[net.taxes] Some tax saving tips

tom@felix.UUCP (03/06/84)

(news bug snack line)

		Tax Tips for 1983's Federal Return

These are just suggestions. I am not a qualified tax consultant and I
make no claim as to the IRS acceptance of these deductions. There are
many, many more deductions than the ones listed here. 

1. If you purchase a car, chances are you can itemize deductions on state taxes.
   (Even if you are single and don't own a home!)

2. Deductions:   
	- work related supplies (technical books, magazines, and supplies).
	- car license (over standard fee)
        - SDI (California state disability insurance)  $136 maximum.
	- state tax with-holding (include your refund check from the state
	  as income if you deducted this for 1982).
	- contributions to charity.
		money (keep those receipts)
		mileage
		donations of goods (i.e. to the Salvation Army).
	- homeowners
		homeowners deduct property taxes and interest.
		new homeowners: deduct points
	- job search costs (even if you didn't change jobs)
		mileage, resume costs, phone bills, newspaper subscription...
	- if you moved more than 35 miles for a new job, then expenses
	  you paid are deductible.
	- schooling related to your job not paid by employer.
		fees, mileage, books, supplies...
	- dependents (new parents: don't forget your kid).
		There is also a tax credit for child care expenses of 20%-30%.
	- medical expenses if over 5% of gross income
		(medical insurance no longer separate deduction)
	- your home computer and software (somehow depreciated over years)
	- telephone costs if used to be reached by work and/or used
	  via modem. Only the percentage used this way can be deducted.
	- computer shows.  Mileage, parking, fees, lodging, meals.
	- any stock market loss.  Newspapers, phone, and cable t.v. used to 
	  follow the market. 
	- state sales tax (use standard table or use receipts). If you bought
	  a car or boat, add that sales tax to table.
	- interest expenses: credit cards, overdraft, loan payments,
	  student loans, mortgage interest, auto loans, ...
	- expenses incurred generating income tax savings (i.e. expenses
	  relating to opening an IRA account).
	- theft and casuality loss must be over 10% of gross income minus
	  $100 now.

3. If you changed jobs in 1983 don't forget to get back any
   excess SDI and social security taxes overpaid.

4. Don't forget that 10% of a spouses earnings are exempt from tax. ($3000 max)
   (who ever has the smallest income on a joint return).