How my Mazda 3 may end up costing me $79,000

Started by ZLoth, September 01, 2016, 03:46:07 PM

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vdeane

Homes generally increase in value only in an amount that matches inflation.  The only time home prices increased faster than inflation was the housing bubble.

Counterpoint on student loans: they can't be discharged in bankruptcy, lenders can garnish your wages if you miss payments, and they're getting larger and larger when the economic prospects for young people are getting poorer and poorer.  Were it not for my student loans, for example, I'd be able to own my car outright instead of leasing, and they're a factor in why there aren't many millennial homeowners.
Please note: All comments here represent my own personal opinion and do not reflect the official position of NYSDOT or its affiliates.


SP Cook

IMHO,

- WISE student debt, which is to say debt used to attend a state college or community college in your own state in order to become qualified for a profession for which you are suited which has a value in the Market which will increase your earnings potential by significant amount, is "good debt".  All other forms are foolishness.

- While it is mostly true in the short term that house values only increase roughly in line w/ inflation, in the longer term the underlaying value of the land can change this.  Which is to say if one has a home, or just land, near a metropolitan area which is growing, the land is becoming more valuable each day, as the "highest and best use" slowly changes from "farm" or "excess rural land" or "timber" to "residential" or even "commercial".  Certainly a home near DC in 1955 was worth many times the amount of inflation relative to 1935.

- While the economic value of a car does not really change on the "first mile", the fact of the matter is the retail value does.  The first mile is the most expensive mile.


1995hoo

It is astonishing to me how much the cost of higher education has skyrocketed in the past 20 years. The current PER-YEAR cost estimate to attend the law school I attended is now $77,000, i.e. $231,000 for the full three years. That's insane.
"You know, you never have a guaranteed spot until you have a spot guaranteed."
—Olaf Kolzig, as quoted in the Washington Times on March 28, 2003,
commenting on the Capitals clinching a playoff spot.

"That sounded stupid, didn't it?"
—Kolzig, to the same reporter a few seconds later.

formulanone

#28
Quote from: 1995hoo on September 06, 2016, 03:17:48 PM
It is astonishing to me how much the cost of higher education has skyrocketed in the past 20 years.

Between the cost of college pretty much tripling/quadrupling in the past twenty years and the higher standards of admission, I probably would have just jumped right into community college, fearing the debt by taking the high road...but you don't think like that when you're 18. You aim high, and rightfully so when you really only have one shot at it.

I guess those ever-skyward technology limits and the spiffy college football team have to get paid for somehow, because it rarely went into salaries and convenient parking spaces!

kkt

Quote from: vdeane on September 06, 2016, 01:38:04 PM
Homes generally increase in value only in an amount that matches inflation.  The only time home prices increased faster than inflation was the housing bubble.

That completely depends where you are.  Markets I'm familiar with, San Francisco Bay Area and Seattle, housing prices have been increasing much faster than inflation for many decades.  The housing bubble bursting caused a yearlong pause in the increase in value in desirable in-city locations, not a decrease in value.  Not claiming that they never could decrease, just that it seems like a lot better investment than, say, stocks.

Let's see, the last substantial decrease for desirable city locations in the Bay Area was probably the 1930s. 

And for Seattle, the Boeing bust of the mid 1970s.  Seattle's economy has diversified since and is now less vulnerable to a single industry.  Except maybe coffee.


Duke87

Quote from: vdeane on September 06, 2016, 01:38:04 PM
Homes generally increase in value only in an amount that matches inflation.  The only time home prices increased faster than inflation was the housing bubble.

You don't need to beat inflation for something to count as an investment. Anything that matches inflation increases in value more than cash does, after all.

Home ownership as an investment is also often compared to renting (you have to live somewhere, after all, so you have to rent if you don't buy), where it is clearly the better of the two options since even if the price of the home decreases in nominal dollars, you are still left with some value whereas renting leaves you with nothing.

Quote from: Brandon on September 01, 2016, 04:22:36 PM
And now let's compare the comparable cost in bus fare, train fare, and ticket (bus, train, airline) costs, as well as taxi (including Uber and Lyft) costs (taxis sure as hell aren't cheap).  That's the only way to accurately determine if you gain or lose by owning a car.  I'll bet you actually save money over the long term by owning a small, dependable fuel efficient vehicle that you keep a decade or more.  Also, remember that time=money as well.

