This one's easy, if you haven't already, you'll be doing your taxes soon. How much in unreimbursed, tax deductible expenses?
My wife just told me for 2009 mine were ~$2300.
(Which is a somewhat light year, and I'm notoriously bad for tracking mileage.)
Again, a light year. Looks like less than $1000 for the first time in several years. I think I've been averaging around $1600 in the past.
Roughly $1500 in out of pocket cash and about 6,000 miles. This year will be a whole lot less, if I have anything to say about it.
Not enough to totally warrant the audit risk.. IOW, the standard deduction comes close to letting it slide. I'd be ahead by a few hundred. (If I itemized, CAP inclusive, I could push it over by that much with CAP) .. otherwise I'm in the $2K area.
Easier to stay off their radar.
I've deducted CAP expenses every year I could, and have never had a hint of an audit. I document my mileage, and have receipts for all my expenses. There are enough people deducting for CAP every year that you'd need some really high claims to raise any flags.
Other than some short travel to the weekly squadron meetings, and perhaps the annual wing conference, that's about it. Anything we buy for the squadron that has been pre approved we get reimbursed for. (But here again we are buying only what is essential to our operations -e.g. will be forced to buy replacement batteries for our portable two way radios because the wing got no funding this year from the state).
Basically, the economy in my geographic area is still poor. Unless someone has a federal government civil service job (or is in the military AD/special AD), many of our squadron members are concerned about their jobs & those with their own businesses are having significant challenges. Thus there's really no interest in spending a lot of "unreimbursed" money on CAP activities, durable equipment (such as radio) or uniform items.
I think that the economy was part of the reason we lost 2 aircraft, because the membership just didn't have the discretionary income to spend on personal proficiency flight training. Also if one is interested in flying, some of the local FBO's had better deals than CAP as far as "wet" cost per hour.
I think that CAP leadership needs to keep this in mind at all levels, that volunteers are only going to give so much of their "treasure" for CAP.
RM
Quote from: SarDragon on March 07, 2010, 08:40:04 AM
I've deducted CAP expenses every year I could, and have never had a hint of an audit. I document my mileage, and have receipts for all my expenses. There are enough people deducting for CAP every year that you'd need some really high claims to raise any flags.
+1 - the potential to deduct some expenses from your taxes is one of the small ways the Fed Gov't helps us defray potentially non-trivial expenses of being an active member. Its unfortunate that only members who itemize can take advantage of this benefit. I routinely hear from younger members, especially (usually those without mortgages), that they can't reach for this.
As an independent contractor with multiple masters and a pile of 1099's each year, I'm used to tracking expenses, hours, and other information as a matter of course, as well as the deductions that go along with being your own boss. Since everything is well documented and I'm conservative in nature financially, I'm not overly concerned with an audit, nor do I assume one will occur simply because of my more complex return.
To each his own risk tolerance, of course.
Regarding itemized deductions - if you sit down and add up all your deductions IAW the instructions, and don't have enough to itemize, you're not losing anything, because you still get the benefit of the full standard deduction. You're rarely going to get less than the standard deduction. In addition, it is indexed for inflation.
Quote from: SarDragon on March 07, 2010, 08:22:21 PM
Regarding itemized deductions - if you sit down and add up all your deductions IAW the instructions, and don't have enough to itemize, you're not losing anything, because you still get the benefit of the full standard deduction. You're rarely going to get less than the standard deduction. In addition, it is indexed for inflation.
Hmmm...not sure I agree with that. The standard deduction is the same for everyone, regardless of whether they spent $1k on CAP or not, but obviously if you can't itemize you can't add CAP to the pile.
Most people with a mortgage can itemize and that opens the door for the additional deductions.
(Disclaimer: I don't even watch lawyers or tax guys on TV, so if you take anything said here as "definitive" may the IRS have mercy on your wallet! Your tax guy is the person to ask...)
I am a tax guy. I've worked as a preparer, off and on, for the past 16 years.
Example (single; married):
If you fill in all the blanks on a Schedule A (including CAP expenses), and the total doesn't equal (5,700; 11,400), you still get the full (5,700; 11,400) deduction. You're not losing anything, by not being able to itemize.
This is usually the case if you're not a homeowner, unless your income is high enough to give you a big state income tax deduction.
What is the standard mileage rate this year?
It is different for charitable vs. business, right?
Did anyone catch that we are paying the same taxes as before, even though Obama took less out of our paychecks each time we got payed??
Less withholding up front, but you make it up at the end (and the end is now, TAX time).
Some of my employees were confused, and I had to have the accountant explain it to them.
Anyway, I make way too much to deduct charitable and CAP expenses......it doesn't help me at all.
Quote from: Spike on March 08, 2010, 07:04:20 PMAnyway, I make way too much...
Are you adopting? I'm housebroken!
All of your basic tax Qs answered here (http://www.irs.gov/pub/irs-pdf/p17.pdf).
