The IRS Deductions Blog

Posts Tagged ‘taxes’

Question: What does the term, deductible refer to in health insurance?

Could someone help explain this to me in context details please???

I kind of understand that it means…That I pay a that set amount stated before the covered amount of my health insurance takes affect…But my question mostly concerning is, when do I pay the deductible?

Like, would I have to pay a deductible you think when I just need to go to the ER to get an X-Ray or just make an office visit you think and would that be every time I go as well?

Answer: Hi. If your health insurance plan has a deductible you are responsible to pay for services until your deductible is met. After your deductible is met, your insurance company will pay a percentage of the bill after that and you will have a percentage as well (for example, if you have an 80/20 plan, your insurance company will pay 80% of the allowed amount of the claim and you will be responsible for paying 20%).

There are certain services, that are excempt from being applied to your deductible, such as doctor office visits, routine or preventative care services that your insurance company will most likely pay and these services will not be applied to your deductible. Other services, such as the x-ray you mentioned in your question, would be applied to your deductible. Your insurance company will keep track of how much was applied to your deductible.

The Explanation of Benefits you receive in the mail from your insurance company for services you receive will let you know if the insurance company paid for the service or if all or part of the service was applied to your deductible.

I used the term allowed amount above. The allowed amount is the contracted rate between the physician and the insurance company, if the physician, healthcare professional or healthcare facility is in-network and accepts your insurance. Some insurance companies will apply the allowed amount to your deductible and the doctor’s office will write off the difference between the allowed amount and their billed charged about or some insurance companies may apply the total billed amount (unless the physician’s office charges way above what is considered usual and customary for that service) to your deductible.

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In Your 20s or 30s? Hedge Between IRA Types

HUNT VALLEY, Md. (TheStreet) — If you are able to contribute to a Roth nondeductible 410(k) and IRA or a traditional deductible 401(k) and IRA, which do you choose? The correct answer will not be known until you retire; the sole factor in determining which is better for you lies in the tax bracket in the year of deposit versus the tax bracket in year of withdrawals. …

David Lazarus: Deductible increases a breach of contract?

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Shaw Announces Second Quarter Financial and Operating Results

CALGARY, ALBERTA–(Marketwire – April 13, 2011) – Shaw Communications Inc. (TSX:SJR.B) (NYSE:SJR) announced results for the second quarter ended February 28, 2011. Consolidated revenue for the quarter and year-to-date of $1.20 billion and $2.28 billion, respectively, was up 29% and 24% over the comparable periods last year. Total operating income before amortization(1) of $495 million and $968 …

Question: PMI (Private Mortgage INSURANCE)- deductible?

In a recent magazine article, I read that you could deduct PMI paid in 2007 on your taxes. It gave no details or guidlines/ IRS rules. I have been to the IRS site and can’t figure it out.

Our form 1098 that lists the mortgage interest paid in 2007, also says we paid $1,050 in PMI.

What are the guidlines for being eligible to deduct it?

Once we determine if we can deduct it, WHERE would I enter that amount on the tax forms? We always itemize, but I don’t see a spot for PMI as a deduction.

ANY help/ info/ tips/ links would be greatly appreciated. Thanks!

Answer: There’s a line on Schedule A for PMI. However you must have taken out the mortgage as a purchase money mortgage (NOT a re-fi) in 2007 to qualify. And only the PMI that’s attributed to 2007 may be deducted. If what you paid covered more than just 2007, you must pro-rate it.

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Top 9 Ways to Save for a Home

ABC News’ Consumer Correspondent Elisabeth Leamy: if you want to buy a home, how to save for a down payment.

Mortgage Insurance Tax Deductible | 56 Beers/1 Min | FHA Increase

Question: What can I do about this personal income tax situation – 2008 1040 help!?

I just got a letter from the irs. Seems I didn’t claim about $2300 in interest income and so they want an additional $2100.

I looked back over my return today and saw that I also didn’t include a capital loss amount of over $3500 for sale of stock in 2008.

With out knowing enough about income tax (obviously), will this reduction of my adjusted gross income (?) likely help my situation?

My Itemized Deductions far exceeded my income for 2008 as I only had 2 months of rather low wages.

Any help or suggestions welcome.

Thank you in advance.

Answer: Find your records showing the price you paid for the stock.
Then prepare a 2008 schedule D showing that it was a loss.

If you just got the CP2000 letter, submit this schedule D to them (the fax number is in the corner).

The way $2300 of interest morphed into a $2100 bill is because they apparently included the gross proceeds from the stock sale and used $0 as the basis. Using the correct basis will reduce the bill.

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Avoid IRS Hit List Of Tax Scams

Most people don’t think of the IRS as a consumer protection agency.  But the IRS warns the public off tax ideas that can only get them into trouble.  This is a good time of year for the IRS to release its annual “Dirty Dozen” of the worst tax scams.  The IRS has even gone Hollywood with a video.

How to Avoid an IRS Tax Audit : How to Organize Receipts for Tax Deductions

Question: STUCK on filling out 1040x. Help!?

I have been claimed as a dependent for the last few years by my parents, or so I thought. Turns out my father decided not to claim me anymore, and I filled out my 2008 and 2009 returns as a dependent. So i just need to change my standard deduction. I am used to 1040EZ and am so confused at this form! I’m so lost! Can someone help?

Answer: To make things worse our friends at the IRS changed the 1040-X form in 2009. So you need a 2008 and 2009 form. Complete a new 1040-EZ for each of those years with the change in exemptions. The exemption for 2008 was $3,500 and the exemption for 2009 was $3,650. With the new returns and a copy of the old returns follow the 1040-X forms line by line and you should be OK. You can download the forms and instructions from the IRS web site www.IRS.GOV

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Delphi Energy Reports Fourth Quarter and Year End Results

CALGARY, ALBERTA–(Marketwire – March 17, 2011) – Delphi Energy Corp. (“Delphi” or the “Company”) (TSX:DEE) is pleased to announce its financial and operational results for the quarter and year ended December 31, 2010. 2

Senate Session 2011-03-10 (16:29:58-17:35:34)