If you're physically fit enough for it and live in a location where you have no regular need to travel more than a couple dozen miles from home, the cheapest practical option is likely to eschew motorized transportation entirely and get a bike to ride everywhere. No fuel costs or insurance costs, and the price of one is a lot less than a car. The exercise may save you money in the long run in healthcare costs as well.

Of course, this means getting by with minimal cargo capacity and no protection from the elements, and depending entirely on your own energy to get anywhere. In reality most people won't be willing to live with these limitations and will find themselves spending money on taxis or transit when the weather is nasty, when they need to transport something large, when traveling with friends, when they're drunk or tired, etc.
If you always take the same road, you will never see anything new.

kphoger

Quote from: Brandon on September 01, 2016, 04:22:36 PM
And now let's compare the comparable cost in bus fare, train fare, and ticket (bus, train, airline) costs, as well as taxi (including Uber and Lyft) costs (taxis sure as hell aren't cheap).  That's the only way to accurately determine if you gain or lose by owning a car.  I'll bet you actually save money over the long term by owning a small, dependable fuel efficient vehicle that you keep a decade or more.  Also, remember that time=money as well.

I lived in the Chicago suburbs with no car from the end of 1999 until the spring of 2006, save for a period of less than a year when I had a vehicle.  I got around by a combination of means:  local bus, commuter train, the L, bicycle, walking, hitchhiking, and often a combination of two or three of those.  For example, a trip into the city might involve bicycling a mile, taking a commuter train, transferring to a local bus, and then walking a mile.  My transportation costs included a $50 monthly bus pass, plus maybe $30 in various train fares a month.  Even figuring one long-distance trip every other month by Greyhound bus for $160 brings the average monthly total to $160.

$160 would easily have been the comparable cost of car insurance plus gasoline, not to mention repairs and maintenance.  So, for me at least, owning a car would only have been a net gain if the car itself were free.  That brief period during which I owned a car, in fact, was due to my buying a 1987 Corolla hatchback for 50 bucks.  The cost of owning it was comparable to using public transit and whatnot, but needed repairs were financially out of reach for me at that time.  I literally could not afford to renew the tags because I didn't have the money to replace the exhaust line for it to pass emissions testing.  So I sold it and went back to the cheaper alternative.

Now that I'm married with three children, I've become more or less dependent on a car.  My job is a few miles past the edge of the local bus network, groceries are a lot bigger of an operation than they used to be, we're busier than we used to be with less time for transiting from A to B.  But we've never owned more than one vehicle, and we don't intend to.  Even back when I worked three miles from home and my wife worked in another county, we got by with one car.  I would ride a bike, walk, hitchhike, whatever.  Because owning a car is not profitable, and owning two is a losing proposition.

Oh, by the way, time is not money.  Money is money.  I have less free time now than I used to, which means I value it more than I used to, but I in no way make more money by having more free time.
Keep right except to pass.  Yes.  You.
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Male pronouns, please.

Quote from: Philip K. DickIf you can control the meaning of words, you can control the people who must use them.

texaskdog

Quote from: 1995hoo on September 06, 2016, 01:17:49 PM
Student loan interest is also deductible on your federal taxes, subject to certain limits, and you don't have to itemize to get the deduction. So there's that.

But it's not good to have debt, and there is no guarantee it gets you a better job. 

texaskdog

Quote from: SP Cook on September 06, 2016, 02:10:22 PM
IMHO,

- WISE student debt, which is to say debt used to attend a state college or community college in your own state in order to become qualified for a profession for which you are suited which has a value in the Market which will increase your earnings potential by significant amount, is "good debt".  All other forms are foolishness.

- While it is mostly true in the short term that house values only increase roughly in line w/ inflation, in the longer term the underlaying value of the land can change this.  Which is to say if one has a home, or just land, near a metropolitan area which is growing, the land is becoming more valuable each day, as the "highest and best use" slowly changes from "farm" or "excess rural land" or "timber" to "residential" or even "commercial".  Certainly a home near DC in 1955 was worth many times the amount of inflation relative to 1935.

