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  1. #1
    klpeterson Guest

    Default Handy software for used clothes and toys

    As you know, kids go through sizes so quickly and duplicate toys are not unusual.

    Rather than rummage sales and eBay http://portals.ebay.com/2984?ssPageName=MOPS5:HHM02
    consider charity thrift stores.

    I found a software called DeductionPro
    http://store.taxcut.com/dr/v2/ec_MAI...=1478#features
    which has a database of fair market value for all sorts of items. You'd be surprised what the IRS allows for baby and kids' clothes!

    You can also log cash contributions on this software. The data can be directly exported to TaxCut http://www.taxcut.com/index.html

    Furthermore the cost of this software (including shipping, if you choose not to download) is also deductable as part of the preparation fee.

    Rule of thumb: every $1.00 in deductions gets you $0.50 in refunds.

    Dad-to-be
    and part-time tax preparer

  2. #2
    Dcclerk is offline Sapphire level (2000+ posts)
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    Default RE: Handy software for used clothes and toys

    Thanks! We donate a ton of stuff and this is VERY helpful. It also helps to put my ebay buying into perspective! :)

  3. #3
    klpeterson Guest

    Default RE: Handy software for used clothes and toys

    Glad to help. You'll be pleasently surprised what the IRS allows for charitable donations.
    Furthermore driving to the doctors is deductible at $0.13/mile, tolls and parking are also fair game (whatever it takes to get over that 7.5% restriction).
    For charity any out-of-pocket expense for volunteer work is also deductible as if you wrote a check as is mileage at $0.12/mile. Yes, DeductionPro allows you to log these expenses (charity not medical) as well. You can also log cash contributions (e.g. church offerings).

  4. #4
    sntm's Avatar
    sntm is offline Diamond level (5000+ posts)
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    Default RE: Handy software for used clothes and toys

    my husband is going to love this! thanks!

    shannon
    not-even-pregnant-yet-overachiever
    trying-to-conceive :)
    PREGNANT! EDD 6/9/03
    mama to Jack 6/6/03

  5. #5
    NEVE and TRISTAN Guest

    Default KLPETERSON

    I'm glad to have run into this thread...since my hubby and I were just talking about this do you mind talking me thru the every $1 deducted is 50 cents in refund. That is way better than I thought (I am so not in the accounting business so begging for education)...
    I assumed every $1 deducted would equal the % bracket you are in, what am I missing????

    For example if I make $10,000 a year household income and the brakcet is 22% (I'm making up numbers)...then if I was able to deduct $2,000 wouldn't I be getting a refund of $440 and not a $1,000.




    Neve
    AKA "mama2be"-forgot password
    and Baby Boy Tristan born @UNC
    Feb 25, 2003
    Brother to 3 pups "gees" and 2 kitties

  6. #6
    mik8 is offline Gold level (500+ posts)
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    Default RE: Handy software for used clothes and toys


    Gotta love you for this! Thanks. Keep us updated more on this kind of stuff especially when tax time is around the corner. I see you're a "dad-to-be." Good luck. You'll become an expert soon. I went back to work the first time last weekend and found out only half of my baby's butt was covered (courtesy through my DH). Oh, the joys of parenthood!

  7. #7
    klpeterson Guest

    Default RE: KLPETERSON

    From your hyopothetical, you would, in fact, receive even more with the Earned Income Tax Credit, don't forget the exemptions (yourself, spouse and kids). Furthermore the standard deduction would exceed the itemized deductions in your hypothetical.
    As a lot of parents pay mortgages and property tax (houses have been known to increase fertility), itemizing gives the biggest refund.
    Nevertheless, that $1 in dedcutions yielding $0.50 in REFUNDS is a rule-of-thumb for tax planning. Keep in mind that there are various assumptions that may or may not apply in your individual case (more details are needed--I don't recommend posting them here!). The first assumption being that all income was subject to withholding. The other major assumption being that no exemptions (except for the couple) or deductions (like mortgage interest) were factored into the employer's withholding tables.
    It is a dirty little secret: A tax refund represents an interest-free loan to the United States Treasury. It is not a grant or benefit (barring EITC)--IT IS YOUR MONEY IN THE FIRST PLACE.

    I realize that the answer is long, but have I answered your query. The important point is to claim all allowable deductions if they prove to exceed the standard deduction. This software helps you to do that with respect to charitable contributions.



  8. #8
    klpeterson Guest

    Default RE: Handy software for used clothes and toys

    Thank you for your encouragement. My wife had a miscarriage this month. Our parenthood will not be so soon.
    As for the tax planning, I saw DeductionPro for sale at my local OfficeMax. Keep your eyes open for it at other retailers. Most retailers offer rebates and/or freebies on tax softwares. It's been my experience that Best Buy does the best job of screening vendors for rebate shennigans.

  9. #9
    NEVE and TRISTAN Guest

    Default RE: KLPETERSON

    Thank you so much for answering!!!
    Some of my dearest friends are accountants and they always joke at how boring it is, but lately I so wish I had studied it, not for a career as much as for the fact that it does interest me.
    Thank you again!!!

    My parents who I doubt have ever had a credit card bill and just seem to do everything "so right" always lecture us for letting Uncle Sam "borrow" our money over the year...they always say it is way better to owe it back (and to pay it on time of course) then to be owed it back. but I know my personality I enjoy seeing the revealed number of what I'm getting back and then love to just wait for it :)...


    Neve
    AKA "mama2be"-forgot password
    and Baby Boy Tristan born @UNC
    Feb 25, 2003
    Brother to 3 pups "gees" and 2 kitties

  10. #10
    cinrein Guest

    Default RE: Handy software for used clothes and toys

    I'm so sorry. Please know that we're thinking about you and your wife.

    Cindy and Anna 2/11/03

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