Whenever you fill your heart with joy by contributing to a worthy cause, you get the bonus assurance that you’ll see further benefits from the donation come tax time. But the belief is not always well founded, because in the eyes of the IRS, not all charitable donations are created equal.
It has finally arrived — April 15 — Tax Day.
Today is the deadline for filing your 2009 federal and state income tax returns. The envelopes must be postmarked by midnight tonight.
Did you claim a deduction for an IRA contribution on your 2009 Form 1040? Or were you planning to make a non-deductible contribution to a traditional or Roth IRA for 2009 but haven’t done so yet? If the answer is yes, you better make sure your contribution is in the bank or in the mail.
The above-the-line deduction for tuition and fees, one of the famous “extenders” that Congress has to reinstate every other year, is available for taxpayers whose income is too high to be able to claim a Lifetime Learning Credit.
Here at the Daily Deduction, we spend a lot of time thinking about federal taxes, but chances are high that the state tax man took a bite out of your budget this year too.
You can deduct as a miscellaneous expense on Schedule A (subject to the 2% of AGI exclusion) any expenses paid in connection with the “determination, collection or refund” of a federal, state or municipal income, estate, gift, property or other tax.
Yesterday I told you that computers and peripherals are “listed property” that require special recordkeeping and depreciation if used for business.
The IRS, in Publication 529, tells us that you can only deduct a computer as an employee if it is (a) for the convenience of your employer, and (b) required as a condition of your employment. You cannot deduct a computer if its business use is merely for your own convenience.
The items that you can deduct on Schedule A under the category of “Miscellaneous Expenses” can best be described as “ordinary and necessary” expenses incurred for the production, collection or protection of income.
You can deduct the cost of uniforms and work clothes that are required as a condition of employment and not adaptable to everyday wear. The uniforms of firefighters, nurses, police officers, security guards and the like are deductible, as well as special jackets, hats, shirts and ties with a company logo, such as those worn by fast food workers and maintenance employees.
With unemployment at record high levels, a miscellaneous tax deduction that many taxpayers can take advantage of is for job-seeking expenses.
You can deduct expenses you incur to look for a job in your present line of work. This includes:
We’ve all heard the slogan “What Happens in Vegas Stays in Vegas.” When it comes to an IRA, the same rule — What Happens in Your IRA Stays in Your IRA — applies for income tax reporting.
You can’t claim a business travel deduction for commuting — driving from home to your place of business, or your first business stop of the day, and from your place of business, or your last business stop of the day, back home.
While you might pay more at the pump if you live in California instead of Missouri, you’re going to get the same mileage deduction for business travel in both states. Here are the other key facts you should know about business travel deductions.
Some employees don’t work in an office, store or other business location. A good example is commission salesmen for out-of-state companies — they work out of their homes. They may be able to claim their home office as a miscellaneous deduction on Schedule A.
If you use your car for business, and are not fully reimbursed by your employer, you can claim a deduction as an employee business expense on Schedule A.
Kiplinger has advice on on how to maximize your medical expense deductions at tax time. You can only deduct out-of-pocket expenses that exceed 7.5% of your adjusted gross income, so you should try to bundle medical procedures in the same year if possible.
Newsweek has six tax deductions that you’ve probably never heard of, unless you manufacture fishing tackle boxes that is. Also included are clarinets for medical use and deductions for the parents of kidnapped children. [Newsweek]