Tax news

Tax

Bush Promotes Expanded MSAs, FSAs

President Bush, on February 11, outlined his administration's health care agenda, which includes proposals to expand both Medical Savings Accounts (MSAs) and Flexible Savings Accounts (FSAs) and to provide refundable health tax credits to low- and middle-income individuals and families who do not have employer-provided insurance. The president also supports legislation to provide temporary health tax credits for workers who have lost their jobs during the recession.
Tax

What if You Can't Get a Social Security Number?

If you are not eligible to get a Social Security Number but have to file a tax return, you will need to use Form W-7, "Application for IRS Individual Taxpayer Identification Number" to get this number, known as an ITIN.An ITIN is a 9-digit number issued by the IRS, beginning with the number "9." It looks a lot like a Social Security Number, but an ITIN is used only for federal income tax purposes and has no effect on your work or immigration status in the U.S.Each person who files a federal tax return or is listed a
Tax

H&R Block Wants to Do More Than Taxes

Hoping to build on the large client base that brings one in seven of the nation's taxpayers to H&R Block each spring, the company has announced plans to market year-round financial services to its clients.H&R Block, with more than 9,000 offices around the country, has expanded its services to include financial planning, home mortgages, brokerage services, and private wealth management.Brokerage services are provided by H&R Block Financial Advisors, a brokerage launched in 1999. The company's mortgage division filled $6.5 billion in mortgage loans last year.
Tax

What To Do If You Haven't Received a Form 1099

If you received certain types of income, you may receive a Form 1099 for use with your federal tax return. You should receive these forms from the payer by early February, according to the IRS. Payers have until Jan. 31 to mail these to you. If you have not received an expected 1099 by a few days after that, contact the payer. If you still do not get the form by February 15, call the IRS for help at 1-800-829-1040.In some cases, you may obtain the information that would be on the 1099 from other sources.
Tax

Do Tax Services Impair Auditors' Independence?

As Enron’s tax shelters come into the public eye, the media have begun to focus new attention on an old question, “Do tax services impair auditors’ independence?” Some Tax Experts Say “Yes"A sampling of press accounts shows some informed sources would reply in the affirmative, particularly when it comes to auditing tax shelters: “If you are auditing your own creations, it is very difficult to criticize them,” says Robert Willens, a Lehman Brothers tax expert who disapproves of the accounting profession’s recent move into selling aggressive tax shelters.
Tax

What To Do If You Haven't Received a Form W-2

You should receive a Form W-2, "Wage and Tax Statement," from each employer you worked for to use in preparing your federal tax return. According to the IRS, employers must furnish this record of 2001 earnings and withheld taxes no later than January 31, 2002 (if mailed, allow a few days for delivery).
Tax

Credit For The Elderly or Disabled

You may be able to take the Credit for the Elderly or the Disabled if you are age 65 or older, or if you are retired on permanent and total disability, according to the IRS. Like any other tax credit, it's a dollar-for-dollar reduction of your tax bill.
Tax

IRS Extends Deadline for Household Employees' W-2 Forms

The IRS has announced that W-2 forms for household employees are due this year on February 15 instead of the original January 31 deadline. The change is due to the fact that the booklet that contains the forms and instructions for household employee W-2 forms, Package H, was not mailed until January 25, giving employers little time to meet the January 31 deadline.Employers cannot download forms suitable for filing from the Internet - the forms must comply with IRS rules for paper and ink.
Tax

Child and Dependent Care Credit

If you paid someone to care for a child or a dependent so you could work, you may be able to reduce your tax by claiming the credit for child and dependent care expenses on your federal income tax return, according to the IRS. This credit is available to people who, in order to work or to look for work, have to pay for child care services for dependents under age 13.
Tax

Child Tax Credit

With the Child Tax Credit, you may be able to reduce the federal tax you owe by $600 for each qualifying child under the age of 17, according to the IRS. A qualifying child for this credit is someone who:– Is claimed as your dependent,– Was under age 17 at the end of 2001,– Is your son, daughter, adopted child, grandchild, stepchild, or eligible foster child, and– Is a U.S. citizen or resident.The credit is limited if your modified adjusted gross income is above a certain amount.
Tax

Dependents

So your daughter is off to college and you're wondering if you can still claim her as a dependent? To be claimed as a dependent, a person must meet the following five tests, according to the IRS:Member of Household/Relationship Test — the person must be a relative or live in your household all year.Joint Return Test — the person can't file a joint tax return with someone else except to claim a refund of tax withheld.Citizenship Test — the person must be:– a U.S.
Tax

Watch Out For These Twelve Biggest Tax Scams!