- While the economic value of a car does not really change on the "first mile", the fact of the matter is the retail value does.  The first mile is the most expensive mile.



http://www.daveramsey.com/blog/domino-effect-of-student-loans

SP Cook

Ramsey has been selling his particular brand of snake oil for many years.  It can be summed up as:

- Don't borrow any money.
- Live like a hermit, drive a POS car, never go on vacation, shop at Goodwill, eat scraps, wear shoes with holes in them, never eat out, etc.
- Put all your $$ in mutual funds (because you are too stupid to actually invest yourself).  Which before the Asian crash of the 00s was "put all your $$ in Asian mutual funds because the USA is going to hell in a handbasket". 

And, I suppose die, having never enjoyed a pleasure of any type and, I suppose leave the money in the old McDonald's bag under your tenement bed to your kids to miser for another generation.  Unless he has figured out how to beat death, which I doubt.

He is a buffoon. 

Fact is that, while the sources differ on the exact figures, all agree that college graduates earn MILLIONS more than people with less education over a lifetime.  For many, perhaps most, people borrowing is necessary to achieve that skill level. 

As I said, one of course should only consider public schools in one's own state and one should major (and if you are in college and are "undecided" you have no business in college) in a skill to which you are suited and which is of value to the Market.  And, of course, one should reduce the amount of borrowing in every way one can (community college, stay at home, work, work-study, military service, etc.)

But "don't go to college" is among this idiot's worst advice.

Duke87

Quote from: SP Cook on September 18, 2016, 10:45:14 AM
Fact is that, while the sources differ on the exact figures, all agree that college graduates earn MILLIONS more than people with less education over a lifetime.  For many, perhaps most, people borrowing is necessary to achieve that skill level.

But it depends on the college degree. It's one thing to get a degree aimed at going into a field that requires one, or that will limit you to bottom level positions without one. It's another thing to major in a subject that interests you but have no clear plan for turning it into a career, and then end up stuck attempting to pay off your student loans working at Starbucks. THAT is the trap to not fall into. A college degree is an investment, don't make it without a specific payoff in mind.

With regards to it being an investment it also depends on the school. Some are more expensive than others and the more expensive schools do not typically pay for themselves in higher salaries later on. Indeed, what school you went to is basically meaningless for every job after your first so long as you have a valid degree. Employers will be looking more at your work experience.
If you always take the same road, you will never see anything new.

vdeane

There's definitely truth to the idea of the loan holding you back.  I have a student loan that amounts to $315/month (though I actually pay $400/month since I don't want to wait eight more years to get rid of what amounts to my biggest single expense after rent).  Because of that loan, I was not able to afford to buy my car outright and was forced to lease it instead (which is quite inconvenient; I'm sick and tired of tracking my mileage).  Next year, when I would have had a car loan paid off, I'll instead be spending a large chunk of my savings (which is supposed to act as my emergency fund, which also isn't growing as fast as it could because of my student loan payments) as a down payment on another loan to buy out my car lease.  I'm also living in constant fear of increases in rent and health costs (and with a 50% hike in premiums and copays rumored for the next union contract, I'm definitely worried; Cuomo will NOT back down).  Hard to save as much for retirement as I should too; hope NY's pension plan doesn't get taken away at any point in the next 40 years!

Even majors in STEM aren't a guarantee of employment because employers are importing workers from India (and paying them less) and replaced entry level jobs with poorly paid (or unpaid) internships that don't pay the bills.  You pretty much have to be a superstar (but not too much, because then employers know you'll leave when you get a better offer), have a ton of experience (ditto), or know someone to get a job at anything other than flipping burgers these days.
Please note: All comments here represent my own personal opinion and do not reflect the official position of NYSDOT or its affiliates.

Duke87

Quote from: vdeane on September 18, 2016, 08:03:48 PM
replaced entry level jobs with poorly paid (or unpaid) internships that don't pay the bills.

Or, in many cases, with computers. Great example: entry level jobs in the legal profession traditionally involved a lot of discovery work. Someone needed to manually go through a stack of documents and highlight every reference to something in particular, dig through the file room for every document relevant to that reference, etc. Before computers this could easily be a full day's work or more for just one case. Now a computer program can do all that in two minutes and there's no more need for the entry level grunt. As a result, there is now a problem of people fresh out of law school, once a golden ticket to a well-paying career, unable to find jobs because law firms have no use for them.

