On Memorial Day, we’re supposed to honor our fallen soldiers. But some military families aren’t feeling very appreciated this year: Congress still hasn’t fixed the Tax Cuts and Jobs Act (TCJA) tax hit impacting Gold Star families. Gold Star families are those with an immediate family member who died while serving in the military. The term…
It’s my annual Taxes from A to Z series! This time, it’s Tax Cuts and Jobs Act (TCJA) style. If you’re wondering whether you can claim home office expenses or whether to deduct a capital loss under the new law, you won’t want to miss a single letter. K is for Kiddie Tax. The so-called…
It’s Back To School Week on the blog! All week long, I’ll be answering your questions about school and tax – complete with fun giveaways. Next up: if you pay your child an allowance, what are the tax consequences to each of you?
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…
The arrival of catalogs at my house have done quite a bit to up my daughter’s work ethic. She has it in her head to buy an American Girl doll, complete with accessories, and if you know anything about the brand, you know it’s not cheap. With that, she’s been offering to do all kinds…
Taxpayer asks: My daughter worked as a bagger (bagged groceries) last year at our base commissary. The baggers do not receive a salary and work strictly for tips. I already checked with the “Head Bagger” at the commissary who said no type of 1099 will be sent. How do I go about claiming the monies…
Taxpayer asks: Hi,My husband and I have decided to open a bank account for our son. We’re going to give him an allowance every week. He gets to keep part of it and put the rest in the bank. If he saves a certain amount, he gets a bonus allowance. The point is to teach…
As the economy continues on its wild ride, the IRS has announced a series of adjustments for tax brackets and other provisions for the 2009 tax year. These adjustments, in response to inflation, are required by law. Note that these adjustments will affect your 2009 tax return, normally filed in early 2010. Your 2008 tax…
Taxpayer asks: My son wants to know when he’ll have to file for taxes, he started mowing lawns this summer and is getting paid $25 per yard. Taxgirl says: Wow, I feel old. I used to get paid $10/yard for biggish yards in the country. *sigh* Whether your son will have to file and pay…
Prior to 2006, children under the age of 14 who have unearned income (dividends and interest) over $1600 and are claimed as dependents must be taxed at their parent’s rates – this is the so-called “kiddie tax”. For 2006, the age has increased to dependents who have reached age 18 (yes, this means that emancipated…