Mariners last minute tax checklist…

2
by on December 28, 2010 at 5:36 pm

Shipped out all year?

That’s a lot of dough… With four days left in the year you may be wondering how much you’ll be owning when you file your return next spring. You might be able to substantially reduce your tax bill if you act now. But when the ball drops at midnight – game over… There’s one golden rule – time deductions in December and income in January….

Here’s a few helpful last minute tips…

  1. Do you pay State income taxes? Did you make your estimated payments? Did you make your 4th quarter payment? Do it now… You get the deduction in the year the taxes are paid. By writing a check out for $5,000 in December, you’ll get a deduction for Tax Year 2010. If you wait until 2011, you’re out of luck.
  2. Homeowner? If so, two things. Make your January mortgage payment and pay your property tax bill. Again, you’ll get the property tax and interest deduction for Tax Year 2010.
  3. Are you due vacation pay? Don’t file until next year! That way you hold the money for the year before you pay.
  4. In the Union? Paying down an initiation fee? Pay it down. Or pay your dues for that matter.
  5. Need to take license? Pay the fees now.
  6. Need a certification class? Sign up and pay.
  7. Flying to a hall to look for work? Buy your ticket.
  8. Have some loser stocks? Dump em… Up to a $3,000 net loss.
  9. Energy credit is still in effect. If you were going to upgrade your home anyways, might as well get the tax benefit.
  10. There are still several hybrid credits available as well.

Things I didn’t mention

  1. Close on the house you’re buying… You won’t see any benefit until next year.
  2. Pay medical expenses. With the 7.5% limitation, there’s rarely a recognized benefit.
  3. Donate that old junk car. I applaud charitable tendencies. But from a tax perspective it’s not very beneficial. Odds are you won’t get more than a $500 deduction (about $150 cash). If you can sell it for $500 on craigslist, you’re in better shape… Again, I’m not discounting donations, just not solely for tax purposes. It’s more of a fringe benefit.

2 Comments

  • Suz

    23/06/2011

    So, what about if you live in one state (TN) and work as a merchant mariner in another state (HI), 45 days on/45 days off rotation? Do you pay HI state taxes, or does the payroll clerk change your home state to TN, which has no state income tax? This will be my fiance’s issue next year as we are moving from Hawaii to Tennessee, but he will be commuting for his pull. Also, would travel expenses to and from HI be a deductible expense? I’ve looked at IRS publication 463 and it was a bit confusing. I’m hoping for a little clarification.

    Thank you!

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