QuoteYou pretty much have to be a superstar (but not too much, because then employers know you'll leave when you get a better offer)

Or be too expensive. Bean counters at large companies always harass managers about employees whose salaries are significantly above the median for their position. You think it's difficult finding a job as a recent college graduate, try being unemployed and over the age of 50. At that point no one wants to hire you because you have too much experience and employers aren't willing to pay for it. Not when there's an abundance of 20-somethings willing to do the same work for much less.

Quoteor know someone

Yep, well, such is life. In a world where you can get 100 applicants in a week from an online job posting, you need to sift through them somehow. Your buddy saying "oh yeah, I know that guy, he does great work" is the single greatest way a particular applicant can stand out.

This does, unfortunately, mean that if you're not big on schmoozing you are at a disadvantage in life. It is said that half of all positions are filled without them ever being posted. Your professional connections will get you a job much more effectively than your resume ever will.
If you always take the same road, you will never see anything new.

jeffandnicole

Quote from: texaskdog on September 18, 2016, 01:57:31 AM
Quote from: 1995hoo on September 06, 2016, 01:17:49 PM
Student loan interest is also deductible on your federal taxes, subject to certain limits, and you don't have to itemize to get the deduction. So there's that.

But it's not good to have debt, and there is no guarantee it gets you a better job. 

Debt isn't totally bad, especially when you're trying to build a credit history.  The key is to minimize it, minimize the interest, and absolutely make sure those payments are on time.

People say that as long as you can write off the interest on your taxes its fine.  Many of these people don't understand you can't write off the entire interest, just a portion.  And many people just take the standard deduction, so their mortgage interest isn't even a write off.

vdeane

Minimizing interest on student loans ranges from hard to impossible.  Not only is the interest rate higher than on home/car loans, but instead of just paying interest on the principle, it's compounded daily.  About a third to half of my student loan payments go to interest alone.

Not sure where this whole idea of writing off interest on taxes came from.  No amount of tax deductions will equal or surpass the total amount of money you're paying in interest.  Plus it's generally best to just take the standard deduction anyways.  Unless you have a ton of deductions, itemizing them just leads to headaches, a larger tax bill, and a random chance of an audit.
Please note: All comments here represent my own personal opinion and do not reflect the official position of NYSDOT or its affiliates.

roadman

#40
Quote from: vdeane on September 19, 2016, 01:22:18 PM
Not sure where this whole idea of writing off interest on taxes came from.  No amount of tax deductions will equal or surpass the total amount of money you're paying in interest.  Plus it's generally best to just take the standard deduction anyways.  Unless you have a ton of deductions, itemizing them just leads to headaches, a larger tax bill, and a random chance of an audit.
If you are renting your home, then taking the standard deduction is usually best.  If you are a homeowner with a mortgage on your property, itemizing your deductions, which isn't terribly complicated to do, almost always results in a lower tax bill (or a larger refund).  Mortgage interest, property taxes, and state and local taxes you pay, as well as excise taxes on certain personal property such as your car, are all deductible - and are either already reported to the IRS or are available on the public record for an IRS inspector to easily verify.    Limited deductions only come into play if you're above a certain income level.  And, unless you're showing a large amount in charitable deductions, the likelihood of you getting audited is only marginally greater than if you take the standard deduction.
"And ninety-five is the route you were on.  It was not the speed limit sign."  - Jim Croce (from Speedball Tucker)

"My life has been a tapestry
Of years of roads and highway signs" (with apologies to Carole King and Tom Rush)

jeffandnicole

Quote from: roadman on September 19, 2016, 01:48:40 PM
Quote from: vdeane on September 19, 2016, 01:22:18 PM
Not sure where this whole idea of writing off interest on taxes came from.  No amount of tax deductions will equal or surpass the total amount of money you're paying in interest.  Plus it's generally best to just take the standard deduction anyways.  Unless you have a ton of deductions, itemizing them just leads to headaches, a larger tax bill, and a random chance of an audit.
If you are renting your home, then taking the standard deduction is usually best.  If you are a homeowner with a mortgage on your property, itemizing your deductions, which isn't terribly complicated to do, almost always results in a lower tax bill (or a larger refund).  Mortgage interest, property taxes, and state and local taxes you pay, as well as excise taxes on certain personal property such as your car, are all deductible - and are either already reported to the IRS or are available on the public record for an IRS inspector to easily verify.    Limited deductions only come into play if you're above a certain income level.  And, unless you're showing a large amount in charitable deductions, the likelihood of you getting audited is only marginally greater than if you take the standard deduction.

