I’m 22 and a full time student (16 credits). I pay for my own tuition, books, and other misc. school expenses. I also pay a relatively small monthly "boarding fee" to live at home. My parents are dropping me from their insurance this month. I teach music lessons to get through school and have made close to 10K while taking 16 credits. Can they feasibly claim me as a dependent and keep taking tax reducing "education credits" for me? It doesn’t seem to be adding up. I don’t qualify for medicaid and will have to go without insurance. I also pay my own car bill and car insurance.
It seems to me that this year I should be filing as an independent? It is my concern that because I have made 10K, that should they make me file as a dependent I will need to pay more in taxes than if I filed as an independent? I’ve kept good business logs and think with proper deductions I’d pay a lot less as an independent.
Thanks so far everyone. As far as food and clothes go…that is all me. I usually cook for everyone when I am around. Most of what I eat at the house is breakfast, and even with that if we are out of something I go buy it. I didn’t think I had to make an issue out of it until this. Market value for the room is definitely fair game for them (I pay 200 a month for a room in a 4 bedroom house)…but how many people do you know that would move into a house with 3 other people and live in close quarters? I’ve rarely seen that when I was looking for places, and even then it was an elderly person looking to give board to a yardsman. I’d think it would be a conflict of interest with a teenage daughter in the house? I’ll check out that sheet.

Obama:
Will cut taxes but when it expires, average US family will pay ,500 more in taxes. (CNN and MSNBC never makes it known)

The Child Tax Credit will decrease from ,000 to 0 a child

Income tax rates would rise around 3%-4.5%

AMT-Exemptions will decrease ,500 per filer

Business tax expenses- Maximum deduction amount will decrease ,000,from 0,000 to ,000

Capital Gains- Rates will rise 10%-20%

Income tax burden-will raise about 5% for many workers

Marriage penalty created

Dividends-rates to increase from 15% to 40%

50% average increased tax rates on lower income houses

He may not raise taxes on average American, but by allowing tax cuts to expire, will raise household expenses on an average family.

MCCAIN:

Wi make the Bush tax-cut permanent. And will add additional tax cuts for middle-class Americans.

Entrepreneurs are at the heart of American innovation, growth and prosperity. Entrepreneurs create the ultimate job security – a new, better opportunity if your current job goes away. Entrepreneurs should not be taxed into submission. John McCain will keep the top tax rate at 35 percent, maintain the 15 percent rates on dividends and capital gains, and phase-out the Alternative Minimum Tax. Small businesses are the heart of job growth; raising taxes on them hurts every workers.

To all those who believe that Obamwill "never" raise taxes but rather will cut taxes- Yes he will cut our taxes but when his tax cut plan has expires, we will pay for higher taxes than we pay now..

HENCE, his plan of cutting taxes is just a POLITICAL STRATEGY and not a real rescur for every American families.

MCCAIN’s tax cut policy is permanent, and perhaps the biggest tax cut in history as Alan Greenspan says.

-from an ECONOMICS student.

I went to the ford website and the label the epa mpg as "NA" apparently trucks over 10,000 lbs are not required to have epa tests. Why I have no idea. here is the link to see for yourself

http://www2.showroom.fordvehicles.com/Showroom.jsp?space=Trucks

I’ve looked allover the internet and can’t find the mpg for this truck can someone help me? possibly give me links to reputable websites. I’ve manged only to get ads for adds for edmunds used cars and dealer websites selling the truck . I want to know what the gas mileage is. I use it for work and I don’t mind a truck aslong as I’m getting atleast 15mpg city and 20,mpg highway. I don’t have any family I’m single and I use the truck for business expenses so the tax deductions will make it cheaper for me to just own a truck with an extended cab for driving multiple people. instead of having a piece of crap truck and a car all at once.

I’m curious for future business planning.

Lets say I start a business this year. I spend 00 on a computer and supplies and only have a total of 50 in money come back.

Is 50 part of my AGI? I haven’t exactly "earned" 50 because I spent 00. I only "made" 0.

I suppose what I’m wondering is do deductions come off my AGI?

Thanks.
Yes I know I’ll owe on the 0 let’s say, but would 50 be added to my AGI?

I purchased about 00 in business equipment in 2008. I understand I can claim the 00 under Section 179. But a recent change in the tax law for 2008 allows 150% "bonus" depreciation on business equipment. Does this apply? Can I claim 00 of depreciation vs. 00 because of this new tax law?
Why? Who does the bonus depreciation law apply to?

And the same for Medicare "Part D" Drug prescription coverage premiums?
I am on disability, and normally would not have to file income tax for that reason, but this year I became a landlord, renting out my old house…moved to an apartment due to the disabilities, so I have to declare that income, (which isn’t MUCH at all, after paying the mortgage) so I may as well take all the medical expense deductions that I can while I am at it, right? And believe me, Medicare takes a HUGE chunk every month for these premiums from my disability check! Seems I should be entitled to using those as deductions on my income tax return. Also, I attempted to open up a small at home web business this year, since I am disabled….and that investment was large…..can I deduct that as a business expense? (The company has not made any sales yet) Please answer only if you have had expert experience in government tax laws. I want to do things correctly, but also want all the deductions available to meThanks

Child care expense are usually tax-deductible as long as a registered provider caring for the baby. But in my case, my wife’s friend is caring for our baby. We pay her 0 a month. Since, she is not a "registered" business, is my spending still tax-deductible?

2008 was my first year of working from home. Now that tax time has rolled around I am unclear on if I can deduct certain expenses from from my taxes.

My biggest question is how do I know if I qualify or not? I am an employee of a company and I constantly read about this following language:

"In addition, if you work as an employee you can claim this deduction only if the regular and exclusive business use of the home is for the convenience of your employer and the portion of the home is not rented by the employer."

What does this mean exactly? I understand the first part about the using your office space for only work related matters. I am unclear on the part about my employer and what that means.

Any help would be appreciated. I already understand what I can deduct if I qualify and how my office space must be used only for work related matters.

2008 was my first year of working from home. Now that tax time has rolled around I am unclear on if I can deduct certain expenses from from my taxes.

My biggest question is how do I know if I qualify or not? I am an employee of a company and I constantly read about this following language:

"In addition, if you work as an employee you can claim this deduction only if the regular and exclusive business use of the home is for the convenience of your employer and the portion of the home is not rented by the employer."

What does this mean exactly? I understand the first part about the using your office space for only work related matters. I am unclear on the part about my employer and what that means.

Any help would be appreciated. I already understand what I can deduct if I qualify and how my office space must be used only for work related matters.

It’s common for business owners to deduct certain expenses such as car mileage etc. Can the business owner still claim the deduction if some of the mileage was driven on his or her spouse’s car (for instance because the main "business car" was stuck in the shop waiting for a part for a few weeks, the business had to be run on the family car for a while). Thanks
Assume there is full documentation for everything. I’m just trying to determine whether the technicality of whose name is on the car title (business-owner or spouse) matters at all.