You’re probably somewhat stressed if you’re in the throws of finishing your federal income tax return. After all, Monday, April 15, 2013 is the tax-filing deadline to get that 1040 for the 2012 tax year shipped off to Uncle Sam.
But just because you’re under time constraints doesn’t mean the IRS is going to give you a pass if you make any number of blunders when filing your taxes.
Here are 10 common tax mistakes the IRS wants you to avoid if you’re completing a last-minute tax return: [continue reading…]
In a previous article I explained one of the most important personal tax credits offered to U.S. taxpayers, the adoption tax credit.
If you’ve recently adopted a child, you may be eligible for an healthy tax savings, courtesy of the federal government. That’s because Uncle Sam recognizes that adopting a child serves the public good.
The feds also know that adopting a young person – not to mention raising him or her – is very expensive; thus the adoption tax credit.
One drawback to claiming the adoption tax credit, however, is that you are far more likely to be audited by the IRS. But as long as you only claim legitimate expenses, you should move confidently in seeking every tax break to which you are entitled.
So if you adopted a child in 2012 or are considering adoption in 2013, here are 10 things the IRS wants you to know about adoption tax benefits. [continue reading…]
The IRS recently issued a warning to taxpayers to protect themselves from some of the latest scams during tax season. The list of Dirty Dozen tax scams for 2013 includes several examples of fraud and even identity theft. These types of cases tend to be more prevalent over tax season and the IRS explains that scams are coming in many forms at this time of year. Here are the Dirty Dozen tax scams for 2013: [continue reading…]
If you recently received a 1099-C, Cancellation of Debt, you may be wondering what to do with that form and how to use it when filing your income tax return.
You were likely sent a 1099-C if your home went into foreclosure in 2012, you did a short sale on any property, or if a lender “forgave” any amount of mortgage debt or other debt you had.
The IRS offers guidelines on how you should treat “forgiven” mortgage debt.
Here are 10 things the feds want you to know about mortgage debt forgiveness. [continue reading…]
Once again, most Americans expect to get a tax refund check, and more than a third of them plan to spend some or all of it, according to Capital One Bank’s annual Taxes and Savings Survey.
But this is one year in which spending your refund check wisely – or foolishly – could have long-lasting ramifications that linger throughout 2013 and beyond. [continue reading…]