And since you're a gov worker, you can also possibly itemize union dues, medical expenses and other items, subject to floors.  Mine always are under those floors so I can't, but the ability to do so does exist.

For the most part, as mentioned, those that itemize can save a significant amount on their taxes.  Basically, for the top 3 sections of Schedule A (Medical/Dental expenses, Interest & Taxes paid), the IRS is already going to have proof of that stuff from your employer or banking company, so it's pretty straight forward.  What people get in trouble with are the next sections: Charities, Theft Losses, Job Expenses & Misc Deductions.  Don't claim you donate half your salary.  Don't declare half your house office space for your job.   Don't say you're consistently robbed of your priceless art collection, especially without a police report and insurance claim! 

Someone who plays by the rules will be fine.  And even if they do want to audit you, they're not going to pry your teeth out looking for every penny in most cases.  They're generally going to want some additional documentation.  And in most cases, they're already aware of what you should be paying.  Generally they just send out a simple letter basically saying "Hey, we noticed you forget to pay something.  Send a check for this amount (plus a few bucks interest) by such and such date.  If you don't believe you owe that, let us know or give us a call".  Honestly, even if you forgot you had to pay something and you send in the payment, the IRS is happy.  I've gotten several letters over the years.  In some instances, I forgot to pay something.  In other instances, I've made the payment, but forgot the paperwork to tell the IRS how to apply the payment!  And for anyone like you or me, they're not going to send us to jail for the money we're talking about.  You'll need to get into some serious fraud to have them start looking into stuff like that!

Duke87

Quote from: vdeane on September 19, 2016, 01:22:18 PM
Not sure where this whole idea of writing off interest on taxes came from.  No amount of tax deductions will equal or surpass the total amount of money you're paying in interest.  Plus it's generally best to just take the standard deduction anyways.  Unless you have a ton of deductions, itemizing them just leads to headaches, a larger tax bill, and a random chance of an audit.

I'm pretty sure that you're permitted to take a deduction for student loan interest when calculating your adjusted gross income regardless of whether you're itemizing or taking a standard deduction.

i.e. you can take both the standard deduction AND a student loan interest deduction. The standard deduction only replaces itemized deductions which are listed on schedule A, not those which are listed on lines 23-35 on your 1040.
If you always take the same road, you will never see anything new.

kkt

You can only deduct that part of union dues that exceeds 2% of your adjusted gross.  I guess there are some union jobs with dues that high, but not many.  And most of them are probably low enough pay that they don't make enough to itemize anyway.


vdeane

Quote from: Duke87 on September 19, 2016, 07:16:15 PM
Quote from: vdeane on September 19, 2016, 01:22:18 PM
Not sure where this whole idea of writing off interest on taxes came from.  No amount of tax deductions will equal or surpass the total amount of money you're paying in interest.  Plus it's generally best to just take the standard deduction anyways.  Unless you have a ton of deductions, itemizing them just leads to headaches, a larger tax bill, and a random chance of an audit.

I'm pretty sure that you're permitted to take a deduction for student loan interest when calculating your adjusted gross income regardless of whether you're itemizing or taking a standard deduction.

i.e. you can take both the standard deduction AND a student loan interest deduction. The standard deduction only replaces itemized deductions which are listed on schedule A, not those which are listed on lines 23-35 on your 1040.
Which is probably why I've never seen it... I use 1040EZ instead of 1040 or 1040A.  On the plus side, it only takes me 30 minutes combined to do my federal and state income taxes (not including time spent waiting for the IRS to accept my federal return before I start the state return) (also, the fact that the online system for federal doesn't even do simple things like look up your tax amount, unlike the state system, which consists of entering in some boxes from my federal return and my W2 and checking a few boxes; the rest is automatic).
Please note: All comments here represent my own personal opinion and do not reflect the official position of NYSDOT or its affiliates.

