How to Pay Zero Taxes 2015: Your Guide to Every Tax Break the IRS Allows

1009 Pages·2014·51.97 MB·English

by  Jeff Schnepper

Also by Jeff A. Schnepper
How to Pay Zero Estate Taxes
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Professional Handbook of Business Valuation
New Bankruptcy Law
Can You Afford to Retire?

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ISBN: 978-0-07183667-8
MHID: 0-07-1836675
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This book is normally dedicated to my mogul,
Barbara, who taught me how to love, and to
my children, Brandy, Joshua, Allison, Mario,
and Jonelle, who gave me five more reasons why.
If I had the choice of doing it all over again,
I would begin by loving you again.
Also normally dedicated to the memory
of Frisco T. D. Schnepper, Tiger T. C. Schnepper,
and to Fred and Bruno, who now give me paws,
BUT
Forget it, guys . . . This one’s
for my Bianca Rose Conlin,
and her brothers Drew Ethan Conlin, Tyler Evan
Conlin,
Spencer Henry Conlin, and Owen Bae Alexander
Conlin
and their cousins Dylan Simon Schnepper and Aubrey
Anne Schnepper, who have redefined my universe!
Contents
ACKNOWLEDGMENTS

CHAPTER 1
Tax Insanity

CHAPTER 2
Is It Legal?

CHAPTER 3
How Our Tax System Works

CHAPTER 4
Exclusions—Tax-Free Money
A Alternatives to “Earned Income”
1. Hospitalization Premiums
2. Group Life Insurance Premiums
3. Group Legal Services Plans
4. Accident and Health Plans
5. Employee Death Benefits
6. Merchandise Distributed to Employees on Holidays
7. “Expenses of Your Employer”
8. Meals and Lodgings
9. Employee Discounts
10. Workers’ Compensation
11. “Cafeteria” Plans and Flexible Spending Accounts
12. Dependent Care Assistance Program
13. Employer Educational Assistance
14. Employee Awards
15. Clergy Housing Allowance
16. Miscellaneous Fringe Benefits
B Donative Items
17. Gifts, Bequests, and Inheritances
18. Scholarships and Fellowships
19. Prizes and Awards
20. Qualified Charitable Distributions (QCDs)
C Investors
21. Interest on State and Municipal Obligations
D Benefits for the Elderly
22. Public Assistance Payments
23. Social Security and Other Retirement Benefits
24. Annuities
25. Sale of Your Home
E Miscellaneous Individual Exclusions
26. Carpool Receipts
27. Damages
28. Divorce and Separation Arrangements
29. Life Insurance
30. Qualified State Tuition (§529) Programs
31. Your Home—The Mother of All Tax Shelters!
32. Disabled Veteran Payments
33. Exclusion of Income for Volunteer Firefighters and Emergency
Medical Responders
34. Unemployment Benefits
35. Homeowner Security
36. Reimbursed Costs to Parents of Children with Disabilities
37. Wrongful Conviction and Incarceration
38. Restitution Payments
39. Frequent Flier Miles
40. Hurricane Sandy
41. Cancellation of Indebtedness
42. Medicaid Payments for Foster Care of Related Individuals
F Schedule of Excludable Items

CHAPTER 5
Credits—Dollar-for-Dollar Tax Reductions
A Estimated Tax and Withholding Exemptions
B Credits
43. The Earned Income Credit
44. Excess Social Security Tax
45. The Child and Dependent Care Credit
46. Credit for the Elderly or Permanently and Totally Disabled
C Special Credits
47. Work Opportunity Credit (Formerly Targeted Jobs Tax Credit)
48. Welfare to Work Credit
49. Research Tax Credit
50. Orphan Drug Tax Credit
51. Adoption Assistance
52. Hope Scholarship Credit
53. American Opportunity Tax Credit
54. Lifetime Learning Credit
55. Child Tax Credit
56. Disability Credits
57. Health Insurance Credit
58. Saver’s Credit
59. Small Employer Credit
60. Electric Vehicle Credit
61. Credit for Residential Energy Efficient Property
62. Energy Saving Home Improvement Credit
63. Hybrid Vehicles Credit
64. Telephone Tax Refund
65. First-Time Home Buyer Credit
66. “Making Work Pay” Tax Credit
67. Plug-in Electric Drive Vehicle Credit
68. Plug-in Electric Vehicle Credit
69. Conversion Kits
70. Treatment of Alternative Motor Vehicle Credit as a Personal Credit
Allowed against AMT
71. Small Business Health Insurance Credit
72. Foreign Tax Credit
73. The Premium Tax Credit

CHAPTER 6
“Above the Line” Deductions
A Deductions for Adjusted Gross Income
74. Trade and Business Deductions
75. Employee Business Expenses of Actors and Other Performing Artists
76. Employee Business Expenses
77. Alimony
78. Interest on Qualified Education Loans
79. Retirement Plan Payments
80. Self-Employment Tax
81. Health Insurance Deduction for Self-Employeds
82. Moving Expenses
83. Clean Fuel Vehicles
84. Deduction for Qualified Higher Education Expenses—Tuition and Fees
85. Legal Fees
86. Classroom Materials