I am so confused about deductions. my husband made several purchases for job-related items in 2006, amounting to about $4000.00. Our income (filing jointly) was less than $50,000, but when I tried to use the deductions, it said something about it being less than the "standard deduction" of $10,000 something. What does that mean? Can we not write off those expenses, or does the "standard deduction" take care of it?
Also, H&R Block said we were not eligible for the child tax credit (we have two kids). I thought you had to make $100,000 in order to no longer be eligible. I did our taxes myself to save $250 bucks, but we're not getting near the refund I thought we would. Help??
2007-03-21 08:48:36 · 6 answers · asked by paperclip 2 in Business & Finance ➔ Taxes ➔ United States
If you're married filing joint, you get an automatic standard deduction of $10,300. If your itemized deductions do not exceed $10,300, then it's more beneficial for you to use the standard deduction.
Here is info on the child tax credit. You should be eligible if your children are under 17.
http://www.irs.gov/publications/p972/ar02.html#d0e236
2007-03-21 08:57:18 · answer #1 · answered by tma 6 · 0⤊ 0⤋
Sometimes, you are better off paying money to have a service performed for you that you are unable to perform yourself!
Job related expenses: If they are non-reimbursed business expenses assoicated with a job in which you get a w-2, only the amount in excess of 2% of AGI is used and added with medical expenses in excess of 7.5% of AGI, charitable contributions, mortgage interest and state and other taxes paid in order to determin if you can itemize or if the standard deduction should be utilized. If your husband was paid on a 1099 and this income is on a shedule F or C or if this is assoicated with rental property, then the expense can be deducted from the income received.
Child Tax Credit: If your children are were 17 at any part of the 2006 year, you are not eligible in addition to the aforementioned income limitations.
2007-03-21 09:03:42 · answer #2 · answered by Z28_Zeppelin 2 · 1⤊ 0⤋
Unreimbursed employee expenses are itemized deductions. If your total itemized deductions do not exceed the standard deduction, it is better to use the standard. Email me if you want, I might be able to help a little more.
2007-03-21 08:57:29 · answer #3 · answered by Brian G 6 · 0⤊ 1⤋
If you don't have more total deductions than the Standard they are wasted. Does he have or business or is he W-2? If W-2 should not be putting out that kind of $$.
On Child credit must be something else you are not mentioning as should be able if lived with you and have soc sec #s.
2007-03-21 08:57:22 · answer #4 · answered by vegas_iwish 5 · 0⤊ 3⤋
When itimizing you the program uses your standard deduction or your itimized deduction whichever is best. Also about the child tax credit if you zeroed out meaning your alternative minium tax is zero you don't get that credit due to it being a nonrefundable credit:)
2007-03-21 09:11:11 · answer #5 · answered by momzadork 3 · 0⤊ 3⤋
Get a referrals from family or friends you trust for a pro to do your taxes. It's worth the money.
2007-03-21 09:00:11 · answer #6 · answered by badbill1941 6 · 2⤊ 2⤋