Questions About Your Income and Possible Tax Deductions

According to the US Department of Labor, all "covered nonexempt" employees of US businesses are required to be paid an overtime rate of 1 and a half times the regular rate when they work over 40 hours in a week. There are some exceptions, such as employees of public agencies and hospitals. This is all under the Fair Labor Standards Act (FLSA). Nonexempt workers is another term for an employee that receives hourly wages as opposed to a set yearly salary.

Is my employer required to pay at the overtime rate (time and a half) on a holiday?

No, according to the US Department of Labor your employer is not required to pay you the overtime rate on a holiday unless working that day will clock you in at over 40 hours for the week. Many employers will pay you the overtime rate because they want to entice you to work on the holiday, but that is completely up to the employer's discretion.

Can I get an earned income tax credit if I don't have children?

Yes, most people don't realize that they don't have to have a brood of kids in order to get a tax break. Depending on your income and age, you may be eligible to receive an earned income tax credit. You must be between ages 25-65 and make under $12,590 if you're single and under $14,590 if you're married (as of 2007). Currently, you can get up to $428 back, even if you don't have a child.

What can I deduct if I use a car for business purposes?

You are allowed to deduct the mileage used in the course of business on your taxes. There is something called a mileage rate, which changes from year to year, that you multiply by the number of business miles you drove in a year to figure out your deduction for using a car for business. It includes the wear and tear on your car, gas, and other car related expenses. It's important to understand that this is not for commuting back and forth to work --- it is only for when you own your own business and have to drive in order to earn money. You can also deduct parking fees and tolls if they have to do with your business activities and you have receipts.

If I donate old clothing, can I claim a deduction on my taxes?

You are allowed to deduct donated clothing on your taxes as long as you have a receipt from the charity where you donated it. The charity will be able to accurately estimate how much the clothes are worth.

Sources:

http://www.dol.gov/

http://www.irs.gov