Deductions and Write-Offs
The most frequently asked tax questions related to Deductions and Write-Offs
Can I claim my daughter who is in college as a dependent on my tax return who lives with me, is 20 years of age and earns $4,000 ?
Asked Monday, September 25, 2000 by an anonymous userCPA Answer:
If the other 4 of the 5 mandatory dependency tests are met, and if she is a full time student, then you may claim her as a dependent. There are 5 dependency tests needed to qualify as a dependent. The gross income test for dependents applies to dependents 19 or older and not a full time student under age 24. If she was not a full-time student, the gross income she is allowed to earn is $3,900 or less for tax year 2013.
Can I claim my 18 year old son as a dependent who lives with me and earns $10,000 in wages ?
Asked Monday, September 25, 2000 by an anonymous userCPA Answer:
There are 5 dependency tests to qualify as a dependent. The gross income test for dependents only applies to dependents 19 or older and not a full time student under age 24. If the other 4 dependency tests are met he does qualify.
Private School Tuition
Asked Monday, September 25, 2000 by an anonymous userCPA Answer:
Tuition paid for a child in first grade or higher cannot be used as a child care credit or a deduction on your tax return.
Nursery school payments
Asked Monday, September 25, 2000 by an anonymous userCPA Answer:
The amount you pay for nursery school or day-care that enables you (and your spouse on a joint tax return) to earn income can be used to calculate a Child Care Tax credit.
Can I claim a deduction for the costs of transportation for my child to the day care center ?
Asked Monday, September 25, 2000 by an anonymous userCPA Answer:
No. The costs of driving a dependent to or from a day-care center, or any other transportation, are not deductible and can not be used in a calculation of a child care tax credit.
Standard Meal Allowance - in place of the actual meal costs
Asked Monday, September 25, 2000 by an anonymous userCPA Answer:
Yes. While away from home on business trips, if you find it difficult to maintain the actual records of meal costs, you may use a standard IRS meal allowance. The basic meal allowance in the U.S. for the current year is $52 a day. There are higher high-cost major metropolitan area rates available. You must keep a diary which includes the time, place and business purpose of the trip. Speak to your local CPA for the meal allowance in your area in your state. The rates are available online at www.gsa.gov/perdiem and in IRS Pub 1542.
Is the total amount I paid for travel by a cruise ship on a business trip deductible?
Asked Monday, September 25, 2000 by an anonymous userCPA Answer:
No. Cruise ship costs are limited to twice the highest per day rate for travel in the U.S. on that date, multiplied by the number of days in transit.
Car loan Interest
Asked Monday, September 25, 2000 by an anonymous userCPA Answer:
No. Interest on personal loans such as car and credit card loans are not deductible. Home mortgage loans and interest for loans for business purposes are deductible.
Co-operative apartment Interest
Asked Monday, September 25, 2000 by an anonymous userCPA Answer:
Yes. You may claim interest on acquisition or home equity debt loans on residences. A residence includes a house, condominium, cooperative apartment, houseboat, mobile home or house trailer that has sleeping, cooking, and toilet facilities.
The deduction is allowed on IRS Schedule A.
The deduction is allowed on IRS Schedule A.