Tag Archives: Taxation in the United States

Taxpayer Protection

Today TaxMama wants to tell you about something really important and exciting. IRS’s first announcement of the year made a big splash. IRS proposes new registration, testing and continuing education of tax return preparers. What does this mean to you? And why is this exciting?

Closed Business

Today TaxMama hears from Mary in Oregon, who tells us. “I have run a day care business in my home for many years and have taken business use of home and depreciation. I am now shutting down the business; but I am not selling my house or any of the depreciated assets. When do I […]

Getting Credit

Today TaxMama hears from Maxine in Florida, who has two quick questions. “Can someone living on Supplemental Security Income receive an Earned Income Credit if she has one dependent? Can someone who is retired received the existing homebuyer tax credit $6,500?”

IRS Reminds Car Shoppers about 2009 Tax Break

WASHINGTON — The Internal Revenue Service today reminds individual taxpayers who are considering buying a new car that they have until Dec. 31 to take advantage of a tax break that may not be around in 2010. Taxpayers who buy a qualifying new motor vehicle this year after Feb. 16 can deduct the state or […]

Mom as Dependent

Today TaxMama hears from Dee in California, who wants to know. “Is my mother’s Social Security income ($9,000 – no other income) considered earned income in order for me to meet the criteria to file for Head of Household?”

Settlement for Vioxx ®

Today TaxMama hears from Lenora in Arkansas, who tells us. “Some friends of mine lost their mother due to taking the drug Vioxx® . She died due to complications from taking the drug. Her sons filed suit and are due for a pretty good sum of money. Is that settlement money taxable?”

Record Keeping for Business Barter Transactions

Courtesy of IRS In today’s economy, small-business owners sometimes look to the oldest form of commerce — the exchange of goods and services, or bartering. The Internal Revenue Service wants to remind small-business owners that bartering transactions generally have associated tax reporting, accounting and record-keeping responsibilities. Bartering is the trading of one product or service […]

Torn Down by Accident

Today TaxMama hears from Sandra in Texas, with this unusual situation. “I owned two rental properties; but one was accidentally torn down by the city. It had damage due to hurricane Ike. Can I take the value of this property off my taxes? Can I take it as a loss?”

Separate Newlyweds

Today TaxMama hears from Ingrid in Illinois, who tells us. “We are over 40 and got married in December 2008. We have two homes, separate bank accounts, and maintain our own households. Can we each file Head-of-Household for 2009?”

Military spouse’s income might be tax-exempt

Courtesy of Spidell (paraphrased a bit for national coverage) As a result of the Military Spouses Residency Relief Act (PL 111-97), beginning with the 2009 taxable year, states may not tax wage and personal service income of a military spouse if the spouse has the same domicile or residence as the servicemember and: · The […]