Education Tax Benefits

Joe’s dependent daughter, Leah, is a sophomore in college. Leah’s scholarships cover all of her qualified education expenses, and they are tax-free. When Joe filed his taxes this year, he skipped over the part about education credits because logic told him, “You can’t get an education tax credit for something you didn’t pay for.” But…

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?

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.

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

Sometimes it only takes six little letters to strike fear in the bravest of taxpayers: IRS IOU (technically, it’s not an IOU, but rather a bill). When reading these strategically ordered letters, our secret inner spirit animal that protects us from all things tax-related kicks-in, and we head for the nearest sandy spot to bury our heads, hoping the IRS will not see us as they knock on our door.

Tax Evasion, Scams & Fraud

The newest scam involves cybercriminals approaching the tax preparer in the guise of a potential client, sending an email to the preparer which asks about using the preparer’s services.

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

With the increasing popularity of ridesharing services such as Lyft and Uber, you may be asking yourself, “Can I make extra money doing this?”

Tax Professionals

When a person is ineligible to receive a Social Security number, an Individual Tax Identification Number or ITIN must be obtained in order to file an income tax return.

Tax Q & A

Through a partnership with ACI Worldwide’s OfficialPayments.com and the PayNearMe Company, the IRS is currently offering this cash payment alternative at participating 7-Eleven stores in 34 states. In a statement, IRS Commissioner John Koskinen said, “We continue to look for new ways to provide services for our taxpayers. Taxpayers have many options to pay their tax bills by direct debit, a check or a credit card, but this provides a new way for people who can only pay their taxes in cash without having to travel to an IRS Taxpayer Assistance Center.”