Thanks to the Tax Relief Act of 1997, non-working spouses are able to have their own, separate retirement accounts. Below, we not only explain the income sources your non-working spouse can pull from, but also encourage you to take advantage of the possibilities
Retirement accounts must remain solely in each person’s name. The only ways to move money from your account to someone else’s account is to die (leaving the money to your beneficiary) or divorce (giving the money to your ex). Neither of these strategies is desirable.
- Family income testThe child tax credit is reduced if your modified adjusted gross income (MAGI) is above certain amounts, which are determined by your tax-filing status. In 2017, the phase out threshold is $55,000 for married couples filing separately; $75,000 for single, head of household, and qualifying widow or widower filers; and $110,000 for married couples filing jointly. For each $1,000 of income above the threshold, your available child tax credit is reduced by $50.
https://www.kitces.com/blog/401k-loan-interest-to-yourself-opportunity-cost-tax-rules/
A unique feature of a 401(k) loan, though, is that unlike other types of borrowing from a lender, the employee literally borrows their own money out of their own account, such that the borrower’s 401(k) loan repayments of principal and interest really do get paid right back to themselves (into their own 401(k) plan). In other words, even though the stated 401(k) loan interest rate might be 5%, the borrower pays the 5% to themselves, for a net cost of zero! Which means as long as someone can afford the cash flows to make the ongoing 401(k) loan payments without defaulting, a 401(k) loan is effectively a form of “interest-free” loan.
The caveat, though, is that paying yourself 5% loan interest doesn’t actually generate a 5% return, because the borrower that receives the loan interest is also the one paying the loan interest. Which means paying 401(k) loan interest to yourself is really nothing more than a way to transfer money into your 401(k) plan. Except unlike a traditional 401(k) contribution, it’s not even tax deductible! And as long as the loan is in place, the borrower loses the ability to actually invest and grow the money… which means borrowing from a 401(k) plan to pay yourself interest really just results in losing out on any growth whatsoever!
https://www.tax.virginia.gov/penalties-and-interest
https://www.elderlawanswers.com/claiming-a-parent-as-a-dependent-3657
Note: The 2017 Tax Cuts and Job Acteliminates personal and dependent deductions, so starting in 2019, you will no longer be able to claim your parent as a dependent. Instead, you may be able to claim a $500 tax credit for any non-child dependents.
If you cannot claim your parent as a dependent because he or she filed a joint tax return or has a gross income above $4,050 (in 2017) but you have been paying your parent's medical expenses, you may be able to deduct those expenses from your taxes.
https://www.irscalculators.com/irs-interest-rates
https://proconnect.intuit.com/proseries/articles/federal-irs-underpayment-interest-rates/
2018 4% 5%
https://www.hrblock.com/tax-center/irs/refunds-and-payments/cannot-pay-taxes/
https://www.irs.gov/payments/payment-plans-installment-agreements
Current interest rates are 3% per annum and you also will be charged a late payment penalty of ¼% per month. By approving your request, IRS agrees to let you pay the tax you owe in monthly installments instead of immediately paying the amount in full.Jan 29, 2012
https://www.nerdwallet.com/blog/credit-cards/paying-taxes-by-credit-card-not-a-good-idea/
When you buy something with a credit card, the merchant pays processing fees to the financial institutions that handle the transaction. But when you put a tax payment on a credit card, the IRS doesn’t pay those processing fees. You do.
To pay federal taxes with a credit card, you have to use one of the IRS’ third-party credit card processors, which charge fees of 1.87% to 2% of the amount you put on the card. If you use software such as TurboTax to file returns and pay taxes online, the fees may be higher.
These fees could eat up your credit card rewards. Most cards offer only a 1% to 1.5% rewards rate for this type of transaction.
The exception: If you put your tax payment on a card with a 2% rewards rate or higher and then pay it off in full on your next statement, your rewards might exceed the fees — but just by a hair.
“Depending on the interest rates on your credit card, you could end up paying a lot,” says Trish Evenstad, president of the Wisconsin Society of Enrolled Agents, a group of tax experts. Her advice to people who can’t pay in full: “Pay as much as you can by the April 18th due date. Then you can set up an installment agreement with the IRS to pay the remaining balance.”
For 2017, it costs $31 for qualified taxpayers to set up an installment agreement online and pay via direct debit from a checking account, according to the IRS website. That’s in addition to 4% annual interest on unpaid federal taxes and a penalty of 0.25% of the outstanding balance for each month the agreement is in effect. That works out to an annual percentage rate of about 7%.
The exception: Paying with a 0% APR credit card could be more cost-effective than setting up an installment agreement, if you can pay off your balance before the promotional period ends.
