vpFREE2 Forums

another W2G question...

#21

I've got no state income tax, which is why my sales tax figure is so high. My grandmother has both, but the sales-tax route was the way to go for her last year (largely because she actually paid no local income tax and very little state income tax due to her age).

For the preponderance of states that impose state and other local income taxes, those are virtually always at a higher rate than the sales taxes. For the handful of states without income taxes, taxpayers cannot not deduct both:"According to the IRS introductory material to the online sales tax deduction calculator:If you file a Form 1040 and itemize deductions on Schedule A, youhave the option of claiming either state and local income taxes orstate and local sales taxes, but you can't claim both. If you savedyour receipts throughout the year, you can add up the total amountof sales taxes you actually paid and claim that amount. If youdidn't save all your receipts, you can still choose to claim stateand local sales taxes, using the calculator."--banknote.comDavid Silvus wrote:>>> Don't know who's doing your taxes, but I was able to deduct over $2700 > in 2007 with the standard deduction formula (I'm in a high sales-tax > state and county though). My father-in-law (accounting background -- > way more anal than I) deducted quite a bit more by itemizing all of > his yearly spending.>> To: vpFREE@yahoogroups.comFrom <mailto:vpFREE%40yahoogroups.comFrom>: > mspevack@optonline.netDate <mailto:mspevack%40optonline.netDate>: Sun, > 4 Jan 2009 19:31:20 -0500Subject: Re: [vpFREE] Re: another W2G question...>> David Silvus wrote:> At the risk of drifting too far off topic, > stroking a reasonable note for a home is not "foolish", largely > because you can deduct the interest on your taxes. < 6% money, that's > tax-deductible, is pretty cheap money. > > I firmly believe that > anyone who has the wherewithall to gamble enough each year to have it > matter on their taxes should be itemizing, barring an extremely odd > one-time aberration.> > The personal exemption for 2007 per person was > $5350, or $10,700 for a married couple. $2K in reported gambling > income that can be offset by itemizing losses takes you down to > $8700.00 needed to make itemization the smart move. If you own your > home, you're paying property taxes on it -- in most cases that's going > to be at least $1000, and likely far more (depending on your state, > county, city). Back that off that $8700, and you're likely under > $7000.00 Subtract your state income tax from that total -- again, > quite likely measured in the thousands -- and you're likely under > $6000.00. Now back-out your sales tax for the year from that total -- > depending on your state, that could range from a couple hundred to > several thousaSales taxes have been virtually eliminated as a > deduction for years.>

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To: vpFREE@yahoogroups.comFrom: mspevack@optonline.netDate: Sun, 4 Jan 2009 19:45:34 -0500Subject: Re: [vpFREE] Re: another W2G question...

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#22

At the risk of drifting too far off topic, stroking a reasonable

note for a home is not "foolish", largely because you can deduct the
interest on your taxes. < 6% money, that's tax-deductible, is pretty
cheap money.

I firmly believe that anyone who has the wherewithall to gamble

enough each year to have it matter on their taxes should be
itemizing, barring an extremely odd one-time aberration.

The personal exemption for 2007 per person was $5350, or $10,700

for a married couple. $2K in reported gambling income that can be
offset by itemizing losses takes you down to $8700.00 needed to make
itemization the smart move. If you own your home, you're paying
property taxes on it -- in most cases that's going to be at least
$1000, and likely far more (depending on your state, county, city).
Back that off that $8700, and you're likely under $7000.00 Subtract
your state income tax from that total -- again, quite likely measured
in the thousands -- and you're likely under $6000.00. Now back-out
your sales tax for the year from that total -- depending on your
state, that could range from a couple hundred to several thousand.
Then deduct any charitable contributions you make and medical
expenses you have.

It doesn't take much in the way of mortgage interest each month to

tip you over that $10,500.00 level once you figure those other
numbers. Consider that $500/month in mortgage interest is
$6000/year, and you can get there in a hurry. Run the numbers on a
$125K mortgage @ a very low interest rate and you'll see that it
doesn't take much of a note to get you over that hump.

Don't people ever pay off their home mortgage?

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--- In vpFREE@yahoogroups.com, David Silvus <djsilvus@...> wrote:

#23

David Silvus wrote:
> At the risk of drifting too far off topic, stroking a reasonable

note for a home is not "foolish", largely because you can deduct the
interest on your taxes. < 6% money, that's tax-deductible, is pretty
cheap money.

>
> I firmly believe that anyone who has the wherewithall to gamble

enough each year to have it matter on their taxes should be
itemizing, barring an extremely odd one-time aberration.

