I have a question about the Stimulus Checks that we will all be receiving. If we owe money to the IRS from our 2007 tax year, will it be deducted from the stimulus check and the remainder passed on to me? In a normal situation, I would say yes. Considering that the IRS wants you to spend it all to boost the economy and not pay off debt with it, it also makes sense to give it all to me. Do you know what the correct answer is? Thank you for your time.

Well, Adam, the answer is "maybe you will get it and maybe you won't." The IRS has the right to withhold payments if you have certain kinds of debts. Student loans in default or unpaid child support, in addition to unpaid tax obligations, are cause for the IRS to confiscate your money and they are generally not too shy about doing so. Whether they are set up to withhold this special payment is anyone's guess. The IRS initially addressed this issue on their stimulus payment FAQ, but that question has been mysteriously deleted.

Phoung Cat Le at the Seattle Post-Intelligencer has a great tax rebate FAQ, for those of you who have more questions.

Answers to tax rebate questions [Seattle P-I]

So what do you do? The Tax Cat has taken a break from his vacation to let us know that those of you who were unaware that sending your tax refund to your IRA would send your stimulus check to the same account can withdraw the rebate without incurring any penalties:

To qualify for this relief, funds must be taken out by April 15, 2009, in most cases. Without this relief, taxes, penalties and other special rules would apply to amounts removed from these accounts. Regular refunds are not eligible for this relief.

Eligible tax-favored accounts include traditional and Roth IRAs, health savings accounts (HSAs), Archer MSAs, Coverdell education savings accounts (ESAs) and qualified tuition programs, also known as QTPs or 529 plans. Thus, for example, a taxpayer whose $1,200 stimulus payment is directly deposited into his or her IRA can take out anywhere up to $1,200 from the IRA, tax-free and penalty-free.

In general, the deadline for these withdrawals is the due date or extended due date for filing a 2008 return. This means April 15, 2009, for most taxpayers, or Oct. 15, 2009, for those who obtain tax-filing extensions.

Information on how to claim this relief will be included in your 2008 tax instructions.

Relief for Stimulus Payments Withdrawn from IRAs and Tax-Favored Accounts
[IRS]
Tax Cat [Facebook]

Don't worry, it's not the end of the world. It will, however, affect you in the following ways:

1. It may delay your stimulus rebate.
2. It will not delay the deadline for paying taxes if you owe them.
3. It will make you grouchy and stressed out until October 15, the new deadline.

As you can see, you should really just file your taxes on time. If you can't, allow us to introduce you to your new best friend — IRS Form 4868 (PDF). Enjoy!

IRS Urges Taxpayers To e-file Extension Requests by April 15 Filing Deadline [IRS]

Here's what to do when you owe the IRS and don't have any money:

Taxpayers should file their return on time, pay as much as they can with their return and use IRS.gov if they need to request a payment agreement.

Interest and penalties add up for people who don't file and pay on time. But taxpayers can limit these charges by filing on time and paying sooner.

Though interest, currently at the rate of 6 percent per year and late payment penalties, normally 0.5 percent (1/2 of 1 percent) per month, apply to any tax paid after the April 15 deadline, taxpayers can limit these charges by paying sooner. In addition, by filing on time, a taxpayer avoids the much larger 5-percent-per-month late-filing penalty. For example, a taxpayer who files on May 1, owing $1,000 in tax, would be charged interest plus a $50 penalty.

So remember, if you owe money and can't pay it—file your taxes on time anyway and use the IRS's online payment agreement calculator. By entering some basic information about your tax situation, eligible taxpayers can set up either a short-term payment extension or a monthly payment plan.

A short-term extension gives a taxpayer up to 120 days to pay. No fee is charged, but the late-payment penalty plus interest will apply.

If you owe less than $25,000 and would like to know whether or not you qualify for a payment agreement, click here

Online Payment Agreement (OPA) Application [IRS]

(Photo:Chad Beckerman)

The IRS says:

Stimulus payments will be sent out in the order of the last two digits of the Social Security number used on the tax return.

Because the IRS will use the Social Security number to determine when checks are mailed, taxpayers may receive their checks at different times than their neighbors or other family members. On a jointly filed return, the first Social Security number listed will determine the mail-out time.

The IRS expects to make about 34 million payments within the first three weeks after the payment schedule begins May 2. With more than 130 million households expected to receive stimulus payments, more than 25 percent of the payments will be made in the first three weeks.

