Hospital Hostility An extremely ill man was in the hospital for a series of tests, the last of which left him feeling as if he constantly had to have a bowel movement. After several uneventful trips to the bathroom, he decided the latest episode was just another false alarm and stayed put. Suddenly he filled […]
Author Archives: TaxMama
Today TaxMama hears from Orla in Colorado. “I have a friend who has provided full support for his girl friend who is unemployed, and her daughter who is 18 and in high school. They both have lived with him for the full year. He should be able to file head of household but can he […]
Today TaxMama hears from Rick in New Jersey with this stroke of genius. “I am a salaried employee for ABC company and will be doing a separate consulting engagement for another company in my spare time. I’d like to take the entire $55,000 I will earn and put it directly into a 529 college plan […]
Today TaxMama hears from Jessie in California, who’s broke. “ I am 22 years old and unemployed. I recently hit a financial snag and am really considering cashing out my 401(k) plans. In total it would amount to $4,995.85. Because of state and federal taxes as well as the fee for cashing out early, how […]
Today TaxMama hears from Nancy in Florida with this problem. “I am a first time home buyer. My husband co-signed for someone 4 years ago. That house was never his primary residence. We can prove it with lease papers from our apartment. My house mortgage is only on my name. My husband is in the […]
If you have filed for the First Time Homebuyers Credit and your refund has been delayed, it’s because IRS will, sooner or later contact you for proof of the purchase of your home. [Source: IRS National Phone Forum Presentation Oct 2009] Required Documentation for Audits • Copy of closing contract (HUD-1 Settlement Statement) • Most […]
The Internal Revenue Service (IRS) may have allowed thousands of taxpayers to claim millions of dollars in First-Time Homebuyer Credits (the Credit) to which they were not entitled, according to a new report publicly released today by the Treasury Inspector General for Tax Administration (TIGTA). TIGTA found that some taxpayers claimed the Credit for homes […]
Dear Family, Did you hear the one about the pilots who forgot to land? No? Well it goes like this. Yesterday, Northwest Airlines Flight 188 from San Diego to Minneapolis was lost for an hour , sparking hijack fears. Air traffic control lost contact with the pilots, so the Federal Aviation Administration (FAA) contacted the […]
WASHINGTON — The Internal Revenue Service today issued a new form to aid the processing of mortgage applications under the Home Affordable Modification Program (HAMP) as part of the Making Home Affordable Program. The new form will make it simpler for people, especially homeowners trying to modify or refinance their mortgages, to order copies of […]
A businessman was in a great deal of trouble. Sales were way down, he had put everything he had into the business, and most of all – he owed everybody and his debts were enormous. As a last resort he went the rabbi and poured his heart out. When he had finished, the rabbi said, […]
Today TaxMama hears from Ray in Kansas who tells us. “My wife and I were first time home buyers on 08/20/09. We have been informed that if we amend our 2008 taxes, the first time home buyers credit will be treated as an interest-free loan that will have to be paid back. But if we […]
Today TaxMama hears from Sam in New Jersey with this question. “My company did an IPO this year and I will quadruple my income based on my sale of stocks. These were options I exercised years ago, before the IPO. The exercise price was 1/20th of the sales price. How do I minimize my taxes […]