Want to know if you need to pay taxes on a loan modification? We answer a question about loan modification today. Q: I modified my home loan last year following my divorce at the end of 2011. My first new payment on the modified loan was at 3.1 percent, down from a 9 percent rate. [...]
We waited and waited all through 2012. Finally, after the calendar flipped over to 2013, our legislators agreed on tax legislation. Some of it gave us permanence in long-disputed areas. Other parts of the legislation are temporary—they work as stopgaps to allow taxpayers to function for the next year or so. Included in the legislation [...]
As you’ve probably realized by now, your paycheck is just a little smaller than it was in 2011 and 2012. For two years, we had the privilege of paying 2 percent less into our Social Security accounts to help stimulate the economy, but that benefit was eliminated for 2013. So what does that mean for [...]
In January of this year, Congress passed the American Taxpayer Relief Act of 2012 (ATRA). It affects filing taxes for 2013. The good news is that couples earning less than $300,000 ($250,000 singles) won’t face many hits. But folks earning more than this threshold will be hit with substantially higher taxes. Let’s look at a [...]
Some schools and colleges are cutting fees and tuition to attract students, but education costs are still high. When I went to college, my tuition and fees averaged about $500 per year plus another $500 for books. Today, you’re looking at 10 times those costs—or more. Financial aid is critical to help cover those costs. [...]
Why does the gathering of tax records seem to be such a difficult and onerous task? One year, we had a client who simply could not get us the amount of her mortgage interest payment until the afternoon of October 15 —by which time our office was closed for tax season. The good news is [...]
A quitclaim deed conveying the title of a home to a living trust can result in a stepped up basis when selling the home, but if it is unrecorded it likely will not be of any help. Q: In response to your recent article about a father who transferred title in his home to his [...]
January 15 is the due date for the final payment on estimated 2012 IRS, state, and city income taxes. (You may have already paid the state in December to snag that extra deduction last year). Generally, if you’re going to owe more than $1,000 to the IRS on April 15, you’re going to be on [...]
I recently received this question from a reader: “I’m 17 and I’m going to be getting my first job. What kind of tax forms do I need? Do I claim myself as a dependent?” A first job is pretty exciting. You start out feeling a little bit hesitant because you’re not entirely sure what to [...]
For those that took advantage of the first-time home buyer tax credit in 2008, you still need to repay the IRS back over time. Q: I bought a home in April, 2008 and took advantage of the $7,500 home buyer tax credit. My understanding is I will have to pay back the full amount to [...]
