Front Page of 2008 IRS 1040 Book

[NickD 202]

IRA Deduction Increased

"You and your spouse, if filing jointly, may each be able to deduct up to $5,000 ($6,000 if age 50 or older at the end of 2008)."

Can anyone explain how to get that deduction? Didn't spend hours trying to find that, but on the 1040 form, only thing I could find to get an extra deduction besides the long time standard of $3,500 per person if we were both over 65 years of age and legally blind.

Standard Deduction For Real Estate Taxes and Disaster Losses

"You may be able to increase your standard deductionby state and local real estate taxes you paid and certain disaster losses."

I gather filing jointly you get $10,900 for a standard deduction, and if paid more than $1,000 in real estate taxes, can add another $1,000 to that for a total standard deduction of $11,900.00. Helps a little, but can't even remember when my property taxes were below a thousand bucks, but maybe when we were all living in teepee's.

First-Time Homebuyer Credit

"If you bought a home after april 8, 2008, you may be able to take this credit."

Doesn't apply to us.

Recovery Rebate Credit

"This credit is reduced by any economic stimulus payment you received."

We did get that $1,200 check that we used to offset a part of our 2007 taxes, do we have to pay tax on that?

We also sent a check to our state university for about $6,000 for our daughters college tuition, this is basically to cover the increase in tuition due to lack of return funds from the federal government. Is this deductible for us?

See we have some tax experts here, any help would be deeply appreciated.

No problems where to send our cash, guess Kansas City is out, Ohio is getting our cash this year.

[Jasman0717 9]

You have to put money into an IRA to get the deduction. 401K and 457 plans are up to 22k if you are over 50.

[NickD 202]

You have to put money into an IRA to get the deduction. 401K and 457 plans are up to 22k if you are over 50.

Did read pages 30-33, now I have to soak my head in a bucket of ice water before it explodes. Who writes that stuff?

[The Molinas 0]

IRA Deduction Increased

"You and your spouse, if filing jointly, may each be able to deduct up to $5,000 ($6,000 if age 50 or older at the end of 2008)."

Can anyone explain how to get that deduction? Didn't spend hours trying to find that, but on the 1040 form, only thing I could find to get an extra deduction besides the long time standard of $3,500 per person if we were both over 65 years of age and legally blind.

You might be able to deduct up to $5,000 if you made qualifying contributions to and IRA during 2008 OR still planning on making catch up contributions to an IRA until april 15th 2009.

the $3,500 per person refers to the personal exemption amount. (it was raised from $3,400 to $3,500 for the 2008 tax return)

Standard Deduction For Real Estate Taxes and Disaster Losses

"You may be able to increase your standard deductionby state and local real estate taxes you paid and certain disaster losses."

I gather filing jointly you get $10,900 for a standard deduction, and if paid more than $1,000 in real estate taxes, can add another $1,000 to that for a total standard deduction of $11,900.00. Helps a little, but can't even remember when my property taxes were below a thousand bucks, but maybe when we were all living in teepee's.

this is referring to the Housing and Economic Recovery Act of 2008. (NEW for 2008)

it is for taxpayers who DO NOT itemize (file Schedule A). If you itemize to claim other deductions such as mortgage interest, medical expenses you can't get that credit!

Taxpayers who don’t itemize may claim a deduction for state and local property taxes in adddition to standard deduction.

Maximum is limited to the lower of $500 ($1,000 MFJ) or the actual amount.

Edited January 21, 2009 by The Molinas

[The Molinas 0]

as far as i know, the stimulus payment is not taxable.

The taxpayer’s actual recovery rebate credit will be based on their 2008 tax return and will be calculated when they file their 2008 tax return.

Because the stimulus payment was an advance, some taxpayers received an amount that exceeds the recovery rebate credit for which they will actually qualify and others received less

Taxpayers who received a stimulus payment that is greater than the actual recovery rebate credit for which they qualify will not be required to repay any excess amount.

Other taxpayers received a stimulus payment less than the actual recovery rebate credit for which they qualify. These taxpayers will claim the difference as a refundable credit on their 2008 tax returns.

[doodlebugg 10]

IRA Deduction Increased

"You and your spouse, if filing jointly, may each be able to deduct up to $5,000 ($6,000 if age 50 or older at the end of 2008)."

Can anyone explain how to get that deduction? Didn't spend hours trying to find that, but on the 1040 form, only thing I could find to get an extra deduction besides the long time standard of $3,500 per person if we were both over 65 years of age and legally blind.

Someone already answered but you have to contribute to your IRA to get the deduction.

Standard Deduction For Real Estate Taxes and Disaster Losses

"You may be able to increase your standard deductionby state and local real estate taxes you paid and certain disaster losses."

I gather filing jointly you get $10,900 for a standard deduction, and if paid more than $1,000 in real estate taxes, can add another $1,000 to that for a total standard deduction of $11,900.00. Helps a little, but can't even remember when my property taxes were below a thousand bucks, but maybe when we were all living in teepee's.

Chances are if you have a house, you're paying a mortgage and if you're paying a mortgage you're most likely going to take the itemized deduction instead of a standard one. In that case you'll be able to deduct the entire amount that you've paid in 2008 for real estate taxes as well as what you've paid in interest on your mortgage during 2008.

We also sent a check to our state university for about $6,000 for our daughters college tuition, this is basically to cover the increase in tuition due to lack of return funds from the federal government. Is this deductible for us?

I don't understand the part where you say you paid because the federal government didn't return funds but maybe someone else can help you.

Quite honestly though, based on these questions, you'd probably do well going to an H&R Block type place. I always have used hrblock.com for many reasons. I don't do taxes anymore and haven't for a good 10 years so I'd rather be safe than sorry in making sure that I am getting all of the credits/deductions that I can. Also they retain your returns online so no matter where I am I can just log in and print out, say 2003's tax returns, both Fed and State. Also you can deduct the fee from your taxes if you itemize. It's really not that expensive.

[The Molinas 0]

We also sent a check to our state university for about $6,000 for our daughters college tuition, this is basically to cover the increase in tuition due to lack of return funds from the federal government. Is this deductible for us?

are you claiming your daughter on your tax return? if so, college tuition is deductible. you will get either the hope credit (up to $1,800 credit, which reduces your tax liability) or the lifetime learning credit. you will have to figure out which credit gives you the best benefit. (you could also deduct it the $6,000 from your AGI but the credits will help you out more because they actually increase your tax liabilty.

due to lack of return funds from the federal government

i dont understand that part...

[Jasman0717 9]

You have to put money into an IRA to get the deduction. 401K and 457 plans are up to 22k if you are over 50.

Did read pages 30-33, now I have to soak my head in a bucket of ice water before it explodes. Who writes that stuff?

Naw, I just keep increasing my deferred comp until the company handling it tells me I can't do any more. Of course they also have a rule where you can go up to 33k if you plan to retire in the next three years. Thats a great tax break