Taxes From A To Z (2013)
And it’s a wrap! Taxes From A To Z (2013) covers the gamut from Annualized Income Installment Method to Zombie Debt. For more A To Z for all years, check out the “Taxes From A To Z” category.
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Taxes From A To Z (2013): Z Is For Zombie Debt
Z is for Zombie Debt. Zombie debt. Even the name conjures up the specter of bloodsuckers. And it’s kind of apt. Zombie debt is the term given to debt that is supposed to be dead but gets a new life courtesy of debt collectors. It includes old debts that are uncollectible due to the statute…
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Taxes From A To Z (2013): Y Is For Year-End Bonus
Y is for Year-End Bonus. Did you get a bonus in 2012? If so, kudos. Annual bonuses are becoming a rarity these days. They are, however, still issued, either as recognition for making to the end of the year (!) or for outstanding service. No matter the reason, bonuses are considered taxable income to the…
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Taxes From A To Z (2013): W Is For Worker’s Compensation
W is for Workers’ Compensation. For federal income tax purposes, workers’ compensation awarded under a workers’ compensation act or statute due to work-related sickness or injury are fully exempt from tax. Payments to your survivors under the same circumstances are also exempt. The same cannot be said for retirement plan benefits. If you receive those…
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Taxes From A To Z (2013): V Is For Voluntary Disclosure
V is for Voluntary Disclosure. I know what you’re thinking: this doesn’t apply to me because I don’t have offshore accounts. But don’t leave just yet. It’s not only taxpayers with offshore accounts that might qualify for voluntary disclosure programs. While most taxpayers are familiar with the 2012 Offshore Voluntary Program (and its predecessors, the…
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Taxes From A To Z (2013): U Is For Unrealized Gains and Losses
U is for Unrealized Gains and Losses. We’re in the process of selling our house. It is not worth as much this year as it was a few years ago (this, according to Trulia and other valuation sites) although it’s worth more than when we bought it. For tax purposes, we will actually have a…
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Taxes From A To Z (2013): T Is For Tenancy And Joint Ownership
T is for Tenancy. If you ask taxpayers how their assets are titled, many will simply say “joint ownership.” Under the law, however, there is no such thing as simple “joint ownership” – assets may be held jointly in one of a few different ways. For federal income tax purposes, it’s important to realize that…
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Taxes From A To Z (2013): S Is For Statute Of Limitations
S is for Statute of Limitations. All good things must come to an end… And even the Internal Revenue Service has a limit on how much time can pass before they may no longer assess and collect on federal income taxes. In the legal world, these time limits are called the statute of limitations (SOL)….
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Taxes From A To Z (2013): R Is For Recapture
R is for Recapture Rule (Alimony). The rules for regular alimony payments are pretty simple. If you receive alimony payments, you report those payments as income at line 11. If you make court-ordered alimony payments, you can deduct those on your federal income tax return. The deduction is an “above-the-line” deduction, meaning that you don’t…
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Taxes From A To Z (2013): Q Is For Form 1099-Q
Q is for 1099-Q. If you are the owner of a qualified tuition program (QTP) (like a section 529 plan or a Coverdell ESA), you should receive a federal form 1099-Q, Payments from Qualified Education Programs, when funds are withdrawn in order to pay qualified education expenses of the beneficiary. The form 1099-Q will include…