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Truck Driver Tax Deductions

Truck drivers can claim a variety of tax deductions while on the road. Mileage, daily meal allowances, truck repair (maintenance), overnight hotel expenses, and union dues are some of the tax deductions available. However, local truck

What are the qualifications for "miscellaneous deductions"?

for investments. * Excess deductions (including administrative expenses) allowed a beneficiary on termination of an estate or trust. * Fees to collect interest and dividends. * Hobby expense, but generally not more than hobby income

Virginia Deductions from Income

The following entries show as deductions on your return. Please note the Code number on the item, as this will appear on your VA 760-CG under Deductions Foster Care Deduction – Code 102 Foster parents may claim a deduction of $1,000

Connecticut Deductions From Income

Exempt Dividends From Certain Qualifying Mutual Funds Derived From U.S. Government Obligations Enter the total amount of exempt dividends received from a qualifying mutual fund that are derived from U.S. government obligations. A mutual fund is a qualifying fund if, at the close of each quarter of its taxable year, at least 50% of the value of its assets consists of U.S. government obligations. The percentage of dividends that are exempt dividends should be reported to you by the mutual fund. Do not enter the amount of dividend income derived from Federal National Mortgage Association (Fannie Mae) bonds, Government National Mortgage Association (Ginnie Mae) bonds, and Federal Home Loan Mortgage Corporation (Freddie Mac) securities. Federal law does not prohibit states from taxing income derived from these obligations, and this income is taxable for Connecticut income tax purposes. Example : A qualifying mutual fund pays a dividend of $100. Of the distribution, 55% is attributable to U.S. Treasury bills and 45% to other investments. The amount reported is $55. Tier 1 and Tier 2 Railroad Retirement Benefits and Supplemental Annuities If you received Tier 1 or Tier 2, or both, railroad retirement benefits or supplemental annuities during 2014, you may deduct the amount included in your federal adjusted gross income but only to the extent the benefits were not already subtracted from federal adjusted gross income on Line 42 (Social Security Benefit Adjustment). Enter the balance not already subtracted of Tier 1 and Tier 2 railroad retirement benefits reported on federal Form 1040, Line 16b or Line 20b, or federal Form 1040A, Line 12b or Line 14b. Likewise, enter the amount of railroad unemployment benefits, including sickness benefits paid by the Railroad Retirement Board (RRB) in lieu of unemployment benefits, to the extent included in your federal adjusted gross income. However, do not enter sickness benefits paid by the RRB resulting from an on-the-job injury because these benefits are not included in your federal adjusted gross income. Beneficiary’s Share of Connecticut Fiduciary Adjustment If you have any income from an estate or trust, your share of any Connecticut modifications (that is, your share of the Connecticut fiduciary adjustment) that applies to the income will be shown on Schedule CT-1041B, Part 1, Column 5. Your share of these modifications should be provided to you by the fiduciary. If you are a beneficiary of more than one trust or estate, enter the net amount of all modifications. Gain on Sale of Connecticut State and Local Government Bonds Enter the total of all gains from the sale or exchange of notes, bonds, or other obligations of the State of Connecticut or its municipalities used to determine gain (loss) for federal income tax purposes. Connecticut Higher Education Trust (CHET) Contributions Enter your contributions to a CHET account(s). The modification cannot exceed the maximum allowable contribution. The maximum CHET contribution that may be subtracted is the lesser of: 1. the amount of contributions to all CHET accounts during the taxable year; or 2. (A) $5,000 for each individual taxpayer (including individuals whose filing status on their Connecticut income tax return is single, head of household, filing separately or (B) $10,000 for individuals whose filing status on their Connecticut income tax return is filing jointly or qualifying widow(er) with dependent child. If your CHET contribution during the taxable year exceeds the maximum CHET contribution, the excess may be carried forward for the five succeeding taxable years provided the CHET contribution carried forward and subtracted from federal adjusted gross income of the succeeding taxable years does not exceed the maximum CHET contribution. CHET contributions made in the current taxable year are used before using any carryover from prior years. Enter the CHET account number in the space provided. If you made contributions to more than one account, you enter only one account number. 