Education Tax Benefits

To be eligible for the American Opportunity Credit, the student is required to be in pursuit of a degree or another recognized education credential and must be enrolled at least half-time at the start of the tax year. The student must not have completed the first four years of higher education, and the student's criminal record must be clear of any felony drug convictions. Additionally, the American Opportunity Credit cannot be claimed in excess of four years.

Healthcare

I’m the first to agree that April 15th comes too early every year. Just like my wife’s birthday, it sneaks up on me when I’m not looking and suddenly I find myself frantically scrambling at the last minute to buy a present and gather all the related accessories like a card, wrapping paper and dinner reservations. The same thing happens just before April 15th, but at least I can apply for an extension – unlike with my wife’s birthday. Can you imagine the scene if I came home from work on my wife’s birthday to find her sitting expectantly in the living room, dressed and ready to go out for a special dinner, only for me to inform her that I had arranged for a 6-month delay on the celebrations? Take my advice – don’t try this at home.

Homes & Rental Property

Hey Dave, My boyfriend and I are buying a house together, and the property includes a rental apartment above the garage. We are planning to continue to rent the place out to the tenant who is already living there. Since we are not married, how should we report our rental income and expenses on our…

Is It Deductible?

Most people aren't aware of the tax obligations associated with lottery winnings, as it feels more like a gift or miracle than hard earned wages. Be that as it may, lottery earnings are generally reported to the winner on a Form W-2G, taxed as ordinary income, and expected to be reported as “other income” on the federal tax return.

Retirement Plans

Hello fellow taxpayers. The Wily Tax Blogger is back to kick off 2016 with a new blog about an investment management tool I’ve discovered. Many of us make New Year’s resolutions about building wealth and being smart with our money, so I thought I would share this personal story about finance, retirement, tax loss harvesting,…

Tax Audits & Letters

When more than one person wants to claim a child on their tax return, sorting it out becomes complicated. Not only are there five tests to meet for a child to be considered a "qualifying child," but there is also a set of "tie breaker rules."

Tax Evasion, Scams & Fraud

Scammers understand the fear associated with being contacted by the IRS and feed upon it. They conduct extensive research, and over time they have come to perfect their techniques. While there's no sure-fire way to avoid being targeted by one of these criminals, you can reduce your risk of falling victim to their schemes by developing a basic understanding of what the IRS can and cannot do.

Tax Legislation & Updates

Congress reauthorized the IRS to use private debt collection agencies, or PDC (also known as private collection agencies or PCA) to collect outstanding tax liabilities.

Tax Preparation & Planning

When more than one person wants to claim a child on their tax return, sorting it out becomes complicated. Not only are there five tests to meet for a child to be considered a "qualifying child," but there is also a set of "tie breaker rules."

Tax Professionals

Most people aren't aware of the tax obligations associated with lottery winnings, as it feels more like a gift or miracle than hard earned wages. Be that as it may, lottery earnings are generally reported to the winner on a Form W-2G, taxed as ordinary income, and expected to be reported as “other income” on the federal tax return.

Tax Q & A

To be eligible for the American Opportunity Credit, the student is required to be in pursuit of a degree or another recognized education credential and must be enrolled at least half-time at the start of the tax year. The student must not have completed the first four years of higher education, and the student's criminal record must be clear of any felony drug convictions. Additionally, the American Opportunity Credit cannot be claimed in excess of four years.