Tax news and guidance for individual taxpayers — filing tips, deductions, refunds, and everything else that hits your personal return.
Taxpayer asks: Hello taxgirl, I love your blog! My question is as follows: I prepare taxes, so naturally I will prepare my own taxes. Can I deduct MY tax preparation fee (the fee I would charge someone else for a tax return with the same complexity)? Thanks, Taxgirl says: Thanks for the nice words! Unfortunately,…
Happy Tax Freedom Day! And if you’re thinking it feels early this year, you’re right… In 2009, Tax Freedom Day in the US arrives on April 13, the earliest it’s appeared since 1967, according to the Tax Foundation. That’s more than a week earlier than last year and two weeks earlier than in 2007. Tax…
Taxpayer asks: Hi… I’m about to file my taxes through efile using H&R Block’s Tax Cut software. I was wondering if the IRS will see my list of charitable organizations? When I filed paper copies in past years, that information was not disclosed. Does efile provide the IRS with more information then paper filing? Thanks!…
Taxpayer asks: I have been cheating on my taxes for a number of years and I never got caught. This year I got a letter from the IRS that they are denying a bunch of my deductions unless I can prove that there real. I can’t. I’m worried because I have done this for longer…
Taxpayer asks: Dear Taxgirl,Congress has passed a bill allowing a tax deduction for the sales tax on the purchase of a new car. Does that differ from the current Schedule A deduction possible for additional tax for major items? Is this “much sound and fury signifying nothing?” The devil is in the details. Best regards,…
Last month, the Internal Revenue Service (IRS) announced a new settlement program targeted at taxpayers with offshore accounts. As previously reported, IRS has become more aggressive in their efforts to identify taxpayers with offshore accounts who have not reported those accounts to the feds. Steep civil penalties apply and, in some cases, criminal charges could…
Taxpayer asks: What a great service. Hope I can explain this good enough. I have been disabled for 3 years, have received disability income from a private insurance company. This was not taxable because I paid the premiums. Was approved for disability end of 2008 and got a lump sum check. Had to then send…
You can deduct tax prep fees (includes tax pro costs, software, e-filing, etc) in the year you pay them if you itemize. #TwitterTaxTip (For more on twitter tax tips, see my prior explanatory post.)
There’s even more good news for the victims of severe flooding in Minnesota and North Dakota. Not only is the weather getting better but residents get some extra breathing room from the Internal Revenue Service (IRS). Since the flooding occurred so close to the April 15 due date, taxpayers and relief workers directly impacted by…
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…