Taxgirl’s own Taxes From A to Z® series — breaking down tax concepts and terms one letter at a time, in plain English.
L is for Levy. In God we trust; all others must pay cash. The IRS, like most creditors, wants to get paid. And if you owe money to the IRS, they’re going to do all they can to make sure that happens. One of the ways that the IRS works to make sure they get…
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 is for Injured Spouse. Injured spouse is perhaps one of the most misunderstood tax terms in the Tax Code. It just carries with it all kinds of baggage and associated terms, most of which have zero to do with actually being an injured spouse. So forget all of the things you think it means….
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…
G is for Gift Expenses. The word gift can have a different meaning, depending on who is doing the giving and who is doing the getting. If you don’t believe me, check out an episode or two of Judge Judy (yes, I’m a fan). When it comes to business, however, the IRS has a very…
F is for FSA. Benefits stink at a lot of businesses these days. As a business owner, though, I understand why: the underlying costs of providing benefits to employees are, in some cases, enormous. At my firm, the cost of providing health insurance to my employees costs more than the rent and all utilities for…
E is for Educator Expenses. Every Friday, I volunteer in my son’s kindergarten class. I am constantly amazed at how much money his teacher spends – out of her own pocket – to buy treats, prizes, awards, snacks, and crafts for her students. Last Friday, she bought Dr. Seuss paper hats, put together activity books,…
D is for Deductible Taxes. (Admit it, you thought I was going to say depreciation. Nah, that was last year.) It feels like everything you touch these days is associated with some kind of tax. You can get socked with taxes for doing anything from working to tanning to smoking. It can add up. Surely…
C is for Capital Losses. We hear a lot in the tax world about capital gains. But what about its counterpart, capital losses? You don’t see a lot written about losses because, let’s face it, they’re a bit of a downer. Nobody wants to talk about losing money. It’s much more fun to talk about…