The IRS Deductions Blog

Posts Tagged ‘money’

Question: Tax Question?

IN July when I reloacted for my company they provided me a relocation bonus to cover moving expenses. Does anyone know if this could be a tax deduction for a singel gal such as myself. I have saved all my receipts! Also I have a monthly car allowance that is taxed when placed in my check every two weeks…could this be a tax deduction as well?

Answer: IRS publication 521 covers moving expenses.

The relocation bonus is ADDED to your income.

If your company did not specifically reimburse you for the cost of the move, use this publication to find out which expenses can be put on form 3903, which *is* a deduction. You have to have moved a minimum distance and work at your new job for 39 weeks out of the next year.

The car allowance *is* taxable income. If your drive the car for business (not just commuting), in theory you could have a deduction for unreimbursed business expenses. These are subject to 2% of your AGI (meaning if you make $20,000, the first $400 isn’t deductible) and can be claimed only if you itemize.

Items on Amazon Right Now for Relocation Tax Deduction:

Business briefs 3-19-10

The Community Bank Business Resource Center, 259E Stevens St., Hyannis, is hosting a workshop on “The Entrepreneur’s Toolbox: Solutions and Instruments for Success,” 8:45 to 10:30 a.m. March 19, led by Larry Drago of BizChecks and Cindy Nuzzolo, Esq. of Wilkins and DeYoung.

Tax Deduction Tips : Stock Options Tax Tips

Question: How much is my federal income tax I make 38,000 a year?

I looked on a tax table that the tax is 25% for 2009. Is this true?
So if I make $1462.00 gross bi-weekly. So If I am write this would
be over $365 each paycheck in federal taxes. Am I correct or did
I calculate wrong. I do not want to spend no more that $250 for total
deductions.

Answer: You did it wrong. Even if you are single you would still fall slightly shy of the 25% bracket at that salary level.

The tax rate tables are for your TAXABLE income, not your gross income. You first deduct any adjustments, exemptions and deductions before you arrive at your taxable income.

For 2008, the first $8,950 isn’t taxed at all. The next roughly $8,000 is taxed at 10%. The next roughly $30,000 is taxed at 15%.

Go here for some handy paycheck calculators: http://www.paycheckcity.com

Items on Amazon Right Now for Federal Tax Paycheck Deductions:

Chambersburg Goodwill offers extended hours

The Chambersburg Goodwill and other Goodwill stores in the area will offer extended hours to accept donations for last-minute Tax Deductions.

Excel Busn Math 42: Federal Income Tax Payroll Deduction

Question: Tax Question about a right off?

My hubby is a mechanic, and had to buy literally $9,000 in tools for his job. My Q. is can we right them off without having to bypass the standard deduction, because we don’t have enough to right off to reach the limit to make it worth it to us. So is there any other way to right them off?

Answer: The easiest way is to use an on-line tax program. Enter all your information including the tool expense. The program figures it out for you and will use standard or Itemized Deductions which ever gets you the bigger refund. Also, you can see how much you are getting back before you pay.

I like this one because it donates part of your fee to charity.

http://www.internet-taxprep.com/wichitasouth

or

http://www.internet-taxprep.com/hopeworldwide

Don’t use turbotax, they get your numbers wrong.

Items on Amazon Right Now for Tools Tax Deduction:

An appeal to help light the darkness. [Adventures in Ethics and Science]

In the last few days, I’ve gotten a bunch of emails reminding me that the window for tax-deductible charitable giving for the year is closing. So, as 2009 winds down, I want to make an appeal to those readers lucky enough to have a bit of money for discretionary spending. Last year I wrote : [T]o the extent that we can, we can shake our tiny checkbooks and try to bring a bit more light to the …

World’s Greatest Small Business Tax Tool

Question: what’s the maximum amount for each itemized deduction on federal tax return? Where can I find this information

For example, What are the amounts I can deduct for Dental, job search travel expenses, food, phone, fax, internet, charitable donations, etc…

Answer: There are no maximum amounts for most of them.

Charitable donations are limited to 50% of AGI. Any charitable donation that exceeds this can be carried over to future years.

Medical deductions must exceed 7.5% of AGI.

Casualty losses must exceed 10% of AGI + $100 for personal losses or 2% of AGI for business losses.

Meals are limited to 50% of amount spent for entertainment expenses.

Itemized Deductions can also be limited if your income exceeds certain levels. Most taxpayers don’t need to worry about that but if you’re in to 6-figure territory you need to be aware.

Phone, fax & internet are only deductible to the extent that they are business expenses. If they’re employee business expenses there’s a 2% AGI limitation. If they’re direct business expenses (Schedule C) there’s no limit.

Items on Amazon Right Now for Tax Deduction Examples:

Car Sales Surging in Last Week of December, According to Edmunds.com

SANTA MONICA– Edmunds.com , the premier resource for automotive information, has noticed a tremendous boost in web activity in the past week. “We could potentially reach a December SAAR of 11.7 million units given the current site traffic trend,” noted Edmunds.com Senior Analyst Jessica Caldwell.

Rhonda Abrams