The above-the-line deduction for tuition and fees, one of the famous “extenders” that Congress has to reinstate every other year, is available for taxpayers whose income is too high to be able to claim a Lifetime Learning Credit. [More]
taxes
Daily Deduction: Tax Prep Fees
By 4.12.10
Filling out the Form 1040 can be a daunting experience, to say the least. It has been the downfall of numerous would-be Obama appointees, and its 76 cryptic lines come complete with 92 pages of instructions and a whole rainbow of schedules and attachments. It sometimes baffles even the most stalwart of tax experts, including your humble correspondent. If you are among the millions of taxpayers who shudder at the thought of wading into that morass alone, never fear. Tax preparation fees are tax deductible. [More]
Tax Tips: Keep Your Lucky Winnings
By 4.9.10
Did you hit the raffle, score big at the casinos or win a car from your church raffle last year? If you did, you received a Form W-2G reporting your winnings — and so did the IRS. [More]
If You Were Broke, You Don't Need To Pay Taxes On Forgiven Debt
By 4.8.10
Here’s an important caveat to our “You Need To Pay Taxes On Forgiven Credit Card Debt,” post: you don’t need to pay the taxes if you were insolvent at the time the debt was discharged. [More]
Tax Tips: The New Making Work Pay Credit
By 4.8.10
If you were employed in 2009 — either working for someone else or for yourself — don’t forget to claim the new Making Work Pay refundable credit. [More]
Tax Tips: More on Education Credits
By 4.7.10
To qualify for the American Opportunity Credit a student must be enrolled in a post-secondary education program at an “eligible institution” that leads to a degree, a certificate or another recognized credential at least half-time for one semester during the year. [More]
Tax Tips: The American Opportunity Credit
By 4.6.10
The menu of education-related tax benefits has always been a varied one, with a wide selection of deductions, credits and exclusions, each with its own set of rules and phase-outs. This year a new item has been added — the American Opportunity Credit. [More]
Tax Tips: State and Local Taxes
By 4.5.10
Here at the Daily Deduction, we spend a lot of time thinking about federal taxes, but chances are high that the state tax man took a bite out of your budget this year too. [More]
You Need To Pay Taxes On Forgiven Credit Card Debt
By 4.2.10
If you had some credit card debt canceled in 2009 the IRS might want a piece of it. [More]
Tax Tips: Deduct Your Filing Fees
By 4.2.10
You can deduct as a miscellaneous expense on Schedule A (subject to the 2% of AGI exclusion) any expenses paid in connection with the “determination, collection or refund” of a federal, state or municipal income, estate, gift, property or other tax. [More]
IRS Extends Tax Deadline To May 11 For Victims Of Flood
By 4.1.10
With torrential rains causing massive flooding in Rhode Island and parts of Massachusetts, the IRS has decided to make victims’ lives a little less stressful by moving the due date for filing their federal income tax returns. [More]
Tax Tips: Deducting Your Home Computer
By 4.1.10
Yesterday I told you that computers and peripherals are “listed property” that require special recordkeeping and depreciation if used for business.
The IRS, in Publication 529, tells us that you can only deduct a computer as an employee if it is (a) for the convenience of your employer, and (b) required as a condition of your employment. You cannot deduct a computer if its business use is merely for your own convenience.
Tax Tips: What Does "Miscellaneous" Mean?
By 3.31.10
The items that you can deduct on Schedule A under the category of “Miscellaneous Expenses” can best be described as “ordinary and necessary” expenses incurred for the production, collection or protection of income. [More]
Tax Tips: Suit Up & Deduct
By 3.30.10
You can deduct the cost of uniforms and work clothes that are required as a condition of employment and not adaptable to everyday wear. The uniforms of firefighters, nurses, police officers, security guards and the like are deductible, as well as special jackets, hats, shirts and ties with a company logo, such as those worn by fast food workers and maintenance employees.
Not Signing Your Name & 9 Other Common Tax-Filing Mistakes
By 3.29.10
It would be generous to describe tax forms as daunting. Even the 1040-EZ looks significantly more complicated than it actually is. And, while you’re worrying about exemptions and deductions, you might forget to do something as simple as sign your name. That’s why the folks at USA Today put together this list of 10 common mistakes you should be aware of when filing. [More]
Tax Tips: Job Hunting Deductions
By 3.29.10
With unemployment at record high levels, a miscellaneous tax deduction that many taxpayers can take advantage of is for job-seeking expenses.
You can deduct expenses you incur to look for a job in your present line of work. This includes:
Tax Tips: Go Green, Save Green
By 3.25.10
The new energy credit for 2009 and 2010 is available on these items purchased for your primary personal residence only: [More]
H&R Block's Virtual Operators Have Feelings Too
By 3.24.10
Consumerist reader Kevin had done his taxes online through H&R Block, but when he found out he might have accidentally included something he shouldn’t have, he turned to the site’s automated answering system for help. And when the discussion got a bit heated, well… let’s just say that H&R Block’s artificial intelligence has some very real emotional responses. [More]
