VITA is the acronym for the IRS Volunteer Income Tax Assistance Program which provides free tax help for qualifying taxpayers across the country. The program began in 1969 and has since grown into a popular program: last year, there were over 12,000 VITA sites across the country. VITA volunteers receive training to prepare basic tax…
I have free tax software packages to give away to readers this week. H&R Block has donated six versions of its At Home Online Premium version (federal only). The code is valued at $55, which should cover your federal tax return and sales tax. Entering the code will reduce the total fee by $55.00; if…
Sadly, a lot more taxpayers are trying to figure out the tax treatment of unemployment compensation these days… It’s helpful to understand a little bit of the history of unemployment compensation in order to understand how it functions (and how it’s taxed). The Social Security Act of 1935, also known as Public Law 74-271, created…
Yes, really. The IRS is looking for folks to volunteer to serve on the Taxpayer Advocacy Panel (TAP) for a three year term starting in December 2011. TAP is a federal advisory committee that listens to taxpayers, identifies key issues and makes recommendations for improving IRS service. The TAP provides an annual report to the…
It’s a giveaway! The folks at J.K. Lasser have donated two copies of their book, J.K. Lasser’s Your Income Tax 2011: For Preparing Your 2010 Tax Return. I’m giving one away on Facebook and one on the blog. To enter to win on the blog, all you have to do is answer this question by…
The Third Party Designee box is a relatively new feature on tax returns (I said “relatively” – clearly, I’m dating myself on this one). It’s also one of the most confusing because so many taxpayers don’t know exactly what they’re designating a third party for… In fact, many of my clients are in a mild…
In many states, governors are being faced with the difficult choice of cutting services or raising taxes on its residents. As you can imagine, it’s not a politically easy decision. In most cases, it’s a matter of taking from one pocket (cutting services) or another (raising income, sales or property taxes on individuals), both of…
If you’ve ever taken a good look at your form W-2, you’ve probably found yourself wondering about who qualifies as a “statutory employee.” It’s listed right there on your form, with a checkbox at box 13 next to the fairly well-known box for retirement plans. But it’s rare that you see it checked, so… what…
Every now and again, I write a piece knowing that there will be a backlash of some sort. This is one of those pieces. You’d think something like a retirement plan would be easy, with little to no controversy. But since its inception under the Taxpayer Relief Act of 1997, the Roth IRA has drawn…
Ron Cohen of Greenstein, Rogoff, Olsen & Co., sent me this video of their weekly tax update focusing on “Dutch Sandwich” or “Double Irish” offshore planning. Offshore planning is something I’m familiar with – and I’ve been blogging about quite a bit – so I thought it made sense to share it on taxgirl.com. Enjoy.