Personal Finance & Money Stack Exchange
Personal Finance & Money Stack Exchange

Questions tagged [deduction]

39 questions
23
votes
6 answers

Is the Standard Deduction better than Itemized when both are the same amount?

For 2018 the standard deduction is $12,000 for individuals, $24,000 per household. If someone's itemized deductions equals the standard deduction, or is very close, which one is better to take? For example, my understanding is if you itemize, then…
jimp
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20
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1 answer

Locked out of EIC and dependent deductions by adult son's fraud

A young friend asked my help with her taxes where we found her adult son has claimed her two young sons as dependents, filed for and received EIC and a bigger refund, and left her broke and without a car (stolen, likely a coincidence). The older boy…
Steve Scott
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17
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3 answers

How does IRS know if my dependent is an actual relative for Head of Household?

Long story short. Found out I had a half brother and he's been staying with me for the past year while going to a nearby community College. Was doing my taxes and discovered he technically qualifies as an dependent and I can claim head of household…
deek
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11
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10 answers

Are mortgage interest deductions really a reason for buying a house?

I've read in several articles that a good reason to buy a home instead of renting is that you can deduct mortgage interest on taxes. I don't follow this reasoning though.. If I take a loan so that I can buy a house, I'm paying interest to the bank…
pepsi
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7
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1 answer

Deducting moving expenses - what about item replaced after being broken in move

During a qualified move that coincided with a job change (an IRS requirement for this particular deduction), an item that was shipped arrived at the new location broken, a replacement was bought. What parts of this are deductible? The shipping costs…
CQM
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7
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3 answers

What is a deductible?

New grad just out of college and working at a job that is asking me how much I want to contribute to my HSA. My medical plan deductible is $3,000 and I am a single filer (when it comes to tax) so I can contribute a max of $3,500 in 2019. What does…
Raj
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6
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1 answer

What do we mean by Over Payment in Payslip

i just got my salary and noticed that there is deduction of some amount under Over Payment. The salary slip is given in the form of a table. The table has 4 columns and many rows. For the purpose of this question, i am showing one column where the…
Jason
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6
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4 answers

Am I being charged taxes on my grocery purchases at Walmart?

Today, I only bought groceries at Walmart and noticed that there is no tax on groceries in California (Google tells me that this is perhaps true for whole of the US?) So far I have always paid tax at Walmart for my grocery purchases, but that also…
f1StudentInUS
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Deduct payments towards HSA alongside unreimbursed medical expenses on taxes?

I have medical expenses paid out of pocket and payments (pre-tax) to my health savings account. Can I consider both of those totals when computing my eligible medical expenses total for that deduction? Or does the fact that the HSA is pre-tax make…
Caveatrob
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4
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1 answer

How to correct a tax return filed electronically and already approved?

I know just the basics when it comes to taxes and IRS. So I went to a tax professional to prepare my taxes. He filed my taxes electronically (e-file) and it was approved right there. I double-checked the documentation before filing and signed it at…
houstontaxpayer
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1 answer

Solo 401k and 25% profit contributions: Is this also a deduction against income?

Are the 25% profit contributions also a deduction against income? Assume the income source is a pass-through entity such as a single member LLC, so all income comes straight to the individual's taxes. Where is that accounted for in the tax forms?
CQM
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1 answer

What are the common Income Tax deduction for salary earned in Saudi Arabia

I have left for Saudi Arabia on 7 November 13 , I am a government employee in Saudi Arabia . My salary is deposited in Saudi bank account , will I have to pay tax on 1,000,000 rupees amount which I have send before 31 March 13.
manishkinra
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Where do tax deductions "deduct" from?

My understanding is that tax deductions "deduct" from the Adjusted Gross Income value. Is that right? As a very simple example, let's say I have an AGI of $10 and I owe $3 in taxes (before any itemized deductions). If I'm eligible for a…
Mike B
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Can I deduct mileage if I'm a contractor who works at home and at an office?

I am a contractor and get a 1099. I perform some work at home, but much of my work is done at the office of the company I contracted with, and I drive to and from this office several times a week. Can I deduct my mileage as a business expense?
Bort
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3
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Is my contribution to corporate housing tax deductible?

My residence is in NY but my company moved me to CA for a temporary assignment (one year). They are providing corporate housing but I still have to contribute approximately $900/month. Is the $900/month tax deductible?
Debbie
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