Have you worked at a private startup for over a year, and held employee incentive stock options? If so you likely received a Form 3921 from your employer. Now that it’s tax season, here’s what you need to do. This form documents to the IRS that you have exercised stock options from your employer, and […]
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Don’t forget that alimony and child support have an impact on your taxes. You have to report the amounts when you file. Here’s the breakdown. Alimony Alimony payments are deducted from your taxable income, which lowers the amount you are taxed on as long as you meet the following requirements: You pay by cash, check, […]
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If you’ve lost your spouse, you may qualify for a special tax filing status. The qualifying widow(er) status can be used by taxpayers when filing a tax return after their spouse has died. There are some additional requirements that must be met as follows: When you file a return for the year your spouse dies, […]
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Many people don’t know they can write off expenses related to searching for a job, as its not a common deduction. That’s likely because there are specific rules regarding what is eligible for deduction and what isn’t. First, expenses must be incurred while searching for a job within your current occupation. You can’t seek employment […]
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The answer is possibly. Scholarships can be partially tax-free, while some of the funding is considered taxable. It depends on how the funds are allocated. If you are a full or part-time student working toward a degree at an eligible educational institution, including primary, secondary or post-secondary schools, then your scholarship is likely tax-free. There […]
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An innocent spouse seeks to be relieved from the liability of their spouse’s tax issues. Relief from Joint and Several Liability is Section 6015 of the Internal Revenue Code. Married taxpayers who file a joint return are liable for taxes, interests, and penalties according to the return, as well as any other taxes the IRS […]
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Individuals who are considered self-employed must still pay taxes. Self-employment taxes are contributions made to Social Security and Medicare, generally through quarterly payments known as estimated tax payments. Self-employment tax applies to anyone who makes $400.00 or more. In these cases, the taxpayer must file a Schedule SE (Form 1040) to pay self-employment taxes, since […]
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Taxpayers who file a joint return with their spouse and have part (or all) of their share of overpayment applied to a spouse’s past tax debts may be entitled to claim a refund as an injured spouse. A spouse’s past debts can include: Tax liability Child/spousal support Federal non-tax debt State income tax Situational Example: […]
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If a taxpayer has had an EITC claim denied for any year after 1996, or if the EITC claim was reduced, and not due to a mathematical or clerical error, the taxpayer is required to attach Form 8862 the next time he tries to claim the EITC. If not, the claim is automatically denied. This […]
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It’s tax time again. Be sure you’re prepared to file by gathering all the forms and documents you’ll need. Here are the most common things taxpayers use to complete their taxes, starting with the most basic: Last year’s tax return – federal and state. Not a requirement but used to compare what you filed last […]
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