Bought a house, now I can itemize! What receipts should I be saving?
Results 1 to 12 of 12
  1. #1
    Registered User
    Join Date
    Oct 2007
    Location
    San Francisco Bay Area
    Age
    30
    Posts
    348
    Post Thanks / WTG / Hug
    Rep Power
    7

    Default Bought a house, now I can itemize! What receipts should I be saving?

    My fiance and I just bought a house this past may. We are excited that we will be able to itemize our taxes this year. I have started asking for and saving all receipts when I donate. But other than this, I'm not sure what to do.

    What other receipts should I be saving for tax season? For those who do itemize, do you find that you save on taxes by doing so?

    Thank you for your replies.

  2. #2
    Rude and Vile Master Greebo's Avatar
    Join Date
    May 2008
    Location
    Baltimore, Maryland
    Age
    45
    Posts
    8,563
    Post Thanks / WTG / Hug
    Rep Power
    77

    Default

    Charitable donations
    Any purchases for home improvement that improve energy efficiency (insulation, windows, etc)
    Medical expenses (may or may not be deductible, depends on how much of a % of your income they account for)

    You will also receive new forms from the banks - specifically, a statement concerning how much interest you paid. While the tax deduction on interest is not a good deal (in the sense that paying the bank 10,000 to get 2,500 taken off your taxes isn't a good deal), its still better than not getting a deduction.

    Trying to think of what else might be included - if you name some that are on your mind I may know.
    If you could kick in the pants the person responsible for your problems, you wouldn't be able to sit for a month.

    Did you know that a 4 year student paying $20,000/year who finances their education graduates with over $103,000 in debt to start? But a student who works and pays cash and takes 6 years to graduate ends with $6,300 in their pocket! So much for "getting a head start by financing!"


    Greebo
    (Nerd Spender): Loving and extremely patiently tolerated husband of ceashels.
    WARNING: Y Chromosome behind the keyboard. Adjust your listening filters appropriately!

    Three
    Two mortgages, two one no car loans, one no credit cards, and a partridge in pear tree!

  3. #3
    Registered User The Muse's Avatar
    Join Date
    Apr 2008
    Posts
    1,236
    Post Thanks / WTG / Hug
    Rep Power
    15

    Default

    Save on taxes...lol! We don't end up much better off by itemizing than we do taking the standard deduction, but we have a low interest rate.

    Pretty much energy improvements and interest are all you're going to be able to deduct for house related things.

    Like Greebo said, save any receipts for charitable donations and anything medical related.

    100% Debt Free.... home, car & credit cards.
    Blogging the simple life at: www.sageandsimple.com

  4. #4
    Registered User elphie's Avatar
    Join Date
    Jul 2008
    Location
    Somewhere over the rainbow...
    Posts
    945
    Post Thanks / WTG / Hug
    Rep Power
    15

    Default

    We save a lot on taxes by itemizing, however this is more due to my husband doing a lot of work for ppl on his own so technically he is self-employed (even though he has a regular job and this is only his weekend gig... go figure).

    Anyway, we do all the things Greebo and Muse suggested above. Our property taxes are also deductible on both our home and our cars. In my state (MO) we can also choose to deduct sales tax instead of property tax if the sales tax we have spent in a given year is greater than our property tax. This is especially useful if you have purchased something large, like a car or boat, that you have paid sales tax on.

    For charitable donations, that isn't just money but also items that are deductible. Get a receipt from Goodwill and there is a form on H&R blocks website to help you determine the value of your donation. Monetary donations to churches and organizations of course but if the neighbor kids come around selling stuff for school you can choose to make a cash donation instead and this is deductible since you didn't receive any goods in return. If you buy something it isn't a donation.

    We also save anything that is work related if it something made specifically for your line of work. For example my husband works construction and his clothes, work boots, and tools are deductible. When I was teaching anything I bought for my classroom was deductible. If either of us needed to eat while working off site out it was deductible. Mileage from your work (not from your house) to the off site location is also deductible. We also depriciate the value of the tools and the truck that is primarily used for my husband's part time business.

    The medical expenses can be tricky... you have to spend a lot to get that deduction, I can't remember the % but I know its a lot. However, I always keep track because you never know. Since we are now paying the premiums for me and my kids are no longer on cafeteria plan at my work I think we will qualify this year. So, we save reciepts for all medications, (including over the counter), any and all medical equipment, (this includes band-aids, peroxide, etc.), of course our insurance premiums, copays for office visits and prescriptions, and reciepts for alternative therapies (some of these are deductible, some are not). If your doctor has advised you to lose weight then fees to attend meetings such as Weight Watchers are also deductible. Medical mileage is also deductible- .10 per mile for traveling to appointments but you must keep a log of the odometer reading in case of audit.

    One other thought... I prepared our taxes for years but when we started depriciating the value of things and it grew more complicated I started paying someone else... and this is also deductible, the fee you pay to have your taxes prepared, even if you do it yourself the software is deductible.
    Last edited by elphie; 08-10-2008 at 09:35 AM.

  5. #5
    Registered User
    Join Date
    Jan 2002
    Location
    Missouri
    Age
    44
    Posts
    1,013
    Post Thanks / WTG / Hug
    Rep Power
    18

    Default

    Quote Originally Posted by elphie View Post





    So, we save reciepts for all medications, (including over the counter), any and all medical equipment, (this includes band-aids, peroxide, etc.),
    Elphie, are you sure the highlighted items are deductible?

