Relief Available To Many Extension Requesters Claiming Tax Benefits

The Internal Revenue Service provided late-payment penalty relief to individuals and businesses requesting a tax-filing extension because they are attaching to their returns any of the forms that couldn’t be filed until after January. The relief applies to the late-payment penalty, normally 0.5 percent per month, charged on tax payments made after the regular filing deadline. This relief applies to any of the Read More

FAQ: Sale of Property

Question: What is the basis of property received as a gift? Answer: To figure the basis of property you receive as a gift, you must know 3 amounts: The adjusted basis to the donor just before it was given to you. The fair market value (FMV) at the time it was given to you. The amount of any gift tax paid. If the FMV of the property at the time of the gift is less than the donor’s adjusted basis, your Read More

Plan Now to Get Full Benefit of Saver’s Credit

Low- and moderate-income workers can take steps now to save for retirement and earn a special tax credit in 2012 and the years ahead, according to the Internal Revenue Service. The saver’s credit helps offset part of the first $2,000 workers voluntarily contribute to IRAs and to 401(k) plans and similar workplace retirement programs. Also known as the retirement savings contributions credit, the saver’s credit is Read More

Standard Mileage Rates for 2013

Beginning on Jan. 1, 2013, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 56.5 cents per mile for business miles driven. 24 cents per mile driven for medical or moving purposes. 14 cents per mile driven in service of charitable organizations. The rate for business miles driven during 2013 increases 1 cent from the 2012 rate. The medical and moving rate is also Read More

Many Tax Benefits Increase Due to Inflation Adjustments

For tax year 2012, personal exemptions and standard deductions will rise and tax brackets will widen due to inflation, the Internal Revenue Service announced today. By law, the dollar amounts for a variety of tax provisions, affecting virtually every taxpayer, must be revised each year to keep pace with inflation. New dollar amounts affecting 2012 returns, filed by most taxpayers in early 2013, include the Read More

FAQ: Deductions

Question: Can I deduct separate maintenance paid to my spouse or alimony paid to my former spouse? Answer: If you are separated or divorced, you may generally deduct payments of separate maintenance or alimony paid in cash (including check or money order payable on demand) to, or on behalf of, your spouse or former spouse. Question: Am I eligible to claim both my job-related education expenses (minus 2% of Read More

Job Search Expenses Can be Tax Deductible

If you are looking for a new job that is in the same line of work, you may be able to deduct some of your job hunting expenses on your federal income tax return. Here are seven things about deducting costs related to your job search: To qualify for a deduction, your expenses must be spent on a job search in your current occupation. You may not deduct expenses you incur while looking for a job in a new Read More

Automated IRS System Helps College-Bound Students with Financial Aid Application Process

College-bound students and their parents typically want to make every dollar and every minute of the college experience count including money spent on tuition and time spent on the college financial aid application process. The Internal Revenue Service is helping minimize the time spent on the completion of the Free Application for Federal Student Aid (FAFSA) form by automating access to federal tax returns with the Read More

Prepare for Hurricanes, Disasters by Safeguarding Tax Records

With the early start of this year’s hurricane season, the Internal Revenue Service encourages individuals and businesses to safeguard themselves against natural disasters by taking a few simple steps. Create a Backup Set of Records Electronically Taxpayers should keep a set of backup records in a safe place. The backup should be stored away from the original set. Keeping a backup set of records –– including, Read More

FAQ: Education Credits

Question:   Do tuition and related expenses paid to attend a private high school qualify for an education credit? Answer:   No. Expenses paid to attend a private high school do not qualify for an education credit because a high school is not an eligible educational institution.In general, an eligible educational institution is an accredited college, university, vocational school, or other postsecondary educational Read More