100% of Military Retirement Pay For taxable years beginning on or after January 1, 2015, one hundred percent (100%) of military retirement pay is exempt from Connecticut individual income tax. Subtract income received as military retirement pay, to the extent included in federal adjusted gross income, if you are a retired member of the armed forces of the United States or the National Guard (retired military member) or if you are a beneficiary receiving survivor benefits under an option or election made by a deceased retired military member. Payments received by a former spouse of a retired military member, under a final decree of divorce, dissolution, annulment, or legal separation or a court ordered, ratified, or approved property settlement incident to a decree dividing military retirement pay, do not qualify for the military retirement pay exclusion. Other Subtractions from Income 1. Subtract any income or gain of an enrolled member of the Mashantucket Pequot Tribe who resides in Indian country of such tribe or any income or gain of an enrolled member of the Mohegan Tribe who resides in Indian country of such tribe where the income or gain is derived from or connected with Indian country of the tribe. Enter the words “Mashantucket Pequot Tribe enrolled member” or “Mohegan Tribe enrolled member,” as the case may be. 2. Subtract the amount of interest earned on funds deposited in a Connecticut individual development account to the extent included in federal adjusted gross income. 3. Subtract any interest paid on indebtedness incurred to acquire investments that provide income taxable in Connecticut but exempt for federal purposes that is not deductible in determining federal adjusted gross income, and is attributable to a trade or business of that individual. 4. Subtract expenses paid or incurred for the production (including management, conservation, and maintenance of property held for production) or collection of income taxable in Connecticut but exempt from federal income tax that are not deductible in determining federal adjusted gross income, and are attributable to a trade or business of that individual. 5. Subtract the amount of any distributions you received from the CHET fund as a designated beneficiary to the extent includable in your federal adjusted gross income. Congress passed legislation excluding from federal gross income any distribution from a qualified State tuition program (such as CHET) to the extent the distribution is used to pay for qualified higher education expenses (Pub. L. No. 107-16, §402). To the extent any distribution from CHET is excluded from federal gross income, the amount should not be reported as a subtraction modification. 6. Subtract any amortizable bond premium on bonds that provide interest income taxable in Connecticut but exempt from federal income tax, which premiums were not deductible in determining federal adjusted gross income and are attributable to a trade or business of that individual. 7. Subtract the amount of any interest income from notes, bonds, or other obligations of the State of Connecticut included in federal adjusted gross income. This modification includes any Build America Bond tax credit amount if the Build America Bond, as described in Section 1531 of the American Recovery and Reinvestment Act of 2009 was issued by the State of Connecticut or a Connecticut subdivision and only to the extent the credit amount is treated as interest included in gross income for federal income tax purposes. 8. Subtract the amount of any interest, dividends, or capital gains earned on contributions to accounts established for a designated beneficiary under the Connecticut Homecare Option Program for the Elderly to the extent the interest, dividends, or capital gains are properly included in the gross income of the designated beneficiary for federal income tax purposes. To view the 2015 Form CT-1040 instructions click here

