Tax news and guidance for individual taxpayers — filing tips, deductions, refunds, and everything else that hits your personal return.
We have a winner! See the correct answer in the comments. Our next tax trivia question for the giveaway is: According to the IRS, what percentage of those taxpayers who itemized tax deductions for tax year 2008 claimed the home mortgage interest deduction? I’m looking for answer +/- a percentage point. The first correct answer…
Taxpayer asks: Was the “Making work Pay” tax credit extended? taxgirl says: No, the Making Work Pay Credit was not extended as part of The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act which was signed into law on December 17, 2010. The credit is still applicable for the 2010 tax season since it…
It’s that time of year again! No, not just tax season opening (that officially happens next week). It’s the time of the year when the National Taxpayer Advocate (NTA), Nina Olson, releases her annual report to Congress. The report, which can be found here, is required under section 7803(c)(2)(B)(ii) of the Internal Revenue Code: each…
I have received a number of questions about the Payroll Tax Holiday and how it applies to those who are self-employed. I wasn’t sure, initially, so I did what I always do (and what I recommend that you do) and I went straight to the source. The Tax Relief, Unemployment Insurance Reauthorization and Job Creation…
I rolled into work this morning along with many Americans for the first time in 2011. Since New Year’s Day fell on Saturday this year, those of us who work “traditional” hours (yes, my use of the term is cheeky) started our work year today. It’s also the start of a bit of a headache…
If you filed a paper return last year for your individual or business taxes and did not use a paid preparer or tax software program (yes, it still happens), don’t expect to receive a paper tax package in the mail from IRS this year. Beginning in 2011, the IRS won’t be automatically mailing out forms…
So now that members of Congress (and President Obama) are patting themselves on the back after their 11th hour tax deal, the real work begins: the IRS and tax professionals get to explain for the next month and a half why they can’t actually start processing your taxes on time. That’s because even though they…
If you’re hoping to take advantage of Refund Anticipation Loans (RALs) and related products during this tax season, you’re going to have to look pretty hard. Many third party preparers will not be offering those products this year, citing financial difficulties with underwriters. Some of the financial difficulties stem from the economy. RALs (and similar…
Taxpayer asks: My daughter and I make cookies every year to give out at our local VA hospital at Christmas. Can we take a deduction for this on our taxes? Taxgirl says: As a mom, I think what you’re doing is terrific. And as the sister of military personnel (one lifer, one retired), I think…
Despite all of the grumbling in the press, most Americans are happy with the new tax deal, according to a CNN poll. Three in four of those polled said that they favored the bill when asked: Congress has passed and President Obama has signed into law a bill that would extend tax cuts for all…