New Tax Provisions Clear Up Confusion in Charitable Donations
WASHINGTON — Individuals and businesses making contributions to charity should keep in mind several important tax law provisions that have taken effect in recent years.
Tax Tip: New Tax Credit for Retirement Savings
WASHINGTON — Low- and moderate-income workers can take steps now to save for retirement and earn a special tax credit in 2008 and the years ahead, according to the Internal Revenue Service.
The saver’s credit helps offset part of the first $2,000 workers voluntarily contribute to Individual Retirement Arrangements (IRAs) and to 401(k) plans and similar [...]
Tax Tip: Victims of California Wildfires May Be Eligible for Tax Relief
Victims of recent wildfires in California may qualify for tax relief from the Internal Revenue Service.
The federal government has declared Los Angeles, Orange, Riverside and Santa Barbara counties federally-declared disaster areas qualifying for individual assistance.
As a result, the IRS is postponing until Feb. 11, 2009, certain deadlines for taxpayers who reside or have a business [...]
Tax Tip: Drive a Hybrid? You May Be Eligible for a Tax Credit
Taxpayers who purchased or leased to others a hybrid passenger automobile or light truck in 2007 must take care when determining whether they qualify for the Alternative Motor Vehicle Credit because the credit amount varies, or may not be available, depending on the manufacturer, and when the vehicle was purchased.
Taxpayers may claim the credit on [...]
Tax Tip: 2009 Inflation Adjustments Widen Tax Brackets and Expand Tax Benefits
For 2009, personal exemptions and standard deductions will rise and tax brackets will widen because of inflation adjustments announced today by the Internal Revenue Service.
By law, the dollar amounts for a variety of tax provisions must be revised each year to keep pace with inflation. As a result, more than three dozen tax benefits, affecting [...]
Tax Tip: It’s Not Too Late to Get Your Stimulus Check
The Internal Revenue Service is looking for taxpayers who are missing more than 279,000 economic stimulus checks totaling about $163 million and more than 104,000 regular refund checks totaling about $103 million that were returned by the U.S. Postal Service due to mailing address errors.
“People across the country are missing tax refunds and stimulus checks. [...]
Tax Tip: E-Filing of Taxes Increasing
Individual taxpayers e-filed almost 90 million tax returns during 2008, an increase of more than 12 percent over the prior year. Of the 155 million tax returns filed, about 58 percent were filed electronically.
“More people with home computers and businesses embraced electronic filing this year,” said IRS Commissioner Doug Shulman. “Every year, more people realize [...]
Tax Tip: IRS Pension Plan Limitations Announced
The Internal Revenue Service announced on October 16, 2008 cost-of-living adjustments applicable to dollar limitations for pension plans and other items for tax year 2009.
Section 415 of the Internal Revenue Code provides for dollar limitations on benefits and contributions under qualified retirement plans. It also requires that the Commissioner annually adjust these limits for cost-of-living [...]
Tax Tip: Taxes for Earning Money on Your Hobbies
The Internal Revenue Service reminds taxpayers to follow appropriate guidelines when determining whether an activity is engaged in for profit, such as a business or investment activity, or is engaged in as a hobby.
Internal Revenue Code Section 183 (Activities Not Engaged in for Profit) limits deductions that can be claimed when an activity is not [...]
In Case You Missed It: Shoeboxed November Newsletter
Got friends? Invite them to Shoeboxed and earn credits on your account.
Hi,
Over the last month we’ve been busy upgrading the Shoeboxed web application, adding new features and preparing for the upcoming tax season.
We’ve had a ton of new users since the last newsletter, so we wanted to say “welcome” to all the new Shoeboxed [...]
Tax Tip: Take Advantage of Volunteer Income Tax Assistance Program
The Internal Revenue Service has awarded almost $8 million in matching grants to support its Volunteer Income Tax Assistance program.
Under the VITA Grant Program, the IRS awarded matching grants to 111 organizations that plan to offer free tax preparation sites in 2009. The sites will be located in all 50 states and the District of [...]
Tax Tip: Claim Your Gambling Winnings and Losses!
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, among other things, winnings from lotteries, raffles, horse races, and casinos. It includes cash winnings [...]
Tax Tip: Want a bigger paycheck? Check out the Advanced Earned Income Credit.
Why wait? You may be eligible for a tax credit right now that could mean larger paychecks this summer. This benefit is called the Advanced Earned Income Credit or Advance EIC.
If you expect to qualify for the credit in 2008, you may be able to start getting part of the credit with your pay now. [...]
Tax Tip: Claiming Home Office Deductions
If you plan to run your small business out of your home you may be temped to “write-off” many of your household expenses. But how do you know what is deductible and what is not? The IRS has some advice that may help answer the question: “Can I take a Home Office Deduction?”
Generally, expenses related [...]
Tax Tip: Special Tax Relief for Mortgage Forgiveness
There is now tax relief for struggling homeowners. If your mortgage debt is partly or entirely forgiven during 2007, 2008 or 2009 you may be able to claim special tax relief by filling out Form 982 and attaching it to your federal income tax return for that year.
Normally, debt forgiveness results in taxable income. But [...]