Federal Section > Deductions > Adjustments

Adjustments are certain expenses which can directly reduce your total income. This is where you will enter information for your: · Medical Savings Account (Form 8853) · Educator Expenses · Expenses for Reservists and Performing Artists · Health Savings Account (Form 8889) · Moving Expenses · Contributions to SEP, Simple and Qualified Plans · Self-Employed Health Insurance · Penalty on Early Withdrawal · Alimony Paid · IRA Deduction · Nondeductible IRAs · Student Loan Interest Deduction (1098 E) · Tuition and Fees Deduction (1098 T) · Domestic Production · Other Adjustments- including Amortization Deduction for Reforestation Costs, Trade Readjustment Allowance, Jury Duty Pay, Section 501 (c) (18) Plan, Personal Property Rental Expenses, Contributions by certain chaplains to 403b plans, and certain attorney fees (see 1040 instructions).

Federal > Deductions > Standard Deduction

The IRS allows every taxpayer, based on your filing status, to deduct a flat dollar amount from your Adjusted Gross Income (AGI). 2015 Standard Deduction Amounts: Single or Married Filing Separate (MFS) $ 6,300 Married Filing Joint (MFJ) or Qualified Widow(er) $12,600 Head of Household (HOH) $ 9,250 2014 Standard Deduction Amounts: Single or Married Filing Separate (MFS) $ 6,200 Married Filing Joint (MFJ) or Qualified Widow(er) $12,400 Head of Household (HOH) $ 9,100 Additional age 65 or older, or blind, per person, per event: MFJ, QW, or MFS $ 1,200 Single or HOH $ 1,500

Federal Section > Deductions > Credits

A credit reduces the actual amount of your tax bill, dollar for dollar. In the Credits Section you will be able to enter: · Foreign Tax Credit · Child Care Credit · Education Credits · Retirement Savings Credit · Residential Energy Credit · Adoption Credit · DC First-Time Homebuyer Credit · Mortgage Interest Credit · Earned Income Credit · Credit for the Elderly or Disabled · Alternative Motor Vehicle Credit (Hybrid Cars) · Qualified Electric Motor Vehicle Credit · Small Employer Health Insurance Credit · Credit for Federal Tax Paid on Fuels

Please explain deductions and credits that are available related to Education.

tuition and fees. For more information: Tax Benefits for Education Claiming Education Credits vs. Deductions How do I report qualifying education expenses that I paid with a 1099-Q distribution?

Where do I enter mortgage interest?

From the Your account page, select Federal Section > Deductions > Enter Myself > Itemized Deductions > Mortgage Interest and Expenses For more articles and information on mortgage interest click here

Please explain deductions that are available related to Medical Expenses.

Medical and dental expenses, such as doctor visits, health insurance, glasses, etc.: Generally, you are allowed a deduction for most of the medical expenses that you paid during the tax year. However, you cannot include any part of the expenses that were paid by an insurance company or other source. You can generally include the qualifying expenses that you paid for yourself, your spouse, and all dependents that are being claimed on your return. Common expenses include: * Medical and dental insurance * Amounts paid to doctors and dentists * Prescriptions * Medical aids such as eyeglasses, hearing aids, crutches, and wheelchairs * If you used your own car, you can even claim certain vehicle expenses that you paid to go to and from the place you received the care. For additional information, click here . Health Savings Account: A Health Savings Account (HSA) is a tax-exempt trust or custodial account that you can set up to help pay for medical expenses that you may incur throughout the year. Any contributions that you make to an HSA during the year are generally deductible. If you made contributions to an HSA, you should receive a Form 5498-SA listing your contribution information. You will know it is for an HSA because the HSA box will be checked in box 6. The IRS also requires that you report any distributions that you received from your HSA during the year. If you withdrew money from your HSA, you should receive a Form 1099-SA with the amount of your withdrawals. You will know it is for an HSA because the HSA box will be checked in box 5. Medical Savings Account: A Medical Savings Account (MSA) is another type of tax-exempt account that you can set up to help pay medical expenses that you may incur throughout the year. It is similar to an HSA. Any contributions that you make to an MSA during the year are generally deductible. If you made contributions to an MSA, you should receive a Form 5498-SA listing your contribution information. You will know it is for an MSA because the Archer MSA box or the MA MSA box will be checked in Box 6. The IRS also requires that you report any distributions that you received from your MSA during the year. If you withdrew money from your MSA, you should receive a Form 1099-SA with the amount of your withdrawals. You will know it is for an MSA because the Archer MSA box or the MA MSA box will be checked in box 5. Health Insurance for Self-Employed Individuals: If you were self-employed, you may be able to deduct any amounts that you paid to provide health insurance for yourself, your spouse, and/or your dependents. To qualify for the deduction: * Your business must have had a net profit for the year and * The insurance plan must be established under your business.