Can I Deduct?

Long term Care Insurance

Asked Tuesday, February 28, 2012 by an anonymous user

CPA Answer:

Premiums paid for long-term care insurance are deductible as a medical itemized .
The deduction is limited based on the taxpayer’s age: $360 can be deducted for people 40 and under, $680 for those who are 41-50, $1360 for taxpayers age 51-60, $3,640 for age 61-70 and $4,550 for those older than 70.
Each spouse is treated separately if both can claim the deduction.
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Can I Deduct?

Hotel Costs for spouse's Cancer treatment

Asked Tuesday, February 28, 2012 by an anonymous user

CPA Answer:

The cost of lodging you (or anyone accompanying a patient like a parent or spouse) stay in while away from home for medical care is deductible, up to a maximum of $50 per person per night. Note that you can deduct the cost of the hotel room, but not the food bill.
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Educational Tax Benefits

Educational Assistance Plans

Asked Tuesday, February 28, 2012 by an anonymous user

CPA Answer:

You can exclude up to $5,250 of educational assistance you provide to an employee under an educational assistance program from the employee's wages each year.
Graduate school expenses qualify as well as undergraduate courses.
Payments are tax free provided that the courses do not satisfy the employer's minimum educational standards and do not qualify the student for a new profession.
Educational assistance means amounts you pay or incur for your employees' education expenses.
These expenses generally include the cost of books, equipment, fees, supplies, and tuition. These expenses do not include the cost of a course or other education involving sports, games, or hobbies, unless the education has a reasonable relationship to your business, or is required as part of a degree program.
Education expenses do not include the cost of tools or supplies (other than textbooks) your employee is allowed to keep at the end of the course.
They do not include the cost of lodging, meals, or transportation.
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Can I Deduct?

Teaching supplies

Asked Tuesday, February 28, 2012 by an anonymous user

CPA Answer:

If you're a qualified educator, you can get an above-the-line deduction of as much as $250 for materials you bought in 2011.
Materials includes books, supplies and even computer equipment.
You qualify if you're a kindergarten through grade 12 teacher, aide, instructor or principal. Since it's an AGI above-the-line deduction, you don't have to itemize to get it. You can claim amounts in excess of $250 on Schedule A as a miscellaneous Itemized deduction subject to the 2% limitation.
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Can I Deduct?

Garbage-collection fees

Asked Tuesday, February 28, 2012 by an anonymous user

CPA Answer:

If your real-estate tax bill includes these costs as part of the tax, then they're allowable.
If you're billed separately for such fees, there's no deduction.
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Can I Deduct?

Homeowners Association Fees

Asked Tuesday, February 28, 2012 by an anonymous user

CPA Answer:

Homeowners association fees for maintaining common areas are not deductible.
Any fees specifically identified as your portion of taxes and/or interest would be allowable.
If you get a bill without a breakdown, none of the fee is deductible.
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Educational Tax Benefits

Education - Employer Reimbursements

Asked Tuesday, February 28, 2012 by an anonymous user

CPA Answer:

You must include in your income reimbursements your employer gave you for expenses of education that you need to meet the minimum educational requirements for your job, or is part of a program of study that can qualify you for a new trade or business.
Your employer will combine the amount of any reimbursement or other expense allowance paid to you under a nonaccountable plan with your wages, salary, or other pay and report the total in box 1 of your Form W-2.
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College Costs & Taxes

Education - Employer Reimbursements

Asked Tuesday, February 28, 2012 by an anonymous user

CPA Answer:

You must include in your income reimbursements your employer gave you for expenses of education that you need to meet the minimum educational requirements for your job, or is part of a program of study that can qualify you for a new trade or business.
Your employer will combine the amount of any reimbursement or other expense allowance paid to you under a nonaccountable plan with your wages, salary, or other pay and report the total in box 1 of your Form W-2.
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Can I Deduct?

Education - Employer Reimbursements

Asked Tuesday, February 28, 2012 by an anonymous user

CPA Answer:

You must include in your income reimbursements your employer gave you for expenses of education that you need to meet the minimum educational requirements for your job, or is part of a program of study that can qualify you for a new trade or business.
Your employer will combine the amount of any reimbursement or other expense allowance paid to you under a nonaccountable plan with your wages, salary, or other pay and report the total in box 1 of your Form W-2.
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Educational Tax Benefits

Employer Reimbursements - Education = Nonaccountable Plan = W-2 box 1

Asked Tuesday, February 28, 2012 by an anonymous user

CPA Answer:

You must include in your income reimbursements your employer gave you for expenses of education that you need to meet the minimum educational requirements for your job, or is part of a program of study that can qualify you for a new trade or business.
Your employer will combine the amount of any reimbursement or other expense allowance paid to you under a nonaccountable plan with your wages, salary, or other pay and report the total in box 1 of your Form W-2.
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