Income tax in the United States

Tax Refunds May Be Applied to Offset Certain Debts

March 30, 2012

Courtesy of IRS Past due financial obligations can affect your current federal tax refund. The Department of Treasury’s Financial Management Service, which issues IRS tax refunds, can use part or all of your federal tax refund to satisfy certain unpaid debts. Here are eight important facts the IRS wants you to know about tax refund [...]

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US Virgin Islands Taxes

March 28, 2012

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Today TaxMama® hears from Pat in the TaxQuips Forum with a quickie question. “Are income taxes paid to the Virgin Islands deductible as state taxes? VI taxes are governed by the Internal Revenue Code so it doesn’t seem logical they’d be deductible, as federal taxes generally aren’t. In addition, the U.S. Virgin Islands aren’t a [...]

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Basic Legal / Financial Boundaries for a Nonprofit

March 27, 2012

Your organization is doing good work, and has an important message to offer your community. But do-gooding is not enough for your local governments and tax boards: there are strict rules that must be followed:

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Kid With Paper Route

March 27, 2012

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Today TaxMama® hears from Don in the TaxQuips Forum with a little confusion. “My daughter is a widow with 3 children. The kids receive Social Security income from their deceased father’s account. My daughter’s 13-year-old son earned $700 with a paper route & received a 1099-MISC with the amount in box 7 – Nonemployee compensation. [...]

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Child Tax Credit Trick

March 26, 2012

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Today TaxMama® hears from Gary in the TaxQuips Forum with a brilliant observation. “I was working on a tax return for a married couple with income too high to receive the $1,000 Child credit. I have found (just recently) that if one of the spouses has a much lower income, or no income, filing them [...]

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Ask TaxMama Issue 635 – Swallowing Tax Pride

March 23, 2012

Dear Family, This year, the Swallows Day Parade will be held in San Juan Capistrano on Saturday morning. Each year, they welcome back the swallows who return on March 19th. Folks in Southern California can join in the fun via Amtrak’s Surfliner (SNC station) and walk over to the festivities. (The southbound train will get [...]

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Warning to Co-signers

March 21, 2012

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Today TaxMama® hears from Toni in the TaxQuips Forum with this sad problem. “I volunteer with AARP Tax-Aide. Last week a taxpayer brought in a 1099-C with his other papers. It turns out he had co-signed for a vehicle. When the vehicle ‘owner’ disappeared, the lienholder collected a reduced amount from the co-signer. It was [...]

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The Basics: Why is there a NonProfit Tax Status?

March 20, 2012

The intricacies of nonprofit finance: solicitations, donations, gifts, pledges, 990, 1099, annuities, acknowledgements, meaningful budgets and reports make this topic rich with possibilities. You’re panting, now aren’t you?

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Personal Residence Exclusion after Death

March 20, 2012

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Today TaxMama® hears from Tina in the TaxQuips Forum with this convoluted question. “A person has resided in the same one-family residence in for the last ten years without any children or wife. This person was bound into an estate contract to sell his residence for $800,000 in November, 2011 when his tax basis in [...]

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Tax Rules May Affect Your Child’s Investment Income

March 16, 2012

Courtesy of the IRS Parents may not realize that there are tax rules that may affect their child’s investment income. The IRS offers the following four facts to help parents determine whether their child’s investment income will be taxed at the parents’ rate or the child’s rate. 1. Investment income Children with investment income may [...]

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