Personal Taxes

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Do you have to file a tax return?

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It's that season of the year, that dreaded one following the holiday season... Tax Season.  Every year about this time we begin to get lots of calls and emails from students, retirees, etc. all asking, "Do I need to file a tax return this year?"

Well, besides just income level there are plenty of reasons why you may need -- or even want to -- to file a tax return.

You must file a tax return if your income is above a certain level. The amount varies depending on filing status, age and the type of income you receive. Here are the general guidelines.

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Updated tax deduction worksheets now available

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We've updated our tax deduction worksheets for the 2009 tax year. You can download these worksheets and use to help with your tax records.  The worksheets are geared directly to a number of professions and business types. Click any one of the following 16 profession-specific links to download your own copy.

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Watch out for Haiti earthquake charity scams

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As we all look for ways to offer support for the earthquake victims in Haiti we must also be careful not to be scammed in our efforts to help. The FBI and other agencies are now warning that there are also those who are looking for opportunities set up scams surrounding the latest disaster relief efforts.

You should be highly skeptical of any unsolicited appeals you may receive or find on the Internet. Even if it appears legitimate, you should only contribute when you have made the call to the charity. If you are contributing via the Internet do not click on a link taking you to a charitable organization's site, it could be a counterfeit site. Only contribute via the Internet if you yourself type in the Web address and go directly to the site. Even then, only contribute if it is a secure site. Make sure the Web address starts with "https" and not just "http."

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IRS to simplify, or try too, taxpayer notices

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If you’ve ever received a letter or notice from the IRS you know first-hand how confusing and confounding  the information presented can be.  All this while it has generally been my experience that the IRS really is not trying to confuse things with how they structure their correspondence -- quite the opposite actually. The IRS really is doing what it can wrestling with implementing wildly complex tax laws created not by their doing, but by the doing of our legislators in Washington -- while at the same time trying to be clear and concise to the taxpayer.

To this dilemma there just may be a little hope on the horizon.

The IRS recently announced it will will be sending out newly redesigned, less confusing notices to taxpayers that aim to improve the way it corresponds with its core constituency.

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Want your home buyer tax credit? I hope you are patient.

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For all of you that are eligible for the home buyer tax credit this filing season I have some news from the IRS administrative front. Don't expect your tax refunds to come quickly. Oh, and you won't be able to file your federal income tax return electronically either. And make sure you have all your closing paperwork at your fingertips.

The Internal Revenue Service today (Jan 15, 2010) released the new form that eligible home buyers need to claim the first-time homebuyer credit this tax season and announced processing of those tax returns will begin in mid-February. The IRS also announced new documentation requirements to deter fraud related to the first-time home buyer credit.

The new form and instructions follow major changes in November to the home buyer credit by the Worker, Homeownership, and Business Assistance Act of 2009. The new law extended the credit to a

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Finally, some sanity on taxing unemployment insurance benefits

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Finally, some sanity on taxing unemployment insurance benefits; well, partial sanity for one year anyway. The American Recover and Reinvestment Act of 2009 give a one-year exclusion for unemployment benefits you receive, up to a point.

For 2009 only, you can receive up to $2,400 of unemployment insurance benefits free of tax. There are none of the usual limitations based on your gross income with this provision.

Another important note, the $2,400 is per person and does not automatically double on a jointly filed tax return.  For example, if you receive $5,000 of unemployment benefits and your spouse receives $500 you can exclude only $2,900. That is your full $2,400 and $500 of your spouse's benefits.