Tax news and guidance for individual taxpayers — filing tips, deductions, refunds, and everything else that hits your personal return.
S is for Standard Deduction. Most taxpayers have the option of claiming the standard deduction or the itemized deduction. I say “most” because, as with almost everything tax-related, there are some exceptions. You cannot use the standard deduction if you file as married filing a separate return and your spouse itemizes deductions; you are a…
P is for Penalty on Estimated Tax. If you receive payments or other funds without having any federal income taxes withheld, you should consider making estimated payments throughout the year to avoid any penalties. This applies not only to the self-employed or occasional freelancers but also to those taxpayers who may receive income from other…
M is for Making Work Pay Credit. Doh! This is kind of a trick post. There is no Making Work Pay Credit for 2011. That also means no Schedule M. The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act which was signed into law on December 17, 2010, did not renew the Making Work…
Yesterday, I was forwarded the following email, with a note asking me if I planned to comment on it: Hey you, here comes Chaka Fatta. Hopefully this will not pass, but if it does, we will have a 1% on all credit card charges. ON JANUARY 1, 2013, THE US GOVERNMENT IS REQUIRING EVERYONE TO…
Today is the deadline for corporate taxes. It’s also the Ides of March. On this day, Julius Caesar allegedly met a seer who claimed that harm would come to him not later than the Ides of March. Caesar remarked to the seer, “Well, the Ides of March have come.” The seer replied, “Ay, they have…
K is for Kiddie Tax. It’s no secret that Congress is concerned about tax fraud. With loopholes and exceptions galore (all, ahem, actually created by Congress), Congress believes that taxpayers are trying to evade taxes left and right. And who among these thieving schemers are the worst offenders? Kids. In 1986, Congress was so concerned…
J is for Job Search Expenses. Despite recent news that seems to hint that the job market might be recovering, many Americans are still out of work. The prospects, however, of finding a job seem a little brighter as the U.S. continues to add jobs. If you’re one of those still searching, take heart. And…
I have a love/hate relationship with my house. I hate that the screen door in the back is broken but is nearly impossible to fix because we have an old Victorian with quirky (read: non-standard and expensive to replace) sized doors and windows. The floors in my kitchen are terrible. And for about two weeks…
Growing up in North Carolina, I’ve seen my share of the inside of a Waffle House or two. In fact, my college roommate and I even had a favorite song on the Waffle House jukebox. I’m not kidding. But alas, as much as I frequented the Waffle House, I was never the kind of customer…
B is for Barter. As an attorney, my office accepts cash, checks and credit cards. That hasn’t stopped clients (and potential clients) from offering all kinds of alternate payment ideas ranging from translation services to kids’ toys, office space to cell phone jammers. That idea – exchanging goods or services without actually exchanging cash –…