I want to claim 7 allowances, my payroll manager said that was an awful lot. She would not offer any "adivse" or help to determine the number. So am I crazy? Perhaps someone out here can help me out…

I am filing jointly.
I make 000 with 00 annual bonus
My wife makes 000 with no regular bonus
No significant dividends, interest, etc.

Itemized Deductions:
000 Total Mortgage Interest for the year
00 Property Tax
0 Ad Volerum Tax (My State’s "Birthday" Tax)
00 State Tax
0 Charity
0 Car Loan Interest (does this even qualify?)
00 Business Mileage (this was reimbursed, do I still use it?)
00 Health Insurance (this may be pre-taxed?)
50 My 401K contribution (this may be pre-taxed?)
50 My Wife’s 401K contribution (again might be pre-taxed?)
No Children

I am guessing whatever the magic number is that I would do that only one W4, and would claim 0 on the other form…
In response to the third reply:

I was under the impression that deductions were most definitely revelant to Allowances you would claim. Is this not true? Isn’t the point to claim enough allowances so that you are very close to what you actually owe at the end of the year after deductions and credits.

Also, I was about 99% sure the Car Loan, Mileage, 401K, and Health Insurance did not qualify. I just wanted to check.

Proposed taxes and increases.
1.25 percent tax on their property insurance to pay for firefighting in areas prone to wildfires. This tax would be imposed on every homeowner, even those who do not live in wildfire areas. This would be a 5 million tax increase.

Democrats want to create a new split-roll property tax on businesses, which would be a billion to billion tax increase. Businesses would pay higher taxes on offices, warehouses, and storefronts by either paying a higher tax rate, having their property assessed at a higher value, or having their property reassessed more often.

They have suggested reducing the child dependent tax credit, which would be a .4 billion tax increase on families with children and eliminating the senior citizen tax credit, which would be a 5 million tax increase. They have also suggested eliminating the homeowners mortgage interest deduction, which will affect every California homeowner.
Also a .80 cent tax on a 6pack of beer…a 25 cent tax on grcery bags.
This is just a few of the new taxs they want to cover the budget problem….they are also proposing a 1 percent tax on Ipod downloads.

For 50 years the Left had its New Deal – disguised as a program to help the needy, this was a game of economic chairs – yes there were handouts but they were paid for via a graduated tax system the macroeconomic effect of which was to prevent most people from getting ahead, thus keeping them dependent on these handouts.

For 25 years we’ve chipped away at this – we’ve cut the marginal rates on individuals’ wages and their investment income and enlarged deductions and reduced rates for businesses. The result is that the proportion of the population that is financially independent of government – that is not one bad event away from needing one of those handouts – has grown dramatically.

The Leftists have fought this every step of the way and failed.

They realize that it is too late to put this cat back in the bag. They cannot reverse history. They cannot put us back into a situation where a majority of us are financially dependent upon government thus forced to vote for government largesse. They cannot make it the case that for most of us, one bad event puts us on the dole.

But it remains the case that any of us, at any time, could become sick or injured, and so they are attempting to use that potential dependence, rather than financial dependence or the threat of it, as their leverage to grow government and to foster dependence upon it.
Outcrop the health insurance companies will be the beneficiaries of government-run healthcare – - – they will get new subscribers whose bills will be paid on time – just not by those subscribers, rather by the rest of us.
Outcrop the health insurance companies will be the beneficiaries of government-run healthcare – - – they will get new subscribers whose bills will be paid on time – just not by those subscribers, rather by the rest of us.

And my situation is a little bit more complicated. Maybe somebody can answer these questions, too?
I worked for W-2 almost all year and then I started my own little business on March of 2007, so then I worked for 1099. My annual income with W-2 and 1099 is around 000. My wife goes to college and she pays for her education and books herself and her income is way less, than mine, and she works for W-2. Besides that I got a loan on a car which I mostly use for my business, and I’ve got many other deductions I can claim. The total for my deductions is around 000. My other questions are:
- Is it better for me and my wife to file separately or jointly?
- Can I deduct car payments? Or I can only deduct insurance, miles, interest I paid and other expenses?
- Is it worth going to some private tax adviser? Where can I expect more help from: H&R Block, or some retired IRS agent?
- I was told that if I deduct more that 40% of my income, it’ll be very suspicious. But what if I really can?

