Can I deduct the cost of creating a will?

Certain legal fees may be deducted as an itemized deduction on Schedule A, as such, the total miscellaneous deductions would only be deductible to the extent that they exceed 2% of your gross income.

Even then, only a portion of your will expense may be deductible. To the extent that the fee covers "Non-Tax" issues, like burial instructions, they are not deductible.

Can I deduct payments for medical and dental expenses?

Health insurance payments are deductible as an itemized deduction. Payments to the dentist would be in the same category.

Unfortunately, there is only a benefit from medical deductions if the total of all exceeds 7.5% of your gross income.

I commute 120 miles round trip to work everyday. Can I deduct the traveling costs?

No, commuting expenses are not deductible. If you have to travel away from your "tax home" which is the place where you normally conduct business, then the expenses are deductible either as a business expense or as an un reimbursed employee expense. But, the expenses to travel from your residence to the place that you work everyday is not a deductible expense.

Are union dues deductible?

Union dues are deductible as a Miscellaneous itemized deduction on Schedule A.  As such, there is only a benefit to miscellaneous itemized deductions to the extent that the total exceeds 2% of your gross income. And of course there is only a benefit to itemizing if you have sufficient deductions to exceed the standard deduction.

Can I deduct child support payments?

No. Child support payments are not deductible.

How do I find out how much to claim for articles donated to salvation army and goodwill? I have the receipts but don't know how much to claim.

Thrift store value is the appropriate valuation to use to claim your deductions on Schedule A. Essentially, you can deduct the items at the price that Goodwill may try to sell them for at their thrift store.

Is interest on student loans deductible?

You may be able to claim a deduction for interest paid on a qualified student loan. For 1998, the maximum deduction for 2008 is $2,500.

What is the mileage rate for charitable purposes?

The standard mileage rate for the cost of operating your car for charitable purposes is increased to 14 cents a mile for 2009.

Funeral expenses are not deductible for income tax purposes. They would be deductible for Estate tax purposes, however, it doesn't sound like that there was much property or assets to begin with, so, the likelihood of estate tax applying to this situation is remote.

For your reference, the deductibility of funeral expenses is covered in IRS Publication 17.

You would need to have a "Business" use for the computer in order to claim any deduction. College is not a deductible purpose.

You would need to allocate the "common" expenses based on the square footage of the office relative to the total square footage of the home. The IRS has a specific Form 8829 for claiming that deduction.

Is the sales tax on a new car deductible on your federal return?
Sales tax is not deductible on the Federal return. Prior to 1986 it was deductible, but that provision was repealed.

Are the classes taken to receive a realtor license deductible?

The cost of a course that would prepare you for a new job or profession are not deductible. If you have to meet a standard of "Continuing Education" to maintain your current job or profession, those expenses would be deductible as Miscellaneous itemized deductions. As such they would only be deductible if they exceed 2% of your gross income.

Can I deduct prepaid college tuition from my federal taxes? I have been paying into a pre-paid plan in Massachusetts. Can the amount be deducted from my gross income? If so what is the schedule or form where it is recorded?

You may not deduct the amount contributed to a state pre-paid tuition plan. The funds in the trust may accumulate without tax consequences provided that the education is actually used. There is no deduction available though.

Educational expenses incurred to maintain or improve your skills in your current position are deductible as a miscellaneous itemized expense, but are they subject to the 2% deduction or can they go in the section of Schedule "Not subject to 2% limitation.

Educational expenses are subject to the 2% of AGI limitation and typically considered un reimbursed business expenses.

We signed a 1 year lease on a rental house, and then decided to buy a house. The lease obligated us to payments until a new renter was found. We ended up buying when the rental market was very slow so it took over three months to find a new renter. We ended up paying over $4000 in rent for a house that we didn't live in. I was wondering if there are any ways to recoup any of this in a tax deduction.

No, the rent paid is simply a personal expense and is not deductible.

My husband just built a computer for keeping his Tax records and things in order, for work. He's a subcontractor. We were wondering if we can use the computer for a tax write off?

It would be deductible as a business expense to the extent that there is business use. His use in maintaining business records is business use. However, if the computer is used at home, it would be necessary to maintain some evidence to support business use as opposed to personal use. If the computer is used for both, it would be necessary to only deduct the "business" portion. Generally, that percentage is based on the hours of use for both purposes.

I started a business this year. Part of the kit has to be returned with proper information for the service to start (1 year service). Though I pay for the "materials" in making the kits which is only a few cents, the service does not start until the materials are received. I keep hundreds of ready kits available at any given time. With this type of inventory, what "Accounting Method" do I use? - (Cash, accrual, comb.)

From the sounds of it you are primarily in the business of providing a service and not goods. The items that you are considering to be "inventory" are really just supplies and not really inventory. The key element in the distinction is that the product has very little value when separated from the service. I would think that you are still eligible to utilize the Cash method of accounting.

Line 30 Section D Depreciation of Vehicles asks "Enter Cost or other Basis". Does this mean the cost of the car?

The cost or other basis means the cost plus improvements less damages, etc.