It’s Fix the Tax Code Friday! Next week, the revised tax tables for the Making Work Pay Credit go into effect. Last year, after stimulus checks were mailed out, taxpayers overwhelmingly supported a second stimulus package. Now, taxpayers don’t seem so sure. With the second stimulus package in place, with money in the pockets of…
It’s Fix the Tax Code Friday! This week, I’ve been fielding a number of questions about forms 1099-C (debt cancellation). Under the Mortgage Forgiveness Debt Relief Act of 2007 (MFDRA), qualified taxpayers receive an exclusion of up to $2 million (or $1 million MFS) of debt forgiveness on a principal residence if a home has…
It’s Fix the Tax Code Friday! This week, unemployment news has been grim, to say the least. Total job losses over the last six months have increased to 3.3 million; that is the highest level of unemployment in the US in 25 years. As more and more people lose their jobs, the related “Ask The…
It’s Fix the Tax Code Friday! This week, the focus has been on California and the possibility that they could legalize marijuana, primarily so that it could be taxed. Of course, this made me think about the tax consequences of taxing other illegal activities such as prostitution. While it is true that income from these…
It’s Fix the Tax Code Friday! Since I posted about Marion Barry’s tax woes earlier today, I thought it would be great fodder for Fix the Tax Code Friday. Tax evasion cases have often made news – from Wesley Snipes to Joe Francis to Helio Castroneves – especially when jail time is involved. Counsel in…
It’s Fix the Tax Code Friday! This week, I mentioned that taxpayers in California may be on the hook for the choice that Nadya Suleman (“octuplet mom”) made to be implanted with a number of embryos. Suleman receives food stamps and other government assistance for her family of six previous children aged 2 to 7,…
It’s Fix the Tax Code Friday! Not too long ago, I answered an “ask the taxgirl” question about credit card interest on tax returns. It was surprising to hear that some folks still believed that personal interest was deductible – especially since it had been eliminated over 20 years ago. My fellow tax bloggers were…
It’s Fix the Tax Code Friday! We’ve been talking about the proposed economic stimulus package for weeks now. It’s seems like everyone has an opinion about what should be included – and what should be left out. Today’s Fix the Tax Code Friday question is: What would you like to see included in a final…
It’s Fix the Tax Code Friday! One of the “ask the taxgirl” posts this week focused on the question of illegally gained income. According to the Tax Code, all income, regardless of the source, must be reported on your tax return. This includes drug sales, illegal betting operations, prostitution, bribes, the whole bit. Clearly, including…
It’s Fix the Tax Code Friday! One of the “ask the taxgirl” posts this week focused on the question of illegally gained income. According to the Tax Code, all income, regardless of the source, must be reported on your tax return. This includes drug sales, illegal betting operations, prostitution, bribes, the whole bit. Clearly, including…