You may discover you made a mistake on your tax return. You can file an amended return if you need to fix an error. You can also amend your tax return to claim a tax credit or deduction.
Here are 10 tips from the IRS on amending your return:
Child Heading Off to College Soon? 3 Important Lessons About 529 Plan Withdrawals
education , 529 plan , income , income tax , withdrawls , college , tuitionMany of my clients have a child heading off to college in a month or two and have asked about 529 Plan withdrawals to help cover upcoming education expenses.
Contrary to what some may think, not all withdrawals are tax-free. Therefore, it is important to understand the basics of 529 plan distributions to avoid paying unwanted federal income tax. While it can be confusing, much like venturing into a college classroom, we’ve broken it down into three simple lessons.
It goes without saying that the death of one's spouse is typically an extremely difficult emotional trauma. When one loses a spouse, the last thing on the surviving spouse’s mind is the tax issues to be addressed.
Can You Deduct Your PJs and Coffee? Getting Creative with Home Office Deductions
tax services , tax , deductions , home , office , home office
Are you a business owner or contractor? If your regularly work from home, you may be able to take advantage of a deduction for the business use of your personal residence. The home office deduction, however, has some specific requirements you should be aware of before claiming it on your tax return.
IRS Scammers Demand Tax Payments on Gift Cards | Accounting Today News
The following article, written by Michael Cohn, first appeared on AccountingToday.com on May 27, 2016
The Internal Revenue Service issued a new warning Friday (May 27, 2016) to taxpayers about bogus phone calls from IRS impersonators demanding payment for a non-existent tax that they call the “federal student tax.”
The House passed bipartisan legislation May 16, 2016, to prevent taxpayer identity theft and help victims whose tax refunds have been stolen by identity thieves.
The bill was co-sponsored by a CPA turned lawmaker whose own identity was stolen last tax season.
H.R. 3832, Stolen Identity Refund Fraud Prevention Act of 2016, would establish a centralized point of contact at IRS for ID theft victims; improve taxpayer notification of suspected identity theft; require the Internal Revenue Service to submit a study on the feasibility of establishing a program for victims of identity theft-related tax fraud to opt out of electronic filing; and establish an Information Sharing and Analysis Center to collect, analyze, and share actionable data and information to detect and prevent identity theft. Two core components of the bill were enacted last December and the rest were passed Monday.
The bill was sponsored by Rep. Jim Renacci, R-Ohio, and John Lewis, D-Ga., the ranking Democrat on the House Ways and Means Oversight Subcommittee. Renacci is a CPA who also fell victim to identity theft.
Free e-book: Tax Return Fraud and Identity Theft: What to do if Your Identity is Stolen
“Today, the House passed my bipartisan bill to protect hardworking American taxpayers,” Renacci said in a statement Monday. “Tax-related identity theft is an evolving criminal activity that can happen to anyone. In fact, last tax season my identity was stolen and used to file a fraudulent tax return.”
The Ways and Means Committee passed the bill late last month (see House Committee Passes IRS Legislation on Identity Theft, Missing Children and Tax-Exempt Donors).
“We must do all we can to fight identity theft, return theft, fraud and scams,” said Lewis. “In the last few years, the Taxpayer Advocate staff assisting my constituents in Atlanta, and the caseworkers working in my District Office have seen an alarming increase in scams targeting the American taxpayer. H.R. 3832 responds to the real needs of real people. The Stolen Identity Refund Fraud Prevention Act of 2016 is a good, bipartisan and timely legislative step in the right direction.”
The bill now moves to the Senate. "I look forward to working with my Senate colleagues to ensure this bill is signed into law,” Renacci said.
“Every year, people across the country discover they are a victim of tax-related identity theft,” said Ways and Means Committee chairman Kevin Brady, R-Texas. “Congressman Jim Renacci turned his personal experience as a victim of identity theft into a legislative solution that will help protect all Americans. The bill we passed today will prevent fraud, increase transparency, and improve IRS customer service to better serve taxpayers. I appreciate Congressman Renacci’s leadership against a crime that impacts so many Americans.”
As most individuals who invest in real estate know – or quickly learn when they file their income tax returns – they become subject to a complex set of rules known as the Passive Activity Loss (PAL) rules.
In a nutshell, the rules state the following:
Have Nagging Financial Questions?
