Do You All Itemize on Your Taxes?

[PamperedChefDebi]

I'm starting to wonder if it's really worth it for me. I started in Feb 06 and I hit $15,000 career sales in Dec, so I did OK for the year. BUT, we're military and we moved onto the base in July so no rent or utilities for my home office to deduct from July on. I have played around with Turbo Tax Business but I didn't break the minimum deduction yet and I've added in everything except utilities from Feb - Jun. I don't want to pay so much more to file if it's not even worth it for me.

Also, because I'm overseas and I earned my income here, I qualify for the Foreign Income Credit so none of my PC income is actually taxed. (Cool huh?)

Please give me your advice/thoughts.

TIA!

 

[PamperedChefDebi]

Anybody? Anybody? Bueller?

 

[pamperedalf]

If your income is not taxed I wouldn't! However my annal DH is saying do it both ways and see what works better for you.

 

[lisacb77]

Yes, do it both ways and see how you come out better. Since you do not have a mortgage tax like most of us, the standard might be better for you. We didn't itemize until we had a mortgage. Good luck!!

 

[trps]

If your PC income is not taxed can you use the deductions from your pc business because those deductions are to lower you taxable income from pc and you can't get any lower than none. You may want to contact an accountant instead of the box. I don't suggest H & R as they usually just type in the numbers you need to talk to someone who knows what they are talking about.

 

[PamperedChefDebi]

I have actually spoken to a Financial Advisor who also has his business here in Germany though he only works with Americans. He works for my Director also and that is how I found out. He actually came to one of our Cluster Meetings to give us some pointers.

My retirement income and my husband's income are still taxable so the deduction affects that, whether we take the standard one or itemize. I just hate figuring all this out for nothing. Keep in mind, all my rent and utilities are in Euro so I have to convert it all to Dollars. Yuck!

Thanks for your input everyone!

 

[lizcooks4u]

just my opinion...

I have actually spoken to a Financial Advisor who also has his business here in Germany though he only works with Americans. He works for my Director also and that is how I found out. He actually came to one of our Cluster Meetings to give us some pointers.

My retirement income and my husband's income are still taxable so the deduction affects that, whether we take the standard one or itemize. I just hate figuring all this out for nothing. Keep in mind, all my rent and utilities are in Euro so I have to convert it all to Dollars. Yuck!

Thanks for your input everyone!

I figured my own taxes for yrs, then I got a large settlement and took my Dad's advice and invested it only to lose more $$, I was young and didn't realize it had to sit for yrs to make money, anyways, I chose to use our family business' CPA who was a little over 1 hr South of us. Due to me losing $$ in Mutual Funds, he didn't calculate something right and I had to pay a penalty with int. of about 1800.00. Since then I pretty much had gone back to doing my own, I used to do own on paper, but now I've used Turbo Tax and absoultely love it. This yr. I bought a house so I went ahead and purchased Turbo Tax / Schedule C. In the past I didn't want to figure out deductions of DSA's separately it was totally confusing, but with this program I should be fine Turbo TAx guides you and fills in all forms and it will give you the best way to go in the end. I'm waiting on W2's as I don't know where my last pay stub is from a PT job I did last yr!!!

My mom wants me to use her free Tax guy and I saiD NO. I"m tired of them screwing me out of more money. If CPA's or anyone makes a mistake on your form they're only the preparer and you can't get much out of them, I tried, but it wasn't worth it. So if I make a mistake then I have no one to blame except myself!

Usually I don't take all deductions, Like I forgot a class I paid for a couple of times and it would've fallen under the LifeLearning or something like that.

Good Luck.

ps: I've usually filed by now, but this yr. I may have to pay in a penalty. I sure hope my house deductions (mortgage) and other things offset it enough that I won't have to pay in, but I"m afraid I'm still going to have to I cashed in a large pension and thought it would be a hardship for 1st time home buyer's but not this one

Liz

 

[PamperedChefDebi]

Thanks Liz! I have used TurboTax for several years as well but never had anything to deduct except childcare. I LOVE TurboTax. Even checked out TaxAct because of recommendations on here, but I'm more comfortable with TurboTax. And I feel the same way you do....if someone else screws it up, it's still my fault so I'd rather do it myself.

I'm actually going to try it both ways and see what happens. I'm checking out the Deluxe version right now.

Thanks again Liz!

 

[jrstephens]

We get to itemize State but not Federal. Our health insurance is set up on the "cafateria" plan where it comes out before Federal taxes, so, that makes us unable to itemize on Federal.