Tax Tips: Deductions
Dependants: Did you know you can deduct dependents, even if they are not a relative? If the person lives with you and you provide more than half of her or his support, you can list them as a dependant. However, you must supply a Social Security number for them. People were trying to list their pets and deceased persons as dependants. That’s an official no-no.
Claiming Yourself: If you can be claimed on someone else’s tax return, you can’t claim yourself as a personal exemption. If you are in the 15% tax bracket, one exemption could cost you over $400. Tough break, kiddo. Welcome to the world of taxes.
Amount for Exemptions: The amount allotted for exemptions goes down as the income levels go up. The amounts allowed for deductions begin to decrease significantly after $189,960 (1999) for joint returns and $126,600 on single returns (1999). C’est la vie.
Relocation Expenses: You can now (1999) deduct your moving expenses if you move because of a job relocation and the new job is more than 50 miles farther from your home than your old job was. This is especially helpful for recent graduates moving because of their first job. Go get 'em!