Traditionally, taxpayers who owned homes could only deduct state and local real estate taxes if they opted to itemize their deductions. However, for the tax years 2008 and 2009, taxpayers who opt for the standard deduction are getting a break: there is an additional standard deduction for those who pay state or local real estate…
For 2008 tax year, those who itemize can deduct state and local general sales taxes OR state and local income taxes. #TwitterTaxTip (For more on twitter tax tips, see my prior explanatory post.)
Taxpayer asks: Taxgirl, where do you deduct expenses for fixing your home? My neighbor said that I can take off the cost of fixing my roof on my taxes but I don’t know where to put it. Taxgirl says: Hmm. I’m not sure that you should be getting your tax advice from your neighbor. Generally,…
Taxpayer asks: Hello there and thank you for answering my question. I am self-employed and contributed nearly $8,000 in cash/noncash donations this past year (goodwill, church, habitat for humanity). When my friend did my taxes on her computer program it did not reflect a deduction upon entering the charitable donation information. I have all proper…
Taxpayer asks: While we were out shopping, I put a $20 in the Salvation Army kettle in front of the store. I say we can take that as a deduction but my husband says no. Who is right? P.S. I have a new digital camera riding on your answer. Taxgirl says: Gosh. I hope your…
Sigh. It’s the day after tax season. Folks are tired and cranky (trust me, I get the emails). Nobody likes to pay taxes. And every year, you swear to do better, plan more, save more. Why not actually do it this year? There are a couple of things that you can do throughout the year…
Taxpayer asks: Hi taxgirl, There is a woman at our church who recently lost her home in a storm. A few of us put our heads together and decided to take up a collection for her. We collected money, housewares, bedding, you name it. She lost almost everything that she owned so we started from…
In recent weeks, I’ve received a flurry of emails from parents asking about whether band uniforms, soccer cleats and other expenses related to children are deductible. I thought it might be useful to have a checklist of some child-related deductions that you may be overlooking. 1, Child tax credit. If your modified AGI (adjusted gross…
Taxpayer asks: I own a single-family home as rental property out of state that is characterized as investment property on my property insurance and as a non-owner occupied home on my mortgage. My brother manages and maintains the property for me. I bought his cell phone and pay his portion of the monthly charges on…
Actor Nicolas Cage (whose best role – by far – was in “Raising Arizona”) has filed a petition in Tax Court disputing deficiencies alleged by the IRS. The Oscar Winner (he won in 1995 for “Leaving Las Vegas”) has been accused of using his production company to “wrongly write off $3.3 million in personal expenses.”…