Question

What is the Deduction of tuition as a business expense?

What is the Deduction of capital medical expenses to your house?

What is the Calculation of the home office deduction?

What is the Deduction of HSA premiums and contributions?

What is the charitable contribution deduction including the limits for different entities and the different type of properties that can be contributed. And what can be deducted from charitable contributions?

Answer 1

1.

The Tuition and Fees Deduction can reduce the amount of your income subject totax by up to $4,000. This deduction, reported on Form 8917, Tuition and FeesDeduction, is taken as an adjustment to income. This means you can claim thisdeduction even if you do not itemize deductions on Schedule A (Form 1040).

2.

You can only deduct medical expenses that are above 7.5% of your Adjusted Gross Income (AGI). This is called an "AGI floor". This amount will apply to 2017 and 2018 Tax Returns.

For example:
Your AGI is: $40,000.
7.5% is: $3,000
Your medical expenses are: $2,500

In this case, you could not deduct your medical expenses because your expenses are not more than 7.5% of your adjusted gross income.

For medical expenses that would have been deductible in an earlier Tax Year, you can amend a tax return.

3.

Indirect expenses are those paid for running your home which can be deducted based on thepercentage of the home used for business (see "Calculating Your Home Office Space Deduction"). Typical indirect expenses include rent/mortgage interest, utilities, insurance, and general home repairs.

4.

If you're 55 or older, you can contribute an additional $1,000 a year. You don't have to pay taxes on the money you contribute to your HSA, so the IRS allows you to deduct the amount of your contribution from your gross income. HSA contributions directly reduce your taxable income.

5.

You may deduct a charitable contribution made to, or for the use of, any of the following organizations that otherwise are qualified under section 170(c) of the Internal Revenue Code:

1. A state or United States possession (or political subdivision thereof), or the United States or the District of Columbia, if made exclusively for public purposes;
2. A community chest, corporation, trust, fund, or foundation, organized or created in the United States or its possessions, or under the laws of the United States, any state, the District of Columbia or any possession of the United States, and organized and operated exclusively for charitable, religious, educational, scientific, or literary purposes, or for the prevention of cruelty to children or animals;
3. A church, synagogue, or other religious organization;
4. A war veterans' organization or its post, auxiliary, trust, or foundation organized in the United States or its possessions;
5. A nonprofit volunteer fire company;
6. A civil defense organization created under federal, state, or local law (this includes unreimbursed expenses of civil defense volunteers that are directly connected with and solely attributable to their volunteer services);
7. A domestic fraternal society, operating under the lodge system, but only if the contribution is to be used exclusively for charitable purposes;
8. A nonprofit cemetery company if the funds are irrevocably dedicated to the perpetual care of the cemetery as a whole and not a particular lot or mausoleum crypt.