Adopting a child is a reward in and of itself. But if you’ve recently adopted a child, you may be eligible for other benefits—in the form of tax credits—when filing taxes. There are two primary types of adoption benefits in the U.S. Tax Code: a tax credit for qualified adoption expenses (Form 8839), and the [...]
Learning that you’re a victim of identity theft is devastating, and fighting the damage done to your credit report and financial life is incredibly time consuming. Clients tell me that they’ve spent anywhere from 20 to 100 hours trying to prove to the IRS that they’ve been victimized. According to the IRS, you may learn [...]
We were always told to be careful with my mother because she was frail and had a heart condition. My father died nearly 40 years ago. As for Mom? She’s still going strong at 91. My friend has a child with dyslexia and behavioral problems. There’s a lot of love in that home, and they’re [...]
Tax-free exchange on rental property, what taxes do I owe when selling? Did you purchase the home as an investment or as a primary residence? Q: We purchased our present home in 2005 for $225,000. It was a tax-free exchange on a rental property we owned previously. We rented the current home for two years right [...]
At an IRS tax workshop several years ago, someone asked the speaker if the IRS has a problem with taxpayers who get large refunds. We attendees were surprised to learn that the IRS does look upon large refunds with suspicion. Why? According to a discussion I had with an IRS professional, a refund of $3,000 [...]
When I started in the tax field, working with the IRS on installment agreements and Offers in Compromise was like standing in quicksand. The IRS made obscure rules and changed them arbitrarily. It acted as an utter tyrant. Then, in the 1980s, there were a series of Senate hearings about the problems, and what emerged [...]
This article was written by guest blogger Eva Rosenberg. Have you ever received an incorrect W-2 or 1099? Scary, isn’t it? You know you have to file taxes, but you’re nervous about giving incorrect information to the IRS. Then, when you call the person or company issuing your tax forms, he or she may refuse [...]
This article was written by guest blogger Eva Rosenberg. Whether you understand enough about tax law to prepare your own tax return or you called in a pro to file your taxes, you probably believe your tax return was correct. But what if your refund is much less than you expected it to be? Why [...]
Many times when I’m helping new small business owners, they ask me questions about what kind of business entity they should form. Many have heard about a Limited Liability Company (LLC) and want to know more about personal asset protection and the potential to save on taxes. Here’s the real scoop: While you may certainly [...]
As a small business owner, hiring your children to work for your business may save you money when filing taxes. It might sound too good to be true, but if you handle the situation properly and file the right paperwork, you may be able to write off nearly half of their wages on your business’s taxes. [...]
