Glossary: Itemized Deductions
Itemized deductions are an optional deduction taxpayers can take on tax returns for things such as medical expenses, property taxes, mortgage interest, and charitable contributions.
Do I Prorate Income from a Fiscal Year K-1?
Question from a web visitor: do I prorate income from a fiscal year K-1? Short answer: NO.
Glossary: Audit Technique Guides
Audit Technique Guides are IRS guidebooks that give detailed insight into various industries IRS auditors may encounter.
Reminder: There’s No Such Thing as a $500 Non-Cash Charitable Contribution “Standard Deduction”
This comes up every tax season and seems to be something people don’t understand. On Schedule A, for itemized deductions, there’s no such thing as a “$500 standard deduction for non-cash charitable contributions.”
Getting Your Business Off to a Good Start, Part 9: Wrapup Post
For nearly 4 months I’ve been posting excerpts from a presentation I give to entrepreneurs trying to get businesses off the ground. Because the posts are scattered across many weeks, this post serves as a reference point to pull them all together. Part 1: Proper Recordkeeping Part 2: Scanned Copies of Receipts Part 3: Bookkeeping […]
Proper Documentation of Charitable Contributions
Questions often arise about how to properly document charitable contributions. Here’s a brief overview.
Are Unemployment Benefits Taxable?
The short answer to this question is: yes. Unemployment benefits are reported to the recipient on a Form 1099-G, and the benefits are taxable. There was a year or two, several years ago, where the federal government allowed people to exclude a certain amount of unemployment benefits from taxation, but that provision expired. In Iowa, […]
DIY Disasters: College Kids, Their Parents and the American Opportunity Credit
What to do when your college-aged child files a tax return and claims tuition credits you were entitled to on your own return.
Revisiting a History of Marriage in the Tax Code, Part 12
In this part, we’ll look at the tax aspects of marriage other than the tax brackets. Things such as filing status, tax credits, etc.
401(k) Withdrawals to Avoid Foreclosure Still Subject to 10% Penalty
Withdrawals from a 401(k) account are difficult if you’re still employed by the company offering the 401(k). Withdrawals are allowed in certain circumstances — such as to avoid foreclosure — but are still subject to income tax and sometimes to the 10% early withdrawal penalty.