Can I Pay for Pet Insurance with Pretax Wages?
No, you cannot pay for pet insurance with pretax wages. Unlike employer-paid health insurance for workers, which is not included in taxable wages, the value of employer-paid pet insurance is considered taxable income. Most employers who offer pet insurance benefits do not subsidize the cost, and employees who opt in pay their share through post-tax payroll deductions.
Using 529 Funds for Studying Abroad
In many cases, you can use 529 funds to pay for a college student’s studies abroad. A 529 plan can be used for any college that participates in the U.S. federal student aid program. If a student is enrolled in a U.S. college and chooses to study abroad through the school’s program for a semester or two, the study-abroad program will be eligible for 529 funds, provided the U.S. college is eligible and the credits are accepted.
If the child decides to enroll in a non-U.S. college for their full college education, that foreign university must participate in the U.S. federal student aid program. Surprisingly, many foreign colleges do participate and would qualify as eligible schools for 529 purposes. Tuition, books, fees, and room and board can be paid with 529 funds.
Depreciating the Cost of a New Roof on a Rental Property
No, you cannot fully deduct the cost of a new roof on a rental property on Schedule E of your 2024 Form 1040. However, you can depreciate it over 27.5 years. The new roof you installed is considered an improvement to the rental property and is treated separately from the underlying property for depreciation purposes. This means the cost of the roof is depreciated over 27.5 years, the same as residential rental property. The beginning depreciation year would be 2024, the year you put on the new roof.
Time Limit for Fixing Mistakes on a Tax Return
Generally, you have up to three years from the date you filed your original tax return (or two years from the date you paid any tax due) to file an amended return. If you made a simple math error, the Internal Revenue Service (IRS) will correct it. However, if you failed to report taxable income, such as overlooking a Form 1099 from one of your brokerage accounts, you should file an amended return and pay the additional tax owed as soon as possible to reduce interest and potential penalties.
If filing an amended return will increase the size of your refund, it is advisable to file as soon as possible to expedite the delivery of your payment. Approximately 3 million taxpayers file amended returns each year, and since 2020, the IRS has made the process easier by accepting electronic submissions of Form 1040X, the document used to amend a federal tax return.
In Conclusion
When it comes to pet insurance, it is important to note that the value of employer-paid pet insurance is taxable income. As for using 529 funds for studying abroad, it is generally allowed if the college participates in the U.S. federal student aid program. Depreciating the cost of a new roof on a rental property over 27.5 years is the correct approach. Lastly, if you need to fix a mistake on your tax return, you generally have up to three years to file an amended return, but it’s advisable to do so as soon as possible to avoid penalties and interest.