Taxpayers who choose direct deposit on their federal income tax returns can expect to receive their economic stimulus payments between May 2 and May 16 provided their returns were received and processed by April 15, 2008. For taxpayers who did not choose direct deposit on their tax return but whose returns were processed by April 15, the paper checks will be in the mail starting May 16, with the initial mailings completed by around July 11.

Economic Stimulus Payment Calculator [IRS]

IRS Announces Economic Stimulus Payment Schedules, Provides Online Payment Calculator [IRS]

"These special letters remind people that they won't need to do anything more than file a 2007 tax return in order to put the stimulus payment process in motion," Acting IRS Commissioner Linda Stiff said.

"To receive a payment in 2008, individuals who qualify will not have to do anything more than file a 2007 tax return. The IRS will determine eligibility, figure the amount and send the payment," the notice states. "This payment should not be confused with any 2007 income tax refund that is owed to you by the federal government. Income tax refunds for 2007 will be made separately from this one-time payment."

Watch out for scammers telling a different story.

Special Economic Stimulus Letters Reach Mailboxes in March [IRS]

Tax Cat sez: You need to follow the IRS's guidelines and only write off "necessary and ordinary business expenses."

Here's the important part of the tax code:

Internal Revenue Code § 162. Trade or business expenses. (a) In general. There shall be allowed as a deduction all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business...

What does this mean?

Well, there are lots and lots of things you may be able to deduct. Here are a few:

• Office equipment
  
• A Home Office
  
• Sales tax on business purchases.
  
• Professional fees. (This includes tax professionals who'll do all this crap for you.)
  
• Health Insurance premiums
  
• Auto expenses.
  
• ... and more!

Here's a helpful list. If you have a business expense that isn't mentioned on the list, that doesn't necessarily mean you can deduct it.

The Laugh Test

From NOLO.com:

"Ordinary" has been held by courts to mean "normal, common, and accepted under the circumstances by the business community." "Necessary" has been taken to mean "appropriate and helpful."

Given these broad legal guidelines, it is not surprising that some folks have tried to push the envelope on "ordinary and necessary" business expenses, and the IRS has pushed back. Sometimes a compromise is reached, and sometimes the issue is thrown into a court's lap.

Example

Mr. Henry, an accountant, deducted his yacht expenses, contending that because the boat flew a pennant with the numbers "1040," it brought him professional recognition and clients. The matter ended up before the tax court. The court ruled that the yacht wasn't a normal business expense for a tax professional, and so it wasn't "ordinary" or "necessary." In short, the yacht expense was personal and thus nondeductible. (Henry v. CIR, 36 TC 879 (1961).)

Tax professionals frequently rely on the "laugh test": Can you put down an expense for business without laughing about putting one over on the IRS? In the example above, the tax court laughed the accountant and his yacht out of court.

Understanding Small Business Tax Deductions [NOLO]
(Photo:Chad Beckerman)

Tax laws consider forgiven debt as income, which can leave those of you with foreclosed homes with some unexpected tax bills this year. Let's say I loan you a million bazillion dollars. Now I go, "Oh, wait. Never mind. You can keep it." The IRS considers that income. You would have to pay the taxes on your million bazillion dollars.

The tricky part comes in when I'm not just loaning you a million bazillion dollars. I'm loaning you money to buy an overpriced home that you can't afford and I can't sell for as much as you owe me once I take it back from you.

Enter the Mortgage Forgiveness Debt Relief Act of 2007. Bankrate sums it up for us:

Under the Mortgage Debt Forgiveness Act of 2007, some homeowners granted forgiveness of mortgage debt won't have to pay taxes on that amount. But there are some restrictions:

1. There is a limit on the forgiven debt: up to $2 million or $1 million for a married person filing a separate return.
2. The tax break also has a time limit. It only applies to mortgage debt discharged by a lender in 2007, 2008 or 2009.
3. The loan also must have been taken out to buy or build a primary residence, not a second or vacation home. If debt is forgiven on those additional properties, the owner will owe cancellation of debt income as usual.

10 Tax Laws You Just Gotta Know [Bankrate]
IRS Form 982 (PDF) [IRS]
March 3: The latest tax-filing deadline [Don't Mess With Taxes]
(Photo:Chad Beckerman)

Option 1: Wait a little longer. It might be coming. Call your payroll department and ask them wassup.

