue debate over GPS policy

Mayor Mary Hetrick dropped a bombshell during her report to Newport Borough Council when she presented a letter from James Nowalk, president of the Pennsylvania State Mayors’ Association, questioning the legality of council’s actions regarding the installation of GPS in borough police vehicles.

Lincoln Charities – Lincoln Property Company – LPC