IRA Contributions for Seniors

If you will be age 70 1/2 by the end of the calendar year, you cannot make a regular IRA contribution anymore. However, you can still make a Roth contribution at any age as long as you have earned income and meet certain other requirements.

Start Up Costs

Costs that you have before you start operations in a new business can be deducted currently up to $5,000. Any amount over the $5,000 has to amortized over 15 years. Start up costs include such expenses as legal fees to incorporate, market surveys, consulting fees, market research, and advertising the business opening.

Mortgage Insurance

Mortgage insurance premiums on contracts issued after 2006 on your primary or second home qualify as deductible interest expense.  However if your income exceeds $109,000 you lose the deduction. The amount of the premium is reported in box 4 of form 1098 which should be mailed to you by your lender.

Alimony and Child Support

Alimony is taxable income to the recipient and tax deductible by the payer. Alimony must be paid in cash, checks or money orders and must be required by the divorce decree. Child support is not deductible by the payer, and it is also not taxable to the receiver.