SAN DIEGO- Tax day is less than one month away. A local CPA says Americans are missing out on deductions. Some apply to people who claim the standard deduction and don’t itemize.
If you pay rent, you may be eligible for the California Nonrefundable Renter’s Credit. Single filers can are eligible for a $60 credit. Married couples that file together get $120. Did you move for a job last year? Even if you take the standard deduction and you didn’t itemize, you can deduct any moving cost not covered by your employer.
For those of you who do itemize, CPA and San Diego State University lecturer, Narelle Mackenzie says you’re allowed to deduct other work related expenses. “If you’re an employee and your employer doesn’t reimburse you for all your expenses that’s another example of where you can claim mileage. If you’re traveling away from home you can claim 50% of your meals.”
High-net-worth celebrities who think they can avoid paying the tax man by donating the goody bag’s contents to charity might be sorely disappointed when they realize how little they can actually deduct.
“They can make a charitable contribution, but the problem is charitable contributions are going to be limited to 50 percent of their adjusted gross income, and you have a phase-out for itemized deductions when your adjusted gross income exceeds certain values,” said Narelle MacKenzie, an accounting lecturer at San Diego State University’s Fowler College of Business Administration. Bloomberg – Mar 1, 2017 / by Allyson Versprille
Narelle Mackenzie was a contributor to this recent Investor’s Business Daily article about the the tax pitfalls Hollywood’s A-listers face when receiving Oscar night swag-bags. The February 2017 article explored some of tax questions that might concern recipients of these gifts which could be valued up to $200,000 or more. Narelle provided some insights into how celebrities could manage their tax burden when receiving one of these pricy gifts.
Narelle MacKenzie was quoted in a recent US News & Word Report article on The Panama Papers and tax havens. She provided context on what they are, who uses them, and their legitimate uses.
In the April 16th article, Narelle MacKenzie explained tax havens this way: “Simply put, a tax haven is generally a country with a low rate – or even a zero rate – of income tax” further adding “Countries considered tax havens also don’t typically reveal the financial accounts of foreign investors”
The article goes on to describe some of the different countries around the world that serve as tax havens, and explains that while tax havens can be a legitimate means of lessening ones tax burden; issues of legality occur when failing to disclose off-shore accounts to the IRS.
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