I made $29K this year and due to flood damage, my total taxable income comes to about $6K...?

Question

Approximately how much in taxes do you guys estimate I will owe?

Answer 1

Unfortunately it doesn't work that way. Not quite, at least.

I'll assume that you had $23k in flood losses from what you say and have netted out your income with the flood loss. You can take an itemized deduction for that loss, but not the entire amount.

First you must reduce the loss by $100 and then by an additional 10% of your Adjusted Gross Income. So, in your case the allowable deduction would work out to $20,000. Here are the numbers: $23,000 - $100 = $22,900 - $2,900 = $20,000. Assuming that this is not income producing property you must reduce the deduction by a further 2% of your AGI ($580) to arrive at a net itemzed deduction of $19,420. (If you received any insurance reimbursement for the loss, you must subtract that from the $19,420.)

So, with $29,000 in income, less $3,400 for your personal exemption (I'm assuming that you are single and have no dependents) less the $19,420 on Schedule A, your taxable income works out to $6,180. Your total tax on that would be $618.00

This is a very simplified example. See IRS Pub 547 for a full discussion on casualty losses. Here's a link: http://www.irs.gov/pub/irs-pdf/p547.pdf And see IRS Pub 529 for a full discussion on Miscellaneous deductions. Here's a link to that: http://www.irs.gov/pub/irs-pdf/p529.pdf

Answer 2

With total taxable income of $6,000, you will have no tax liability. I don't know what you mean by "I made $29K. . ." so your question becomes meaningless. Did you have a gain of $29K or did you receive damage reimbursement of $29K? How much did you lose in the flood?. How can your total income be $6K if you earned $29K from the flood? Or is your total $35K.

I have to file an insurance claim because I lost all my inventory in a fire. But tell me, how do you start a flood?

Answer 3

Not sure just how you are figuring your flood damage adjustments, unless you own your own business.

But if your taxable income really is around $6K, you wouldn't owe federal income tax unless you are a dependent or the $6K is from self-employment. If it's from self-employment you wouldn't owe income tax assuming you are not a dependent or married filing separately, but you would owe self-employment tax of around $850.

A little more detail with your question would make it easier to give you a better answer.

Answer 4

With out more detail i cant say for sure, but a quick down and dirty estimate based on what you say is $600.

This may not be right, with more info i can give a better answer.