>
> The personal exemption for 2007 per person was $5350, or $10,700

for a married couple. $2K in reported gambling income that can be
offset by itemizing losses takes you down to $8700.00 needed to make
itemization the smart move. If you own your home, you're paying
property taxes on it -- in most cases that's going to be at least
$1000, and likely far more (depending on your state, county, city).
Back that off that $8700, and you're likely under $7000.00 Subtract
your state income tax from that total -- again, quite likely measured
in the thousands -- and you're likely under $6000.00. Now back-out
your sales tax for the year from that total -- depending on your
state, that could range from a couple hundred to several thousa

Sales taxes have been virtually eliminated as a deduction for years.

Don't medical bills have to exceed some min percent before they can
be deducted also?

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--- In vpFREE@yahoogroups.com, MHS <mspevack@...> wrote:

#24

Yes, 7.5% of your adjusted gross, but you get to include mileage and insurance premiums actually paid out of pocket for the taxpayor and dependants. Family premiums of $400 a month take you to $4800.00 before the first visit. That's 7.5% of $64,000.00 AGI. At some point income will be so high as to make this deduction meaningless unless there is some health issue. However, once your income is sufficiently high, reasonable tax planning should be employed anyway.

The only reason I'm pointing any of this out is because it seems that there may be some who are not thinking about the impact of taxes on their bottom-line. If you are paying taxes on your gross winnings (at least that reported on a W-2G) instead of your net winnings, it's likely more than eating-up your profits completely. 70% of (gross winnings - gross losses) is quite a bit different from 70% of gross winnings - gross losses.

--- In vpFREE@yahoogroups.com, MHS <mspevack@...> wrote:>> David Silvus wrote:> > At the risk of drifting too far off topic, stroking a reasonable note for a home is not "foolish", largely because you can deduct the interest on your taxes. < 6% money, that's tax-deductible, is pretty cheap money. > > > > I firmly believe that anyone who has the wherewithall to gamble enough each year to have it matter on their taxes should be itemizing, barring an extremely odd one-time aberration.> > > > The personal exemption for 2007 per person was $5350, or $10,700 for a married couple. $2K in reported gambling income that can be offset by itemizing losses takes you down to $8700.00 needed to make itemization the smart move. If you own your home, you're paying property taxes on it -- in most cases that's going to be at least $1000, and likely far more (depending on your state, county, city). Back that off that $8700, and you're likely under $7000.00 Subtract your state income tax from that total -- again, quite likely measured in the thousands -- and you're likely under $6000.00. Now back-out your sales tax for the year from that total -- depending on your state, that could range from a couple hundred to several thousa> Sales taxes have been virtually eliminated as a deduction for years.>Don't medical bills have to exceed some min percent before they can be deducted also?

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To: vpFREE@yahoogroups.comFrom: deuceswild1000@yahoo.comDate: Mon, 5 Jan 2009 02:37:22 +0000Subject: [vpFREE] Re: another W2G question...

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#25

In some states, only. Ours was re-instated a couple of years ago.

..... bl

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--- In vpFREE@yahoogroups.com, MHS <mspevack@...> wrote:

David Silvus wrote:

Sales taxes have been virtually eliminated as a deduction for years.

#26

--- In vpFREE@yahoogroups.com, "deuceswild1000" <deuceswild1000@...>
wrote:

Don't medical bills have to exceed some min percent before they can
be deducted also?

Medical Expenses must be an amount greater than 7.5% of your Adjusted
Gross Income to be a deductible expense.

Neil M.

#27

Yes, 7% of adjusted gross income.

            --- In vpFREE@yahoogroups. com, MHS <mspevack@.. .> wrote:

Don't medical bills have to exceed some min percent before they can

be deducted also?

[Non-text portions of this message have been removed]

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--- On Sun, 1/4/09, deuceswild1000 <deuceswild1000@yahoo.com> wrote:

#28

My point exactly. If you are relatively hapy and have your health care
premiums paid by employer or others, there is not much to claim.

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--- In vpFREE@yahoogroups.com, Robert Romanyshyn <bobfpdw@...> wrote:

Yes, 7% of adjusted gross income.

#29

--- In vpFREE@yahoogroups.com, "deuceswild1000" <deuceswild1000@...>
wrote:

>
> Yes, 7% of adjusted gross income.

My point exactly. If you are relatively hapy and have your health

care

premiums paid by employer or others, there is not much to claim.

hapy = healthy

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--- In vpFREE@yahoogroups.com, Robert Romanyshyn <bobfpdw@> wrote: