What Items can be written off for tax purposes.
- Thread starter buckwheat
- Start date
Da_Sperm
New Member
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.
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.
buckwheat
Well-Known Member
ThrowForSix
See the Excitement
For your rental almost everything is deductible.
- Mileage to and from or car expenses
- Office Supplies
- Insurance
- Utilities
- Lawn Care
- Telephone Especially if you have a separate number for tenants to call you
- Repairs (Home Depot)
- Cleaning Supplies
All that adds up. Minus- Rental income should give you a nice little tax loss every year. :jump:
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.
Work Clothing Especially for people that have to wear uniforms. You can deduct cleaning expenses even if you clean them yourself. If you have wear certain types of shoes and you have to buy them (it's deductible).
Da_Sperm
New Member
I ran across this item while doing my taxes last year. It was one of the questions on the Tax software.
DID YOU KNOW, you can get a tax credit (which is better than a deduction) for contributing to your 401K? Yep, if you are single and your AGI is less than $25K, you get a tax credit for every dollar you contribute to your 401K up to $2K. So that basically means 1) you don't pay taxes on that $2K, 2) the government gives you every dime of that $2K back and 3) plus you get an employee match. Its $4K for married people whose AGI is less than $50K.
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.
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.
Shamocha
Deserving Of Everything
Were you trying to deduct for a Traditional IRA or a Roth IRA?
Either/or.
Shamocha
Deserving Of Everything
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.
Shamocha
Deserving Of Everything
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.
Yeah I'm straight Roth from now on. Your tax savings are much greater in the end.
Da_Sperm
New Member
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).
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).
Shamocha
Deserving Of Everything
Yeah more folks are drawn to that Traditional IRA, but I think the Roth is much better. They want to choose the Traditional thinking deductions, but you have more flexibility with the Roth like you can withdraw money for a home purchase w/o penalty (well as long as the money has been in there 5 yrs).
Nah man this started when I was at about $55K AGI (after adjustments).
Shamocha
Deserving Of Everything
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.
I'll just let it go since I got a refund anyway those years.