- Days left

There's still time to create deductible expenses for 2007

Put away the noisemakers! It isn't the new year yet. And you're probably searching around the net thinking, how can I decrease my tax burden before the year expires?

If you're on the West Coast like me, you may still have time to use up your health care flexible spending account by going to an enterprising optometrist, dentist, or chiropracter. If you've spent more than (or very, very close to) 7.5% of your gross income in health care expenses this year -- which is a LOT of health care expenses, by the way -- you might want to pay a couple more bills to take advantage of those expenditures.

The easiest way to create deductions in the last few hours of the year is, of course, charity. Give until you can't give any more, and most charitable institutions allow you to use your credit or debit cards to pay online, and it will count for 2007, right up until midnight. If you must send money to your church, community food bank, or other small non-credit-accepting institution, run! Bike! Drive! (careful! It's a party night!) to the nearest post office that postmarks until midnight, and stick a check in the mail.

Finally, if you're self-employed or have a small business whose expenses you write off on your taxes, and you use the cash method of accounting, now is the time to pile on those profit-reducing costs! I make a small income photographing knitting and designing knitting patterns, so I have been struck with the unavoidable compunction to go buy yarn for my next creation. If you don't have any shops nearby open, turn again to the web. Do you need books? Amazon.com's still open. Paper? Ink for your printer? You get the idea.

Note that small incomes like mine are only considered self-employment if you make a profit in one out of every three years. Otherwise, it's a non-deductible hobby.


Increase your money and finance knowledge from home

How much house can I afford

Home buying 101, evaluating one of your most important financial decisions.

View Course »

Introduction to Retirement Funds

Target date funds help you maintain a long term portfolio.

View Course »

TurboTax Articles

Will Medicare/Medicaid be Impacted by ACA?

The Affordable Care Act put in place significant tax-related programs that impact Medicare and Medicaid, such as increased Medicare taxes on earned and unearned income for high-wage earners, and Medicaid changes that increase the number of insured individuals. Establishing whether you are affected by the ACA-imposed taxes, or are eligible for certain health programs that fall under the Centers for Medicare and Medicaid Services, is determined by filing your income tax.

8 Things You Think Are Tax Deductible That Aren't

There?s a fine line between looking to save money on your taxes and taking deductions that will raise eyebrows at the Internal Revenue Service. Some taxpayers are tripped up by expenses that they assume are tax deductions, but don?t qualify under IRS guidelines. Here are a dozen items that can lead to unpleasant surprises in case of an audit.

Essential Tax Forms for the Affordable Care Act

The Affordable Care Act (ACA), also referred to as Obamacare, affects how millions of Americans will prepare their taxes in the new year. The law now includes penalties for all who haven?t obtained health insurance -- and those penalties are expected to be paid at tax time. The ACA also provides tax credits to help people pay for insurance, and you can claim those credits when you file your taxes. The Internal Revenue Service (IRS) has introduced a number of tax forms to accommodate the ACA.

How to Determine if You Have Minimum Essential Coverage (MEC)

The Affordable Care Act, also known as Obamacare, requires most Americans to have health insurance that meets a government standard known as "minimum essential coverage," or MEC. Whether your insurance qualifies as MEC depends not on the plan itself, but on how you obtained your coverage.

What are 1095 Tax Forms for Health Care?

In 2014 the Affordable Health Care Act, also known as Obamacare, introduced three new tax forms relevant to individuals, employers and health insurance providers. They are forms 1095-A, 1095-B and 1095-C. These forms help determine if you need to comply with the new shared responsibility payment, the fee you might have to pay if you don't have health insurance. For individuals who bought insurance through the health care marketplace, this information will help to determine whether you are able to receive an additional premium tax credit or have to pay some back.

Add a Comment

*0 / 3000 Character Maximum