Individual | Best Tax Tips

Seal of the United States Internal Revenue Ser...

Warning from the IRS regarding Suspicious e-Mails and Identity Theft

The Internal Revenue Service has issued several recent consumer warnings on the fraudulent use of the IRS name or logo by scamsters trying to gain access to consumers’ financial information in order to steal their identity and assets. When identity theft takes place over the Internet, it is called phishing. Image via Wikipedia Suspicious e-Mail/Phishing Phishing (as in “fishing for information”...

October 1st, 2009 by The Tax Man

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Bad Debts

It is virtually inevitable that all of us will at one time or another incur financial losses in our business and personal lives. One frequently occurring type of loss is a bad debt. Whether made in the course of business, or to a friend or relative, sometimes a loan simply cannot be repaid despite the best intentions of the debtor, and if there is little or no prospect that repayment can be made in...

September 24th, 2009 by The Tax Man

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NEW YORK - MAY 20: In this photo illustration...

Paying taxes by credit card has just gotten cheaper

Taxpayers may deduct convenience fees charged for paying individual income taxes electronically by credit or debit cards. The convenience fees are deductible in the tax year in which they are paid as a miscellaneous itemized deduction subject to the two percent of adjusted gross income (AGI) floor. This treatment is available to individuals who itemize their deductions and will be able to take advantage...

September 7th, 2009 by The Tax Man

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Tax break for the purchase of new motor vehicles

The Internal Revenue Service and Treasury Department announced that a tax break for the purchase of new motor vehicles is available in states that do not have a state sales tax. Under the American Recovery and Reinvestment Act of 2009, taxpayers who buy a new motor vehicle this year are entitled to deduct state or local sales or excise taxes paid on the purchase. The IRS and Treasury have determined...

July 10th, 2009 by The Tax Man

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Amending a Tax Return

Taxpayers who need to make a change or adjustment on a return they already filed can do so by filing an amended return. Here are the top 10 things every taxpayer should know about amending your federal tax return. 1. Taxpayers needing to amend their return use Form 1040X, Amended U.S. Individual Income Tax Return. Image via Wikipedia 2. Taxpayers can use Form 1040X to correct previously filed...

July 5th, 2009 by The Tax Man

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1895 Benz Velo. Along with its contemporary Du...

Senate Approves “Cash for Clunkers” Program

The Senate on June 18 approved a proposal known as the “cash for clunkers” program, which would provide $1 billion in tax-free vouchers to automobile dealers who participate in the new program aimed at revitalizing sagging vehicle sales. The program Image via Wikipedia vouchers, worth $3,500 or $4,500, will be given to dealers when consumers trade in an old vehicle for one with higher...

June 19th, 2009 by The Tax Man

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A diagram showing the front side of a typical ...

Watch out for scams

The IRS warns taxpayers to be on the alert for e-mails and phone calls they may receive which claim to come from the IRS or other federal agency and which mention their tax refund or economic stimulus payment. These are almost certainly a scam whose purpose is to obtain personal and financial information — such as name, Social Security number, bank account and credit card or even PIN numbers —...

May 15th, 2009 by The Tax Man

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SAN FRANCISCO - APRIL 17: Letters to the Inte...

Last Minute Tax Tips

A few last minute tax tips this year. You do not want to miss these items on your tax return as you finish things off these last few days. Bigger standard deduction Image by Getty Images via Daylife Homeowners who pay state and local real estate taxes but don’t file an itemized return will receive a larger standard deduction. Besides the standard deduction, you can get the amount...

April 13th, 2009 by The Tax Man

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Internal Revenue Service issues standard letters and notices

The Internal Revenue Service issues standard letters and notices on a routine basis. Some will require specific actions on your part if you have received one of these letters. It is of course best to act on these as soon as possible so you do not lose any of your rights. Below is a list of standard letters and notices and actions you may take regarding each: Image via Wikipedia Letter...

April 7th, 2009 by The Tax Man

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Did you sell stock in an Insurance Company that had demutualized?

What does this recent case mean for you? If you sold shares from a demutualization, you may also be eligible for a refund of tax paid. You must file an amended federal tax return and it must be timely filed. The rules for filing amended returns, just like the facts of this case, are complex. Also, keep in mind that the IRS Image via Wikipedia may appeal the court’s decision. A higher...

April 2nd, 2009 by The Tax Man

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