The IRS Deductions Blog

Posts Tagged ‘tips’

Question: What are other options do you have besides a Hospital while giving birth?

My husband and I are Working on baby number one.
We have Great Health Insurance from the Blue Care Network.
We have a Zero Deductible and a 10 dollar Co-Pay.

I want to have a Safe but Happy delivery. The idea of laying on my back for 24 hours is not exactly what I expect when I am giving birth.
I want more of a family atmosphere

I don’t want a Home delivery birth but I do want something other then a hospital.

Answer: There are birthing centers all over the place. A lot of insurance companies do cover them. They’ll make you much more comfortable. Maybe you could even try a water birth.

Items on Amazon Right Now for Health Insurance Zero Deductible:

Arizona Child Health Insurance

Question: How much deduction under tuition fee is allowed under Income Tax (Salaried).?

Is there any limit. I am paying Rs.2900/- pm for one child who is studying in class Prep. The Fee is being shown as Education Fee.

Answer: You can claim up to 1 lakh on tuition fee on the school fee paid to the children u/s 80C. (You can be a salaried person or a business person).

Education fee is nothing but tuition fee. If passable go to the school and ask them to correct the “Education fee” as “Tuition fee” in the school fee receipt. Even if they do not correct it, I am sure it is valied and you can claim the same as deduction u/s 80C. (2900 x 12= 34,800 is fully allowed as deduction u/s 80C)

http://www.rediff.com/getahead/2005/dec/26tax.htm

Items on Amazon Right Now for Income Tax Education Deductions:

Chamber shares important news for business

Back in February, Gary Hayden with Hayden Financials and a long time Chamber member and the Chamber co-sponsored a seminar on the changes to the Cobra laws.

Ryan Sheffield Tax Tips: Education Credits vs Deductions

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:

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

Items on Amazon Right Now for Standard Deduction Blind:

Обыкновенный фашизм (Ordinary fascism)

Question: When a company loses a case, is that amount pre-tax or post-tax?

I was reading about HP’s $14.5 million settlement today and it got me curious.

When a company loses a case or settles, is this money coming from pre-tax revenue (and hence, would be a tax deductible cost)? Or is it coming from post-tax profit?

Do any of the following factors affect the answer?
- It’s a settlement vs loss/guilty?
- Paid to the government (as a fine) vs paid to another company/individual?
- Punitive damages vs compensatory damages.

A related question I have is, for example, whether a traffic ticket given to a driver working for a company at the time of the ticket is a “cost” that can be written off by the company?

Answer: Pre-tax.

Items on Amazon Right Now for Deductible Settlement Costs:

$4.8 million insurance settlement ‘fair’ but not nearly enough to fix Taunton City Hall

Nothing, it seems, is simple when it comes to calculating how much it costs to repair a 100-plus-year-old municipal building damaged by fire, smoke and water.

Credit & Debt Consolidation : Ways to Reduce Debt