Can I Deduct?

Termite or Moth damage

Asked Thursday, February 09, 2012 by an anonymous user

CPA Answer:

Termite or moth damage is not deductible.
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Can I Deduct?

Social Security

Asked Thursday, February 09, 2012 by an anonymous user

CPA Answer:

The Social Security and Medicare withholding Taxes taken out of your paycheck and summarized on your W-2 form is not a tax deduction.
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Can I Deduct?

Tax Preparation fees

Asked Thursday, February 09, 2012 by an anonymous user

CPA Answer:

Tax preparation or Audit representation are deductible itemized deduction subject to the 2% of AGI limitation.
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Can I Deduct?

Union dues

Asked Thursday, February 09, 2012 by an anonymous user

CPA Answer:

Union dues are deductible itemized deduction subject to the 2% AGI limitation.
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Can I Deduct?

Safe Deposit box

Asked Thursday, February 09, 2012 by an anonymous user

CPA Answer:

Safe deposit or vault expenses are itemized deduction subject to the 2% AGI limitation.
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Can I Deduct?

Uniform cleaning

Asked Thursday, February 09, 2012 by an anonymous user

CPA Answer:

The costs of purchase and maintenance of a uniform are deductible.
The dry cleaning and maintenance costs of your work clothes such as suits and dresses are not deductible. To be deductible the clothing must be not be adaptable to everyday wear and be required as a condition of employment.
The dry cleaning and maintenance costs of uniforms and special clothing such as for nurse’s, police, and fireman are deductible.
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Can I Deduct?

Politician's expenses

Asked Thursday, February 09, 2012 by an anonymous user

CPA Answer:

A public official is not allowed to deduct campaign expenses for election or reelection.
A public official is allowed to deduct expenses directly related to performance of their duties in office that are not reimbursed.
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Depreciation

Bonus Depreciation

Asked Tuesday, February 07, 2012 by an anonymous user

CPA Answer:

Bonus depreciation is an accelerated deduction in the first year purchase of an asset. It is an additional incentive to purchase business assets and considered a measure of relief for small businesses that want to buy additional equipment.
in 2013, 50% is allowed.
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Earned Income Credit

Earned Income Credit

Asked Tuesday, February 07, 2012 by an anonymous user

CPA Answer:

The Earned Income Tax Credit is a refundable federal income tax credit for low to moderate income working individuals and families.
Individuals may receive refunds more than what was withheld in federal withholding taxes from their wages.
For the 2016 Tax Year
Earned Income and adjusted gross income (AGI) must each be less than:
$47,955 ($53,505 married filing jointly) with three or more qualifying children $44,648 ($50,198 married filing jointly) with two qualifying children $39,296 ($44,846 married filing jointly) with one qualifying child $14,880 ($20,430 married filing jointly) with no qualifying children
Tax Year 2016 maximum credit: $6,269 with three or more qualifying children $5,572 with two qualifying children $3,373 with one qualifying child $506 with no qualifying children
Investment income must be $3,400 or less for the year.
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Moving Costs

What moving costs are deductible as an employee?

Asked Monday, February 06, 2012 by an anonymous user

CPA Answer:

If you meet certain tests- the distance test ( your new job location is 50 miles or more from your old home) and time test ( you work full time as an employee for at least 39 weeks at the new location) :

1.Traveling related costs incurred by you or your family, moving from the old home to the new location are deductible. This includes lodging, your auto expenses if you drive, airfare, parking and tolls. Family members may move on separate dates and they are all deductible
2. Costs of moving your household items like furniture, shipping your personal goods are deductible.
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