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The Internal Revenue Service isn't particularly generous toward single taxpayers who have no children or other dependents and who aren't homeowners.
If you fall into this category, you'll pay taxes on a lot of the money you earn. If you choose to itemize your taxes, you can qualify for a few deductions, but taking them might not save you tax dollars. The Internal Revenue Service gives taxpayers the option of claiming a standard deduction or itemizing several other available deductions. You can't do both. If you don't have this much in itemized deductions, you'll pay taxes on more income if you itemize. Both the standard deduction and itemized deductions come off your taxable income, reducing it.
Most taxpayers use the standard deduction, but you'll want to choose the option that lowers your taxable income the most. If you elect to itemize your deductions, you can subtract from your income some of the money you spend for medical care, dental care and health insurance premiums. Your total medical deductions must add up to more than 7.
For example, if 7. You can only deduct your insurance premiums if you pay them yourself; anything your employer contributes doesn't count. Whether you're self-employed or work for an employer, you can deduct some costs of working or doing business. If you're self-employed, you can deduct a wide array of business costs, and you can take the standard deduction as well. Your business-related deductions are listed on Schedule C, not as regular itemized deductions on your return.
If you work for someone else, your deductions are limited to unreimbursed expenses you incur in doing your job that add up to more than 2 percent of your AGI. Mileage is deductible for both self-employed and employed taxpayers, but it doesn't include commuting. Miles you drive to get to your place of business or employment don't count. If you're detail-oriented and don't mind saving up all your receipts for the year and tallying up the sales tax portions, you can deduct this as well.
Both state and local sales taxes are deductible when you itemize, as well as any taxes you pay your state for your vehicle. You can also deduct what you paid in state income tax.
However, you have to make a choice. If you deduct the sales taxes you paid during the year, you can't deduct your income tax as well. If you're the generous sort and if you itemize your deductions, you can include any charitable contributions you make during the tax year.
The IRS imposes some rules, however. You must make the gift to a qualified charitable organization, not to a friend, family member or other individual. If you receive anything in return for the gift, you must subtract its fair market value from your donation.
Beverly Bird has been writing professionally since She is the author of several novels including the bestselling "Comes the Rain" and "With Every Breath. She covers many legal topics in her articles. Itemizing deductions can be time-consuming and might not pay off. The Standard Deduction The Internal Revenue Service gives taxpayers the option of claiming a standard deduction or itemizing several other available deductions.
Medical Deductions If you elect to itemize your deductions, you can subtract from your income some of the money you spend for medical care, dental care and health insurance premiums. Business and Employment Expenses Whether you're self-employed or work for an employer, you can deduct some costs of working or doing business. Taxes If you're detail-oriented and don't mind saving up all your receipts for the year and tallying up the sales tax portions, you can deduct this as well.
Charitable Contributions If you're the generous sort and if you itemize your deductions, you can include any charitable contributions you make during the tax year. Video of the Day. Brought to you by Sapling.
Itemized or Standard Tax Deduction? About the Author Beverly Bird has been writing professionally since More Articles You'll Love. Tax Deductions on Stocks Donated to Charity.
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"In the last tax year men paid £92 billion in income tax whereas women paid £ billion, which is 60% less." Harriett Baldwin MP, West Worcestershire, House of Commons, February 8, There are more women in the workforce than ever before, and yet they still contribute 60% less in income tax than men. Under a global income tax, income is agg re-gated and typically only one schedule of tax rates applies to it. In contrast, under a schedular system, each type of income faces a different schedule of tax rates. Global income taxes have typically been the source of gender bias and the focus of efforts to eliminate it, particularly in indus-trial countries. Your tax bracket can be used to estimate the amount of additional tax you’ll pay if your income increases — or the amount you’ll save if you can claim a deduction. If you’re in the 25% tax bracket you can expect to pay about $ additional tax if you have $1, additional taxable income.