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Can you Deduct tax payments from the previous year?
Yes, unless it's been past three years. They have five years to eat you alive though. For the previous year -as below...from the previous year (as in made then) - even if applicable, no, only in the year they are paid. File an amended. State Tax payments are deductible from Federal, when paid. Federal Tax Payments aren't deductible from State, or from Federal for that matter, regardless of when they are paid.
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How do you deduct property tax payments from your federal income taxes in a year when you both sold and bought property in Illinois?
Answer . For the property you sold, you may have property taxes you already paid that year before the sale. Additionally, you will give the buyer a credit for property taxe…s accrued up to the date of the sale. Deduct both of these amounts.. For the property you purchased, you may pay property taxes after the purchase. The seller gave you a credit for the taxes due up to the date of purchase. Deduct the credit from what you paid. If any remains, you may deduct it on Schedule A. If the credit is for more than you paid, you should carry the remaining credit forward to the next year and deduct it from what you paid. Many accountants will simply deduct the entire credit from all of the payments in the same year. While this is technically incorrect, it is easier, and eliminates the likelihood you will forget to carry the remaining credit forward. I've never had the IRS object to this treatment.. Example:. Paid property tax in June $2,000. Sold property in July, gave buyer credit 4,000. Bought property in July, got seller credit -5,000. Paid property tax in September 2,500. Total paid during year is $2,000 + 4,000 + 2,500 - 2,500 (credit) = $6,000 and carry a $2,500 credit from buyer to next year, or. Total paid during year is $2,000 + 4,000 + 2,500 - 5,000 (credit) = $3,500 and no credit carried forward.
If you paid 765 dollars this year in federal tax payments that were owed for a previous year is this your deductible?
Answer Federal taxes paid or payable, (even if paid in the current year), aren't deductible in calculating your federal taxable income. State in…come tax payments may be deductible in determining your federal tax taxable income. And refunds received of a prior years State income tax may therefore be included in the current years federal taxable income.
Answer Well...not exactly. (And as an aside, the medical benefit given to you when you were an employee wasn't taxable). Medical costs, including health insuran…ce (which is what COBRA is) are only deductible to the amount they exceed a fairly large (I believe its 7.5% ) of adjusted gross income. NOTE: Some States have a much lower threshold for their income tax.
Like anything else, you apply the appropriate amount on the appropriate schedule when you file your tax return.There are four types of deductible nonbusiness taxes: State, loc…al and foreign income taxes; Real estate taxes; Personal property taxes; and State and local sales taxes.To be deductible, the tax must be imposed on you and must have been paid during your tax year. However, tables are available to determine your state and local general sales tax amount. Refer to Form 1040 Instructions for more information. Taxes may be claimed only as an itemized deduction on Form 1040, Schedule A. Note it is the amount paid...not the amount that may have been charged. If your taxes are part of your mortgage, the amount the mortgage company estimates and charges monthly is different than the amount actually paid in that year. However, all you need to know about any taxes or interest charges will be provided by the mortgage company at the end of the year. Just use those values on your return. (If you use any of the popular tax return softwares, just follow the questions and answers....and if not...this is a great time to start)!.
Not on personal leases, sometimes on business leases (as an expense).
Bigger is not always better. A home with a big bond is not an investment, warns Schaefer. "People tend to buy bigger houses and take on bigger bonds as their jobs improve but …this just means paying larger monthly instalments," he said. It will make far more sense to live in a smaller house and invest in buy-to-let properties with tax-deductible bond payments, reckoned Schaefer
No - even taxes actually paid aren't deductible from determining taxable income - from which your tax is due. (That would be completely circular). If estimates were… deductible..I'd make an estimate of enough to lower my taxable income to 0 - or low enough to not pay tax at least....and get a refund of all my overpaid estimate.
Estimated Income tax payments are not deductible in figuring out what your taxable income is, that determines how much your actual income tax is. See, that's circular.
No, supporting your children is never tac deductible. Alimony maybe.
State income tax payments are deductible on your federal income tax return. (You may deduct state income tax or sales tax, but not both.) Federal income tax payments are ded…uctible on your state tax return in a tiny number of states.
No, sorry. That's why owning a house is better for tax purposes but even then the principal payments are not deductible, only the interest on each one added over the whole yea…r.
You do NOT get any deductions on your 1040 income tax return for the payments that you make on your past due federal income taxes, penalties, or interest.
Absolutely not. Bankruptcy payments are repayments for debts that you incurred in the past and did not pay. There is no circumstances where these could be deductible on yo…ur income taxes.
Alimony payments are deductible as an above-the-line deduction on your Federal income taxes. They are reported on Line 31a of Form 1040 for 2010. Note that Line 31a also req…uires you to report the Social Security Number of the person you paid alimony to, because it will be considered taxable income for them. It's important to point out that child support payments are NOT deductible. So, if you are making monthly court-ordered payments that include both alimony and child support, you can only deduct the portion of those payments that are considered alimony. Usually the court order will specify these amounts.
You need to consult an accountant who knows the law in the county in which you are paying tax. However in general contributions made to a pension plan out of earnings are ta…x free, while pension taken out of a pension pot are subject to tax. ans In the US, contributions in to certain savings plans (generally normal (not ROTH) IRAs, or 401k plans through an employer are not considered taxable income the year they are made (they reduce your taxable income that year). Restrictions and limits of various types apply to both who may use which specific account, and how much it may be used. The money invested while in these accounts is also NOT taxable as earned. On withdrawal it is taxable as ordinary income, (so your investment gains do not get the benefit of the current very reduced tax rate on capital gains). There are number of rules about when you MUST start taking the (taxable) distributions by, and a calculation called a "required minimum distribution", and RMD that is the minimum amount you must withdraw each year thereafter. Generally, withdrawing any money before the minimum withdrawal age incurs a substantial penalty along with being taxable income in that year.