Tax help please

[EvilNewbie]

---

Members do not see this ad.

Okay, say I did some PAID research during medical school in the department that I am actually going to be a resident in this coming July. However the research was done during my second year of medical school so I can't use 2004 charges as tax deductions. That would also mean, that I am not "really" starting a new job, right? Does that mean that all my expenses for interviews are going to be deductible? I didn't keep any of the receipts BUT I do have credit card charges on my statements, can I use these? What about prepaid charges in 2004 for travel in 2005, can I use these for the upcoming 2005 tax deductions (again, I didn't keep any receipts but are on my credit card statements). ONE more thing, if I paid all my interests before I graduate and then consolidate my loans. Will my interests still be captialized if I go through private consolidators?

 

[mpp]

Don't quite understand your first question. What do you mean '2004 charges' as tax deductions?

I would say that you are starting a new job since unless you are continuing to do research for the department as your primary responsibility. I don't think your expenses for interviews would be deductible since you are getting a new job or changing your job responsibilities significantly.

I am not sure I understand your last questions. If you pay all your interest than what is there to capitalize? Do you mean new interest earned? Then yes, new interest earned is capitalized.

 

[EvilNewbie]

Sorry I didn't proofread my stuff. Basically, I worked in the Path. dept two years ago as a researcher and now will be entering into a Path. residency. A lot of people in Path residency continue to do research but its not a requirement in the program and I hope to continue in research as well. I guess I am trying legitimize that the Path residency is not "exactly" a new job so that I can claim some deductions on the interviews.

The first question revolves on the fact that the tax year is from January to December. However, my expenses for the 2005 year was charged in the 2004 year (in my credit card statements), I was wondering that even though it was charged in 2004, can I use it in 2005 tax deductions?

My last question, is that even though I paid all the interests off... would the private lender capitalize on my paid interest when I consolidate it? Thanks!

 

[mpp]

Pathology residency would not be considered the same job as a a pathology research project as a medical student.

When you say 2005 tax deductions do you mean the tax return for 2005 that you will file on or before April 15, 2006? Or do you mean the tax return you'll file before April 15, 2005. If you spent the money in 2004 then you would claim it on your 2004 taxes that you file before April 2005.

I still don't understand what you're talking about in regards to capitalized interest. The term 'capitalization' has a similar meaning to the word 'compounding'. Capitalizing interest means adding it to the principal such that you would be charged interest on the interest that has accrued in the past. If you already paid all the interest then there is nothing to capitalize. The consolidator will capitalize (or compound) interest as it accrues in the future.