Tax Deduction Question? Can you claim water damages that Insurance Company didn't pay as loss on Income Tax?
I had water damage on the ceiling in my kitchen, according to the insurance company's estimate, the damages would cost about 850.00 to repair...my deductible was 1,000. Can I claim the 850.00 that I have to pay for repairs as a Tax Deduction/Loss on my income tax?
If your water damage was a "sudden event" and not the result of a slow leak, the damage could be claimed as a loss. However, the IRS has added a few rules. First you subtract $100 from the loss, your's is now $750. Then you subtract 10% of your adjusted gross income. If you made more than $7500 , then you would not be able to deduct any of the loss. There is no $1000 limit for casualty losses.
Where would I find an income tax deduction chart for the state fo Michigan?
I am planning to be a truck driver and need to deduct taxes from my paycheck myself.
contact the Franchise Tax Board or whatever agency is in charge of collecting taxes in Michigan. I live in California, and that's what California calls their tax collecting agency. You may also want to contact the IRS (Feds) to get a Fed tax deduction table.
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