April 19th, 2010
I am using the Tax Cut software this year to do my taxes. After entering all my W2 info and all my itemizations, the software said I could not use my mortgage interest as a deduction because of my adjusted gross income level. I did some non detailed research on the web and couldn’t find anything that showed income (AGI around 0k) being a limitation on my deductions. (in addition, my tax credit for my kid also is being denied per the software). Can someone help me understand if this is correct??? Do i still get the deductions no matter what my AGI is???
March 6th, 2010
All the invoices have her name as the patient and she is not being claimed by anyone.
I should have been more clear, she actually did pay for the expenses by reinbursting me. It’s just that I handle the expenses. I also realize it’s a moot point because I heard that it must exceed 7.5% of AGI, which it does not.
Thanks again for the reply anyway.
February 28th, 2010
My consulting business did well enough this year that I had a bit of money due to the IRS. I planned on setting up an IRA this year since I’m in my mid-twenties. I like the tax-free potential of the Roth, but I also need to lower my AGI this year. Would it make sense to open and contribute a portion of my wages to a traditional account and deduct what I need to break even on taxes, and throw the rest into a Roth account? Not exceeding the ,000 limit on contributions of course… The fees on the accounts should be negligable, considering that I’m working primarily with an Internet broker.
25% is my current tax bracket.