Newsletter

FAQ: Deductions

FAQ: Deductions Question: Can I deduct separate maintenance paid to my spouse or alimony paid to my former spouse? Answer: If you are separated or divorced, you may generally deduct payments of separate maintenance or alimony paid in cash (including check or money order payable on demand) to, or on behalf of, your spouse or former spouse. Question: Am I eligible to claim both my job-related education expenses (minus 2% of AGI) and the Lifetime Learning Credit on my tax return? Answer: If you are eligible to...

October 1, 2012Read more...

New Flexible Offer-in-Compromise Terms

IRS Announces More Flexible Offer-in-Compromise Terms The Internal Revenue Service announced another expansion of its “Fresh Start” initiative by offering more flexible terms to its Offer in Compromise (OIC) program that will enable some of the most financially distressed taxpayers to clear up their tax problems and in many cases more quickly than in the past. “This phase of Fresh Start will assist some taxpayers who have faced the most financial hardship in recent years,” said IRS Commissioner Doug Shulman. “It is...

July 1, 2012Read more...

Failure to File or Pay Penalties

Failure to File or Pay Penalties: Eight Facts The number of electronic filing and payment options increases every year, which helps reduce your burden and also improves the timeliness and accuracy of tax returns. When it comes to filing your tax return, however, the law provides that the IRS can assess a penalty if you fail to file, fail to pay or both. Here are eight important points about the two different penalties you may face if you file or pay late. ...

July 1, 2012Read more...

Renting Your Vacation Home

Renting Your Vacation Home Income that you receive for the rental of your vacation home must generally be reported on your federal income tax return. However, if you rent the property for only a short time each year, you may not be required to report the rental income. Below are tips on reporting rental income from a vacation home such as a house, apartment, condominium, mobile home or boat: Rental Income and Expenses Rental income, as well as certain rental expenses that can be...

July 1, 2012Read more...

FAQ: Education Credits

FAQ: Education Credits Question:   Do tuition and related expenses paid to attend a private high school qualify for an education credit? Answer:   No. Expenses paid to attend a private high school do not qualify for an education credit because a high school is not an eligible educational institution.In general, an eligible educational institution is an accredited college, university, vocational school, or other postsecondary educational institution.  In addition, in order to be an eligible educational institution, the school must be eligible to participate...

July 1, 2012Read more...