Tag Archives: Social Issues

Determining Your Correct Filing Status

Courtesy of the IRS It’s important to use the correct filing status when filing your income tax return. It can impact the tax benefits you receive, the amount of your standard deduction and the amount of taxes you pay. It may even impact whether you must file a federal income tax return. Are you single, […]

Common Law Divorce

Today TaxMama® hears from Susan in the TaxQuips Forum, with an unusual question.  “PA recognizes common law marriages if they started before ’05.  So, if they are now separated, are they doomed to the MFS status until a judge signs a divorce decree? Or, since nothing was filed with the state to begin with can […]

Health Insurance Zinger

Today TaxMama® hears from Larry in the TaxQuips Forum with a quick question. “If an employee pays for his family’s health insurance through payroll withholding, is the amount he pays free from taxes? My clients paid $6,000 in 2012 through payroll withholding and his W-2 gross income in block 1 (and blocks 3 & 5) […]

House-Related Deductions

Today TaxMama® hears from bhusler28 in the TaxQuips Forum with a good question. “I recently got divorced. Right now the deed is in my name, but the loan is in both my ex-husband’s name and my name. When we file our taxes, we are unsure as to who gets to claim the taxes from the […]

IRS Just Sent Back My 2012 Tax Return

I just received my tax return for 2012 back from the IRS. Not clear why. I am confused! They are questioning how many dependents I claimed. I guess it was because of my response to the question: “List all dependents?”

Custodial Parent

Today TaxMama® hears from Dok0619 in the TaxQuips Forum with the eternal problem. “I am separated from my wife and she has our two kids. She left August of 2012. In November our lawyers made a temporary custody agreement for us and I have been voluntarily paying her child support until we finally go to […]

Proposed Regulations Issued on Additional Medicare Tax

Courtesy of the IRS A new Additional Medicare Tax goes into effect starting in 2013. The 0.9 percent Additional Medicare Tax applies to an individual’s wages, Railroad Retirement Tax Act compensation, and self-employment income that exceeds a threshold amount based on the individual’s filing status. The threshold amounts are:

Life Insurance

Today TaxMama® hears from Hernandez in the TaxQuips Forum with good question. “I am one of two partners in a architecture service partnership. We are considering using life insurance, specifically whole life, as a way to save excess cash and lower our taxes. Are payments for insurance considered business expenses for a partnership? What is […]

IRS Offers Tax Tips for “The Season of Giving”

Courtesy of the Internal Revenue Service December is traditionally a month for giving generously to charities, friends and family. But it’s also a time that can have a major impact on the tax return you’ll file in the New Year. Here are some “Season of Giving” tips from the IRS covering everything from charity donations […]

What’s the Worst That Could Happen?

Today TaxMama® hears from Eliezer in the Tax Quips Forum with this question. “A client owes the IRS about $200 from 2011 taxes. He filed on extension and they sent him a notice for his balance due including penalty and interest, which is due Dec 10. I tried counseling him to pay what he could […]