7 Matching Annotations
  1. Jul 2020
    1. Your deductible medical expenses include unreimbursed medical expenses that are deductible on Schedule A. You can include medical expenses and copayments for you, your spouse, and your dependents. You can only deduct the part of your expenses that exceed 7.5% of your adjusted gross income. Enter the full amount of your medical expenses, and we'll calculate if the medical expenses are more than 7.5% of your adjusted gross income. The definition of what constitutes a medical expense is very broad and includes expenses to diagnose, cure, mitigate, treat, or prevent disease. However, cosmetic surgery is not deductible unless it is related to disfigurement from a congenital abnormality, accidental injury, or a disfiguring disease. Other examples of nondeductible medical expenses are nonprescription drugs, doctor prescribed travel for "rest", and expenses for the improvement of your general health such as a weight-loss program or health club fees (the weight-loss program is deductible if it is to treat a specific disease). Examples of deductible medical expenses include: Abortions Acupuncture Alcoholism treatment Ambulance costs Birth control pills Child birth classes Chiropractors Contact lenses Crutches Dentist Dentures Doctor fees Drug addiction treatment Prescription drugs Dyslexia reading programs and tutors Eye examination and glasses Guide dogs Health insurance Hearing aids Hospital bills Insulin Laboratory fees Long-term care insurance Nursing home if for medical treatment Optometrist Osteopath Physical therapy Psychiatrist Psychologist Travel to medical clinics Vasectomy Wheelchair
    1. What types of income are NOT taxable? Don't overpay the IRS by including nontaxable income on your tax return. The following income is generally NOT taxable income. There are always exceptions. For example, inheritances are generally not taxable, but if you inherited an IRA account, you will be taxed when you receive IRA distributions. But for most people, these types of income are NOT taxable: Life insurance proceeds IRA and Pension rollovers Child support payments Inheritances Gifts Workers Compensation Disability payments if you paid the premiums on the policy. If your employer paid the policy, then the disability payments are taxable. If you paid part of the policy, then part of the disability payments you paid are nontaxable. Court damages or settlements for personal physical injuries or physical sickness. Punitive payments are taxable. Health and accident benefits Federal income tax refund State income tax refund (if you took the standard deduction last year) Most scholarships, fellowships, and Pell grants Foster care payments (certain restrictions for individuals over age 18 in foster care) Gain on the sale of your personal residence is usually nontaxable. The gain might be taxable if you lived in the residence less than two years or if the residence has ever been used as a rental property or home office Roth IRA qualified distributions Welfare payments Supplemental Security Income (SSI) Social security benefits (including SSDI) are either nontaxable or partially taxable. Enter your social security benefits on the Social Security Benefits screen and we'll calculate how much, if any, of your benefits are taxable Cancellation of debt because of bankruptcy or insolvency. Enter your 1099-C or 1099-A on the Canceled Debt (1099-C or 1099-A) Information screen and we'll calculate how much, if any, of the canceled debt is taxable Veterans Administration disability benefits Pay-for-Performance Success Payments that reduce the principal balance of your home mortgage under the Home Affordable Modification Program Black lung benefits Cash rebates. For example, if you receive a cash rebate of $100 after you purchase a new washing machine Insurance proceeds for theft or damage to your property Utility rebates Long-term care insurance benefits Military allowances Peace Corps living allowances Reimbursement for medical care Certain individual care provider income Disaster relief payments
  2. Dec 2019
    1. There are several itemizable tax deductions, but the bulk of most taxpayers' deductions come from the "big four": Mortgage interest on as much as $750,000 in principal. Medical expenses in excess of 10% of your AGI. State and local taxes (SALT), including property taxes and state income or sales taxes, up to a maximum of $10,000 per year. Charitable contributions. For most Americans, adding up these four deductions can be a good indicator of whether itemizing will be worthwhile
  3. Oct 2017
    1. A Pew Research Center analysis of IRS data from 2015, the most recent available, shows that taxpayers with incomes of $200,000 or more paid well over half (58.8%) of federal income taxes,

      This data is "old". This also show how much leverage those tax payers have, their income tax can pay one or more teachers.