Tag Archives: Internal Revenue Code

Deducting an Investment

Today TaxMama hears from Jerry in Utah with a bold question. “My wife and I have a profitable LLC. We want the LLC to invest in a private offering with the intent of generating income from the investment. Will the money I use for the investment still be taxable income? I’d like to ‘’defer’’ the […]

Is Your Hobby a For-Profit Endeavor?

FS-2008-23, June 2008 The Internal Revenue Service reminds taxpayers to follow appropriate guidelines when determining whether an activity is engaged in for profit, such as a business or investment activity, or is engaged in as a hobby. Internal Revenue Code Section 183 (Activities Not Engaged in for Profit) limits deductions that can be claimed when […]

Tap IRA Tax-Free

Today TaxMama hears from Lea in NY who wants to know. “You mentioned somewhere that it’s possible to get money from my IRAs tax-free, instead of paying about 40% in taxes and penalties for early withdrawal. How does that work.”

Child Care

Today TaxMama hears from Jon in Texas, who tells us. “I work and my wife stays at home. We have our daughter enrolled in a religious affiliated mother’s day out/ pre-k program twice a week. Can the tuition for this be deducted as a childcare expense or such?”

Saver’s Credit for Retirement Savings Contributions

If you make eligible contributions to an employer-sponsored retirement plan or to an individual retirement arrangement, you may be able to take a tax credit. The Savers Credit formally known as the Retirement Savings Contributions Credit applies to individuals with a filing status and income of: Single with income up to $26,000 Head of Household […]

Casualty Loss

Today TaxMama hears from Jackie in Virginia who tells us, “We had some water damage on our rental property and the insurance company paid for the repairs. Is the insurance payment for the repairs considered income?”

MarketWatch’s Tax Resource

We’re about to get that Stimulus package – and Andrea Coombes is right on the ball with an excellent overview of what’s coming your way – and when. Jennifer Openshaw suggest five ways to spend your rebate so you have some permanent benefit from the money. Marshall Loeb reminds us that IRS is holding millions […]

Plan Now to Get Full Benefit of Saver’s Credit

Tax Break Helps Low- and Moderate-Income Workers Save for Retirement IR-2007-187, Nov. 9, 2007 – Courtesy of the Internal Revenue Service WASHINGTON — Low- and moderate-income workers can take steps now to save for retirement and earn a special tax credit in 2007 and the years ahead, according to the Internal Revenue Service. The saver’s […]

Moving Expenses Related to a New Job May Be Tax Deductible

Courtesy of the Internal Revenue Service Did you recently move to another city for a new job or because your old job is now at a new location? A tax break may be coming your way. How far you moved and the amount of time you spend on the job will have a major impact […]

Saver’s Credit For Retirement Savings Contributions

Courtesy of IRS Even though you may be on vacation, the IRS is always at work thinking about taxes! August and the “Dog Days of Summer” are upon us. Taxes are probably the furthest thing from your mind. But now, months before the end of the year and the start of tax season, is a […]