Tips on Gambling Income
Gambling winnings are fully taxable and must be reported on your tax return. Here are seven tips to know about gambling winnings. Gambling income includes – but is not limited to – winnings from lotteries, raffles, horse and dog races and casinos, as well as the fair market value of prizes such as cars, houses, trips or other noncash prizes. Depending on the type and amount of your winnings,...
March 21st, 2010 by The Tax Man
Eight tips to know about the New Vehicle Sales and Excise Tax Deduction
If you bought a new vehicle in 2009, you may be entitled to a special tax deduction for the sales and excise taxes on your purchase. 1. State and local sales and excise taxes paid on up to $49,500 of the purchase price of each qualifying vehicle are deductible. 2. Qualified motor vehicles generally include new cars, light trucks, motor homes and motorcycles. 3. To qualify for the deduction, the...
March 19th, 2010 by The Tax Man
Seven Tips about Claiming the First-Time Homebuyer Credit
If you purchased a home in 2009 or early 2010, you may be eligible to claim the First-Time Homebuyer Credit, whether you are a first-time homebuyer or a long-time resident purchasing a new home. Here are seven things to know about claiming the credit: 1. You must buy – or enter into a binding contract to buy – a principal residence located in the United States on or before April 30,...
March 18th, 2010 by The Tax Man
Nine Tax Tips about Tax Penalties
The tax filing deadline is approaching. If you don’t file your return and pay your tax by the due date you may have to pay a penalty. Here are nine things to know about the two different penalties you may face if you do not pay or file on time. 1. If you do not file by the deadline, you might face a failure-to-file penalty. 2. If you do not pay by the due date, you could face a failure-to-pay...
March 17th, 2010 by The Tax Man
Tips for understanding the Standard deduction and Itemized Deduction
Most taxpayers have a choice of either taking a standard deduction or itemizing their deductions. If you have a choice, you can use the method that gives you the lowest tax. Whether to itemize deductions on your tax return depends on how much you spent on certain expenses last year. Money paid for medical care, mortgage interest, taxes, charitable contributions, casualty losses and miscellaneous...
March 10th, 2010 by The Tax Man
A free way to get your money faster
A Best Tax Tip – we suggest that taxpayers (and tax preparers) who want to expedite their tax refunds should use direct deposit. By using direct deposit, taxpayers can get their refunds much sooner than those who choose to have a paper check mailed to them. The advantages of choosing direct deposit include: Security—Direct deposit eliminates the possibility that the taxpayer won’t...
March 5th, 2010 by The Tax Man
Eight Tips to Help You Choose a Tax Preparer
Use care and caution when choosing a tax preparer. Remember, you are legally responsible for what’s on your tax return even if it was prepared by an another individual or firm. Most tax return preparers are professional, honest and provide excellent service to their clients. However, unscrupulous tax return preparers do exist and can cause considerable financial and legal problems for their...
March 1st, 2010 by The Tax Man
Five Important Tips About Your Unemployment Benefits
Taxpayers who received unemployment benefits in 2009 are entitled to a special tax break when they file their 2009 federal tax returns. This tax break is part of the American Recovery and Reinvestment Act of 2009. Here are five important Tips about your unemployment benefits. 1. Unemployment compensation generally includes any amounts received under the unemployment compensation laws of the...
February 28th, 2010 by The Tax Man
Eight Reasons why you may want to file income tax
Even if you don’t have to file, here are eight reasons why you may want to file: 1. Federal Income Tax Withheld If you are not required to file, you should file to get money back if Federal Income Tax was withheld from your pay, you made estimated tax payments, or had a prior year overpayment applied to this year’s tax. 2. Making Work Pay Credit You may be able to take this credit...
February 19th, 2010 by The Tax Man
Tips for Avoid delays in refund for Economic Recovery Payment
As a reminder for those individuals who received an economic recovery payment in 2009 be sure to include this amount when completing Schedule M, Making Work Pay and Government Retiree Credits. Many working taxpayers that received a $250 economic recovery payment from either the Social Security Administration, the Department of Veterans Affairs or the Railroad Retirement Board are having their...
February 18th, 2010 by The Tax Man
