Can I deduct interest/taxes paid on a new/used car and student loan interest filing as single claiming 1?
My divorce will be final in September 2009, and I ust updated my 1040 in July to single w 1 exemption and my taxes doubled (was married claiming 2). I am worried that I may owe since I am considered single for the whole year. Can I deduct the interest I paid on my qualified student loans and tax and interest paid on a cert. used BMW? Any advice?
You can probably deduct your student loan interest if your adjusted gross income is less than 70k.
Most other deductions you can only take if you itemize. Most people only have enough deductions to make this worth while if they own a home (because they can deduct mortgage interest and property taxes). If you itemize, you can choose between deducting your sales tax for the year, or your state and local income taxes. Depending on the state, and your other purchases, state and local income tax deduction might be higher.
Unless you think you will owe more than $1000 in taxes at the end of the year, the IRS won’t charge you any penalties.
