I started saving receipts to create a budget and account for my spending. A friend of mine said that I can use the taxes paid on those receipts for my income tax. Is this true? If so, how?
2007-10-03 02:20:06 · 6 answers · asked by joesquibel 1 in Business & Finance ➔ Taxes ➔ United States
If you are running your own business, then you need to save receipts for any business expenses.
If you have a regular job, you only need to save the receipts if you itemize your deductions.
If you itemize, for the past few years you have had a choice of taking sales tax or state and local taxes - if you pay state income tax, you almost always come out better taking the state and local tax. But if you don't, then you can either add up the sales tax you actually paid from the receipts, or use a table that the IRS provides that depends on state sales tax rate, income and family size - if you bought a car, plane or boat, you can add that amount to what's shown in the table. The option for deducting sales tax might or might not be continued for 2007.
2007-10-03 03:47:55 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
Sales taxes used to be deductible on your income tax return, it was either actual sales taxes paid or a percentage of income. Their are still some states that allow for this deduction but it was taken off the federal tax schedule about 10 years ago. The only time I ever was able to use it was when I was building a house. If you buy a car it could be more than the standard as well, but check your local tax laws for the possibility of a deduction on the state.
2007-10-03 09:28:04 · answer #2 · answered by Anonymous · 0⤊ 1⤋
Yes it is true. Gas receipts is the big one right now. All the gas that you are using can be used as a write off for job related expenses. Not too sure how other things can be written off, but I'm sure it's probably more or less the same (job related). Ask your tax preparer when you file this year.
2007-10-03 09:28:58 · answer #3 · answered by Anonymous · 0⤊ 2⤋
It depends on what you do and what your receipts are for. If you are self employed then you can write off anything you spend for your business. You can also either write off gas or take depreciation on your vehicle. If you are not self-employed but spend money for your job, you can write off those expenses. There is a form you have to use to do it. You can also write off charitable donations and gas you use to drive to volunteer, if you file a Sch. A. You can go to www.irs.gov if you are not sure what is deductible and what is not.
2007-10-03 09:36:49 · answer #4 · answered by angela 6 · 2⤊ 0⤋
it depends like it those receipts from like school tuition, books, donations and other things like that u get a certain percentage back for sure in ur income tax because they told me the same thing when i pay my skool tuition
2007-10-03 09:28:57 · answer #5 · answered by Daifeny A 2 · 0⤊ 0⤋
business expense
2007-10-03 09:28:00 · answer #6 · answered by Anonymous · 0⤊ 1⤋