Taxes From A To Z (2017): C Is For Canceled Debt
It’s Taxes from A to Z. Today: C is for canceled debt.
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Treasury Sends Dire Warning To Congress: We're Running Out Of Money Faster Than Expected
We might have avoided a government shutdown (for now) but barring any last minute actions by Congress, we’re still on track to default on our obligations. Today, Treasury Secretary Jacob Lew sent another letter to Congress regarding the debt limit and he didn’t have good news. In the letter, he noted that while he had…
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Payback Is Forever: Tax Refund Offset Law Remains On The Books
A Washington Post story focusing on the seizure of tax refunds by the government to repay debt that was, in some instances, decades old has attracted attention. Of interest is the authority to seize tax refunds to pay back certain obligations.
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Tax Break Ending For Underwater Homeowners: Is It The Right Time?
As the year draws to a close, so, too, are a number of tax provisions for individuals. One of the most talked about is the Mortgage Forgiveness Debt Relief Act, which is set to expire in a few days. The provision allows taxpayers to exclude forgiven or canceled debt from a short sale, foreclosure or other mortgage relief, from taxable income. Will Congress tack on another year or just let the Act expire?
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Taxes From A To Z: L Is For Levy
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…
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Debt Ceiling, Spending Cuts To Rise But No Word On Higher Taxes
If you stayed up to watch the marathon Braves/Pirates game, the one that lasted 19 innings, you kind of know how most people feel about waiting for the debt ceiling deal to be made. It’s been long. And no one was quite sure how it was going to end. And if you saw the end…
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Do Americans Want To Pay Higher Taxes To Reduce Our Debt?
Do Americans want to pay higher taxes to pay down our debt? It depends on who you’re listening to. Much has been made of wealthy taxpayers publicly stating that they want to pay higher taxes even as Congress is arguing that most Americans don’t want to taxes to be raised on anyone, full stop. This…
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Student Loan Interest – It's Deductible!
I have a love/hate relationships with student loans. I love that they allowed me to go to college and law school – I couldn’t have done it otherwise. But I hate almost everything else about them. And as a tax attorney with two graduate degrees, I find it impossible to read my own loan statements…
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Ask the Taxgirl: Mortgage Forgiveness
Taxpayer asks: I have a 1099-c from a short sale on my house, I was hoping to be granted an exemption because of the Mortgage Forgiveness act of 2007, my amount in box 2 is 54809 and the amount in box 7 is 0.00 not sure what all this means. Taxgirl says: A form 1099-C…
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Fix the Tax Code Friday: Mortgage Debt Cancellation
Fix the Tax Code Friday is back! This is your chance to sound off about tax policy – and propose how you would fix the Tax Code if you were in charge… One of the heavily criticized pieces of the economic bailout package is the extension of the debt forgiveness exemptions for mortgage cancellations. Here’s…