The Federal Tax Credits Blog

Archive for the ‘Tax Credit vs Tax Deduction’ Category

Question: Can I deduct Cafeteria Plan Medical Expenses on my 2008 Tax Return?

To be clear, I am not talking about the portion that my company covers rather i am talking about the amount that i pay. As an example, i get a Flex Credit from my company on my pay stub and it is added to by income total. Then my Medical total, Dental and life totals are deducted (Pre Tax) then all other tax and deduction are made.

Am I allowed to count the difference in my allowance and actual (about $100 a month) toward out of pocket medical expenses, in efforts to get to the 7.5% required to deduct?

Answer: If it’s not taken out pre-tax, yes you could include it as part of your unreimbursed medical expenses. You would, obviously, have to itemize, and can only deduct the amount that’s over 7.5% of your AGI.

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Mortgage Insurance Deduction – Daily TaxQuips – TaxMama.com

Question: filing married w 2 kids vs 3. what is the return diff?

the 2007 tax year filing married mom makes 30,000 dad makes 60,000 what is the difference in the return claiming 3 kids vs 2. Standard deductions and income credit and so on.. looking for a ballpark figure..

Answer: It will reduce his taxable by $3400. If they are paying education expenses for the third kid or the child is under 17 there could be additional deduction or credit advantage. $170 in tax reduction on up approximated with absolutely not enough information to know for sure.

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TurboTax Home & Business Federal + e-File + State 2010 – [Old Version] $5.50 TurboTax Home & Business was designed to help you take full advantage of your personal and business deductions so you get the biggest tax refund possible, double-checking for accuracy and identifying missing deductions and credits. Includes free Federal E-File. Everything you need to easily do your personal and business taxes. Guides you Step by Step through Self-Employment Income, Deductions,…

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The Joy of Tax: Credits vs. Deductions

Question: Why do democrats not support tax credits for health insurance?

Universal Healthcare is on the agenda for this next election. However for several years republican and democrats have been trying to come up with a way to pay for healthcare.

At one point it was proposed that all health insurance costs could be written off on your income tax. Thus making it a tax deduction. Hillary Clinton, Obama, and a majority of democrats are against this method?

However they are all for tax deductions for buying a hybrid car. Isn’t this a better alternative than trying to implement a system that is not the best method for healthcare?

Answer: Can’t see why they’d not want to have health insurance costs to be tax deductible. As for rectifying the problem of healthcare access in this country, it seems like a step in the right direction. If people could deduct the cost of health insurance from their taxes it would make shopping around for the best and most affordable insurance a good option, and have the effect of creating a more competitive environment in the industry. As it is, the only way to have that benefit is to take whatever healthcare provider your employer does business with.

Tax law changes delay tax filing for some, but there’s good news on Valentine’s Day

The Internal Revenue Service is showing some love to taxpayers on Valentine s Day – it finally will start processing tax returns delayed by last-minute tax law changes.

J.K. Lasser’s Your Income Tax 2012: For Preparing Your 2011 Tax Return $14.11 This guide offers easy-to-follow, expert advice and guidance on planning and filing your taxes. It covers some of the most important tax topics, from what you must report as income and strategies that will save you on taxes to how much tax you actually owe and what deductions you can claim….

J.K. Lasser’s 1001 Deductions and Tax Breaks 2012: Your Complete Guide to Everything Deductible $12.39 A straightforward guide to taking tax breaks and deductions on your 2011 tax returnCompletely revised to reflect important changes in this year?s tax laws, J.K. Lasser?s 1001 Deductions & Tax Breaks 2012 will help you take advantage of every tax break and deduction that you may be entitled to. This comprehensive guide is clearly organized by subject matter so you can easily find situations that ma…

J.K. Lasser’s Small Business Taxes 2012: Your Complete Guide to a Better Bottom Line $11.94 The tax facts and strategies that every small business owner needs to knowOwning a small business is a big responsibility. While all small business owners seek to improve their bottom line, few realize all the ways that both current and new tax laws can help them do so. With J.K. Lasser?s Small Business Taxes 2012, you?ll quickly discover how. Written in a straightforward and accessible style, thi…

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Ron Paul, Tax Credits, Tax Deductions

Question: How does one claim the Hybrid tax credit for 2006?

Is this claimed when I file my 2006 taxes, what is the difference between a credit and a deduction

Answer: ***How do I claim the credit?

IRS will be developing a special form taxpayers will have to use to claim the credit. The form will be released at a later date.

*** What if I bought my hybrid before 2006?

If you bought your vehicle before 2006, it is not eligible for the new tax credit, but it may be eligible for a hybrid vehicle tax deduction of up to $2,000.

This is a Backgrounder On Health Care

Abstract: The future of health care in America looks grim—but it does not have to be.

TurboTax Home & Business Federal + e-File + State 2010 – [Old Version] $5.50 Designed for sole proprietors, self-employed, consultants, 1099 contractors, and single-owner LLCs. Expanded interview walks you through entering business income and expenses to help you maximize business and personal deductions, home office deductions, depreciation and more. Create W-2 and 1099-MISC forms for your employees and contractors. The Intuit TurboTax Home & Business Tax Year 2010 Softwa…

Personal Financial Planning Tips : How to Invest in Tax-free Mutual Funds

Question: About the First Time Home Buyer Tax Credit for 2009?

Okay.
Let me start off by saying I already know we qualify.
I’ve gathered that it is a tax credit. Not a tax deduction.
So if I owe $8000 to the IRS then I will owe nothing (assuming I get the full $8000).
BUT
TELL ME
If I get a $2,000 return already.
Will I get a $10,000 return?!?

Answer: You will. Your refund will be $8000 more than it would have been without the credit, assuming that you qualify for the full $8000.

How to beat a tax assessment: keep documents, seek accountant advice

TORONTO – When James renovated his home to make life with multiple sclerosis a little easier, he thought getting a tax credit would be a simple process.

TurboTax Deluxe Federal + e-File + State 2010 – [Old Version] $3.50 TurboTax Deluxe was designed to make it easy for you to get the biggest tax refund possible, checking for accuracy and uncovering 350+ deductions and credits. Includes free Federal Efile and TurboTax State for completing your state taxes. Everything you need to do your taxes with ease. Finds All Tax Deductions and Credits You Deserve to Get Your Biggest Refund Maximizes Your Tax Deductions …

TurboTax Home & Business Federal + e-File + State 2010 – [Old Version] $5.50 TurboTax Home & Business was designed to help you take full advantage of your personal and business deductions so you get the biggest tax refund possible, double-checking for accuracy and identifying missing deductions and credits. Includes free Federal E-File. Everything you need to easily do your personal and business taxes. Guides you Step by Step through Self-Employment Income, Deductions,…

TurboTax Deluxe Federal + eFile + State 2009 $11.30 TURBOTAX DELUXE WITH STATE…

J.K. Lasser’s Your Income Tax 2012: For Preparing Your 2011 Tax Return $14.11 This guide offers easy-to-follow, expert advice and guidance on planning and filing your taxes. It covers some of the most important tax topics, from what you must report as income and strategies that will save you on taxes to how much tax you actually owe and what deductions you can claim….

Recovery: Vehicle Tax Deduction-Claim It January 2010