1995hoo

The student loan interest is deductible on the 1040A. The deduction is capped at a fairly low amount and it phases out as your income increases. My point was simply–if you must carry debt, at least that particular debt may have some tax benefit.

It makes me think of a tax referendum that's on the ballot in Fairfax County this fall. The county wants to enact a meals tax "to reduce reliance on the real estate tax." But the real estate tax is deductible on the federal return. The meals tax wouldn't be. If I have to pay a tax, I'd just as soon it be the deductible one (recognizing I could avoid the meals tax easily enough by not eating out, and even if I did eat out it'd likely be a small amount over the course of a year.....in other words, all things are never equal).
"You know, you never have a guaranteed spot until you have a spot guaranteed."
—Olaf Kolzig, as quoted in the Washington Times on March 28, 2003,
commenting on the Capitals clinching a playoff spot.

"That sounded stupid, didn't it?"
—Kolzig, to the same reporter a few seconds later.

jeffandnicole

Quote from: kkt on September 20, 2016, 01:28:33 AM
You can only deduct that part of union dues that exceeds 2% of your adjusted gross.  I guess there are some union jobs with dues that high, but not many.  And most of them are probably low enough pay that they don't make enough to itemize anyway.



As part of the 2%, you can add up all of the below, which includes Union dues.  Union dues better not be anywhere close to the 2% floor on their own, but combined with other items, may help you get above it.  Sure, it may be a little work to determine if you qualify, but in the interest of paying fewer taxes (or getting a refund), it helps to be aware of the deduction possibilities. 

-Business bad debt of an employee.
-Business liability insurance premiums.
-Damages paid to a former employer for breach of an employment contract.
-Depreciation on a computer your employer requires you to use in your work.
-Dues to a chamber of commerce if membership helps you do your job.
-Dues to professional societies.
-Educator expenses.
-Home office or part of your home used regularly and exclusively in your work.
-Job search expenses in your present occupation.
-Laboratory breakage fees.
-Legal fees related to your job.
-Licenses and regulatory fees.
-Malpractice insurance premiums.
-Medical examinations required by an employer.
-Occupational taxes.
-Passport for a business trip.
-Repayment of an income aid payment received under an employer's plan.
-Research expenses of a college professor.
-Rural mail carriers' vehicle expenses.
-Subscriptions to professional journals and trade magazines related to your work.
-Tools and supplies used in your work.
-Travel, transportation, meals, entertainment, gifts, and local lodging related to your work.
-Union dues and expenses.
-Work clothes and uniforms if required and not suitable for everyday use.
-Work-related education.


Rothman

#47
Eh, I'm unionized.  Pretty sure my dues don't add up to 2% of my gross. 
Quote from: vdeane on September 20, 2016, 01:18:54 PM
Quote from: Duke87 on September 19, 2016, 07:16:15 PM
Quote from: vdeane on September 19, 2016, 01:22:18 PM
Not sure where this whole idea of writing off interest on taxes came from.  No amount of tax deductions will equal or surpass the total amount of money you're paying in interest.  Plus it's generally best to just take the standard deduction anyways.  Unless you have a ton of deductions, itemizing them just leads to headaches, a larger tax bill, and a random chance of an audit.

I'm pretty sure that you're permitted to take a deduction for student loan interest when calculating your adjusted gross income regardless of whether you're itemizing or taking a standard deduction.

i.e. you can take both the standard deduction AND a student loan interest deduction. The standard deduction only replaces itemized deductions which are listed on schedule A, not those which are listed on lines 23-35 on your 1040.
Which is probably why I've never seen it... I use 1040EZ instead of 1040 or 1040A.  On the plus side, it only takes me 30 minutes combined to do my federal and state income taxes (not including time spent waiting for the IRS to accept my federal return before I start the state return) (also, the fact that the online system for federal doesn't even do simple things like look up your tax amount, unlike the state system, which consists of entering in some boxes from my federal return and my W2 and checking a few boxes; the rest is automatic).

O.o

I'm really surprised you aren't using at least a 1040A.

