- Oops, Did You Forget Something on a Tax Return?
- If you have already filed your tax return and overlooked an item of income or forgot to claim a deduction or credit, it is not too late! An amended return can be filed to correct an already filed tax return. Failing to report an item of income will most certainly generate an IRS inquiry, which typically happens a year or more after the original return was filed and after the interest and penalties have built up. Therefore, it is best to file an amended return as soon as possible to avoid the headache of IRS correspondence and to minimize the interest and penalties on any additional tax you might owe.
- Receiving Cash Tips? The IRS Is Watching
- Anyone who collects tips must include them in their taxable income. This requirement is not limited to waiters and waitresses; it applies to anyone who collects tips, including taxicab drivers, beauticians, porters, concierges, etc.
- Most Overlooked Tax Deduction
- One of the most overlooked tax deductions is what is referred to as the IRD deduction. IRD is the acronym for income in respect of a decedent. So what is IRD income? It is income that is taxable to the decedent's estate and also taxable to the beneficiaries of the estate.
- Time-Share Use as a Charitable Contribution
- If you have ever attended a charity auction, it is not uncommon to see a week's use of a time-share included in the items donated for auction. The time-share owners who donate these weeks generally do so in anticipation of being able to take charitable donation deduction on their tax returns.
- Deducting More Than $250 for Teachers’ Classroom Supplies
- Many devoted teachers spend a significant amount of their own money on classroom supplies. Recognizing this, several years ago, Congress created a special deduction for teachers that would allow them to annually deduct up to $250 on their tax returns for classroom supplies—even if they don’t itemize their deductions. This type of deduction is termed an “above-the-line” deduction, and it is available even for taxpayers who claim the standard deduction.
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