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How do I calculate tax deductions?

I am interested in learning how to calculate my own tax deductions. I have some, I know that are deductible (i.e. daycare, mileage to and from work, student loans, gas receipts). I would like to find out if there is a way that I can calculate this to see what I might be getting back from taxes. My husband is military and he and I are planning on using his mileage and gas receipts as well.

Thanks.

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This entry was posted on Friday, August 20th, 2010 at 8:55 am and is filed under US Tax Questions. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

  1. #1 written by rtfm August 20th, 2010 at 08:55

    Unless you’re self-employed, mileage back and forth to work is *not* deductible. Neither are your costs for gas. Student loan repayments and day care expenses *may* both be, depending on your individual circumstances.

    In most cases, unless you own a home (and so are paying interest on a mortgage) it simply doesn’t pay to itemize your deductions. It’s not worth while unless the total of your deductions adds up to more than the standard deduction you’re allowed to take. For most non-homeowners, it doesn’t.

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  2. #2 written by Wayne Z August 20th, 2010 at 08:55

    1st of all, mileage back and forth to work is not deductible. Also, gas purchased for personal use and/or commuting back and forth to work is not deductible.

    Interest on Student Loans is deductible but not the principal payments.

    There will be tax calculators available around the first of the year.

    You could also go to IRS.gov and download Publication 17.

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  3. #3 written by Charles G August 20th, 2010 at 08:55

    It is the things you know to be true, but actually aren’t, that will get you.

    Commuting expenses and personal driving expenses are not deductible. Student loan interest is, you will get a receipt for that from your lender.

    Daycare is, if you both work and the child is of the right age.

    To calculate what you may be getting back, get a tax program. For the year 2007, you could find them free (the companies give away previous years in the hopes that you will buy the next year’s). Your return will be similar, but not identical. But it will be an estimate.

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  4. #4 written by bud68 August 20th, 2010 at 08:55

    Not all of those things are tax deductible. Read your IRS Form 1040 instructions for starters.

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