My husband has been with the same employer for 15 years. They started with over 50 employees and today they are down to just the owner and my husband. My husband has been managing the business and working and getting a set salary. The owner does not want to shut down the business but the overhead is getting high (the rent was raised 5 times higher at Jan 2009 which really hurt). The owner does not want to loose my husband and has offered to give him work and 1099 him, This would mean eliminating insurance, WC, and the high rent. He will lease my husband a company truck (for a month) and refer the work to my husband and pay him has an independent contractor. My husband’s employer gave him extra money to get a business licences. His job currently does not provide any sort of life/health/retirement benefits just a salary. I carry the health coverage and we have a retirement set up privately.

Besides the tax (increased SS and Medicare deductions) is there anything else that is bad about being an independent contractor compared to the previous salary position he had.

Local jobs are hard to come by and we have a disabled child and hate to move. The only other option is a job that is salaried which would mean my husband traveling 3-4 days a week out of town, which would be stressful.
The work has been steady, just the overhead is high. It is the oldest business of its kind in our city and they have alot of repeat customers Ovehead went from 4k a month to 13k and for having one employee 13k a month is alot to pay. They still have average 15k month in profit, but after 13k overhead does not leave enough with 4k it was fine.
One person in our city bought up most of the prime downtown and that is when the rent raised. It took 4 months to get a slightly smaller place but it was still higher rent. The owner also stated that if the situation changed, he would bring him in as a partner or re-instate the salary. I have no reason to not believe the owner. Several times there were smaller financial issues with the company and the owner always paid the employees and did not draw his own salary.

I posted this 1/21/08 under business/other/taxes..I didn’t received any answers. Please help if you know….

I had to hire an attorney to get my Social Security. She was paid if it was approved. I paid her, rather ,000. plus was deducted for her payment. The IRS says that was not deductible. So I paid taxes on the total back pay.
Is this right?
I also want to know if my medical insurance payment is deductible. I don’t have the 5 or 7500. that is required. My Medicare plus part D is 0, plus per month, also a group insurance is 0. plus. My co-pay for medicine is 0. plus every 3 month. When one of us is hospitalized, we have a copay.
My husband and I file jointly. I feel that some where there should be a deductible for us. Without the group insurance payment we would far exceed the amount to have deductions, and be totally broke.
We both have spinal problems. My spine is deteriating and we would like to be able to do something outside to make an easier access for me to get in and out of the house. We simply can’t afford to.
Do disabled retires have any deductibles?

I posted this 1/21/08 under business/other/taxes..I didn’t received any answers. Please help if you know….

I had to hire an attorney to get my Social Security. She was paid if it was approved. I paid her, rather ,000. plus was deducted for her payment. The IRS says that was not deductible. So I paid taxes on the total back pay.
Is this right?
I also want to know if my medical insurance payment is deductible. I don’t have the 5 or 7500. that is required. My Medicare plus part D is 0, plus per month, also a group insurance is 0. plus. My co-pay for medicine is 0. plus every 3 month. When one of us is hospitalized, we have a copay.
My husband and I file jointly. I feel that some where there should be a deductible for us. Without the group insurance payment we would far exceed the amount to have deductions, and be totally broke.
We both have spinal problems. My spine is deteriating and we would like to be able to do something outside to make an easier access for me to get in and out of the house. We simply can’t afford to.
Do disabled retires have any deductibles?

I am contemplating shutting down my sole proprietorship and joining another company as a W2 employee.

Having my own business affords me some benefit in the form of deductions/expenses (i.e. I deduct a portion of our mortgage for home office, one of our cars, gas, insurance etc.)

In closing up shop and joining another company, is there a way that I can continue to take some of these deductions (a portion of mortgage, phone bill etc.)? Or does the fact that I no longer have my own formal company preclude me from such deductions when I file my income taxes?

Christina makes quilts for her home business
she uses 10% of the total square footage of their home
expenses related to operating the entire home include utilities 2k; insurance, 500; depreciation attributable solely to the home office is 800.

christina computes her deduction relating to the use of car using actual expenses gas and oil 900; insurance 300; and repairs 100. The car is fully depreciated. Her daily diary revealed that, for the year, she had driven a total 20000 miles, including the following trips

Home to sales outlets and return…….10k
Between sales outlets……………………2k
Misc. Personal Trips……………………..8k

I dont understand this, please help–
thanks!
Thanks Rudolph, but that didnt help me

I’m really discombobulated, I dont even know how to begin the problem.

Gary Benton’s gross weekly salary is 1.00. His weekly federal withholding is .18. The Social Security tax is 6.2 percent of the first ,000.00. The Medicare tax is 1.45 percent of gross pay. The state tax is 1.5 percent of gross pay. Each week he pays .40 for medical insurance. What is Gary’s total deduction?