Tax | Best Tax Tips

Here are the top five changes that may show up on your 2009 return.

1. The American Recovery and Reinvestment Act ARRA provides several tax provisions that affect tax year 2009 individual tax returns due April 15, 2010. The recovery law provides tax incentives for first-time homebuyers, people who purchased new cars, those that made their homes more energy efficient, parents and students paying for college, and people who received unemployment compensation. 2....

February 17th, 2010 by The Tax Man

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Seal of the United States Internal Revenue Ser...

Tax Consequences Of Retirement Plan Hardship Distributions For Employees And Employers

Tax Consequences Of Retirement Plan Hardship Distributions For Employees And Employers During the economic slowdown, many individuals are looking to their retirement savings to augment their unemployment benefits or help carry them through a period of hardship. With a lack of other cash sources, individuals are taking plan loans and hardship distributions from their retirement funds. The IRS recently...

October 1st, 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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Rights on an IRS Appeal

The IRS has an appeals system for people who do not agree with the results of an examination of their tax returns or with other adjustments to their tax liability. Here are the top six things to know when it comes to your appeal rights. When the IRS makes an adjustment to your tax return, they will send you a report or a letter explaining the proposed adjustments. This letter will alert you of your...

July 2nd, 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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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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Gambling Winnings and Losses

Gambling winnings are fully taxable and must be reported on your tax return. Gambling income Image via Wikipedia 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, the payer might provide you with a...

March 20th, 2009 by The Tax Man

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The New “New” First Time homebuyer credit.

The President signed new legislation into law last month that allows a first-time homebuyer purchasing a primary residence to be eligible for a tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before December 1, 2009. For the purposes of the tax credit, the purchase date is the date when title to the property transfers to the home owner. Image...

March 11th, 2009 by The Tax Man

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OAKLAND, CA - APRIL 10: Manuel Alvarez (R) he...

Making Work Pay Credit

For 2009 and 2010, most individuals with earned income can claim a refundable Making Work Pay Credit (MWPC of up to $400 ($800 for joint returns). The Making Work Pay Credit is the lesser of 6.2% of a workers earnings or $400. Image by Getty Images via Daylife The credit effectively eliminates the first $400 of Social Security taxes. This credit is subject to phase outs as well. The amount...

March 9th, 2009 by The Tax Man

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MIDDLEBURY, VT - OCTOBER 26: Middlebury Colle...

2008 Interest on Education Loans

Image by Getty Images via Daylife 2008 Interest on Education Loans Maximum interest deduction–$2,500 Modified adjusted gross income phase-out range–Married, joint, $115,000–$145,000; all other filing status, $55,000–$70,000 a2a_config.linkname="2008 Interest on Education Loans"; a2a_config.linkurl="http://besttaxtips.com/2009/02/2008-interest-on-education-loans/"; a2a.init("page");

February 13th, 2009 by The Tax Man

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