Category Archives: Credits

Deductible Day Care

Today TaxMama® hears from Mel  in the TaxQuips Forum, with this reasonable question.  “I have a client who sends their 5 year old to a private Christian school for pre-K. Can this be deductible like daycare? Is private school deductible at all in the upper grades?”

TaxMama s TaxQuips Health Care Mystery

Today TaxMama® hears from SwampWiz in the TaxQuips Forum, who is frustrated (can you blame him? Please read his detailed rant. Following is simply a summary.)  “I had read an official IRS notice that stated that if the individual’s income were to be “higher” than the one that had been proposed for the subsidy, the […]

Homebuyer Credit is Broken – Again

Today TaxMama® hears from MelissaMarie in the TaxQuips Forum, with a new problem. Let me summarize. She sold her home at a loss last year. She had bought it in 2008 using the Homebuyers Credit – which was required to be repaid – unless she sold the home at a loss. This year, the IRS […]

Overseas Education

Today TaxMama® hears from Chell in the TaxQuips Forum, with an interesting question.  “Can someone take an educational credit for books and Fees while they are taking a class in a foreign country? Plus without a proper address to fit into the tax software, the tax return will not be able to be efiled. It […]

Check Out College Tax Benefits for 2012 and Years Ahead

Courtesy of the IRS WASHINGTON — The Internal Revenue Service today reminded parents and students that now is a good time to see if they qualify for either of two college education tax credits or any of several other education-related tax benefits. In general, the American opportunity tax credit, lifetime learning credit and tuition and […]

Extra Tuition 1098-T

Today TaxMama® hears from tbachrodt in the TaxQuips Forum, with this question.  “I recently filed my taxes. I am already receiving the American Opportunity Credit and Lifetime Credit. I just received an additional 1098T in the mail that I forgot was coming. Do I need to file an amended return, even though I am already […]

Tax Returns with Education Credit on Hold

Courtesy of the IRS [See TaxMama note below] The IRS announced on Monday that taxpayers filing Form 8863, to claim the American Opportunity Tax Credit or the Lifetime Learning Credit can begin filing by the middle of February after the IRS updates its processing systems. The delayed start will have no impact on taxpayers claiming […]

Benefit of Filing Separately?

Today TaxMama® hears from AK in the TaxQuips Forum, who is trying to understand. “My wife and I have 1 child who is 3 years old. We recently received our W2’s and I started the process through Turbotax online.  With just my income, it looked like we were going to receive the Earned Income Credit […]

IRS Steps up Quickly to Help Hurricane Sandy Victims

Last week, before Commissioner Doug Shulman left, he made sure that the IRS was in  position to cut red-tape and make life easier for Hurricane Sandy victims. Tax Relief for Victims of Hurricane Sandy in Connecticut, New Jersey and New York Victims of Hurricane Sandy that began on Oct. 27 in parts of Connecticut, New […]

Employers Hiring Veterans by Year’s End May Get Expanded Tax Credit

Employers planning to claim an expanded tax credit for hiring certain veterans should act soon, according to the IRS. Many businesses may qualify to receive thousands of dollars through the Work Opportunity Tax Credit, but only if the veteran begins work before the new year. Here are six key facts about the WOTC as expanded […]