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jagsmunchkin · Dec 24, 2008, 08:05 PM

Florida resident, married with 1 dependent.
I will be using an accountant for the first time this coming year and I want to be ready when I go see them for the first time. I would like to know what all the things are I can claim. I hear people claim gas and stuff but I don't want to cheat. I pay daycare tuition which I understand I can claim. I am definitely claiming all my hospital bills from her birth that's for sure. If my husband and I file separately then I paid way more than 7.5% of my income. I was told in the past that was the rule for medical bill filing. Does anyone kow what else I should start totalling or collecting statements for that I can bring to my accountant. Thanks so much. Happy holidays to all. - Melissa:)

MukatA · Dec 25, 2008, 03:56 AM

You you file separate tax return and claim medical deduction, which is itemized deduction, you spouse must also itemize deduction. So may be it is better to file joint return. Try both ways and find out. Also if you file separate tax return, you will not get EIC.

You do not need accountant. You have to yourself figure out what deductions you can get. Most of the deductions are itemized deduction so go through schedule A (Form 1040) and its instructions.

ScottGem · Dec 25, 2008, 12:58 PM

The tax software companies have software to maximize your deductions. Using an interview type technique, they can ferret out deductions you are entitled to.

However, I must say that its rare that uncovered medical expenses will exceed 7.5% of income. If you income was that low, then you may be better off not itemizing.

AtlantaTaxExpert · Dec 29, 2008, 06:14 AM

Both Scott and MukatA raise good points.

Not sure your return justifies the cost of an accountant. It seems to me that a competent, local tax professional could do your return at a reasonable cost with little problem.

That includes modeling the return to determine whether filing separately is better than filing jointly.

jagsmunchkin · Dec 29, 2008, 08:21 AM

Originally Posted by ScottGem

However, I must say that its rare that uncovered medical expenses will exceed 7.5% of income. If you income was that low, then you may be better off not itemizing.

Well thanks for rubbing in that I don't have a high paying job, however, I make more than most of my friends and family. I am not like all the rest of the world that makes 100 grand a year I guess. But I was out on maternity leave as well, and yes I paid over 3000 out of pocket for my deductibles, plus 1500 more for my daughters, since hers are separate than mine. So therefore 7.5% of my regular salary (not counting my loss for maternity leave either) is 2975. I paid well more than that. So I would like to know if I am understanding the rule correctly that I can claim those bills. Seeing as I don't make that much to begin with. Thank you for your reply.

jagsmunchkin · Dec 29, 2008, 08:37 AM

Originally Posted by AtlantaTaxExpert

Not sure your return justifies the cost of an accountant. It seems to me that a competent, local tax professional could do your return at a reasonable cost with little problem.

Sorry I didn't mean to say accountant. I was at work typing and was distracted from my words. I am using a tax professional that my friends used. She actually used to work for the IRS. Thanks for the suggestion though if that were to have not been a typo.

jagsmunchkin · Dec 29, 2008, 08:43 AM

Sorry for all the posts, I didn't think to just quote and post them altogether. But...

No one seems to have answered my original question.

What are some more things that I can claim if any. Like I stated before I heard I can claim daycare. Someone told me I can claim gas, I do a lot of couriers for my job every week that I don't get reimbursed for... are there other things that I can claim that I am missing? Thanks.

AtlantaTaxExpert · Dec 29, 2008, 09:30 AM

Gas costs under your status as an employee CAN be deducted, but you have several barriers to overcome.

First, the gas costs, in addition to all other employee business expenses, must exceed 2% of your Adjusted Gross Income. Let's say your AGI is $40,000, in which case your total employee business expenses must exceed $800 to be counted. In other words, you eat the first $800 of your costs.

Then, on top of that, employee business expenses are an itemized deduction, which means all of your itemized deductions must exceed your standard deduction ($5,450 if you are SINGLE or Married FILING SEPARATELY; $10,900 if you are MARRIED FILING JOINTLY; about $8,000 if you are HEAD OF HOUSEHOLD).

Most employees cannot accrue enough deductions to exceed both of these requirements.

ScottGem · Dec 29, 2008, 11:42 AM

I'm sorry if you took my response the wrong way. It wasn't meant to put you done, but explain the facts. Not sure where you get the idea that most people make in 6 figures, that's not even close to accurate.

You are asking questions that show some gaps in knowledge about tax laws. The figure you cite as 7.5% of your salary gives us a good idea of your annual salary. But what ATE is telling you is that you get a minimum of $5450 as a standard deduction. To make it worthwhile to itemize your total itemized deductions must exceed that. Your medical bills give you about $2K of that. Unless you own a home and pay mortgage interest and property taxes, you would probably be hard pressed to make up the other $3500.

That doesn't mean you shouldn't try. Get yourself a copy of IRS instructions relating to the Schedule D. This will list all the items that can be deductible.

Good Luck.

AtlantaTaxExpert · Dec 29, 2008, 02:12 PM

Scott:

I believe the Schedule for which she needs the instructions is Schedule A (Itemized Deductions), not Schedule D (Capital Gains and Losses). :-)

ScottGem · Dec 29, 2008, 02:53 PM

Oops

AtlantaTaxExpert · Dec 30, 2008, 05:32 AM

Typos happen to the best of us! :-)

Five Rings · Jan 22, 2010, 04:44 AM

Well jags, it's very commendable that you wish to inform yourself on this matter before visiting your tax preparer.

Take a look at this regarding allowable deductions from income:
Tax Topics - Topic 500 Itemized Deductions

And this regarding tax credits (which are the best since this is money deducted from your tax)
Don?t Overlook These Valuable Tax Credits