 Why do people get excited over large tax refunds? |
| Do people not realize when you get a large tax refund, that means you've been lending money to the government interest free and you could have had that money as an increase to your monthly ... |
|
 I want to report only two of my Three W-2 forms this year, what are the penaltes for that? |
| I held three jobs last year and on one of my W-2 forms I owe money to the IRS, but i was thinking I can just file the two that I dont owe money on until I can afford to pay.... |
|
 How to give a tip in UK? |
Percent to tip per invoice
Additional Details
If I stay in a hotel at UK, do I need to tip for the servers and how much should I tip???... |
|
 Howdo i know what my earned income credit is? |
| Dont tell me to go to irs.gov I tried that and they just give me a lot of ... |
|
 Can you write off the gas you use getting to work every day on your taxes? |
| A co-worker says she writes it off every year...and also any clothes she buys for work. And I don't mean items with logos or anything she can't wear anywhere else. I think she's lost ... |
|
 How do I know if I'll owe money or get a refund for my taxes? |
| I don't really understand what determines the amount you owe or the amount you will be refuned on your taxes...As long as you aren't reporting inacurrate tax information (claiming too many ... |
|
 When is the earliest I can file my income tax's ? |
| I do not plan to wait for my w2's I am gonna use my last pay stub I called a tax preparer and they said it's Jan 16 the is this true? specific date ... |
|
 Can you deduct cosmetic surgery costs on income tax? |
| I had my sinuses cleaned out and had the surgeon also perform some cosmetic surgery on my nose at the same time. I was told some of it would be billed to insurance but wasn't coverable because ... |
|
 I recive ssi and stated my hubby dosent live with us or contribute. but we want to file taxes together.? |
| i recive ssi for my autistic daughter and my husband dosent live with us or give us money. but we want to file income tax together we aew legally married and have 3 kids so we want to file married ... |
|
 How can i claim the tax i have been paying towards National Insurance and ****? |
| hi, i have been working for 2 years in the UK and now i have decided to go to singapore as i am getting better opportunity. I think what ever tax i have paid so far can be claimed and the govt pays ... |
|
 Help! Credit for the miles I commute -- legit, or not? |
| Turbo Tax has me frustrated as heck. There's a place in my deductions where it asked me to provide how many miles I've driven this year (not a problem), and then it has a box asking for how ... |
|
 What are the tax laws regarding winnings? |
If I won $1,000 on a slingo drawing (online gaming site) how much would the IRS take and where/how do you report it? Would it make a difference if it were only $200?
Additional Details
I ... |
|
|  |
JamGirl83 | Should I bother with tax deductions? What are they? |
First, I need to explain that I've already heard the definition of a tax deduction- "A reduction of total income before the amount of income tax payable is calculated." (So please don't reply with just a simple definition) What I need to know is how that affects my return. I've asked a lot of people and no one can give me a clear answer. I have student loans out and I need to know how (and how much) it would benefit me to claim a deduction based on the interest I paid on them last year. Will the deductions increase the amount of my return or are deductions only necessary if I think I will owe the IRS money? I'm really confused to please answer in simple layman's terms. Pleaaaaaaaaaase, for my sanity- only answer if you really know what you're talking about! Thanks :) |
 |
 
Amanda H
|
Okay, let's see if I can answer this concisely.
Yes, a deduction "reduces total income." Let's say you made $30,000 but you paid $5,000 in deductible interest.
That means that of your pay, only 25,000 should have been taxable, and teh amount you paid for the income above that is returned to you.
However, its not super straight forward. There is something called the "standard deduction" which is sort of an "automatic" deduction that everyone gets. The more dependants you have, the higher the deduction. You only want to "itemize" your deudctions (IE, claim the interest) if your interest is HIGHER than the standard deduction.
Try going on www.turbotax.com. It takes maybe a half hour and you can input everything one at a time. The cool thing is that if you input anything that increases your refund, you see this little ticker up on the top left hand side that shows you the change. So you'll know instantly if itemizing the deducitons are worth your while.
