taxes

[Cumberland]

I would qualify as learning impaired when it comes to taxes, and it seems like there are alot of people on the board who seem to know what they are talking bout with taxes. We have used turbo tax for the past few years and never seem to have enough itemized deductions to exceed the standard deduction, so I have never saved things like Step 1 review books, work clothes receipts etc. Am i missing something? Any pointers or good places on the net to learn ( like taxes for dummies?)

I like the website smartmoney.com. They have a Q&A section and you can access the archives (at least as of recently). It offers a lot of tax advice. http://www.kiplinger.com is a good one too.

The thing about deductions is that there can be rules around them or criteria that you don't meet -- so don't feel too bad about not taking them. We usually aren't eligible for most of them anyway. For example, the work related expense deduction is different from other itemized deductions. I *think* that you can only deduct expenses above and beyond 1% or 1.5% of your salary. Because DH's derm interview costs were so high, we were able to deduct the portion above that 1% threshold. In previous years, journal subscriptions or exam fees didn't even come close. I'm not sure, but you might have to have income from which you actually deduct expenses so I wonder if a medical student without any income can file for work/training related expenses (???).

Since we have been in our house for a while, our mortgage interest payments no longer are high enough to push us over the standard deduction (good news, I guess!) but we still keep track of our charitible giving because we can deduct that on our state taxes. If we couldn't do that, I wouldn't keep track of it. If you aren't able to make these deductions it doesn't make a whole lot of sense to track them too closely.

Caveat: All of the above is my simple understanding of this -- I could be dead wrong! Also, state tax rules vary widely from state to state.

Just wanted to post a correction on the miscellaneous itemized deduction for work related and job search expenses. It is 2% of your income (gross, I think). As I was thinking about Eric's salary and how little we were actually able to deduct....I was confused. That's because we could only deduct the amount over 2% (rather than 1%) of his salary.

So, certainly worth it to keep receipts and see if you make the requirement but we've found in the past that a journal subscription or two just isn't enough.

I also found out that our recent trip to Portland to look for a house will be deductible as a moving related expense. I thought it would only be for the actual move. Woohoo! Every little bit helps!

[Amiens]

Nellie-

Also when you guys do the actual move save any receipts that are used for packing your stuff. Moving expenses are not subject to the 2% above the AGI (adjusted gross income). So...
1) Transportation and Storage Expenses- the actual cost to pack, crate, ship, move or store you household belongings is a deduction. This meant that any packing tape, boxes or other packaging materials you buy to pack your belongings is a tax deduction related to moving. Also if you rent a truck- save the receipt for the rental (another tax deduction). Gas is also tax-deductible for moving, but you can do it one of two ways- save all your gas receipts or do 13 cents to the mile. Even if you hire someone to do move you- you can claim it as a deduction. The cost of disconnecting and connecting household appliances is a deduction under moving as well.

2) any lodging and travel expense incurred during the move from your former residence to your new residence- this includes- any airline tickets, railway tickets, car expenses (gas, oil changes- again save receipts or do 13 cents to the mile). As well as lodging in your former residence the day after vacating your home due to furniture not being there, and lodging the day you arrive in your new area. Meals are not deductible though.

We just went through this last year. Boy did it help!

With the cost of Matt's board fees next year, and the prospect of job interviews coming up in a year. We will hopefully exceed the standard deduction.

We have never been able to exceed the standard- just not enough there, so we're hoping that it will help next year. If we bought Matt's books then we would have exceeded last year, but the department reimburses Matt.

As far as my knowledge- it comes by having to two friends who are accountants, one is an actual tax accountant.
Crystal

The cost of disconnecting and connecting household appliances is a deduction under moving as well.

Boy, I didn't even think of that! I'll keep that in mind. Thanks! We will also be making another trip (or at least Eric will go) to buy a house in May -- so we can at least count that too.

And it is so nice that the move doesn't fall under the 2% thing as you said. That would really take a bite out of it.

With the cost of Matt's board fees next year, and the prospect of job interviews coming up in a year. We will hopefully exceed the standard deduction.

We have never been able to exceed the standard- just not enough there, so we're hoping that it will help next year. If we bought Matt's books then we would have exceeded last year, but the department reimburses Matt.

Same here, Crystal. Until the derm interviews. We have been looking for as many related expenses as possible to pay for this year to take advantage of this deduction. So, boards, board review books, journal subscriptions, licensing, etc, etc. As long as we have to spend the money, it's nice to be able to use the deduction.[/quote]