Real tax questions from real readers, answered. Got a question of your own? This is where Taxgirl answers them.
Taxpayer asks: Hi Taxgirl… Quick question…I live in CA My current employer, as part of his benefit plan, pays for my medical insurance. If I want to get medical for the rest of my family, I have to pay extra. According to someone who works here, they claim that is deductible as a medical expense…
Taxpayer asks: Hello taxgirl, I am helping a friend prepare a 2007 tax return. He received a 1099 with income in box 3 other income for a prize he won. Will he have to pay SE tax on this income? Thanks Taxgirl says: If the prize is unrelated to your friend’s employment or business and…
Taxpayer asks: I think this should be an easy question for you… are monetary gifts ($250) given to employee spouses taxable as W-2 wages to the employee? Taxgirl says: Au contraire. This one feels like it should be easy but it isn’t. And the reason it’s not easy is because I am fairly certain that…
Taxpayer asks: My husband and I both work and we have two young children. For the last two years, we have paid a babysitter to watch our children while we are at work. Last year, for Christmas, we gave our babysitter a pretty good sized cash gift as a thank you. When we were doing…
Taxpayer asks: I had to put almost $100,000 worth of medical bills on credit cards. Three to be exact. Can the interest on these loans be deducted as medical expenses as I continue to pay the bills down over the next five years? Thank you, Taxgirl says: Sorry, no. As I pointed out on a…
Taxpayer asks: Thank you for taking my question. I do not know who else to ask. This is the first year for me to file taxes and I do not see where to put the interest that I paid on my credit card. I live with my grandmother and she says I can take it…
Taxpayer asks: Hey, is this where I can ask questions for TaxGirl? Hope so, cuz here goes! A co-worker told me this long, sad story last week. I’ll shorten it here. She has been working part time since August of 2007, and was supposed to be on half salary. Well, it was JUST determined that…
Taxpayer asks: Tax girl, I have been seperated from my wife for over 20 years. But we have never had a legal seperation on paper.Can I file single or do I still have to file Married filing seperate?Thank you for any information you can give. Taxgirl says: The feds look to state law for the…
Taxpayer asks: While we were out shopping, I put a $20 in the Salvation Army kettle in front of the store. I say we can take that as a deduction but my husband says no. Who is right? P.S. I have a new digital camera riding on your answer. Taxgirl says: Gosh. I hope your…
Taxpayer asks: Hello Taxgirl, My girlfriend and I were common law married in 2005. We filed our own taxes for 2006. In 2007, we went to a tax accountant. He says we cannot file as married on our tax return. I say we can since we’re common law married. Who’s right? We live in Pennsylvania….