Thread: Tax Deductions

It depends on what type of return you file. You can't do a 1040ez if you want to itemize. Even if you itemize, there is a limit to how much you can write off. There is a lot of Chinese math involved.

Originally Posted by KelJu

It depends on what type of return you file. You can't do a 1040ez if you want to itemize. Even if you itemize, there is a limit to how much you can write off. There is a lot of Chinese math involved.

well I'm going to do some american math and say 2+2=5. When I get audited i will just move to another country. Maybe Luxembourg.

Originally Posted by ROID

well I'm going to do some american math and say 2+2=5. When I get audited i will just move to another country. Maybe Luxembourg.

Well, in that case write off about 25,000 business miles. Probably not enough to throw up a flag at the state and fed and the deduction per mile for '10 was probably around .50/mile. Easy $12,500 deduction.

I used to drive 65,000-75,000 miles per year for business and that deduction coupled with a decent-sized mortgage allowed me to pay little in taxes.

You're gonna need reciepts and statements to back all your claims up. Cheating a little here and there won't usually be detected but IMHO I wouldn't go crazy. The IRS will get their money back eventually.

i have receipts. banks statements. Last year I was told you can't count medical expenses. I dont think that is true.

The woman doing the presentations is so wooden she almost qualifies as a prop, but it will answer a few of your questions.

You should seek advice from a pro. First ask how much it's going to cost for them to do your taxes, then give them basic information such as income, what you do for a living and some sort of an idea of what type and amount of expenses you might have.
Depending on that criteria you could come out way ahead in tax savings well worth the cost of having a tax professional to the work or not.

Originally Posted by ROID

i have receipts. banks statements. Last year I was told you can't count medical expenses. I dont think that is true.

Yes you can, however they have to exceed something like 7.5% of your income. In other words you need a shitload of them!

GICH!

Originally Posted by ROID

i have receipts. banks statements. Last year I was told you can't count medical expenses. I dont think that is true.

Off the top of my head they have to be over $5000.

So lets say you have great medical insurance with 0 out of pocket expenses for 2010 and you pay $4000/yr for it, you don't have a deduction.

Now lets say you pay $4000/yr for med insurance and you paid $3500 for LASIK eye surgery, you can claim the $7500 though I believe you don't pay taxes on the difference between $5000 and $7500.

My brother just did LASIK in one eye and PRK in an other in a rush back in December because he was told you can no longer claim it in 2011 due to Obamacare. Between his health ins, trips to eye specialists, meds and eye surgery he's around $10,000 in med expenses for 2010.

If you want to play around with deductions, create a TaxAct or TurboTax account and enter your income and play with various deductions. As you enter a deduction, the amount of taxes you owe/are due changes. You don't pay for these sites until you hit the complete/file button at the very end. Both sites will walk you through each category of deductions.

and monthly premiums/deductibles do not count towards medical expenses, I think it has to be 2% of your AGI, so unless you racked up a shitload of out-of-pocket medical expenses you won't be writing them off.

Usaully, kids are what takes you over the top in expenses. At least it my case it did. Unless you have major medical problems.

Originally Posted by ROID

Can someone explain how deductions effect a tax return ?

The way I understand it is that deductions lower you taxable income ? this correct ?

Do medical bills. doctor visits, prescriptions, mileage to work, new car purchase, .......are these things legal deductions ?

I think medical has to be a min of 8500 to rite off..workcloths car ect can be writen off

You guys are idiots. lol

Here you go.

GICH!!

Tax Topics - Topic 502 Medical and Dental Expenses

what about tuition expenses ? Can i only count what I have payed out of pocket or can I count what I had to borrow plus what I have paid out of pocket.

Originally Posted by Dark Geared God

I think medical has to be a min of 8500 to rite off..workcloths car ect can be writen off

what about if you bought a new car in 2010 ?

Is it used for your Bizz

Originally Posted by Dark Geared God

Is it used for your Bizz

hell yeah. I run a gearz delivery service

No it's not. I was thinking that maybe the taxes I payed would be deductible. registration, tag, title, etc....

Which ends up being well over a 1k.

Well I did claim education expenses. it raised my refund amount. I'm not sure if what I done want legal. I just put down how much tuition was. I didn't lie but part of it was payed by loans. Out of state tuition in Florida is outrageously high. Over 3 times what a resident pays.

I efiled it. What will happen if i'm not able to claim the deductions ? Will they catch it before I am issued the refund ? I'm not trying to cheat them but in the past I was never able to claim tuition expenses, that was what I was told. I never tried before but with Turbotax it accepted it.

Are tax returns looked over by an IRS agent or are the majority processed by computers ?

Originally Posted by ROID

Well I did claim education expenses. it raised my refund amount. I'm not sure if what I done want legal. I just put down how much tuition was. I didn't lie but part of it was payed by loans. Out of state tuition in Florida is outrageously high. Over 3 times what a resident pays.

I efiled it. What will happen if i'm not able to claim the deductions ? Will they catch it before I am issued the refund ? I'm not trying to cheat them but in the past I was never able to claim tuition expenses, that was what I was told. I never tried before but with Turbotax it accepted it.

Are tax returns looked over by an IRS agent or are the majority processed by computers ?

Generally what happens is a computer flags an anomaly then a human looks over your return. Most of the time you get a "mail audit" where they say we don't like these deductions so you have 30 days to submit us receipts. If you can't back it up, they assume you lied and take away said deductions and send you a tax bill.

Originally Posted by Big Pimpin

Generally what happens is a computer flags an anomaly then a human looks over your return. Most of the time you get a "mail audit" where they say we don't like these deductions so you have 30 days to submit us receipts. If you can't back it up, they assume you lied and take away said deductions and send you a tax bill.

I have receipts for the tuition. My actual estimated cost of attendance for one year is 30k. I claimed 17k in expenses, which is true, but some of that money is borrowed.

before the deductions I still had a refund coming. So if I made a mistake and I can't claim the deductions I will be billed for the mistake ?

interesting info here hmmm

REJECTED !!!!!!!!!!!!!

pin was incorrect it said but i got my pin off the IRS web site.