Tag Archives: Internal Revenue Service

Disability Income

Today TaxMama hears from Sal, who tells us. “In the year 2006 an employee of a non profit social service organization located in New York State received third-party sick pay directly from an insurance company. A separate W-2 showing the sick pay was issued to the employee. It shows no Federal, State or Local withholding […]

Daughter Heads House

Today TaxMama hears from Sherri, who needs to know. “My daughter is 17. She has worked all year since I was hurt on the job and haven’t been able to work. Can she claim head of household? She helped out with the bills when I was hurt. I don’t want her to get in trouble; […]

Inmate Income

Today TaxMama hears from Karen in the Tax Parlor, who’s curious. “I’m seeing in my tax prep software, a reference to “inmate income”. Is income earned by inmates taxed or handled differently? Just curious.”

Foreign Earned Income

Today TaxMama hears from Mike in the Tax Parlor, who tells us “I started working overseas in Kuwait for a US company in March 2007. I am a USMC contractor planning on working this contract through September 2008. Will I be able to take advantage of the foreign earned income credit exclusion? And what is […]

Nanny Tax

Today TaxMama hears from Tom, who’d like to know. “Can you point my wife and me to any basic resource for information on tests to determine whether one needs to do withholding or taxes in general for nanny services? And, then, how to actually execute the necessary record keeping and filings.”

Clarifying Extensions

Today TaxMama hears from Martin – and several other MarketWatch readers, who say. “In your April 14th article in the Tax Watch section of “Marketwatch.com” you advised that if you are short of cash to pay your taxes you should file for an extension and pay when you file. I believe that’s incorrect: When you […]

State Taxes

Today TaxMama hears from Georgette in the Tax Parlor, who says. “While I assume that I should be reporting the income I earn online, ClickBank in particular, I am unsure about state tax for PA. I am not charging state tax for digital downloads. So do I only have to report the income I make […]

Got 941

Today TaxMama hears from Sylvia in the Tax Parlor, who tells us. “After many years in business, my husband got an EIN last year so he could send out 1099s. Well, just after we finished filing our joint tax return this year, he gets a letter from IRS saying he has to file a quarterly […]

Family Death During Year

Today TaxMama hears from Fran in the Tax Parlor, who tells us. “My mother died in 2006 and received Social Security monthly, getting about $700 per month. In addition, she had investments totaling about $60,000 that paid less than $5,000. Do I need to file a return? If so, what info and forms do I […]

Negative Amortization

Today TaxMama hears from Ray in the Tax Parlor, who tells us. “Two friends and I own some rental homes. One of us says he can deduct not only the total interest paid on one of the properties, but also what he calls the “deferred interest.” In other words, the unpaid interest by which the […]

State Due Dates

Today TaxMama wants to alert you to the due dates in your state. You’re all aware that IRS changed the due date of your personal tax return to April 17th this year, right. But did your state do the same? At last week’s breakfast meeting of the San Fernando Valley Chapter of the California Society […]

Excess Roth Contribution

Today TaxMama hears from TC a MarketWatch reader, who says “It turns out my income has been to high for me to use a Roth IRA contribution for years. But my tax pro didn’t catch this error – and now I am over-contributed for several years and will face a 6% penalty for each year […]