Taxes

New York Daily News: 2010 Tax Rules

In this week’s New York Daily News column, I give you a round up of several important tax issues that should be on your radar.

Tax Breaks You’re Missing

You deserve a tax break today: If you thought the IRS wasn’t romantic, think again.  Today itemizers can begin filing their taxes, and capturing their share of oft-missed tax breaks. Here’s a quick look at the most missed tax deductions so that you can make sure you get what’s coming to you:

Other taxes you paid. Taxes you pay elsewhere are deductible. This includes property taxes and state and local income tax – or sales tax if you live in a state that doesn’t charge state income taxes.

Medical expenses not covered by your health insurance. You can write these off as long as they top 7.5 percent of your adjusted gross income. (If you didn’t qualify this year, try “bunching” big health expenses every other year.)

Job hunting expenses. Looking for a job in the field you’re already in qualifies for a deduction in job hunting expenses. That includes career coaching and the cost of traveling to interview. (If you move more than 50 miles to begin a new job you can deduct your moving expenses as well.)

Charitable contributions not made in cash. You know all that stuff you dumped into the Salvation Army box? They’re deductible. You have to create a list of items you donated and then attach an approximate cash value. Not sure? Check out eBay for a sense of what these things sold for at recently completed auctions.

Money 911: Using Your Income Tax Refund

On Today’s Money 911 we discussed financial planning for living with a chronic illness and how best to allocate your income tax refund. To learn more check out the video clip below.

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American Express OPEN Forum: Bartering

In my latest American Express OPEN Forum article, I discuss what you need to know to go about structuring a barter agreement.

Ask Jean: Tax Deductions for Donated Property

Enjoy your segments on the Today Show — wish they could be longer. I’m looking for information on how much tax deduction I realize for donating an item. I have a couple of instruments that could be donated to organizations who will put them into the hands of kids who wouldn’t otherwise have the opportunity to make music, but wondering if donating will be a huge loss or if I should continue to try and sell them.
– sheepdog55

When you’re donating an item or piece of property – rather than cash – you have to get at its fair market value, that is, what the item would sell for on the open market. That’s the amount that the IRS will allow you to claim as a deduction on your tax return. In most cases, it’s going to be a lot less than what you paid for it, because the item is now used. More…

Ask Jean: The Tax Consequences of Savings Bonds

I bought EE savings bonds to assist with the education of my children.
Fortunately, or unfortunately, we earn too much money to qualify for the tax
savings if these were used for their educational costs. I am wondering if
there is a way to transfer ownership of these bonds to the children so that
when the bonds are redeemed, the proceeds and the tax burden are theirs.
Most of these bonds have matured but are still earning interest at a rate of
4% and are safe. Thank you.
– Anita Mann

Hi Anita. Unfortunately, there’s no way to get out of this tax burden
completely. Your best bet is to have the EE savings bonds reissued to your
children, identifying them as the co-owners of the bonds. However, if you
do that, you’ll still have to pay taxes on the interest that was earned up
until the date of the reissue. That tax bill can’t be transferred, along
with the bonds, to your children. More…

Money 911: Early Retirement, IRS Debt & More on Today

Today’s panel looks at ways to reduce debt and plan for a lengthy retirement. What’s the best way to lower student loan payments? How do you handle a large debt to the IRS? What should you do if you are upside down on your mortgage? For answers to these questions and more watch the video clip below.

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Last-Minute Tax Tips and More on Money 911

On this morning’s Money 911, we covered a variety of your financial questions. Do you have questions surrounding the recent student loan reform bill? Which debts should you focus on paying off first? Watch the video below for answers to these questions and more!

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The Money Mom: Tax Deductions for Weight Loss

Last week, I was on Today with Madelyn Fernstrom, the show’s Diet and Nutrition Editor.  Seems like an odd pairing, but this time of year, it’s certainly not – did you know you can turn your weight loss into a tax break?

It’s true.  In April of 2002, the IRS designated obesity as a disease, and with that designation comes some tax deductions.  Now, tax payers can write off weight loss expenses, as long as they’re for health improvement.

You may be thinking that all weight loss is for health improvement, but it goes a bit deeper than that – your doctor must recommend the weight loss as a way to counteract a medical issue, and the IRS wants to see proof.  Weight loss to combat high blood pressure, heart disease, bad knees and high cholesterol will get you a tax savings; losing those last ten pounds will not. More…

Ask Jean Tuesday: Let’s Talk About Tax Returns

“I am going to get about $3500 as a tax return. I want to buy a CD at the bank for $1000 and try to pay some of the credit cards debt I have. I have about $13,000.00 in credit card debt outstanding. I also have 3 store cards and 1 credit card that are in good standing but maxed out. What should I do?”
– Annette, Pennsylvania

Once you have your emergency cushion in place, paying down credit card debt is a terrific use for your tax refund.  (If you don’t have that emergency cushion, put the $1,000 in a money market where you can access it if you need it rather than in a CD.)  Take a look at the interest rates on the cards you’re carrying.  Use the money to completely pay off (if you can) the card with the highest rate of interest. More…