17 responses

  1. annon
    Wednesday

    Links 1-4 above don’t work

    • Susie Map,
      Wednesday

      Thanks for letting me know. Hopefully they are working now. I’ll try to spend this weekend checking for more broken links. If anyone runs across some, please shoot me an email or leave a comment. Thanks again.

  2. FP
    Tuesday

    So it is best to stay single?

    • Susie Map -
      Wednesday

      FP – Being single or married is a big commitment and several factors should be considered. I don’t think my federal tax rate would make it on my top 10 list of things to consider. However, how you both handle finances should be toward the top of your list. Make sure you discuss financial matters before tying the knot. Let me know if you want a couple financial questions to review with your significant other.

  3. Annabel Abrams
    Thursday

    Very good itemizing – except: what’s the added exemption for over 65?
    Even the IRS.gov page doesn’t want to tell!

    • Susie – MoneyandMap.com,
      Thursday

      Hi Annabel, thanks for letting me that I overlooked this information. I’ll update this post.

      The additional standard deduction for taxpayers who are blind or over age 65 remains unchanged from 2011 – $1,450 for single taxpayers and $1,150 for married taxpayers.

  4. Jenn C
    Wednesday

    Thanks for the info. I have recently bought a house, with my fiance. and, as we are not married yet, for the tax year 2012, we will be claiming the house separately on our taxes. How does this work? Do only one of us get to file as head of household? Also, what is the itemized deduction for 2012 on Schedule A?

    • Susie – MoneyandMap.com,
      Wednesday

      Hello Jenn, I’m not aware if you have dependents, but the Head of Household filing status is used if you are one of the following:
      • single with a dependent residing in your permanent residence
      • widowed with a dependent residing in your permanent residence
      • married, not filing w/spouse, with a dependent residing with you

      As far as itemized deduction for 2012, Schedule A: Unlike a standard deduction, there is no fixed number. Itemized deductions are various types of expenses that taxpayers incur throughout the year. Itemized deductions can be used to reduce taxable income. Example of itemized deductions include the following: Home mortgage interest; Property, state, and local income taxes; Investment interest expense; Medical expenses; and Charitable contributions.

      Given the tax complexities of our tax code, you should consult with your tax advisor on what you can and can not deduct.

  5. Canndee Calderone
    Monday

    Can alimony I paid be claim on my taxes

    • Susie – MoneyandMap.com,
      Tuesday

      Canndee – Generally, alimony payments are deductible to the person that paid it. The payer reports it as an adjustment to income on line 32a, IRS Form 1040. This taxpayer will also need to enter the recipient’s social security number on line 32b.

      For the person that received the alimony payments, this is considered taxable income and reported on line 11, IRS Form 1040. The IRS does have several rules and exceptions with respect to alimony. IRS Publication 504 has a wealth of information.

      As a final note, taxpayers who pay or receive alimony may not use Form 1040A or Form 1040EZ.

      Feel free to contact me if you need more information.

  6. Jim
    Monday

    If you are 65 or older, will you receive an additional exemption/deduction/credit if you

    and your spouse itemize and your filing status is MFS ?

    • Susie – MoneyandMap.com,
      Monday

      Jim – Yes, Taxpayers age 65 and older (or taxpayers who are blind) receive an additional standard deduction of $1,450 (single or head of household) or $1,150 (married filing jointly, married filing separately or qualifying widow/er). I hope I’ve answered your question. Feel free to let me know if I can offer more information.

  7. Annabel Abrams
    Tuesday

    Where on Schedule A do you enter investment expenses?

    • Susie – MoneyandMap.com,
      Tuesday

      Hello Annabel – Investment expenses (other than interest expenses) are reported on Schedule A, line 23. List the type and amount of each expense on the dotted lines next to line 23. Deductible investment interest expense is reported on Schedule A, line 14.

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