  6. #6
    McD
    McD is offline
    Technical Support Sleuth McD's Avatar
    Join Date
    Feb 2006
    Location
    the land of corn and cows
    Age
    29
    Posts
    6,481
    Post Thanks / WTG / Hug
    Blog Entries
    16
    Rep Power
    42

    Default

    Also--you really should have the abstract to your home in a safe deposit box. The safe deposit box fee is tax-deductible.
    McD
    -wife to Z
    -mommy to Dubya & Moo Cow

    Blog: http://familystylemayhem.com/


    My Ravelry: http://www.ravelry.com/projects/nicd...view=thumbnail

  7. #7
    jas
    jas is offline
    Registered User jas's Avatar
    Join Date
    May 2008
    Location
    Florida Space Coast
    Posts
    1,933
    Post Thanks / WTG / Hug
    Blog Entries
    1
    Rep Power
    20

    Default

    Can you deduct insurance premiums even if they are pretax? The premium for our health insurance (dh & I) pretax on his check. My dd is private pay and not pretax.

    Can we deduct both or just hers?

  8. #8
    Registered User The Muse's Avatar
    Join Date
    Apr 2008
    Posts
    1,236
    Post Thanks / WTG / Hug
    Rep Power
    15

    Default

    Quote Originally Posted by jas View Post
    Can you deduct insurance premiums even if they are pretax? The premium for our health insurance (dh & I) pretax on his check. My dd is private pay and not pretax.

    Can we deduct both or just hers?
    You can't deduct things that are paid for pre-tax because you've already gotten a tax break.

    100% Debt Free.... home, car & credit cards.
    Blogging the simple life at: www.sageandsimple.com

  9. #9
    Registered User elphie's Avatar
    Join Date
    Jul 2008
    Location
    Somewhere over the rainbow...
    Posts
    945
    Post Thanks / WTG / Hug
    Rep Power
    15

    Default

    Quote Originally Posted by Missourimom View Post
    Elphie, are you sure the highlighted items are deductible?
    Yes, I first heard this from my tax preparer and just to be on the safe side I double checked the info on the IRS website.

    Quote Originally Posted by jas View Post
    Can you deduct insurance premiums even if they are pretax? The premium for our health insurance (dh & I) pretax on his check. My dd is private pay and not pretax.

    Can we deduct both or just hers?
    Just hers, as Muse said you already got a tax break on you and dh.

  10. #10
    jas
    jas is offline
    Registered User jas's Avatar
    Join Date
    May 2008
    Location
    Florida Space Coast
    Posts
    1,933
    Post Thanks / WTG / Hug
    Blog Entries
    1
    Rep Power
    20

    Default

    Thanks Muse and Elphie. That does make sense.

    Just say my dh changes jobs and in the interium we get a private policy for the 90 days it would take for the company insurance to kick in could we deduct those three months?

  11. #11
    Registered User elphie's Avatar
    Join Date
    Jul 2008
    Location
    Somewhere over the rainbow...
    Posts
    945
    Post Thanks / WTG / Hug
    Rep Power
    15

    Default

    Quote Originally Posted by jas View Post
    Thanks Muse and Elphie. That does make sense.

    Just say my dh changes jobs and in the interium we get a private policy for the 90 days it would take for the company insurance to kick in could we deduct those three months?
    Absolutely!

  12. #12
    Rude and Vile Master Greebo's Avatar
    Join Date
    May 2008
    Location
    Baltimore, Maryland
    Age
    45
    Posts
    8,563
    Post Thanks / WTG / Hug
    Rep Power
    77

    Default

    The OTC meds and the like are only deductible IF you cross the medical expenses threshold, which I seem to recall is something like 10% of your income.

    But its worth tracking just in case.

    When it comes to tax time, you can use turbotaxonline for free to see what items you should be thinking about. They only charge you if you try to file online or print the returns - but you can see what the numbers should be pretty easily w/o actually filing. (Course, I file electronically anyway...)
    If you could kick in the pants the person responsible for your problems, you wouldn't be able to sit for a month.

    Did you know that a 4 year student paying $20,000/year who finances their education graduates with over $103,000 in debt to start? But a student who works and pays cash and takes 6 years to graduate ends with $6,300 in their pocket! So much for "getting a head start by financing!"


    Greebo
    (Nerd Spender): Loving and extremely patiently tolerated husband of ceashels.
    WARNING: Y Chromosome behind the keyboard. Adjust your listening filters appropriately!

    Three
    Two mortgages, two one no car loans, one no credit cards, and a partridge in pear tree!

Similar Threads

  1. Bought a house
    By frooz in forum Debt Reduction & Money Management
    Replies: 16
    Last Post: 12-03-2007, 12:20 AM
  2. Anyone ever bought a foreclosure house?
    By lullaby80 in forum Debt Reduction & Money Management
    Replies: 9
    Last Post: 05-01-2007, 03:46 PM
  3. Update...Guess who bought a house?
    By babynurse in forum Debt Reduction & Money Management
    Replies: 19
    Last Post: 07-31-2004, 11:18 AM
  4. We bought a house and now I have a question........
    By coupqn1999 in forum Debt Reduction & Money Management
    Replies: 5
    Last Post: 04-22-2003, 01:40 PM
  5. Replies: 7
    Last Post: 06-18-2002, 03:20 PM

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •