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New Tax Alert!!

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Old 02-15-2005, 08:07 AM
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Default New Tax Alert!!

The IRS has always allowed us to take our state and local income taxes paid as a deduction from our federal returns. Beginning in 2004, a new law will allow us to deduct state and local sales tax in lieu of state and local income tax if we choose. This may benefit some but not all. It might benefit folks who pay little or no state income tax. It might also benefit folks who bought a high-dollar car, boat, motor home, etc. For example, in Maryland, the state sales tax on a new 46 foot Cig. would be about $30,000. Under the new law, this $30,000 would be 100% tax deductible.

IRS Schedule 600 provides you with a flat rate deduction amount based on the state you live in and your income. In addition to the flat rate, you can also add the big-ticket items such as cars and boats.

If this info has already been posted, sorry. Just wanted to make sure.
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Old 02-15-2005, 08:09 AM
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Default Re: New Tax Alert!!

Yep, worked for me. We don't pay state incom tax in FL.
I was able to deduct sales tax from the year, as well as the tax I paid on the boat purchase. Worked out nicely.
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Old 02-15-2005, 08:41 AM
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Default Re: New Tax Alert!!

yes you are right but do not forget that the big ticket items also include;

1---cars / trucks / snowmobiles / motorcycles / boats / RV's
2--any pre-fab home
3--and any and all general sales tax that you pay out of pocket

also do not forget your donations;

1---girl scout cookies
2---boy scout popcorn
3---any and all school fund raisers
4---lions club
5---knights of columbus
6--cash out of pocket
7---bell-ringers at Christmas time
8---church

then do not forget the clothes and furniture that you have donated to ;

1--st. vincent de paul
2---goodwill
3---salvation army

then the misc. things that you have bought for work and not been reimbursed for like;

1---union dues
2--schooling
3--work boots
4---work clothes only for work

then your medical deductions;

1---doctor bills including all co-pays
2---prescriptions even for birth control and viagra
3---dentist and co-pays
4---eyeglasses and contacts also the supplies to clean them with
5---miles to and from the doctors /dentist /prescriptions

this is just a few things I thought would help.

Julie
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Old 02-15-2005, 08:44 AM
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Default Re: New Tax Alert!!

Guess I should get started
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Old 02-15-2005, 10:42 AM
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Default Re: New Tax Alert!!

Yep!! We don't pay State Income tax in Texas, so we got the general sales tax from the tabel (which was generous) plue sales taxe from 2 new cars!!

One comment/question/observation....As far as donations go, I don't believe Girl Scout Cookies and Boy Scout Popcorn are tax deductable. Those are not 'Donations" but a purchase where you recieve something of value in return. A portion of the proceeds go to the Scouts, but when we buy cokies and popcorn, we are doing just that, exchanging $$$ for a product of value.

I'f I'm wrong, I picked a bad year to stop fudging donations!
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Old 02-15-2005, 10:46 AM
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Default Re: New Tax Alert!!

No sales or income tax in NH ..But the property tax is less than equitable
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