Posts Tagged ‘income taxes’
How does the charitable giving tax deduction work?
Posted by admin in US Tax Questions on November 30th, 2010
This issue sometimes comes up about giving at church and deducting it from personal taxes but I don’t understand the whole concept.
Basically, the question is this. If a person gives their church (a qualified non-profit organization) a donation or offering, and the person reports the gift on their income taxes, does the IRS simply just not tax the amount that was given?
In other words, does the gift increase the amount of non-taxable income?
Then, secondly, what kind of supporting documentation would the IRS require to substantiate the claim. Churches don’t normally give receipts for offerings taken during service.
Please state your qualifications if you have an informed answer. Thanks.
Tax Breaks for Self-Employed Individuals and Small Business Owners
Posted by admin in US Tax Questions on August 14th, 2010
Andrew Schwartz CPA explains three ways for self-employed individuals and small business owners to save taxes.
Tax deductions for using personal car for business?
Posted by admin in US Tax Questions on July 22nd, 2010
So I’ve asked similar questions before but my situation has changed since then. I am currently employed with the local paper one night a week collecting old papers and quarters from their racks. I drive my own car around for about 2 hours. The route itself is about 20 miles and obviously always the same. I was originally hired as an independent contractor, but now I am on the payroll so my income taxes will be handled normally.
My question now is what kind of deductions can I claim for using my car in this manner? Can I claim gas and maint. expenses like oil changes? Or can I only claim miles? The employer will be paying me some weird rate of $.35 per mile instead of the IRS rate, so I wonder if that comes into play anywhere. What kinds of records do I need to keep? I was just going to do an excel spreadsheet for the miles, and keep all my gas receipts obviously. I’m also only keeping the receipts to the gas I buy before doing the route.
Appreciate anyone’s help. Thank you!