The Internal Revenue Service issued a nationwide alert to taxpayers warning them not to fall victim to one of the "Dirty Dozen" tax scams. These schemes take several shapes, ranging from false claims of slavery reparations to illegal ways of “untaxing” yourself."These ‘Dirty Dozen’ schemes surface each year as tax filing season begins. Con artists shamelessly take advantage of people, charging fees for their illegal tax schemes," IRS Commissioner Charles O. Rossotti said. "People should be on-guard for these scams.
Tax

Rate Reduction Credit And Rebate

The IRS says there's a new line on the federal income tax form this year, but many people won't have to use it. This line - line 47 on the Form 1040, line 30 on the 1040A and line 7 on the 1040 EZ - is for the Rate Reduction Credit.Use this line to claim any additional amount you qualify for if you did not receive last summer's Advance Payment (sometimes called the "rebate") in the maximum amount for your filing status.
Tax

Alimony Payments Have Tax Implications

When the end of matrimony leads to the start of alimony, how does it affect your taxes? Alimony payments you receive are taxable to you in the year received, according to the IRS.The amount is reported on line 11 of Form 1040. You cannot use Form 1040A or Form 1040EZ. The person making the payment may claim a deduction in the year paid on Form 1040. You must give the person who paid the alimony your Social Security number or you may have to pay a $50 penalty.If your decree or agreement calls for both alimony and child support and specifies amounts for each, only the alimony is taxable.
Technology

IRS Unveils New Web Site

It's back to the classroom for people who knew their way around the old IRS Web site at www.irs.gov.
Tax

Recently Married or Divorced? Check Social Security Records

If you are a newlywed or recently divorced, make sure the names on your tax returns match those registered with the Social Security Agency (SSA). A mismatch between a name on the tax return and a Social Security number (SSN) could unexpectedly increase a tax bill and reduce the size of any refund.For newlyweds, the tax scenario can begin when the bride says "I do" and takes her husband's surname, but doesn't tell the SSA about the name change.
Tax

CCH's Annual Review of the Strangest Court Cases

COURTS PLAY HOST TO ANOTHER CAST OF UNUSUAL CHARACTERSIt’s Not Tax Fraud . . . It’s FargoAlthough tax law is not regarded as exciting by most, every so often the creative interpretation of the rules by taxpayers can make even a mundane tax case most interesting, if not downright entertaining, according to CCH INCORPORATED (CCH), a leading provider of tax law information.
Tax

Reservists, New Enlistees May Gain Deferral For Back Taxes

The IRS reminds reservists called to active duty and new enlistees in the armed forces that they might qualify for a deferral of taxes owed if they can show that their ability to pay taxes is impaired because of their military service. The Soldiers and Sailors Civil Relief Act provides this benefit.The Act covers active duty members of the military services — Army, Navy, Air Force, Marine Corps and Coast Guard. Reservists must be placed on active duty to qualify.
Tax

IRS Instructions for Reporting Rebate Confuse Taxpayers

The 2001 federal individual income tax forms contain a new line this year - "Rate Reduction Credit" - designed to provide those taxpayers who did not receive a rebate last summer, or those who did not receive the entire rebate to which they were entitled, with an opportunity to claim the rebate on this year's tax form.
Tax

NCCPAP Leaders Speak Out On Enron & Accounting Issues

The leadership of the National Conference of CPA Practitioners (NCCPAP) announced today their concerns regarding the fallout from the events surrounding Enron. The leadership of the organization believes that this situation has the potential to permanently tarnish the reputation of this country’s Certified Public Accounting community.“Measuring the damage suffered by hard working taxpayers may take months, but make no mistake, the damage is substantial.

Pages


Already a member? log in here.