Option 2: Call the IRS. Your employer is legally required to send you your W2. Tax Cat sez:

1) Have the employer's name and address handy.
2) Call the IRS at 1-800-829-1040
3) Press 1
4) Press 2
5) Wait for the operator. Tell them that despite your efforts, your employer hasn't sent you a W-2.

3) Do without. If you just can't get a copy of your W2, you'll need to fill out Form 4852 (PDF) This is your last resort. Using this form can delay your return while the IRS figures out of you're full of it or not.

Missing Your Form W-2? [IRS]
(Photo:chadwbecks)

After all, the Girl Scouts of America is a charitable organization.

Tax Cat Sez: They are... but only if you don't take the cookies.

From the Girl Scouts website:

Q: Is the purchase of Girl Scout Cookies tax-deductible?

A: No and Yes.

* No, if the customer keeps the cookies. Individuals who buy Girl Scout Cookies and take the cookies home, or consume them, have purchased a product at a fair market value. For this reason, no part of the price of a box of Girl Scout Cookies used in this way is tax-deductible.

* Yes, if the customer leaves the cookies with Girl Scouts. Many Girl Scouts ask customers to pay for one or more boxes of cookies for use in their community service project, for example, collecting for a food pantry. The customers not receiving any Girl Scout Cookies do not benefit directly from paying for them. Those individuals may treat the purchase price of the donated cookies as a charitable contribution.

Frequently Asked Questions [Girl Scouts via Don't Mess With Taxes]
(Photo:chadwbecks)

Tax credits are different from deductions in that unlike deductions (which reduce the amount of income you're required to pay tax on)—credits lower the actual amount of tax you need to pay.

Most are for low or moderate income individuals and families, but if you qualify—the Consumerist Tax Cat says: Don't overlook them!

Here is information about 6 tax credits that you may qualify for, and how to get them, from the IRS:

1) Earned Income Tax Credit
This credit s for low to middle-income workers and their families. Working families who make less than $39,783 and childless workers with incomes under $14,590 may qualify. To help figure out if you qualify for this credit, click here.

2) Child Tax Credit
If you've got a kid under 17, you probably qualify for this credit, says the IRS. This credit is in addition to the deduction that you take for each dependent and is different from the "Child Care Credit." Questions? Click here.

3) Education Credits
If you're enrolled at least half-time in a post-secondary school, you may be able to take the Hope credit or the lifetime learning credit. Watch out, the IRS says, you can't deduct your tuition and fees and take these credits, so be careful to choose the right one. To figure out if you qualify for these credits, click here.

4) Child Care Expense Credit
If you have a child under 13 who you pay someone to care for, you are probably able to take this credit, says the IRS. You may also qualify if you have a dependent who requires care who is older than 13, so read the rules carefully. Form 1040 filers claim the credit for child and dependent care expenses on Form 2441 (PDF). Form 1040A filers claim it on Schedule 2.

5) Saver's Credit
If you have a low or moderate income and you've contributed to a 401k or IRA, you may be eligible for this credit. If you've made less than $26,000 for singles and married people who are filing separately, or $39,000 for heads of household, or $52,000 for joint filers, you might be able to take this credit. If you haven't made any contributions yet, don't worry—you've got until April 15, 2008.

6) Energy-Saving Credit
If you've made energy-saving improvements on your home (and didn't take this credit in 2006) you may be eligible for up to $500 in credits. Energy-saving improvements include things like new insulation, better windows, water heaters, doors, etc. Click here. (PDF)

(Photo:chadwbecks)

Argh!

First of all, refund anticipation loans are bad news. Last year, despite our frequent warnings, nearly 9 million American taxpayers paid $900 million dollars in RAL expenses. The typical RAL only lasts 7-14 days according to the National Consumer Law Center, and carry APRs of up to 161%.

"For a free quick refund, file electronically and have your refund direct deposited to your own bank
account," says Jean Ann Fox, Director of Financial Services for CFA, "You'll generally receive an efiled,
direct deposit refund within 8 to 15 days."

Add those costs to the fees associated with a pre-paid debit card and you're really wasting money (our favorite is the $1.00 H&R Block charges just to check your balance. Clever!)

H&R Block suggests that you "save money" by rolling the loan over onto their "Emerald Card." The main sales pitch for this card is that you are not required to pay H&R Block up front for the tax prep, and are instead given a magical debit card full of money! This is probably especially tempting for consumers who are otherwise "unbanked" and would have to wait longer for a paper check from the IRS. Worst tax product ever. Avoid.