If you WOULD have owed the IRS, the deduction can reduce the amount. If you're supposed to get a return, the deduction can INCREASE the return. |
|
Rob
 |
Deductions reduce the amount of your taxable income. which lowers your tax liability, which then can increase the amount of your refund
If you meet the qualifications to claim the Tuition and Fees deduction, make sure to claim it as it also reduces your taxable income
Publication 970
http://www.irs.gov/publications/p970/ch06.html |
|
Dave
 |
Take the deductions always if they will reduce the amount of taxes you owe, or increase the amount of your refund. Everyone gets a standard deduction, but some people have other expenses and things that can be used as additional deductions such as real estate taxes, Student tuition credits, or business expenses. Those people will have more in itemized (listed) deductions than the standard deduction allowed by the IRS. If you are unsure, you need to do your taxes both ways, one using the standard deduction, and one using the itemized deductions, and see which method affords you the best refund or lowest tax debt. Everyones situation is different so do not seek specific examples no one can honestly give them. |
|
Tweet
|
Deductions lessen any tax you owe. The "standard" deduction for a single person this year is $5150. If your deductions for interest paid is greater than $5150, you should itemize. Also, if you own a home, it is almost ALWAYS wise to itemize because the interest you pay on a mortgage will usually be far greater than the standard deduction. |
|
RAG
|
I suspect that you would be much better off filing a return if you were a college student and qualify for any education credits.
The IRS operates Volunteer Income Tax Assistance (VITA) offices across the US. These are free tax preparation offices staffed by volunteers who are trained and supervised by the IRS. I would suggest you take your tax information to one of these locations. You can find their locations and hours of operation by calling your local IRS office. |
|
☼♥MattBaby
|
I just spent LOTS of time on the telephone to the billing office of a surgeon/phys therapy office....it was WELL worth the call. I spent a large amount of $ with them.....all of which I can deduct...(out of pocket,only,of course.) I can also deduct the parking fees and mileage I incurred.
I also found out,coincidentally, that they owed ME some $. Would never have known if I hadn't inquired about my payments to them. Scarey,huh?! And this was only after I had spoken to three different people on the tax matters!!
All of my deductions can help offset my income. It is a VERY good thing for me to do. I had a boyfriend,a few yrs ago, amend some past taxes because my acct. failed to record my exps.!!!! ( He never even asked!) Anyway, I received a nice check in the mail!! |
|
Scott H
|
check out this site! |
|
carpentershammerer
 |
Well, its a mess thats for sure. You have to have so much in deductions in order to even claim them. Take your paper work to a good tax consultant and see what they say. I never seem to have quit enough to get the deductions. And they change the laws every year. |
|
Jason C
|
There are two ways to deduct from your taxes. You either A) take the cookie-cutter standard deduction amount, or B) Itemize your deductions. You should always begin by itemizing your deductions every year, and then compare that deduction amount to the standard deduction amount. If your itemized deductions are greater than the standard deduction, then your submit an itemized return. This allows you to keep yourself educated upon what are valid deductions, which helps you keep your eyes open for tax saving opportunities throughout the year!
However, you can also save a little extra money from your taxes this year like I did. I found a site that paid for all of my filing fees this year through H&R Block. I went through their steps, took me about 30 minutes, and found out at the end that they would have paid for up to $500 of my taxes this year if I had owed the IRS instead of getting a return! Check them out and find out how much they can save you this year.
Jason |
|
sapugh
|
The main driver behind whether you take the itemized decduction or the standard deduction is if you own a home or not. House interest is the #1 itemized tax deduction.
Truthfully if you are asking this question you should be looking for a professional to do your taxes. |
|
| |
|
| | |
| Questions List |
Answers | Last Post
| | | |
9 | 5 minutes(s) ago
| | | |
9 | 22 minutes(s) ago
| | | |
9 | 41 minutes(s) ago
| | | |
9 | 3 hour(s) ago
| | | |
9 | 6 hour(s) ago
| | | |
9 | 10 hour(s) ago
| | | |
9 | 1 day(s) ago
| | | |
9 | 4 day(s) ago
| | | |
9 | 1 week(s) ago
| | | |
9 | 2 month(s) ago
| |
|
Homepage 
Financial
Forum 
Taxes 
No Spam
Adult 
Gambling
Unfinished
Deception
Plagiarism
Not English