Quote from: IRS Pub 17Car expenses. You can deduct unreimbursed out-of-pocket expenses, such as the cost of gas and oil, that are directly related to the use of your car in giving services to a charitable organization. You cannot deduct general repair and maintenance expenses, depreciation, registration fees, or the costs of tires or insurance.
If you do not want to deduct your actual expenses, you can use a standard mileage rate of 14 cents a mile to figure your contribution.
For many, it's probably worth the extra time to at least document gas expenses. I know it costs me about 20 cents a mile to drive my 'Burb, at current SoCal gas prices.
Miles add-up fast. I did 122 miles Saturday directly for CAP and that was just bouncing around sites.
No kidding. I got 225.2 miles two weekends ago driving to a meeting and back (in the rain!).
Quote from: SarDragon on March 09, 2010, 03:47:31 AM
No kidding. I got 225.2 miles two weekends ago driving to a meeting and back (in the rain!).
...but it was worth it. ;-)
QuoteWhat is the standard mileage rate this year?
Beginning on Jan. 1, 2010, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
50 cents per mile for business miles driven
16.5 cents per mile driven for medical or moving purposes
14 cents per mile driven in service of charitable organizations
The new rates for business, medical and moving purposes are slightly lower than last year's. The mileage rates for 2010 reflect generally lower transportation costs compared to a year ago.Source: IRS Announces 2010 Standard Mileage Rates (http://www.irs.gov/newsroom/article/0,,id=216048,00.html)
QuoteThe standard deduction is the same for everyone
Not quite true this year. This year there is the Standard Deduction +. The "+" is for adding the sales tax on new vehicle purchases and/or real estate taxes to the standard deduction. To claim the Standard Deduction +, you have to file Schedule L Standard Deduction for Certain Filers (http://www.irs.gov/pub/irs-pdf/f1040sl.pdf)
Quote from: RRLE on March 09, 2010, 12:55:27 PM
QuoteThe standard deduction is the same for everyone
Not quite true this year. This year there is the Standard Deduction +. The "+" is for adding the sales tax on new vehicle purchases and/or real estate taxes to the standard deduction. To claim the Standard Deduction +, you have to file Schedule L Standard Deduction for Certain Filers (http://www.irs.gov/pub/irs-pdf/f1040sl.pdf)
That's not new this year. It was available for 2008 returns.
Quote from: RRLE on March 09, 2010, 12:55:27 PM
50 cents per mile for business miles driven
16.5 cents per mile driven for medical or moving purposes
14 cents per mile driven in service of charitable organizations
So for CAP we get 14 cents per mile.
Why not 50 cents per mile like business?
Same car expenses. ???
Seems unfair.
I've asked that for years. Still no good answer.
[conjecture]
Perhaps it is to accommodate that business travel infers the loss of income while traveling, while travel for a charity would
generally be on non-billable time anyway.
[/conjecture]
I've never lost income while traveling. I usually ended up on the plus side because of the per diem.
I've asked many tax professionals over the years, and no one seems to have a good answer.
Quote from: Fubar on March 08, 2010, 10:03:36 PM
Quote from: Spike on March 08, 2010, 07:04:20 PMAnyway, I make way too much...
Are you adopting? I'm housebroken!
Just imagine if you made too much and never got taxed, that's what I do (legally) and no I'm not adopting housebrokens either :D (don't worry I'm not filing tax returns, because I can't).
^ Not taxed on income? Can't file a return on income?? Unless you are receiving SSI/SSD or "old" and the pension is being paid under the table or you paid into it during the 1950-1957 era where corporate pensions paid in can not be taxed when paid out.....how??
I am intrigued? Are you a "revolutionary no taxation" rebel waiting for federal forces to storm your compound?
I am no tax genius and I don't read many IRS publications anyway......someone fill me in ???
Spike,
Roth IRA are not taxed on receipt since the money was originally put in post-tax. Also the interest builds in the account tax free.
Here's a good article (http://finance.yahoo.com/taxes/article/109078/want-a-bigger-tax-refund-dont-itemize?mod=taxes-filing) about itemized deductions.
Quote from: Spike on March 14, 2010, 10:27:08 PM
^ Not taxed on income? Can't file a return on income?? Unless you are receiving SSI/SSD or "old" and the pension is being paid under the table or you paid into it during the 1950-1957 era where corporate pensions paid in can not be taxed when paid out.....how??
I am intrigued? Are you a "revolutionary no taxation" rebel waiting for federal forces to storm your compound?
I am no tax genius and I don't read many IRS publications anyway......someone fill me in ???
Seems like I forgot to come back, I don't usually brag so I won't its a medical malpractice suit settlement.
Compensatory damages are generally not taxable. Punitive damages are. That's the word I got when I had my m/c accident, and I don't think things have changed significantly since then.
For more info, do a search for "compensatory damages" on the IRS site.
Linky. (http://www.irs.gov/newsroom/article/0,,id=179077,00.html)