Taxpayer asks: Punched in all the numbers in TurboTax for my 2008 taxes. The first thing It asked was how much my 2008 Economic Stimulus rebate check was ($2100). Surprise, surprise, it reduced my 2008 refund by $2100. According to the IRS web site the rebate should not effect by 2008 refund plus or minus….
It’s Fix the Tax Code Friday! This week, I mentioned that taxpayers in California may be on the hook for the choice that Nadya Suleman (“octuplet mom”) made to be implanted with a number of embryos. Suleman receives food stamps and other government assistance for her family of six previous children aged 2 to 7,…
Taxpayer asks: Taxgirl, where do you deduct expenses for fixing your home? My neighbor said that I can take off the cost of fixing my roof on my taxes but I don’t know where to put it. Taxgirl says: Hmm. I’m not sure that you should be getting your tax advice from your neighbor. Generally,…
Taxpayer asks: On the 1099R block 7, what is code 7. Taxgirl says: Code 7 in box 7 on Form 1099-R means “normal distribution” for a retirement account. Here’s a handy list of codes: 1 Early distribution, no known exception 2 Early distribution, exception applies 3 Disability 4 Death 5 Prohibited transaction 6 Section 1035…
Taxpayer asks: I am a sole prop and paid rent to an accountant who is a professional corporation. Do I need to 1099 him? Taxgirl says: No, you generally don’t issue a form 1099 for rental payments made to corporations (there are some exceptions). For more on when a form 1099 might be appropriate, check…
[IMPORTANT editor’s note: When I wrote this post, I began with “I don’t think so” because the rules are very confusing and this falls under an exception. Since the original post, I’ve been made aware that I was wrong. Hey, it happens. I’ve chosen to retain the original post since the comments address what’s wrong…
Taxpayer asks: We were granted the full rebate but granted a partial rebate as that the difference was applied to IRS taxes owed, would we recive that difference this year? Second question, my son did not work in 2007, worked in 2008, he is a dependent/student on my return, can he file for the rebate….
Taxpayer asks: I went to the website that you referred to for free e-file. Why is it that the free e-file websites have a 55 year age limit and gross income cap of $56,000. Why is there nothing available (for free) for people over 55 with a combined income over $56,000? I even called the…
Taxpayer asks: I live in Illinois, I understand Child Support is not a tax break, or have any tax implications, but how about lawyer fees everytime she takes me back to court. Taxgirl says: Nope, sorry. There’s no tax deduction for legal fees for child support – but you may able to deduct the cost…
Taxpayer asks: I was working as an independent contractor in this small company. At that time, I was getting paid with no taxes being withheld. I assumed I was getting paid under the table, but 6 months after I stopped working there I received a phone call from them asking for my SSN. I did…