The IRS Deductions Blog

Posts Tagged ‘irs’

Question: As a business owner, is the drive to and from work tax deductible?

I was trying to figure out if you can take the standard mileage deduction. I seem to see different opinions about this.

Answer: If you’re just driving to and from your normal place of work, no. If you have a job, something like being in construction, where you have to drive from job site to job site, then yes.

Items on Amazon Right Now for Mileage Deductible:

5 savvy shopping tips on car gap insurance

Finding gap coverage as a cost-conscious driver is no joy ride. Here’s how to avoid the potholes.

2010 IRS Business Miles Driven Deduction

Question: Is tax payment for a previous year deductible for the year it was paid?

I made an error on my 2006 return and the IRS said I owed an extra $2,000 taxes. I paid it in 2007. Can I claim that as a “taxes paid” credit on my 2007 return in addition to the taxes withheld from my income?

Answer: No. You can’t deduct federal taxes on the federal return. You can only deduct state and local taxes.

The taxes paid section is talking about ESTIMATED tax payments sent in for 2007. You were still paying 2006.

Items on Amazon Right Now for Irs Deductible Taxes:

Refinance home to buy vacation home

All the new borrowing qualifies for tax deduction, and you can take out one loan rather than two.

Tax Deduction Tips : IRS Website Tips

Question: a tax filing question?

I am filing married this year-should I file jointly or separately since my spouse is in the military and I was in college and we lived apart the entire year? Also, so far on turbo tax it is telling me I get no state refunds and a very low federal–is this correct and is it because I am now married whereas before I always got a higher federal refund and state refunds?? How come it will not let me enter in educational deductions just because I am married filing seperately?

Answer: You will almost always pay less tax by filing a joint return with your husband. You do NOT need to live together to file a joint return.

If you file separate returns, not only are the tax rates higher but you lose out on many deductions and credits that you would qualify for it you file a joint return. Turbo Tax (or any other tax prep software) won’t allow you to claim any of those on separate returns. Earned Income Tax Credit, educational credits and deductions, Child Tax Credit and the Additional Child Tax Credit are all lost when you file separate returns.

Married taxpayers filing separate returns pay the highest taxes, higher than Single taxpayers even. That’s why your refund is smaller if you file separately than if you were still Single.

Items on Amazon Right Now for Educational Tax Deductions:

Women are still paid less than men in state, nation – From the Poughkeepsie Journal

Last year, the gender wage gap was slightly better for women in New York state compared to national averages, according to a recent report from the U.S. Bureau of Labor Statistics.

Recovery: Education Tax Credit-Claim It-Students – Jan 2010

Question: TAXES – How do I deal with children with earned income?

It seems to me that everything I read about children income relates to property (or unearned) income. Do the same rules of the kiddie tax apply to earned income? Like say I have a daughter in high school who earned $5,000 walking dogs. Would her standard deduction be $5,300? I read it was either the greater of earned income + 300 OR 900. Also, I know she’s not eligible for a personal exemption but I could still claim the $3,650 exemption right? Thank you everybody.

Answer: if the income is on a w-2, she does not have to file. you can still put her on your return. however, if she has any witholdings, she should file to get that money back.

if the income is from self employment on a 1099-misc, then she MUST file and pay SE tax. turbo tax can handle this.

Items on Amazon Right Now for Dog Tax Deduction:

THV Working for You: New energy rebate programs

Summer is here and it’s hot, but North Little Rock wants to make sure it’s residents stay cool and save some green.

Maria Crippled Puppy in India Needs Cart (Doggie Wheelchair)

Question: Can I receive Tax Deductions for contributing to a charity if I am claimed as a dependent?

My parents are claiming me as a dependent on their taxes. I made a monthly tax deductible cash contribution to a charity. I was wondering if I could itemize the deductions, or if my parents could since they claim me.

Answer: No, only one can take that deduction…………Jr..

Items on Amazon Right Now for Tax Deductible Contributions:

Vermont landscape auction links city and country

The first landscape auction in the United States will give people who value Vermont’s working landscape a chance to make a direct financial contribution to the farmers and foresters who keep the state green.

Tax Deduction Tips : Tax Deductions for Cash Contributions