http://www.fairtaxinc.com Mon, 15 Feb 2010 16:51:47 +0000 http://backend.userland.com/rss092 en Charitable contributions are generally pretty straightforward, but you can get tripped up on occasion. Remember that only qualified charities count for deductions.  Donating $20 to a family in need or a person fighting cancer is a very good thing to do, but in the eyes of the IRS they're not deductible.  ... http://www.fairtaxinc.com/?p=198 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 ... http://www.fairtaxinc.com/?p=195 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 ... http://www.fairtaxinc.com/?p=191 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 ... http://www.fairtaxinc.com/?p=189 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 ... http://www.fairtaxinc.com/?p=187 The W-4 is a lousy form.  It's very confusing.  My recommendation is to always ignore the top half and fill out the bottom with 1 or 2 exemptions.  Most people prefer getting a refund.  The fewer exemptions you claim, the larger your withholding and consequently the larger your refund. You can ... http://www.fairtaxinc.com/?p=184 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 ... http://www.fairtaxinc.com/?p=182 Random thoughts about starting a business... Most folks are best served by starting out as a sole proprietor.  Create the more sophisticated entities (Sub S, Corp, Partnerships, LLC) if things take off.  Save yourself the time and expense of incorporating until after the company is established. Partnerships rarely work out.  Something like ... http://www.fairtaxinc.com/?p=178 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 ... http://www.fairtaxinc.com/?p=176 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 ... http://www.fairtaxinc.com/?p=172