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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.
Why the interest on a loan is a business expense and a tax deduction but the principal payments are neither?
Because the princial payments are your simply returning the money you borrowed. WHEN YOU BORROWED THE MONEY, IT WAS NOT TAXABLE INCOME, RETURNING IT THEN CANNOT BE TAX D…EDUCTIBLE. (Or every year I would borrow an amount say equal to my taxable income from all sources from someone/thing (bank, brother, friend who I lend the same amount to at the same time), and pay it back the next day...creating a deduction, and eliminate all my taxable income from all other sources).
NO. Go to the IRS gov website and use the search box for Car and Truck Expense Deduction Reminders The standard mileage rate is used in place of actual expenses. Taxpayers who… choose the standard mileage rate may not deduct actual expenses, such as depreciation, lease payments, maintenance and repairs, gasoline (including gasoline taxes), oil, insurance or vehicle registration fees. Business-related parking fees and tolls may be deducted in addition to the standard mileage rate. Fees for parking at a taxpayer's main place of business or tolls related to commuting to and from that main place of business are personal expenses which are not deductible. The standard mileage rate cannot be used if the taxpayer:
TDS has to be deducted based on the TDS Rates provided for different nature of transactions like. 2.266% for contractors,. 1.133% for subcontractors and advertisement contra…cts, etc.,. TDS is required to be deducted on the Payment being made / amount credited to the party account.. for example Consultancy service chages are Rs.1,00,000/-. Add : Service Tax @ 12.36% Rs. 12,360/-. Totaling to Rs.1,12,360/-. Rate of TDS 11.33% on Rs.1,12,360/- amounts to Rs. 12,730/-
I believe the question you were trying to ask is can you get a tax "refund" if you owe tax from a previous year. The answer to that question is NO. Your tax refund will …always be applied to any current tax liability. If your tax liability is less than the expected refund you will receive only a check for the difference.
on the book of invoice...
YOU CAN'T GET A REFUND "ESSENTUALLY" MONEY YOU OWE TO THE GOVERNMENT. IF YOU COULD DEDUCT IT THEN (MEANING A BENEFIT/PAYBACK FOR YOURSELF) WHY WOULD YOU BE ASKED TO PAT IT TO …BEGIN WITH? To above - because a deducion doesn't equal tax (that is called a tax credit)...following your logic ----if deductions didn't help lower tax...why would any exist? Answer The Federal tax you pay isn't deductible from your income to then calculate the tax you pay (thats completely circular thinking). You determine your income before Fed tax and pay your tax based on that income. However, State income taxes are deductible from Federal income...so if you pay back State income taxes, you probably can get a refund of the Federal tax you paid on that deductible amount. Again, obviously State income tax isn't deductible in calculating the amount of State income you have to pay tax on. It makes no difference if you pay the tax on time or late...it isn't deductible from itself. Penalties are never deductible....it's contrary to public policy that someone should get a benefit from their wrong doing. Again doesn't matter if the penalty is for late filing, or for dealing drugs, or whatever. Again, interest that isn't on the mortgage for your house, or basically part of a business enterprise, isn't deductible for anyone. Certainly not for paying taxes late or such.
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.
State income taxes are deductible on the Federal Form 1120. Other deductions include repairs, interest, and depreciation for homeowners filing Form 1120.
Yes, State Income Taxes are deductible against Federal income; not the amount you owe the state, but the amount you actually paid through withholding, prior year credits, paym…ents with the prior year state return, and/or estimated payments, during the calendar year for which you are filing Form 1040. You must file a 1040 Schedule A, Itemized Deductions in order to claim either state income tax or state sales tax on your return. Your total itemized deductions need to be greater than your Standard Deduction to be of benefit to you. If you file a Form 1040, and itemize deductions on Schedule A, you have the option of claiming either state and local income taxes or state and local sales taxes. (You can't claim both.) If you saved your receipts throughout the year, you can add up the total amount of sales taxes you actually paid and claim that amount. If you didn't save all your receipts, you can still choose to claim state and local sales taxes. You can even use the Sales Tax Deduction Calculator to figure how much state sales taxes you can claim if you decide to go that route. Using the Sales Tax Deduction Calculator To figure the amount of optional general sales tax you are eligible to claim, just answer a few online questions and the system does the rest. First select the year you are filing taxes for. Then, using your ZIP Code and just a few entries from your draft Form 1040, the Sales Tax Deduction Calculator will automatically figure the amount of state and local sales tax you can claim. You will see the results from your entries immediately on your computer screen. Even if state and local sales tax rates changed during the year (e.g., due to changes in state and local rates or because you moved your personal residence), the Sales Tax Deduction Calculator can handle it. Your entries are anonymous and the information is collected solely to allow you to determine your total allowable deduction. All entries are erased when you exit or start over.
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.
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.
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.
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.
For personal income tax, sales tax under some recent rule changes, you can take either the sales tax or the state income tax paid as a deduction...one or the other (for …federal tax purposes)...almost always, the income tax one is better. (The whole idea was to give a tax deduction to those people living in States that don't have an income tax and rely on a sales tax). Also, if you have a business that is part of your personal return, sales tax may be part of the business expense (Sched C) and you get to take it there - basically as part of the cost of business purchases. (Hence if this is for sales tax on your personal boat purchase or such, it would not be deductible anyway). If your a corporation, it is part of business expense, cost of goods, or the related fixed assets, as appropriate. (Sect 179 expensing may be applicable too). Generally, fines and penalties are never deductible anywhere...as bad for puiblic policy. Interest expense is only applicable in the business settings.