Amendments are not for the faint of heart.  They’re a bit confusing, particularly if you’re adding or subtracting dependents.  This is one form where you really should seek the help of a professional.  I believe you should always seek the help of a professional, but this one in particular is confusing.  There are lots of [...]

My wife and I had a semi-heated discussion about the Cash for Clunkers program.  Her argument is that it’s good for the economy and good for the environment.  I countered that it’s bad for the economy long-term and that the accountability and oversight of the program is lax.  Congress is getting set to approve another [...]

The ex-banker in me cringes at this one but as a tax preparer, it’s a great way to save a lot of $$.  When a bank writes off a debt they give you one last present in the form of a 1099-C.  The amount of the 1099-C is then added to your income.  The thinking [...]

The Cash for Clunkers program is a smashing success (pun intended because the clunkers have to be scrapped).  Here’s the problem.   The program is approximately one week old and has run out of money.  The program has $1 Billion earmarked for it.  Being a tax weenie, I ran the numbers through my calculator.  $1 Billion [...]

Every year we get at least newlywed that is confused about how to file their return.  The rules are simple - your filing status is determined as of 12-31.  If you’re married on the last day of December, your filing status is Married Filing Joint/Separate.  It doesn’t matter about the previous 364 days.
If you change [...]

Day camps such as Leif Ericson count as child care IF you are working or looking for work.  Overnight camps do NOT count.  Much as you might want to ship off your kid for the summer and write it off - you only get the credit if they’re home every night.

Okay - this is one of those goofy tax code provisions that sounds good on paper, but in reality few people qualify for it.
First - You must be able to itemize AND get over the 2% hurdle for unreimbursed employee expenses.
Second - Generally speaking, you only qualify for the deduction if you’re looking for a [...]

The IRS is publishing a list of tax tips three times a week during the summer.  They’re pretty good so I thought I’d fill up the blogosphere with more bits and bytes.  They’re a bit hard to find on the IRS.gov website plus I’ll editorialize as I condense/paraphrase them.

The cash for clunkers program will officially start in late July after the government issues its regulations.  If you trade in a car with an EPA rating of 18 miles per gallon or less, you will receive a $3,500 credit from the dealer to buy or lease a car rated at 22 mpg or more.  [...]

This one’s a bit complicated to explain.  The easiest way to think about it is that it’s a better deal than it was before.  It’s only good for 2009 and 2010, so if you’re thinking about upgrading your home, now is the time to do so.  Stimulate that economy!
The old Credit for Nonbusiness Energy Property [...]