Can I Deduct?

Psychiatric, Psychoanalysis or Psychologist payments

Asked Tuesday, February 21, 2012 by an anonymous user

CPA Answer:

You can deduct as a medical itemized deduction subject to the 10% / 7.5% limitation the costs you paid for Psychiatric, Psychoanalysis or Psychologist for medical care.
You cannot include payments for Psychoanalysis that is part of required training to be a Psychoanalyst.
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Can I Deduct?

Fertility Enhancement

Asked Tuesday, February 21, 2012 by an anonymous user

CPA Answer:

You can deduct as a medical itemized deduction subject to the 7.5% limitation the cost of procedures such as in vitro fertilization including temporary storage of eggs or sperm.
Also, surgery including an operation to reverse prior surgery that prevented the person operated on from having children.
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Can I Deduct?

Chiropractor

Asked Tuesday, February 21, 2012 by an anonymous user

CPA Answer:

You can deduct as a medical itemized deduction subject to the 7.5% limitation the cost you paid a chiropractor for medical care.
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Medical Expenses

Acupuncture

Asked Tuesday, February 21, 2012 by an anonymous user

CPA Answer:

You can include in the calculation of Medical itemized deductions as medical expenses subject to the 7.5% limitation the amount you paid for acupuncture.
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Can I Deduct?

Acupuncture

Asked Tuesday, February 21, 2012 by an anonymous user

CPA Answer:

You can include in the calculation of Medical itemized deductions as medical expenses subject to the 10% / 7.5% limitation the amount you paid for acupuncture.
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Credits

Credit for the Elderly or Disabled

Asked Tuesday, February 21, 2012 by an anonymous user

CPA Answer:

To qualify for the Credit for the Elderly or Disabled, you must be age 65 or older or permanently and totally disabled and your income and nontaxable social security and other nontaxable pension benefits must be below specified amounts.
You may be able to take the Credit if:
You and/or your spouse are either 65 years or older; or under age 65 years old and are permanently and totally disabled. and your income on Form 1040 line 38 is less than $17,500, $20,000 (married filing jointly and only one spouse qualifies), $25,000 (married filing jointly and both qualify), or $12,500 (married filing separately and lived apart from your spouse for the entire year).
And, the non-taxable part of your Social Security or other nontaxable pensions, annuities or disability income is less than $5,000 (single, head of household, or qualifying widow/er with dependent child); $5,000 (married filing jointly and only one spouse qualifies); $7,500 (married filing jointly and both qualify); or $3,750 (married filing
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Credits

Foreign Tax Credit

Asked Tuesday, February 21, 2012 by an anonymous user

CPA Answer:

The foreign tax credit is intended to reduce the double tax burden that would otherwise arise when foreign source income is taxed by both the United States and the foreign country from which the income is derived.
Generally, only income taxes paid or accrued to a foreign country or a U.S. possession, or taxes paid or accrued to a foreign country or U.S. possession in lieu of an income tax, will qualify for the foreign tax credit.
You can choose to take the amount of any qualified foreign income taxes paid or accrued during the year as a foreign tax credit or as an itemized deduction.
To choose the deduction, you must itemize deductions on Form 1040, Schedule A. To choose the foreign tax credit you generally must complete Form 1116 and attach it to your Form 1040
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Credits

Retirement Savings Contribution Credit

Asked Tuesday, February 21, 2012 by an anonymous user

CPA Answer:

An individual may be able to take a tax credit of up to $1,000 ($2,000 if filing jointly) for making eligible contributions to an IRA or employer-sponsored retirement plan.
The amount of the credit you can get is based on the contributions you make and your credit rate. Your credit rate can be as low as 10% or as high as 50%.
Your credit rate depends on your income and your filing status.
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Credits

Child Tax Credit

Asked Tuesday, February 21, 2012 by an anonymous user

CPA Answer:

Taxpayers who make under the $110,000 / year are currently still allowed to claim $1,000 per child as their Child Tax Credit. Families making between $110,000 and $130,000 receive a reduced credit (specifically $50 per $1,000 made over $110,000).
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Energy Credit

Energy Credit

Asked Tuesday, February 21, 2012 by an anonymous user

CPA Answer:

In 2013, A taxpayer is allowed a 10-percent nonbusiness energy property credit for the purchase of qualified energy efficiency improvements to existing homes
There is a limitation of $500 on the total amount of nonbusiness energy property credit that may be claimed. This limitation is a lifetime limitation, not an annual limitation.
This credit was to expire with respect to any property placed in service after December 31, 2011. ATRA, Sec. 401, extends the availability of the credit to property placed in service before January 1, 2014.
In 2013 are 30% tax credits on large energy installation projects that are geared towards environmental aware taxpayers. They include geothermal heat pumps (no upper limit, both principal residences & second homes apply). Solar energy systems (no upper limit, both principal residences & second homes apply). Small wind turbines (no upper limit, both principal residences & second homes apply). Fuel cells (up to $500 per .5 kW of power capacity and for Principal residences only).
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