Tax news and guidance for individual taxpayers — filing tips, deductions, refunds, and everything else that hits your personal return.
Taxpayer asks: What about a taxpayer who owes the IRS $$$ from previous tax years? Should they adjust their W-4 to have more taxes taken out to cover the Making Work Pay credit that will be on their paychecks? Taxgirl says: It depends. The Making Work Pay Credit is refundable, so to the extent that…
Taxpayer asks: I was told that I would receive all my federal tax withholding for April, May & June. However, I just heard on the local news that it would only be $12 to $15, is that true? Thanks for your advise, Taxgirl says: The Making Work Pay Credit will decrease the amount withheld from…
If you’re still looking for ways to minimize your tax this year, remember that you can make contributions to your IRA thru 4/15 #TwitterTaxTip (For more on twitter tax tips, see my prior explanatory post.)
Taxpayer asks: Dear taxgirl, Can a taxpayer refuse to have the credit on their paychecks and receive the full credit on their 2009 return? Also – are they changing the tax table for 2009 to help with this credit? Taxgirl says: The answer to the last question is the easiest: yes, the tables have been…
Taxpayer asks: I am a junior in college. I have lived by myself and worked since my freshman year. Last year, my parents divorced. My brother was supposed to go live with my dad but he has issues. So, my brother came to live with me. I made sure he went to school, cooked dinner…
Losses aren’t taxable losses until realized (even if they suck). If no sale or other taxable event, no taxable loss. #TwitterTaxTip (For more on twitter tax tips, see my prior explanatory post.)
Taxpayer asks: Hi, I work for a company and am currently deployed to Iraq. I had met the Social Security Cap for withholding mid 2008 and mid year was transferred to our subsidiary. They again withheld my Social Security to the Cap so in effect I paid double the amount I should have. Can I…
Taxpayer asks: I am a Fire Fighter. We work a 24 hour shift with no designated time (or time off) for meals. Therefore, we take lunch, supper, etc when ever possible between calls. They are often interupted to perform our job. My question: do these circumstances make us eligible for standard deductions (per dium) rates…
Note from Taxgirl: I’ve written a few pieces about the credit since this piece originally posted. Many of the questions and comments related to this post can be answered by checking out this updated post about sorting out the credit. You can find out more about calculating the credit here. As of April 1, many…
If it seems too good to be true, it probably is. Keep that adage in mind this tax season. There are a number of scams floating about which purport to get you more cash, faster. You should keep in mind that the government doesn’t use “middle men” to get you a refund faster or to…