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Daycare up to a certain amount.
Healthcare IF the expense EXCEED 7.5% of your AGI.
Charitable contribution (money and non-money) EX. Tithe & Offerings, donation to your university. Clothes to the Goodwill.
Hobby expense (kids sports, etc.)
Travel Expenses not reimbursed by your company (hotel, gas, tolls, food, etc.)
Educational Expenses not reimbursed by your company (I love this one because I am a computer programmer and internet access from home is needed to support my applications at work and my company does NOT reimburse me for my internet access, nor do they reimburse me for the training materials I buy to stay up on the ever changing technology.
Home Improvement - We just got some new wood floors last year, I can deduct a % of the cost for the next 3 years.
Home Office - I can deduct a % of the cost for having a home office and all the materials inside the office (furniture, computer, etc.).
Work Clothing - Some professions, you can deduct your clothing expenses if your clothing is specific to your job. EX. X-ray Techs.
If it can be deducted, I'm deducting it. My goal is to get to less than 1% tax liability.
I itemize repairs and upgrades to my rental home and current home that me and the family live in. Property taxes is also itemized.
Question: What are other taxable items that can be deducted for taxes. Can I deduct daycare?
Hobby expense (kids sports, etc.)
Work Clothing - Some professions, you can deduct your clothing expenses if your clothing is specific to your job. EX. X-ray Techs.
Hobby Expense
I didn't know about that Hobby deduction for kids sports. How does that one works? I pay a whole bunch of money for my kids sporting activities. With all the fees we have to pay, along with the traveling to and from some of these tournaments.
Ok how about WHEN you can write off certain items, namely the IRA contributions? I guess there's an income limit? I use tax software and for the past few years I have been told (on the software) that I was not eligible for the IRA write-offs.
Another is... what about mileage for business use for self-employed folks? The rules are much clearer if you are not the business owner and are writing off miles as an employee.
I probably just need to go sit with an accountant now before dec 31.
Were you trying to deduct for a Traditional IRA or a Roth IRA?
Either/or.
You can't deduct Roth IRA contributions. Traditional does have its limits as to what can be deducted. For the 2008 Tax year up to $5000 can be deducted. It also takes into consideration your income and if you are enrolled in a retirement plan at work.
Ok... I knew there were limits on the amount that can be deducted but I don't even get the option to deduct anything.
Yeah maybe you were already over the threshold so it said "oh well". We used to always say if you were unable to deduct your traditional ira contributions, then you might as well just start putting it into a roth ira. At least then its not taxed when you take it out for retirement. Either that or start contributing more to a 401k.
Its called PHASE OUT. For an individual, if you make over $95K, then you cannot get tax deduction for neither your 401K nor a traditional IRA. For married, if you and your spouse make over $150K, you can't get a tax deduction.
The thing about the Roth, you are never taxed again after the contributions. That is very NICE. The only drawback is the limit for 2008 is $5K and its after tax. With the 401K, you can contribute 3x that amount in 2008 ($16K).
Its called PHASE OUT. For an individual, if you make over $95K, then you cannot get tax deduction for neither your 401K nor a traditional IRA.
Nah man this started when I was at about $55K AGI (after adjustments).
The phase out for single or head of household if you were enrolled in a retirement plan was $60,000. At $55k you should have been able to get a partial deduction. In order to get the full deduction you would've needed a AGI of $50k or less. If you think the software made a mistake you can always go down to the IRS and let them review your return. My mom used to let them do her taxes all the time.