Terms And Conditions (PDF) [H&R Block]
Emerald Pre-Paid Mastercard [H&R Block]
Positive improvements For Refund Anticipation Loans, But Consumers Still Warned To Avoid Them [National Consumer Law Center]
(Photo:meghannmarco)

The first question that must be asked about any home office in order for it's expenses to be deductible is, is the workspace used exclusively and regularly for business? The answer to both of these questions must be yes before any deduction can be taken. If the workspace is used for both business and personal use, then it is not deductible. Furthermore, the space must be used on a regular basis for business purposes; a space that is used only a few times a year will not be considered a home office by the IRS, even if the space is not used for anything else. These criteria will effectively disqualify many filers who try to claim this deduction but are unable to substantiate regular and exclusive home office use. It should be noted that it is not necessary to partition off the workspace in order to deduct it (although this may be helpful in the event you are audited.) A simple desk in the corner of a room can qualify as a workspace, provided you count only a reasonable amount of space around the desk when computing square footage.

Deduct Those Home Office Expenses [Wise Bread]
(Photo:Tengaport)

Happy New Year!

Enjoy the cute kitty cat picture.

CharityNavigator
IRS Guide To Charitable Giving 2007 (PDF) [IRS]

(Photo:RcktManIL)

Here is a photograph of a cat and a dog using a computer. Thank you.

(Photo:funny strange or funny ha ha)

You have 10 days. The deadline is October 15.

Don't forget, if your income is below $52,000 you can Free File.

(Photo:The Jaundiced Eye)

If debt is discharged and the amount totals more than what the home was worth, the difference is normally considered taxable income. The good news is that there is an exception to the rule for those who are really, truly broke.

From the IRS:

Borrowers whose debt is reduced or eliminated receive a year-end statement (Form 1099-C) from their lender. By law, this form must show the amount of debt forgiven and the fair market value of property given up through foreclosure. Though the winning bid at a foreclosure auction is normally a property's fair market value, it may not necessarily reflect its true value in some cases.

The IRS urges borrowers to check the Form 1099-C carefully. They should notify the lender immediately if any of the information shown on their form is incorrect. Borrowers should pay particular attention to the amount of debt forgiven (Box 2) and the value listed for their home (Box 7).

Special Web Section Unveiled for Homeowners Who Lose Homes; Foreclosure Tax Relief Available to Many[IRS]
Questions and Answers on Home Foreclosure and Debt Cancellation [IRS]
(Photo:Getty)

From the TaxProf Blog, where the question first arose:

If Bill were my client, I would advise him to claim the fine as a deduction subject to the 2% miscellaneous itemized deduction rules (under 162). A few considerations:

1. If it is ordinary and necessary, he may negotiate to turn the fine into his employer (the Pats) as an expense reimbursement under an accountable plan. I think Kraft would tell him to get out of his office, though.
2. It's been reported Bill has an annual salary of about $5 million, so let's use that as a rough approximation of AGI. Assuming no other miscellaneous itemized deductions subject to limit, that shaves $100,000 off his deduction right there, leaving him with $400,000.
3. The Pease phaseout will get him, as well. Assuming $5 million of AGI and $1 million of itemized deductions (about standard), the Pease phaseout will reduce his itemized deductions by $145,308. The pro-rated share (40%) of this assigned to the remainder of the fine is $58,123. That leaves him with $341,877 to deduct.
4. Assuming he is in the 35% bracket, the federal tax subsidy on this will be $119,657. The IRS will subsidize 24% of the Belichick fine.

Can Patriots Coach Belichick Deduct His $500,000 Fine? [TaxProf Blog via WSJ Law Blog]

"The start of the school year is a good time to remind parents, students and teachers to save all receipts related to tax-advantaged education expenses," said IRS Acting Commissioner Linda Stiff. "Good recordkeeping makes sense because it can help avoid missing a deduction or credit at tax time."

We'd just like to point out the awesomeness of someone called "Stiff" running the IRS.

Anyhow, to learn more about education related tax deductions and credits, check out IRS publication 970. No, it's not the most awesomely compelling literature you'll ever read, but it might save you some money.

Tax Benefits For Education (PDF) [IRS]
(Photo:puroticorico)

And yes, their coffee ice cream is Fair Trade. No, really. —MEGHANN MARCO

Ben & Jerry's
(Photo: andi giltterati)

I found out about the telephone tax refund available on this years tax returns via Consumerist. Would you please encourage your readers to itemize their excise tax charges instead of taking the standard refund amount?

