Comments on: 21 Ways to Cut Your 2008 Individual Income Tax Bill http://www.taxgirl.com/21-ways-to-cut-your-2008-individual-income-tax-bill/ Paying taxes is painful... but reading about them shouldn't be. Sat, 21 Nov 2009 19:31:29 -0500 http://wordpress.org/?v=2.8.6 hourly 1 By: Rich http://www.taxgirl.com/21-ways-to-cut-your-2008-individual-income-tax-bill/comment-page-1/#comment-8040 Rich Fri, 02 Jan 2009 02:02:21 +0000 http://www.taxgirl.com/?p=2158#comment-8040 Does anyone have any idea why the Non-business energy credit (the one that is for doors, windows, insulation, and system fans) was extended this year but did not include 2008?? Seems bazaar to me. Does anyone have any idea why the Non-business energy credit (the one that is for doors, windows, insulation, and system fans) was extended this year but did not include 2008?? Seems bazaar to me.

]]> By: Boyd Thomas EA http://www.taxgirl.com/21-ways-to-cut-your-2008-individual-income-tax-bill/comment-page-1/#comment-8025 Boyd Thomas EA Thu, 01 Jan 2009 00:00:26 +0000 http://www.taxgirl.com/?p=2158#comment-8025 Hi Kelly -- and mahalo for the great ideas, reminders and tips. I agree completely that prepayment is only beneficial if done wisely and with a proper "look-forward" to potential impact in 2010. Have a great New Year's Eve -- and stay safe! Boyd & the "Liberty Crew" Hi Kelly — and mahalo for the great ideas, reminders and tips. I agree completely that prepayment is only beneficial if done wisely and with a proper “look-forward” to potential impact in 2010.

Have a great New Year’s Eve — and stay safe!

Boyd & the “Liberty Crew”

]]> By: Kelly http://www.taxgirl.com/21-ways-to-cut-your-2008-individual-income-tax-bill/comment-page-1/#comment-8023 Kelly Wed, 31 Dec 2008 22:56:36 +0000 http://www.taxgirl.com/?p=2158#comment-8023 Cassie - Thanks for the comment! Yep, you're right regarding medical expenses. They are subject to limitations. You can find more on my prior post here: http://www.taxgirl.com/ask-the-taxgirl-timing-of-medical-expenses/ Ditto for the job-related expenses. They are likewise subject to a floor. Many of the tips are subject to phaseouts, restrictions, ceilings, floors and the like. These tips are meant to be a good place to start - I agree that you should check the IRS pub - or better yet, check with your tax pro - for the specifics. Cassie -
Thanks for the comment! Yep, you’re right regarding medical expenses. They are subject to limitations. You can find more on my prior post here: http://www.taxgirl.com/ask-the-taxgirl-timing-of-medical-expenses/
Ditto for the job-related expenses. They are likewise subject to a floor.
Many of the tips are subject to phaseouts, restrictions, ceilings, floors and the like. These tips are meant to be a good place to start – I agree that you should check the IRS pub – or better yet, check with your tax pro – for the specifics.

]]> By: Cassie http://www.taxgirl.com/21-ways-to-cut-your-2008-individual-income-tax-bill/comment-page-1/#comment-8021 Cassie Wed, 31 Dec 2008 21:31:39 +0000 http://www.taxgirl.com/?p=2158#comment-8021 Hi , I enjoyed your article but had 2 questions. One, you mention several medical deductions but my understanding is that you can deduct only for the amount of medical expense that is above 7.5% of your income (plus, this would involve only expenses not otherwise reimbursed through insurance or whatever). Regarding business related expenses, there might be more than one category for this stuff (you mention misc. business expense for instance) but in any case I'd read the IRS guidelines. In this case, I believe the deduction for business related expenses (that have not already been reimbursed by the employer)applies only to the amount expended that is above 2.5% of your income. I hope I'm not confusing matters! and again, enjoyed your tips-- Cassie Hi , I enjoyed your article but had 2 questions.

One, you mention several medical deductions but my understanding is that you can deduct only for the amount of medical expense that is above 7.5% of your income (plus, this would involve only expenses not otherwise reimbursed through insurance or whatever).

Regarding business related expenses, there might be more than one category for this stuff (you mention misc. business expense for instance) but in any case I’d read the IRS guidelines. In this case, I believe the deduction for business related expenses (that have not already been reimbursed by the employer)applies only to the amount expended that is above 2.5% of your income.

I hope I’m not confusing matters! and again, enjoyed your tips–

Cassie

]]> By: Kelly http://www.taxgirl.com/21-ways-to-cut-your-2008-individual-income-tax-bill/comment-page-1/#comment-8018 Kelly Wed, 31 Dec 2008 15:58:52 +0000 http://www.taxgirl.com/?p=2158#comment-8018 Thanks for your comment! It's definitely true that you should not prepay if you're not in the position to do so in a smart way. I would never recommend locking yourself into a prepay spiral. But if you're in a position to prepay, it does make a difference. In a lot of cases, you're only prepaying a few days out (I think our mortgage is due on the 5th, for example) so it shouldn't significantly impact your finances. And next year, if you're in a similar situation, you can do it again. The key here is to think about your current financial picture - and re-examine it regularly. Especially in the current economy, things are changing so rapidly... Why not take advantage of what you can now? Thanks for your comment! It’s definitely true that you should not prepay if you’re not in the position to do so in a smart way.
I would never recommend locking yourself into a prepay spiral. But if you’re in a position to prepay, it does make a difference. In a lot of cases, you’re only prepaying a few days out (I think our mortgage is due on the 5th, for example) so it shouldn’t significantly impact your finances. And next year, if you’re in a similar situation, you can do it again.
The key here is to think about your current financial picture – and re-examine it regularly. Especially in the current economy, things are changing so rapidly… Why not take advantage of what you can now?

]]> By: Garvin T Nowell, Jr. http://www.taxgirl.com/21-ways-to-cut-your-2008-individual-income-tax-bill/comment-page-1/#comment-8017 Garvin T Nowell, Jr. Wed, 31 Dec 2008 15:48:19 +0000 http://www.taxgirl.com/?p=2158#comment-8017 Some of your advice is goo BUT you failed to cover the impact of pre-paying or pay off before 1 Jan 2009 on next years tax due in 2010. You suddenly get stuck in a pay in advance mode. Prepayment is good if you are not going to have the cash at the end of next year or this years taxes is going to break the bank but for the average "Joe Plumber" it's not to smart. Some of your advice is goo BUT you failed to cover the impact of pre-paying or pay off before 1 Jan 2009 on next years tax due in 2010. You suddenly get stuck in a pay in advance mode. Prepayment is good if you are not going to have the cash at the end of next year or this years taxes is going to break the bank but for the average “Joe Plumber” it’s not to smart.

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