Nineteen states offer residents a 2001 state income tax deduction for contributions to their plans.
About half the states offer residents an income tax deduction for contributions to their home state plan.
One key point: the employer gets an income tax deduction for any employer match made for his employees.
This provision currently grants our multinationals an income tax deduction on the revenue they generate overseas, thus avoiding double-taxation.
Nor does the arrangement preclude later donating the building to a nonprofit operation and getting an estate or income tax deduction.
If tax rates are higher in 2011 as expected, the state income tax deduction could be worth more to you in 2011.
The income tax deduction for muni bonds is supposed to help state and local governments to borrow at a much lower interest rate to finance large public investments.
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This deduction is claimed instead of (not in addition to) the state and local income tax deduction, and is most useful to residents of states, including Florida and Texas, that don't impose their own income taxes.
And here's where it gets really bizarre: It's possible some taxpayers in states with income taxes, who haven't made a big purchase, might actually be better off claiming a smaller sales tax deduction than a bigger income tax deduction.
That is because you get an income tax deduction for the fair market value of property you give to charity and you are subject to gift tax on the fair market value of property that you give to a relative.
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Phil Mickelson at 2007 Barclays Singapore OpenFederal tax law changes beginning in 2013 could further aggravate the situation because of rules applicable to high income taxpayers that could reduce itemized deductions (including the federal state income tax deduction) by as much as 80%, making the net cost of state income taxes more expensive.
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With a conservation easement, you give some or all of the development rights on your land to a government agency or not-for-profit (there are more than 1, 700 local land trusts), and you get a federal income tax deduction for the gift (the difference in the value of the land before and after the easement is in place).
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However, he requires them to donate all honoraria or consulting fees directly to charity so that he receives neither income nor a tax deduction.
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Most of the states with an income tax allow a deduction for money put into a home-state 529 plan, and in some cases the deduction is quite generous.
In 1960 only 15% of federal income tax returns had a zero tax liability, due mostly to low taxable income, a standard deduction, the personal exemption, the dependent exemption, and the Earned Income Tax Credit (a direct subsidy to people for being poor).
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She claimed the costs of the procedures on her federal income tax return as a medical deduction, arguing that the procedures were medically necessary and not for cosmetic reasons.
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In addition to the tax credits, which provide beneficiaries with dollar-for-dollar reductions in their income tax bills, the government also offers a higher education tax deduction to students and families not claiming a tax credit.
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It currently provides a 9% tax deduction from net income for businesses engaged in "qualified production activities" in the U.S. Those activities include manufacturing a product, selling, leasing or licensing it, and engineering and software activities related to that production.
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But note again that the largest group excluded from paying income tax because of special tax expenditures are seniors, who get a bigger standard deduction than younger folks and more importantly, special tax treatment for their Social Security benefits.
What should you do if the IRS asks for all your documents about a particular deduction, income item, or tax year?
Capping the deduction even as the top income tax rate rises is playing with fire the decline in giving could be even greater.
Is the tax deduction, which disproportionately benefits high-income givers, the right approach?
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In the second scenario, however, we modeled a revenue-neutral plan that eliminated the taxes-paid deduction and municipal bond exemption while lowering income tax rates across the board.
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Despite the agreement of the spouses as set forth in paragraph 13 of the divorce decree, Ms. Defernez claimed a dependency exemption deduction for TDD on her 2007 Federal income tax return.
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If an employee who earns only W2 income purchases their insurance directly, they will not get a tax deduction.
One nice thing about the aid calculators is that they allow a deduction from income for income taxes, including federal tax.
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Savino says he has clients who are on the cusp of AMT who maximize the state and local deduction just until the AMT equals the regular income tax.
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With such a standard deduction, 75 percent of all tax filers would have no income tax liability.
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