My family takes 3 exemptions, so our standard, no-questions-asked telephone tax refund is $50. The maximum standard refund, for families with 4 or more exemptions, is $60.

I just itemized my actual taxes paid using form 8913. Between our bundled long distance service land line, our two cell phones, and the interest owed us, we're getting 106.15 back.

Please let everyone know about this. We certainly aren't the only family of 3 who had a land line and two cell phone from March 2003 through July 2006.

2006 Form 8913 [PDF] [IRS]
(Photo: griff le riff)

VITA (Volunteer Income Tax Assistance):

The VITA Program offers free tax help to low- to moderate-income (generally, $39,000 and below) people who cannot prepare their own tax returns. Certified volunteers sponsored by various organizations receive training to help prepare basic tax returns in communities across the country. To locate the nearest VITA site, call 1-800-829-1040.

Then press 1, then 5, and ask for help finding your nearest VITA site.

TCE (Tax Counseling for the Elderly):

The Tax Counseling for the Elderly (TCE) Program provides free tax help to people age 60 and older. Trained volunteers from non-profit organizations provide free tax counseling and basic income tax return preparation for senior citizens. For more information on TCE call 1-800-829-1040.

Marines, airmen, soldiers, sailors, and guardsmen, and their families worldwide receive free tax preparation assistance at offices within their installations. These VITA sites provide free tax advice, tax preparation, and assistance to military members and their families. They are trained and equipped to address military specific tax issues, such as combat zone tax benefits and the effect of the new Earned Income Tax Credit (EITC) guidelines.

Proof of identification

Social Security Cards for you, your spouse and dependents and/or a Social Security Number verification letter issued by the Social Security Administration

Birth dates for you, your spouse and dependents on the tax return

Current year's tax package if you received one

Wage and earning statement(s) Form W-2, W-2G, 1099-R, from all employers

Interest and dividend statements from banks (Forms 1099)

A copy of last year's Federal and State returns if available

Bank Routing Numbers and Account Numbers for Direct Deposit

Total paid for day care provider and the day care provider's tax identifying number (the provider's Social Security Number or the provider's business Employer Identification Number)

To file taxes electronically on a married filing joint tax return, both spouses must be present to sign the required forms.

Free Tax Return Preparation For You by Volunteers [IRS]
(Photo: funca88)

You may be one of the nearly 160 million phone customers who can request a refund of the 3% federal excise tax paid on long-distance and bundled phone service billed after Feb. 28, 2003 and before Aug. 1, 2006. Federal long-distance excise taxes paid on cell phone, land line, fax, Internet phone service and bundled service all qualify for the refund.

IRS [via Clever Dude]
(Photo: Felixe)

Don't forget to remove "Extended Download Protection" from your shopping cart before you check out. According to Gizmodo the download comes with "Deduction Pro," which is, shockingly, quite helpful with deductions. —MEGHANN MARCO

Download TaxCut Premium [via Lifehacker & Gizmodo]

Also, the IRS.gov site does have interactive features, but it asks for very little personal information. From IRS.gov:

Although the IRS Web site offers interactive features, the tax or private financial information that these features ask the taxpayer for is extremely limited. The IRS reminds consumers who access unfamiliar sites, or sites they have never dealt with before, that they should never reveal any personal or financial information, such as credit, bank account or PIN numbers, without verifying the validity of the site.

The IRS also reminds consumers to be alert to an on-going Internet scam in which consumers receive an e-mail informing them of a federal tax refund. The e-mail, which claims to be from the IRS, directs the consumer to a link — often a Web site resembling the IRS Web site — that requests personal and financial information, such as Social Security number and credit card information.

IRS Urges Caution about Internet Sites that Resemble the Official IRS Site [IRS.gov]

•Delusion No. 1: If I put off filing until the last minute, I'll have less chance of getting flagged for an audit amid the flood of deadline filers. "I don't think so," says Adams. "I've never heard that on either this side of the desk or the other."

•Delusion No. 2: Since I didn't make all of my estimated quarterly payments, I just won't file this year and can start fresh next year. "A lot of people miss an estimated tax payment in the course of a year," says Fishman. "That's not that big a deal; you just have to pay interest and a penalty, which works out to be about what you would pay on borrowing money."

