I visited my tax guy yesterday and he gave the bad news that i have to pay. He now told me to get more itemized deductions this year for next year taxes. What are other itemized deductions that i can do apart from charity donations. Please advise?
2007-02-14 11:49:14 · 5 answers · asked by progress 2 in Business & Finance ➔ Taxes ➔ United States
1. Home mortgage interest.
2. Property taxes.
3. State income taxes OR state sales taxes.
4. Charitable donations.
5. Medical expenses. (7.5% AGI limit)
6. Employee business expenses (2% AGI limit)
Those are the biggies. There are more though they're much less common.
P.S. I'd get a new "tax guy" if he didn't go over that with you. He's not doing his job very well -- unless this is a "beer buddy freebie."
2007-02-14 11:56:14 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
That IS NOT bad news. A refund is bad news. It means you gave the government an interest free loan. The easiest way to make sure you don't have to write the IRS a check when you file taxes is to change your W-4 and have more withheld. While you should claim all the deductions you are entitled to claim, it is NEVER a smart idea to do anything just because it generates a tax deduction. If you are in the highest tax bracket (34%), a $1000 deduction reduces your taxes by $340. So you gave someone $1000 to avoid giving to IRS $340. I'd rather keep the other $660. If you send me $1000, I'll give you $340 and we can avoid the paperwork.
2007-02-14 12:38:13 · answer #2 · answered by STEVEN F 7 · 0⤊ 3⤋
For this year did they check to see if putting money into an IRA would reduce what you owe?
Probably the easiest deduction to increase is charity. Other than cash, do you have items (clothes, furniture, etc.) you could donate? Make sure they are a charitable organization and get receipts.
2007-02-14 13:11:51 · answer #3 · answered by Dee 4 · 0⤊ 1⤋
Medical expenses that exceed 7.5% of your adjusted gross income Pub 502
State and Local Income taxes or State and Local sales tax
Real Estate Taxes,Property tax Pub 936
Mortgage Interest Pub 936
Loan Origination Fees Pub 936
Charitable Deductions Pub 526
Misc deductions Pub 529
http://www.irs.gov/publications/p502/ind...
http://www.irs.gov/pub/irs-pdf/p600.pdf....
http://www.irs.gov/publications/p936/ind...
http://www.irs.gov/publications/p526/ind...
http://www.irs.gov/publications/p529/ind...
2007-02-14 11:55:49 · answer #4 · answered by Rob 7 · 1⤊ 0⤋
rob is correct MAKE SHURE TOU KEEP ALL OF YOUR RECPITS
2007-02-14 12:05:31 · answer #5 · answered by rvblatz 4 · 0⤊ 0⤋