Sadly, a lot more taxpayers are trying to figure out the tax treatment of unemployment compensation these days… It’s helpful to understand a little bit of the history of unemployment compensation in order to understand how it functions (and how it’s taxed). The Social Security Act of 1935, also known as Public Law 74-271, created…
When I first got married, I didn’t immediately change my name. It felt weird to me to have my maiden name for years and years and then – poof! – be somebody else. My diplomas, my law licenses, all of it was in my maiden name. It was who I was. Plus, I liked my…
I rolled into work this morning along with many Americans for the first time in 2011. Since New Year’s Day fell on Saturday this year, those of us who work “traditional” hours (yes, my use of the term is cheeky) started our work year today. It’s also the start of a bit of a headache…
If you follow me on Social Media at all (I’m on twitter here and Facebook here), you’ve probably heard me grumbling about the riots in France this week. I’ll admit it: it’s not about the French, I’m totally being selfish. My husband and I have been planning a trip to France for awhile (it just…
Brace yourself. From now until November, I promise you that you will hear about this next piece of news over and over again: There will likely be no increase in Social Security benefits (sometimes referred to as a “COLA” or “cost of living adjustment”) for 2011. That makes two years in a row since there…
I’ve received a lot of inquiries related to the Making Work Pay Credit and the Economic Recovery Payment. You cannot receive the maximum credit for both. If you are disabled or retired and received the Economic Recovery Payment, you must report it on your Schedule M when claiming the Making Work Pay Credit. It is…
I’ve been getting a lot of questions from disabled taxpayers about whether any special tax breaks exist for them in 2009. The answer is yes – and no. As I stated in a prior post, there was some economic relief for disabled Americans in 2009 in the form of the Economic Recovery Payment (ERP) –…
Taxpayer asks: I heard that I can get more money back from my taxes this year because I am disabled. Is this true? I am on fixed income and it would help me. Taxgirl says: I think what you’re referring to is the one time payment for retirees and disabled persons as part of Obama’s…
Taxpayer asks: This last year I had a son born who only survived 1 day. Do I need to get a Social Security number for him? Do I claim him as a dependant? Taxgirl says: Gosh, I honestly can’t imagine how difficult this is for you and your family. My sympathies and thoughts are with…
Update: We have a winner! It’s ID! For the answer, see the comments! Our next tax trivia question for the giveaway is: So many of you guessed that the most misused Social Security number is 078-05-1120. It was a number printed on a piece of paper sold in wallets that many taxpayers mistook for their…