•Delusion No. 3: I don't need to go to all the trouble of filing because I didn't make enough money to make it worth the IRS' trouble to come after me. "As a matter of fact, IRS statistics show that people who make less money are audited more frequently than people who make more money. The reason for that? Abuses of the earned income tax credit are unbelievable," says Adams.

The psychology behind tax procrastination [Bankrate]
(Photo: silent (e))

After April 17, 2007 the money becomes the property of the US Treasury, so don't wait! —MEGHANN MARCO

Prior Year Tax Forms [IRS.gov]
(Photo:mvhargan)

•Unreported income — This is a no-brainer. If you file a return but fail to report income received, you're heading for trouble. All of your interest, dividends, and miscellaneous income must be reported. Remember: everyone who sends you a 1099 is also sending one to the IRS.

•Round numbers — It's unlikely that your investment returns were exactly $500, or that your mortgage interest deduction was $10,000. Too many round numbers on a return are a symptom that something fishy may be going on.

The best way to avoid an audit is to be honest and organized!.—MEGHANN MARCO

Common Red-Flags That Lead to IRS Audits [Get Rich Slowly]
(Photo:doviende)

W-2:
The first step is to call your employer and ask for a new one. If that doesn't work, you can call the IRS for help at (800) 829-1040. If that still doesn't work, you will need to file Form 4852, Substitute for Form W-2, Wage and Tax Statement (PDF 29K)

1099:
Since 1099s don't need to be included with your return, you can simply call your accounts and ask them what they reported. If you have accounts earning interest and did not get a 1099, you can call the bank and request a print out. —MEGHANN MARCO

Where To Get Missing W-2 and 1099s Forms [Blueprint for Financial Prosperity]
(Photo: Sister72)

The Sales Tax Calculator is another interactive tool on the IRS.gov web site designed to help make it easier for taxpayers to figure their taxes," said IRS Commissioner Mark W. Everson.

Taxpayers who itemize deductions on Schedule A of the Form 1040 in 2006 have the option of deducting the amount of state and local sales taxes paid instead of deducting their state and local income taxes paid. Taxpayers cannot take a deduction for both sales and income taxes.

State Sales Tax Calculator [IRS]

• 2006 federal individual income tax returns, whether filed electronically or on paper.

• Requests for an automatic six-month tax-filing extension, whether submitted electronically or on Form 4868.

• Tax year 2006 balance due payments, whether made electronically (direct debit or credit card) or by check.

• Tax-year 2006 contributions to a Roth or traditional IRA.

• Individual estimated tax payments for the first quarter of 2007, whether made electronically or by check.

• Individual refund claims for tax year 2003, where the regular three-year statute of limitations is expiring.

Taxpayers Have Until April 17 to File and Pay [IRS]

•Refund Anticipation Loans can saddle you with unmanageable debt and unreasonable fees.

•Prepaid Credit Cards are notorious for having things like monthly maintenance fees, inactivity fees, reload fees and expiration dates.

•eFiling with direct deposit can take as little as 10 days.

So don't be a sucker. Do your taxes and wait for your refund. —MEGHANN MARCO

Emerald Pre-Paid Card [HR Block]

RELATED: Avoid Tax Refund Anticipation Loans
Don't Get A Refund Anticipation Loan

•Plan to Retire at some point? Retirement accounts.
• New baby? Child Tax Credit.
• Sell stock? Capital Gains.

And it's free! —MEGHANN MARCO

Publication 17 (PDF) [IRS]

• Alcoholism and drug abuse treatment

• Contraceptives, if bought with a prescription

• 50% of self-employment tax

•Protective clothing required at work

That covers it on our end, which ones apply to you? —MEGHANN MARCO

50 of the Most Easily Overlooked Tax Deductions [AllFinancialMatters via Sound Money Tips]

"The first route is via Form 9465, Installment Agreement Request (PDF). You supply the terms based on your ability to pay over the next few years. If the amount owed is under $10,000, the IRS will accept most reasonable offers to pay within 36 months. Otherwise, larger amounts may require further correspondence and data gathering for the IRS."

Taxpayer Panic: What To Do If You Can't Pay Uncle Sam [Get Rich Slowly]

SHOULD YOU ITEMIZE YOUR DEDUCTIONS? [Tax Man]

Something to bookmark for tax time! —MEGHANN MARCO

Mileage Calculator [via Lifehacker]