Posts Tagged ‘standard deduction’
IRS Question Standard deductions and personal exemptions?
Posted by admin in US Tax Questions on December 20th, 2010
Hey I was wondering, if I dont work and I want to build up some credit, why dont I just declare about 16,000 dollars as income and with all the standard deductions and exemptions i wont have to pay a penny of tax. I am married and i am allowed about 10,700 of standard deduction and about 7000 of personal exemption. Any ideas????
Can ones personal tax liability be over 50% of their total income unadjusted for AGI in a single year?
Posted by admin in US Tax Questions on December 5th, 2010
So if a person was living in New York and had a tax bracket of 35% and State and local taxes of 12-16% wouldn’t that mean that person is paying over 50% in taxes, given if they don’t have charitable contributions, single and make over 0k/year, no mortgage just taking the normal standard deduction etc. But wouldn’t that be over taxing aforementioned person?
Question about tax deductions?
Posted by admin in US Tax Questions on November 20th, 2010
Hi. This is a pretty basic question, sorry. But I’m 18 and it’s the first time I’ve had to worry about tax returns/extensions. I am not claimed as a dependent by anyone. I know that a deduction doesn’t function the same way as a credit. But does a deduction reduce the amount of my income that is taxable, or is it only used to determine which tax bracket you fall into? I am a full time college student, and I received 00 in 2006 from a small trust fund. Given that the standard deduction is 50, and the personal exemption is like 00, I owe nothing, right? Is this true for the California state taxes also? Also, if I don’t owe, then I don’t need to file, do I? I assume I’m not getting a refund if I never actually paid anything. Could someone let me know if I’m right about all this? I thought I didn’t need to file, but then someone told me otherwise, so I’m kind of panicking. I need to do an extension really quick if I was wrong. Thanks!
Why is it that a federal worker can claim pre tax deductions for healthcare and a retiree cannot?
Posted by admin in US Tax Questions on October 9th, 2010
I was told I can itemize on my tax return, which I can, but the standard deduction comes higher than my itemized deductions. The federal worker can itemize too, but they don’t have to! Why the disparity?
Personal, Small business tax deductions in addition to standard?
Posted by admin in US Tax Questions on June 22nd, 2010
Hello,
Got a quick question. Are expenses incurred by a small business startup compound on a personal standard deduction? My scenario is below:
-I’m employed (not self-employment, at an actual company) and rent an apartment
-Say I incur ,000 in small business expense this year for a SIDE business.
Is this ,000 write off in conjunction with the standard deduction (of around 5k for single)? So, in other words, can my income be claimed to be 15k lower? If my startup costs incur ,000 is there a reason for me to NOT do the standard deduction? It seems awfully stupid that standard deductions exist, as I would’ve kept my own money instead of spending it on all this crap…