Tax news and guidance for individual taxpayers — filing tips, deductions, refunds, and everything else that hits your personal return.
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…
Taxpayer asks: Can I claim my foster child as a dependent? Taxgirl says: Yes, assuming that your foster child meets all of the other dependent criteria. Keep in mind that, according to the Internal Revenue Service (IRS), a child is considered to be a foster child so long as he or she has “been placed…
Taxpayer asks: Hi Tax Girl, I thought I’d see our accountant today but she’s out, then I found out about you! My parents claimed me as a dependent in 2007 because they paid for my last semester of college (although I did work and live on my own most of the year). I was an…
If you file MFS and your spouse opts to itemize, you must also itemize your deductions. #TwitterTaxTip (For more on twitter tax tips, see my prior explanatory post.)
Taxpayer asks: Are we getting a second check in 2009? Taxgirl says: Not exactly. Beginning in April, employers will begin adjusting your withholding under the Making Work Pay Credit, giving you a few extra dollars in your paycheck. Phaseouts apply. Later in the year, those who are disabled or retired will receive a small check…
Taxpayer asks: Hi taxgirl! My daughter was born in 2008 and we sort of forgot to claim her. Call it mommy-brain… anyway, is it worth refiling? We are married, filing jointly, have one additional (claimed) child, and made about 325K in 2008. Thanks! Taxgirl says: As a mother of three young kids who has found…
Double check Social Security numbers on your return. Incorrect SSNs are the 2nd most common tax return error. #TwitterTaxTip (For more on twitter tax tips, see my prior explanatory post.)
Traditionally, taxpayers who owned homes could only deduct state and local real estate taxes if they opted to itemize their deductions. However, for the tax years 2008 and 2009, taxpayers who opt for the standard deduction are getting a break: there is an additional standard deduction for those who pay state or local real estate…
If you moved in 08 due to a change in employment, you may be able to deduct reasonable moving expenses. #TwitterTaxTip (For more on twitter tax tips, see my prior explanatory post.)
For 2008 tax year, those who itemize can deduct state and local general sales taxes OR state and local income taxes. #TwitterTaxTip (For more on twitter tax tips, see my prior explanatory post.)