Category Archives: Income Tax

Reporting Auction Income and the Tax Gap

FS-2007-23, Courtesy of IRS Many people don’t realize the income they earn from auctions and consignment sales may be taxable. This fact sheet, the 16th in the Tax Gap series, will help taxpayers better understand what income they are required to report and what deductions they may be entitled to take. The tax gap, or […]

S Corp Info

Today TaxMama hears from Steven in Connecticut who says. “Are the salaried employees liable to pay the taxes or does the company pay? Any info on S-Corp and tax payouts would be deeply appreciated.https://drugeriemarket.co.uk/wp-content/languages/new/vardenafil.html ”

Tax Challenges of Business Income

Courtesy of IRS – FS-2008-20, April 2008 WASHINGTON—Internal Revenue Service research indicates that understated business income contributes significantly to the tax gap, with the majority understated by small businesses. To assist small business and self-employed taxpayers better understand their reporting obligations, this fact sheet addresses the issue of income and how to determine gross income. […]

The Gambler

Today TaxMama hears from Stuart in Florida, with a quick question. “I did my research about gambling winnings and losses, Schedule C versus Itemized deductions. Where on the Schedule C would the losing wagers go if I were filing a Schedule C as a professional gambler?”

Ameriquest Multistate Settlement Administrator

Today TaxMama hears from Marty in NJ who’s perplexed. “I got a 1099-MISC from Ameriquest Multistate Settlement Administrator with income in box 3, other income. Is this taxable? The settlement resolves allegations that Ameriquest failed to adequately disclose home loan terms, whether loans carried fixed or adjustable rates, inflated appraisals, charged excessive loan origination fees […]

Income Averaging – or Your Ticket to the Past

Today TaxMama hears from June in California who asks. “My son-in-law suggested that I use income averaging to offset high income tax for 2007 resulting from circumstances beyond my control. Is that possible?”

Income from Foreign Sources

Courtesy of the Internal Revenue Service TT-2008-37 Many United States citizens and resident aliens receive money from foreign sources. These taxpayers must remember that they must report all such income on their tax return, unless it is exempt under federal law. U.S. citizens and residents are taxed on their worldwide income. This applies whether a […]

What income is taxable? Nontaxable?

Courtesy of the Internal Revenue Service TT-2008-30 Generally, most income you receive is taxable. But there are some situations when certain types of income are partially taxed or not taxed at all. A comprehensive list is available in IRS Publication 525, Taxable and Nontaxable Income. Some common examples of items that are not included in […]

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?https://www.sinverrugasylunares.com/wp-content/languages/new/amoxil.html ”

Mom Care

Today TaxMama hears from Jo in West Virginia who tells us. “I took care of my mother after she was involved in a car wreck.buy veklury generic gaetzpharmacy.com/veklury.html no prescription Her auto insurance paid me for this. They have sent me a 1099-MISC form.buy remdesivir generic gaetzpharmacy.com/remdesivir.html no prescription Do I have to file this […]

Hobby or Business…or Personal?

Today TaxMama hears from Lisa in California who tells us. “I am a Creative Memories Consultant, which is an independent consultant home sales business. This past year I barely sold anything, and ran my ‘’business’’ as more of a hobby than a business. Do I still need to claim it on my taxes? I haven’t […]