The world's strangest tax breaks

Utah tax tidbit: organ donation credit

Vermont tax tidbit: renter rebate credit

The world's strangest tax breaks

Wednesday, March 31, 2010

Here in the United States, we like to think we're special. But we've got nothing on the rest of the world when it comes to unusual tax laws.

With the U.S. tax-filing deadline bearing down, Foreign Policy magazine took a look at some of the world's weirdest tax breaks.

My favorite is The Netherlands tax deduction for a course on witchcraft:

Margarita Rongen, the headmistress of Heksehoeve (Dutch for "witch farmhouse"), offers a yearlong curriculum in spell-casting, herbology, potions, and divination, among other classes. ... In a case brought before Dutch tax authorities in 2005 by pupil Maaike Buurman, it was ruled that because the course was used "to extend her professional knowledge" -- as a tax official put it to Reuters -- it was eligible for a tax write-off. Buurman argued she enrolled in the school to help her in teaching the history of the Middle Ages -- but of course, a witch would say that.

And we Americans all thought the recently-enacted American Opportunity tax credit was the coolest thing in educational tax assistance. Begone ye mere tax mortals!

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Posted on Wednesday, March 31, 2010 at 11:27 AM in Deductions, Education, Global, Humor, Taxes | Permalink | Comments (0)

Tags: education, witches, Worldwide taxes

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Inventory your property before disaster strikes — The historic 2020 Atlantic/Gulf of Mexico hurricane season started early and shows no signs yet of slowing, so don't let up on storm preparation. That process includes taking a pre-disaster inventory that can help when you file insurance and/or potential tax deduction claims. (Sept. 18, 2020)
Check out all the latest post-Tax Day tax advice in the 2020 edition of Weekly Tax Tips. Many of these once-a-week tips will focus on planning moves to cut your 2020 tax bill.
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Sept. 1: School is back in session, either in COVID-19 modified classrooms or remotely. Whatever the teaching venue, there still are costs. So parents of elementary, secondary and college students need to do some tax homework to learn how Uncle Sam can help pay some educational expenses at all these levels.

Sept. 7: Happy Labor Day!
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For many, that is, who still have jobs.
In these cases, workers are dealing with coronavirus-modified workplaces or are doing their jobs from home. While working from home can be handy, for most in this situation it won't offer a tax deduction for that bedroom corner converted into a temporary home office.

In other cases, COVID-19 pandemic layoffs have prompted folks to embrace their entrepreneurial spirits. Remember, though, that as an independent contractor, your gig job (or jobs if you've got a lot of side hustles to make ends meet) mean more tax responsibilities.

Sept.10: Most restaurants across the country closed earlier this year due to COVID-19. Some opened, then reclosed as the virus resurged. And many eateries simply stuck with take-out meals and deliveries. Whether you're able to dine in or still getting food brought to your house, remember to tip your server or delivery person.

If a tip isn't included in your food delivery charge, click the image above to calculate how much to tip the person who brought it to you.

As for servers who now are back on the job, remember that your tips are taxable income. If you worked at least some of August at a job where you got gratuities, you need to account for them today if they came to at least $20 last month. Use Form 4070 to report your tips today to your employer.

Sept. 13: Happy Grandparents' Day!
If you're an older grandma or grandpa, pay attention to your overall earnings. Your added retirement income could result in some of your Social Security benefits being taxed.

If you're helping out an older parent, Mom or Dad might qualify as a dependent and help you claim the $500 tax credit for qualifying dependents.

Sept. 15: The first two estimated tax payments of 2020 were combined and then delayed until July 15. The third one is back on schedule. It's due today.

Sept. 18: Still haven't filed your 2019 tax return? I hope you at least got an extension, which gives you until Oct. 15 to complete your Form 1040. But you don't have to wait that long. The Internal Revenue Service will gladly take your tax return this month.
And if you qualify, Free File, the IRS/tax software industry partnership that offers eligible taxpayers access to online tax preparation programs and federal return e-filing at no cost, is still available.

This year 10 software companies are participating at IRS.gov's Free File webpage. It's available for taxpayers with adjusted gross income of $69,000 or less regardless of filing status. If you make too much to use the online software, look into using Free File's fillable forms.

Sept. 22: Fall officially arrives today with the autumnal equinox at 9:31 a.m. Eastern Daylight Time. Adjust for your time zone, since the equinox occurs at the same moment worldwide. It's a good time to think about home maintenance that will help you weather the coming colder weather. While making those necessary repairs, also consider home improvements that could increase your home's basis and guarantee you won't owe any capital gains tax on your eventual residential sale profit.

Sept. 30: September is ending, but not the hurricane season. If your area hasn't been hit by any tropical system so far, good for you. But your luck might not hold, as the Atlantic and Gulf of Mexico hurricane season runs through the end of November. So that you're ready for another Hurricane Laura or, hopefully, a less severe storm, prepare now.

Uncle Sam's official forecasters at the National Oceanic and Atmospheric Administration (NOAA) expect 2020 to bring as many as 19 named storms, with six to eight possibly becoming hurricanes. Three to six could reach major status, which is category 3, 4 or 5 with winds of 111 mph or higher. Regardless of the count, it only takes one to wreak havoc. The countdown clock below can help you keep track of how many more days you have to worry about tracking any size or type of tropical storms.

You also might want to check out the ol' blog's special Storm Warnings.
These multi-page collections of posts offer tax advice on preparing for, recovering from and helping those who sustain damages from the many ways that that weather goes wild.

Small Business Tax Calendar: Important filing, deposit and record keeping dates throughout the year that your company needs to know. You can get more tax calendar information at the IRS' online calendar page and view the full year's important business and individual tax dates in IRS Pub. 509.

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