The IRS Deductions Blog

Posts Tagged ‘irs’

Question: If I file “Married Filing Separately”, but house is in both of our names, which one claims it?

I usually file “Married Filing Jointly” but we had too little taxes taken out and we owe the IRS $385. I was wondering if it would be to our advantage to file separately but I wasn’t sure about the house. It is listed in both of our names so who claims the interest and property taxes? Or do we divide the interest and taxes in the middle and I claim half and so does he? We have no children and no other deduction to really take. I can deduct some for prescriptions ($600 for the year) and $600 for charitable contributions. My husband has none. We can’t claim insurance premiums b/c it is provided at our jobs. Can we file seperately and I claim the medical and charity deductions and he claims the house or can we not do that at all and we have to take the standard deduction? I think if we file separately one of us will still have to pay and the other will get a refund, but it still will be less than if we filed jointly. Ideas?

Answer: Generally, you would be worse off doing married filing separately. If you owe $385 going MFJ, I would be willing to bet that you will owe more if you file MFS. Since the 1098 for the mortgage interest is sent using just one SSN, the general rule is that the person whose SSN is on the form is the one claiming it. If both of you are contributing towards the mortgage payment, then you can split the mortgage interest (how you split it is up to you) and you would need to attach a statement to both returns showing the split. Also, on an ongoing basis, you would need to use the same split percentage.

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Question: My fiancee will start working in NY/NJ , how does the Tax Deductions work?

My fiance will start working in NY but we will be living in NJ. How much taxes will the State of NY withhold in addition to NJ witholdings?

Answer: What tax deductions?

The only thing I can think of is a credit on one tax return for taxes paid to another state.

To answer your second question…if it is done correctly NY will only withhold tax on the amount he earned while working in NY. The same is true for NJ. If he didn’t work in NJ there should not be any NJ withholding. But, you will have to pay tax on the money made in NY to NJ. You will have to file both a NY and a NJ tax return. On the NJ return you will take a credit for taxes paid to NY.

Hope this helps.

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Moorpark schools in favor of tax extension

By Darleen Principe darleen@theacorn.com The Moorpark Unified School District may lose upwards of $2 million in funding per year if state legislators vote not to put Gov. Jerry Brown’s proposed tax extensions on a special ballot this June. read more

Tax Forms & Deductions : How Does Tuition Tax Credit Work?

Question: What will be the net salary for 2,861 euro gross after tax deduction in netherlands. I also need living cost?

I got an offer from Leiden University. My employee said my gross salary will be 2, 861 euro. How much will be my net salary. I want to know is that enough to support my family (me, my wife and kid). Is it possible for me to apply for 30% rule as I will stay only one year over there.

Answer: you can support your wife and kid but living in the “randstad’ ( the big cities in the west of holland) is expensive.

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Budget 2011 speech (Part 3): Growing Incomes for all Singaporeans

C.1. To raise Singaporeans’ incomes over the next decade, we must first sustain our economic growth. Without a growing economy, no strategy can realistically raise incomes, whether for the average citizen or those at the lower end of the workforce.

PML Progressive Multifocal Leukoencephalopathy

Question: $2k mac laptop. 2.5 years old. Great condition. Should I sell it or donate it for a write-off?

Cosmetically, it looks great. I recently had the hand rest and monitor bezel replaced under the apple care warranty — both chipped for no good reason, as is common for the model. I’ve actually got about 6 months left on the warranty too.

Business-wise, I was a freelance web developer who recently took a full-time gig. I don’t have many deductions except for itemized expenses. I had a home office, so some of my rent & utilities are deductible.

Lets say I can get $800-900 cash for it. Am I likely to see that much in savings as a write-off? Thank you!

Answer: I would definitely sell it. why donate a perfectly good laptop? chances are you won’t think twice about it ever again. And you could always donate something with more meaning. So you still get that part done.

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Superior Plus Announces 2010 Annual and Fourth Quarter Results, Updated 2011 Outlook and a Dividend Reduction

CALGARY, ALBERTA–(Marketwire – Feb. 17, 2011) – Superior Plus Corp. (TSX:SPB) F

Home Office Deduction

Question: Can I claim mileage, repairs etc, on my taxes if my employer pays me mileage for driving my personal vehicle?

I drive from store to store and my employer pays the federal rate for mileage. Can I claim any deductions for driving my vehicle?

Answer: Generally, no.

If the amount paid by your employer is included in your taxable income (box 1 of your W-2), then you may either claim mileage or claim gas, repairs, etc., but not both.

If the amount paid by your employer is not included in your taxable income (box 1 of your W-2), and the gas, repairs, etc., is more than the amount from your employer, then you can deduct the difference (the gas, repairs, etc., minus the amount from your employer).

If the amount paid by your employer is not included in your taxable income (box 1 of your W-2), and the gas, repairs, etc., is less than or equal to the amount from your employer, then you cannot deduct any of it.

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Bookkeeping Tips for Business Deductions

The deadline for taxes is just around the corner. While businesses are reviewing their 2010 bookkeeping software, they should be sure to take into account their business deductions.

2009 Mileage Rates Increasing For Tax Deducations