I generally work at an office, but sometimes must travel to temporary work locations. Are any of my travel costs deductible or is it all commuting?
Daily transportation costs between your home and a regular work location are nondeductible commuting expenses. However, you may be able to deduct costs of Continue reading…
While filing away my 2010 tax return, I realized that I have copies of returns and the related records going back 20 or more years. How long do I really need to keep my returns and all the backup?
Personal income tax records may have to be produced if IRS or a state or local taxing authority was to audit your return or seek to assess or collect a tax. In addition, lenders or other private parties may require that you produce copies of your tax returns as a condition to lending money, approving a purchase, or Continue reading…
I didn’t expect the large balance of tax due on my return this year and so I will not be able to pay it all by the deadline. What are my options?
First and most importantly, don’t let your inability to pay your tax liability in full keep you from filing your tax return properly and on time. It is also important to remember that an extension of time to file your tax return doesn’t Continue reading…
I am self-employed and work out of my home. What expenses are deductible for my home office?
You may be entitled to favorable “home office” deductions—that is, above-the-line business expense deductions for the following: Continue reading…
With all the recent tax law changes, what are the new tax breaks I should know as I gear up for the preparation of my 2010 Form 1040?
The 2010 Form 1040 contains a number of new opportunities to save taxes. Here are some of the key changes for this filing season: Continue reading…
How will the estates of decedents be treated for 2010 because there was no estate tax? What rules will be in place for estate and gift tax going forward?
Before the new law, there was no estate tax for 2010, but some beneficiaries could have faced higher taxes because there were less favorable income tax basis rules. Also, under the prior law, estate and other transfer taxes were scheduled to rise substantially for post-2010 transfers. Continue reading…
Is it true that the 2010 Tax Relief Act included a lot more than just extending the current tax rates?
The recently enacted “Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010,” signed into law on December 17 th , is a sweeping tax package that includes Continue reading…
We have recently had a baby, but I will be going back to work soon and would like to have an in-house nanny. Will I have to pay employment taxes on her?
It will be necessary to pay a “Nanny Tax” to have an in-house baby-sitter. (This tax applies not only to a nanny but also a housekeeper, maid, baby-sitter, gardener, or other household employee who isn’t an independent contractor). Continue reading…
I am a grandparent raising my grandchild. Am I able to take any of the deductions that a parent would take on my tax return?
Many of the tax breaks available to a parent are also available to a grandparent who is raising their grandchild. The following are tax items for which you may qualify: Continue reading…
I understand that tax rates may go up next year. Will that mean I will have more withheld from my paycheck?
Congress has yet to act on extending any of the tax cuts from the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA). Several changes that impact income tax withholding will go into effect beginning of 2011 if they do not pass any new laws. Continue reading…
