State disability = (worker's compensation) benefits are not taxable.Funeral expenses are non-deductible on the Form 1040.
Contributions to regular IRAs may or may not be deductible. When you put money into your IRA the earnings are taxdeferred. The accummulated earnings are not taxed (for some). When will it be taxed? When withdrawals occur. So,withdrawals are taxable transactionsNon Deductible IRA: If you are rich and you are protected by a company pension plan then you don't need an IRA. But,if you both of those conditions aren't present you will be permitted an IRA. Therefore, “No deduction if Rich and HaveRetirement Plan”
MFJ is better than Qualifying widow with dep child because, although both have same tax rates and Std Ded, MFJ provides for extra personal exemption in the year of death for the deceased Qualifying widow with a dependent child is more advantageous than single and head of household since qualifying widow returns are entitled to a higher standard deduction and lower tax rates at similar income levels.Non Accountable means, you don't need to account for or explain the expenses
Under a nonaccountable plan (i.e., expenses are not reported to the employer), any amounts received by anemployee from the employer e.g. 400 pm must be reported by the employer as part of wages on the employee's W-2 for the year (and subject to income tax withholding requirements). The gross amount received is reported as incomeregardless of the expenses
Any expenses taken against the gross amount received in a nonaccountable plan (e.g., the car mileageexpenses and the reimbursement to the company) are considered miscellaneous itemized deductions and are subject to the 2% AGI limitation.
For 50%-type charities only (which include tax-exempt educational organizations), the taxpayer has the option todeduct long-term (i.e., held longer then 12 months) capital gain appreciated property at the higher fair marker value(higher than cost basis) without paying capital gains tax on the appreciated portion. This deduction is limited to 30% of adjusted gross income (AGI). A 5-year carryforward period applies.
: Taxpayer's may claim either sales tax or state and local income tax, whichever is greater – but not BothThe Burgs could opt to deduct either their state and local income tax or sales tax. Whichever is greater.Self-employment tax is
an itemized deduction, but 50% can be used as adjustment in arriving at AGI.
: The excess of investment interest paid over the “allowed” investment interest can be carried forward indefinitely
: Qualified Charitable contributions that could not be deductible due to 50% AGI cap can be carried forward for 5yearsRule: If AGI exceeds the threshold limits, taxpayers must reduce itemized deductions (other than Gambling Losses,Investment Interest, Medical and casualtyor theft -
) by 3% of AGI in excess of that threshold. The maximumreduction is 80% of those otherwise allowable itemized deductions.There is no itemized deduction for temporary living expenses, and the direct moving expenses (such as the costs tomove the goods and the costs to move the taxpayer's family from the old to the new location) are deductible beforeadjusted gross income, not as an itemized deduction.Premiums on disabilities policies are not deductible since payments under the policy are made to replace lost income,not to pay for medical expenses.
The adjustment for education loan interest (an above-the-line deduction to arrive at AGI) is limited to theamount paid or $2,500 (whichever is lower), and all qualified education loan interest is allowed as part of theadjustment. The adjustment is phased-out for single taxpayers with modified AGI between $55,000 and $70,000.
Alimony payments to a former spouse are adjustments to arrive at AGI. Child support payments are NOTalimony and are NOT deductible. Property settlements are NOT alimony and are NOT deductible.For IRAs, the adjustment is allowed for a year ONLY if the contribution is made by the due date of the tax return for individuals (April 15). The due date for filing the tax return under a filing extension is NOT allowed (i.e., filingextensions are NOT considered).