Tag Archives: Taxation

New Social Security Mismatch Rule

Shades of 1984 and McCarthyism! This new rule is going further than simply holding employers responsible for ensuring that the workers they hire are all legal. That is as it should be. Everyone should take responsibility for their own actions and choices. However, it includes a snitch-factor – encouraging employees to turn others in – […]

His and Her Homes

Today TaxMama hears from Rhonda in Florida with this dilemma. “I purchased a condo in Florida in 1996. It was my primary residence for about 5 years. Then I got married, moved in to my husband’s condo and rented mine out. It was a rental property for the past 5 years. Since I originally purchased […]

The Social Security Marriage Tax Penalty

by Doug Thorburn, EA, CFP Single taxpayers with Social Security benefits subject to the phase-in rules experience exorbitant tax brackets at moderate incomes. Married filers suffer quietly at generally lower rates, but that doesn’t mean they are better off. The reason is the “base amounts” for married filers begin at such relatively low income levels […]

Gambling Winnings and Losses

Your summer vacation may mean a trip to the casino or the racetrack. What will you owe Uncle Sam if Lady Luck happens to be on your side? Gambling winnings are fully taxable and must be reported on your tax return. You must file Form 1040 and include all of your winnings. Gambling income includes, […]

IRS Issues Spring 2007 Statistics of Income Bulletin

WASHINGTON — The Internal Revenue Service today announced the release of the spring 2007 issue of the Statistics of Income Bulletin. Highlights include articles on high-income individual income tax returns, taxpayers reporting noncash contributions, farm proprietorship returns, qualified zone academy bonds, international boycott reports and S corporations. The article on farm proprietorship returns is the […]

1040EZ-T Quickie

Today TaxMama had an interesting adventure after hearing from Mike in New York who asks. “Can the Form 1040EZT be filed after April 17, 2007” [Note: That’s the quick refund form for individuals to claim the Telephone Tax Excise Credit.]

Small Business and Work Opportunity Tax Act of 2007

By David & Mary Mellem, EAs This Act, made Public Law 110-28 by President Bush’s signature on May 25, 2007, increases the Federal Minimum Wage and provides some tax changes as well. It can be found at the government’s web site of thomas.loc.gov by searching for HR 2206 or by going to Public Laws and […]

Small Business Tax Breaks

Courtesy of NAEA – The National Association of Enrolled Agents Small Business Tax Breaks to Be Sent to President (Again) Congress this week approved a package of small business tax breaks and an increase in the minimum wage; both were tagged onto H.R. 2206, a bill funding the Iraq war through September 30, 2007. President […]

Forged Joint Return

Today TaxMama hears from Tom, in the Midwest. He tells us, “I’ve been separated from my wife for several years. For 2006, I had no taxable income due to a disability. My wife filed a joint tax return by forging my signature. She did not have my power of attorney, or even verbal permission. She […]

Large Loss

Today TaxMama hears from Clay in California, who tells us. “I invested in a company that failed. Where is that handled on the 1040 form? I have had other failures and I was only allowed to deduct $3,000 per year. I have a substantial capital gain this year on a sale of properties.” Hi Clay […]

Deduct Lost Refund

Today TaxMama hears from Bruce in the Tax Parlor, asks an interesting question. “I filed 1997 taxes well past the 3-year statute of limitations to get my refund. Naturally IRS denied my request for my $8,000, saying I had filed too late. Is there any way to get IRS to release that refund? Or can […]