Taxpayer asks: Am I legally required to have tax ID#’s on file for individuals who perform services for my organization if I know the payments will not total more than $600 in any calendar year? Taxgirl says: I was asked a similar question from a client years and years ago. The client ran a sort…
Taxpayer asks: Hi Taxgirl, My parents are willing to pay for me to have gastric bypass and whatever that entails (Dr appointments, nutritionist and so forth). They then want to write the payments off to their taxes. Is that legal? I am no longer a dependent of theirs. Also I have an FSA account if…
If you’re one of those taxpayers who usually files the second that you have your form W-2 in hand, take heart. Today is finally the day that you can rush down to your tax preparer or fire up the computer to do it yourself. The Internal Revenue Service has already delayed the filing season by…
Dear really, really overeager taxpayers: As a small business owner and a tax professional, I am asking you in the nicest way possible: please be patient. I know you want to file your tax return already. You’re already annoyed that you’ve had to wait this long. But that’s Congress’ fault, not mine. And I’ll even…
(Update: The contest is closed. I’m sorting through entries on Facebook and Twitter and I’ll announce the winners shortly.) Tax Day is finally here. And to celebrate, I’m announcing my mostly annual taxgirl® Tax Haiku offering. Last year, it was wildly popular and I received more than 100 entries. As last year, the good folks…
Taxpayer asks: I have a child that moved in with me from Canada in July and I do not have a social security number for him how do I go about claiming him on my taxes? Taxgirl says: You generally need a Social Security Number (SSN) to claim a dependent on your federal income tax…
Taxpayer asks: Hi, Tax Girl, With all the electronic sales these days, publishers and authors can promote their books for free for a period of time in order to gain readers and increase their rankings on sites like amazon.com. Even though there is no cost to author or publisher for the free electronic giveaways, can…
Taxpayer asks: How much do you get for child tax credit this tax season? taxgirl says: For the tax year 2012, the child tax credit may be worth up to $1,000 per qualifying child. The amount that you can claim is limited if your modified adjusted gross income (MAGI) is above $110,000 for couples married…
Taxpayer asks: Where I live, you prepay property taxes by 6 months. So in 2012 I paid taxes In Jan and then in June. In July, I sold the house so at the closing I paid (I guess to the seller) the taxes for Jan-July that I occupied the house. Can I deduct these taxes…
Taxpayer asks: Is there a way to complete the W9 form that is technically legal that will avoid being 1099’d for income paid to you? Taxgirl says: No, not legally. The rules about when a form 1099 must be issued are pretty clear and there’s no magic language or box that you can check that…