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Q. My husband works for a large company, and I receive disability and do not work. We just had our taxes done this week and got quite a shock! We had a federal income tax refund of over $4000, but owed state tax of $1000 and local taxes of $600. We are in PA. How [...]
Q. How do I know which 1040 I’m allowed to use? Does it really make a difference?
A. Yes! Each form has specific requirements that a taxpayer must meet in order to use it. IRS Tax Tip 2010-05 contains instructions on which form you should select. Your options are:
1040EZ Requirements
Your taxable income must [...]
The IRS recently released a new list of Frivolous Tax Arguments. This list shows all the ways people try to avoid paying their tax bills. The problem is that most have been disproved in court many times. In 2006, the U.S. Congress increased the penalty for filing a tax return with one of these or [...]
Q. I utilize the withholding calculator on the IRS website to ensure my W-4 amounts are correct. This has gotten me very close to the amounts figured on my 1040 for the past 5-6 years since I’d begun utilizing the calculator. I do a final check with the calculator after the last pay date in [...]
Q. I just started as a temp through an agency. I work full-time and just received my first paycheck. I want to ask about the OASDI and the NY 2010-NYCNY withholdings. I was taxed heavily for the OASDI. What is the NYCNY withholding? Most importantly, I wanted to ask you is there any way to [...]
The IRS issued the new form 5405 for those wishing to claim the Homebuyers Tax Credit on their 2009 tax returns. The new form is for those who have not yet claimed the credit using an amended tax return 1040-X. Now required, an executed copy of form HUD-1. This documentation is required simply to reduce [...]
Q. My payroll person told me that the filing status on the W-4 doesn’t necessarily mean the same thing as my marital status. Is that true? What is filing status?
A. Filing status on the W-4 and filing status on your tax return are not necessarily the same thing. The W-4 drives withholding only. The withholding [...]
As the end of 2009 quickly approaches, it’s important for all tax payers to begin preparing for the filing of their 2009 tax returns.
- Have you maxed out your HSA or IRA contributions? People with these kinds of accounts can actually make contributions for 2009 through April 15. Maximizing your contribution helps reduce your taxable [...]
We’ve all heard quotes from famous people about the U.S. tax system. Here are a few more that may serve to lighten the mood on this Monday morning.
“No one understands the Income Tax Law except persons who have not sufficient intelligence to understand the questions that arise under it.”
New York State Senator Elihu Root in [...]
Q. I borrowed $15,000 from my 401(k) in Feb, 09. In May, 09, I was laid off from my job. My only options for the loan were to pay it in full (not going to happen) or default. They would NOT allow me to continue making payments and would not transfer the loan to my [...]