Put enough into 401k
https://finance.zacks.com/stock-commissions-paid-tax-deductible-irs-filing-8230.html
Commissions and Cost Bases
When you buy and sell stock, your profits are subject to capital gains tax. The Internal Revenue Service doesn't define profit as the difference between your buying price and your selling price, though. Your profit is calculated based on your net price, so if you buy stock for $2,000 and sell it for $3,000, but pay separate $50 commissions for both the purchase and the sale, your taxable profit is $900. Reducing your profit by $100 reduces your total capital gains tax liability.
https://turbotax.intuit.com/tax-tips/fun-facts/9-things-you-didnt-know-were-tax-deductions/L6M1dynSH
Losing your job is traumatic, and the cost of finding a new one can be high. But if you’re looking for a job in the same field, you itemize your deductions, and these expenses exceed 2 percent of your adjusted gross income, any qualifying expenses over that threshold can be deducted. It may seem like a high bar, but those costs add up quickly—consider deducting the mileage you put on your car driving to interviews and the cost of printing resumes.
https://turbotax.intuit.com/tax-tips/fun-facts/the-10-most-overlooked-tax-deductions/L2WjmvZAH
6. Child and Dependent Care Tax Credit
A tax credit is so much better than a tax deduction—it reduces your tax bill dollar for dollar. So missing one is even more painful than missing a deduction that simply reduces the amount of income that’s subject to tax.
But it’s easy to overlook the
child and dependent care credit if you pay your child care bills through a reimbursement account at work. Until a few years ago, the child care credit applied to no more than $4,800 of qualifying expenses. The law allows you to run up to $5,000 of such expenses through a tax-favored reimbursement account at work.
Now, however, up to $6,000 can qualify for the credit, but the old $5,000 limit still applies to reimbursement accounts. So if you run the maximum $5,000 through a plan at work but spend more for work-related child care, you can claim the credit on up to an extra $1,000. That would cut your tax bill by at least $200.
9. Refinancing mortgage points
When you buy a house, you get to deduct points paid to obtain your mortgage all at one time. When you
refinance a mortgage, however, you have to deduct the points over the life of the loan. That means you can deduct 1/30th of the points a year if it’s a 30-year mortgage—that’s $33 a year for each $1,000 of points you paid. Doesn't seem like much, but why throw it away?
Also, in the year you pay off the loan—because you sell the house or refinance again—you get to deduct all the points not yet deducted, unless you refinance with the same lender.
10. 车辆相关法定费用
各州规定各有所异，例如在加州，牌照税 (vehicle license fee)是可以在列举扣除中扣抵，但注册费(registration fee)、weight fee、air quality fee则不可扣减。
http://www.jamesdance.com/deductions.htm
Other Expenses
Interest You Paid
Mortgage interest
Late payment charge on mortgage payment
Mortgage prepayment penalties
Points on principal residence financing
Mortgage insurance premiums
Employees (Form 2106):
Includes expenses for your job for which you weren’t reimbursed, but you only get the amount in excess of 2% of your AGI (adjusted gross income), and only if you can itemize. For instance, if your AGI is $100,000, you must have at least $2,000 in employee business expenses/miscellaneous expenses before you will begin to benefit from the deduction.
Education and Research
- Educational expenses related to your present work that maintains or improves your skills.
- Research expenses
Equipment and Supplies
- Business use of computer. Employees: Must be for the convenience of your employer and required as a condition of your employment.
- Supplies and tools you use in your work
Meals and Entertainment
- Meals and entertaining costs with a clear business purpose (i.e., meeting with clients) (only 50% of the cost is deductible). Keep a record of the date, place, amount of expenses, people present, business purpose, and business discussed. Also keep receipts for expenses in excess of $75.
- For more information, see IRS Publication 463
Telephone Charges
- Business use of cellular phone.
- Cost of long-distance business calls charged to home phone
- Separate business telephone (home phone line is not deductible)
Uniforms and Gear
- Protective clothing and gear
- Uniforms (except if you’re full-time active duty in the armed forces)
- Dry cleaning costs for your uniforms or protective clothing (not for your everyday clothing, though)
- Specialized clothing designed for your job, as long as it's not suitable for everyday wear
- Safety equipment, such as hard hats, safety glasses, safety boots, and gloves
Miscellaneous
- Gifts, but only up to $25 per recipient
- Passport if needed for business travel
- Postage
- Office supplies
- Printing and copying
- Legal and professional services (tax preparation fee)
The head of household status can lead to a lower taxable income and greater potential refund than the single filing status, but to qualify, you must meet certain criteria. To file as head of household, you must:
- Pay for more than half of the household expenses
- Be considered unmarried for the tax year, and
- You must have a qualifying child or dependent.