I also don't believe union dues exceed 2% of my gross and other expenses are reimbursed, thus making them ineligible for deduction, of course.
Please note: All comments here represent my own personal opinion and do not reflect the official position(s) of NYSDOT.

kkt

Quote from: jeffandnicole on September 20, 2016, 02:14:08 PM
Quote from: kkt on September 20, 2016, 01:28:33 AM
You can only deduct that part of union dues that exceeds 2% of your adjusted gross.  I guess there are some union jobs with dues that high, but not many.  And most of them are probably low enough pay that they don't make enough to itemize anyway.
As part of the 2%, you can add up all of the below, which includes Union dues.  Union dues better not be anywhere close to the 2% floor on their own, but combined with other items, may help you get above it.  Sure, it may be a little work to determine if you qualify, but in the interest of paying fewer taxes (or getting a refund), it helps to be aware of the deduction possibilities. 

-Business bad debt of an employee.
-Business liability insurance premiums.
-Damages paid to a former employer for breach of an employment contract.
-Depreciation on a computer your employer requires you to use in your work.
-Dues to a chamber of commerce if membership helps you do your job.
-Dues to professional societies.
-Educator expenses.
-Home office or part of your home used regularly and exclusively in your work.
-Job search expenses in your present occupation.
-Laboratory breakage fees.
-Legal fees related to your job.
-Licenses and regulatory fees.
-Malpractice insurance premiums.
-Medical examinations required by an employer.
-Occupational taxes.
-Passport for a business trip.
-Repayment of an income aid payment received under an employer's plan.
-Research expenses of a college professor.
-Rural mail carriers' vehicle expenses.
-Subscriptions to professional journals and trade magazines related to your work.
-Tools and supplies used in your work.
-Travel, transportation, meals, entertainment, gifts, and local lodging related to your work.
-Union dues and expenses.
-Work clothes and uniforms if required and not suitable for everyday use.
-Work-related education.

Point taken.  However, for union dues in particular, it's a pretty unusual union member who would need to carry malpractice insurance or have a home office for work purposes.  I guess I've heard of some colleges where adjunct faculty have unionized, so it could happen.

vdeane

Quote from: Rothman on September 20, 2016, 02:19:09 PM
Eh, I'm unionized.  Pretty sure my dues don't add up to 2% of my gross. 
Quote from: vdeane on September 20, 2016, 01:18:54 PM
Quote from: Duke87 on September 19, 2016, 07:16:15 PM
Quote from: vdeane on September 19, 2016, 01:22:18 PM
Not sure where this whole idea of writing off interest on taxes came from.  No amount of tax deductions will equal or surpass the total amount of money you're paying in interest.  Plus it's generally best to just take the standard deduction anyways.  Unless you have a ton of deductions, itemizing them just leads to headaches, a larger tax bill, and a random chance of an audit.

I'm pretty sure that you're permitted to take a deduction for student loan interest when calculating your adjusted gross income regardless of whether you're itemizing or taking a standard deduction.

i.e. you can take both the standard deduction AND a student loan interest deduction. The standard deduction only replaces itemized deductions which are listed on schedule A, not those which are listed on lines 23-35 on your 1040.
Which is probably why I've never seen it... I use 1040EZ instead of 1040 or 1040A.  On the plus side, it only takes me 30 minutes combined to do my federal and state income taxes (not including time spent waiting for the IRS to accept my federal return before I start the state return) (also, the fact that the online system for federal doesn't even do simple things like look up your tax amount, unlike the state system, which consists of entering in some boxes from my federal return and my W2 and checking a few boxes; the rest is automatic).

O.o

I'm really surprised you aren't using at least a 1040A.

I also don't believe union dues exceed 2% of my gross and other expenses are reimbursed, thus making them ineligible for deduction, of course.
Let's put it this way: I had never heard of deductions other than the standard one and itemizing until this thread, and my personal finance/careers elective in high school didn't cover any forms other than 1040EZ and the NY state return in depth.  I do my own taxes, on my own with the free fillable forms, since I believe that it is morally repugnant that someone should have to pay a tax preparer or for tax software for something that shouldn't be nearly as complicated as it is (most of the complications arising from the tax preparation industry lobbying congress to keep things complex and ban the IRS from making their own software, which is why the documentation and calculation capabilities of free fillable forms is atrocious).  I try to keep everything as simple as possible.
Please note: All comments here represent my own personal opinion and do not reflect the official position of NYSDOT or its affiliates.



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