The Tax Questions Blog

Archive for August, 2010

Question: Can I claim medical bills and prescription drugs as a tax deduction?

How do you determine if medical can be claimed as a deduction? I had alot of medical bills this year.

Answer: Part of them can, whatever portion exceeds 7.5% of your gross income can be claimed.

Feudalism lives in South Carolina

"Who's that?" "I dunno. Must be a king." "Why?" "He hasn't got shit all over him." — from Monty Python and the Holy Grail Ah, the Middle Ages. Those were the days. Life was so much simpler then. by Will Moredock "Who's that?" "I dunno.… [ Read more ] [ Subscribe to the comments on this story ]

Tax Tips: Small Tax Exempt Orgs Revised Deadline - July 2010

Question: How can I determine which suburbs in my area have lower property taxes?

I am in Rolling Meadows, Illinois right now which I think is pretty good. I have heard rumours that Elk Grove & Des Plaines have lower property taxes due to having a larger Industrial/commercial area.
Anyone care to weigh in on this issue? Or at least clue me in to find out which burbs are cheapest?/

Answer: A simple call to the county tax assessor should be able to answer that for you.

Generally taxes are based on a county formula across the board, but different areas have different added extras, but they don't usually add up to that much different.

Different types of property may be taxed different. You may live in a more commercial industrial area, but your residence will be taxed the same as other residences, not the commercial property.

Taxes are also usually based on the sales price/worth at the time of purchase.

The assessor should be able to answer it pretty quickly and with a lot more information that any of us ever could.

Good luck

Everett firefighters file claim for asbestos exposure

EVERETT -- Firefighters exposed to asbestos during training three years ago are moving toward a multimillion-dollar lawsuit against the city. Dozens of Everett firefighters and their spouses last month filed claims with the city seeking a total of $9 million.

Tax Help : How Are Property Taxes Calculated?

How your workplace can help you avoid debt

Many people think of their job compensation as consisting of the paycheck they receive every week or month. Clearly, payday helps -- but for many people, other workplace benefits can provide valuable tools in the battle against excessive debt.

Question: My husband made less than 2400.00 unemployment compensation do I need to report this when filing?

husband had to take a 2 weeks leave and made about 1000,00 unemployment do i need to report he made any unemployment since the first $2400.00 is non taxable? I already filed should I amend this? and if I have to make corrections anyway should I add this?

Answer: Yes, you have to file it, but the system will take $2400 off automatically

Here Comes A Double Dip Recession...

The following note from Gary Shilling was forwarded by John Mauldin of Thoughts For The Frontline. John includes a short note at the beginning and end. -- Ed.

Question: Inhertiance taxes US/Canada?

I'm trying to figure out what taxes will be for an upcoming inheritance. I've just received a one time gift which I understand is not taxable. However, I am expecting more once my grandmother finally passes. I've done a bit of research on the internet and most I find are certain state taxes. There are a few circumstances that are unique to my situation that I will probably have to visit an account for, but I wanted to get a good idea from here first on what to expect.

Some of those circumstances are:
1) I am a US citizen living and working as a permanant resident in Canada. My grandmother is a US citizen livng in the US. Who would I report the taxes to? US and Canada? Should I report the one time gift to RevCan?
2) My grandmother is my "step fathers" mother and there was no legal adoption although this is the only family I've known since I was born. (I'm not sure if this matters or not, but I wanted to add as much as possible.)

Any insight is appreciate

Answer: CRA won't be concerned about the "gift", since there is no tax on gifts.

As for your relationship, I'm not sure if you're trying to figure out if you're the next of kin? Hopefully she prepared a will, which will clarify entitlements.

You'll need to talk to an accountant that is familiar with the American Tax rules, and the inheritance rules for the particular State you're dealing with, and the Canadian rules as well.

Anti-tax tide drowns out few remaining progressive voices

Whether it's anti-HST crusaders or the American Tea Partiers, the curious thing is that much of what they want seems to go against their own best interests.