Tax news and guidance for individual taxpayers — filing tips, deductions, refunds, and everything else that hits your personal return.
Have you made one of the top filing mistakes? IRS just released this list of the Top 16 Filing Mistakes for tax returns. If you’re a regular reader, you’ll notice that some of these questions have appeared on ask the taxgirl and other taxgirl features. Enjoy! And if you have a question, don’t forget to ask the taxgirl!…
We’re about a fourth of the way through the list of positions not to take on your individual tax return per the IRS’ recent notice. Remember, the penalties for doing so can be $5000 per instance. Next on the list: 4. Wages, tips, and other compensation received for the performance of personal services are not taxable income…
Taxpayer asks: When figuring home office deduction for a separate structure like a garage, do you include the full square footage of the house and the garage or just the garage when it asks for office space? Taxgirl says: Assuming that you don’t pay separate utilities, etc., for the garage space, it makes the most…
And some more on the list of positions not to take on your individual income tax return: 33. Federal courts may not enforce the internal revenue laws because their jurisdiction is limited to admiralty or maritime cases or issues. Psst, remember: This is a list of positions NOT to take!!
More on the list of positions not to take on your tax return, as per the IRS’ recent notice: 2. The Internal Revenue Code is not law (or “positive law”) or its provisions are ineffective or inoperative, including the sections imposing an income tax or requiring the filing of tax returns, because the provisions have…
Taxpayer asks: I sold a primary residence last yr and bought a new one. I did not gross over $250,000 on the sale of the house. What figures should I pay attention to for reporting purposes from the closing sheets? I presume that any taxes paid out prior to the sale of the house are on…
Taxpayer asks: I know you have probably gotten these questions hundreds of times, but sorry I need to ask again for my own benefit. First off, I have a little business on the web for which I am self employed and have no employees. This business has been around for a few years however I…
Taxpayer asks: My mom gave me money through my paypal account. There were 3 separate transactions totaling $380 but was non-business related, do I need to claim these transactions along with the other income from my business since they used my PayPal account?Taxgirl says: Absolutely not! Though I will take this opportunity to discourage you…
Taxpayer asks: Hi Taxgirl,I’ve been claiming lots of dependents (that don’t exist), but not filing or paying any Federal income taxes for the past three years. What is going to happen to me? Taxgirl says: Generally, if you’ve made a genuine mistake or you’ve omitted to include income on your return (or file at all),…
Of course, the most common changes for any tax year are items which are indexed for inflation. For 2006, this includes: Personal exemptions are increased to $3,300. Standard deductions are increased to $10,300 for married couples filing a joint return and qualifying widow(er)s; $5,150 for singles and married individuals filing separate returns; and $7,550 for heads…