Ask JK

Yes. The nonbusiness energy credit for making certain home improvements is effective in 2012 and 2013 and applies to:Insulation Exterior windows, doors, and skylights Certain metal roofs...

Losses on property used for personal purposes are not deductible. You do not have to report the sale unless you received Form 1099-S. If you did receive this form, then report the sale on Form 8949 ev...

Probably not. The cost of a home health aide whose services are prescribed by a doctor to care for your wife would be considered a deductible medical expense, but cleaning services would not. While no...

No. The only qualified expenses taken into account in figuring the credit are tuition; student-activity fees; and books, equipment, and supplies needed for courses. Expenses for room and board, travel...

Maybe. Claiming the American opportunity credit or lifetime learning credit is not necessarily dependent on the educational institution reporting the tuition to you and the IRS. The school does not ha...

In most cases, yes. If the fair market value of the shares equaled or exceeded your adjusted basis (typically your cost) at the time you made the gift, then your wife’s basis is the same. If, howeve...

We’re sorry for your loss, but Uncle Sam won’t allow you to deduct this expense. It’s personal and not deductible....

Unfortunately, no. The law specifically says that tuition for kindergarten and higher grades is not a qualified expense. Only the costs of preschool can qualify....

Homeowner’s insurance isn’t deductible as a personal itemized deduction on Schedule A. Part of it may be taken into account in figuring a home office deduction if a portion of the home is used for...

A return must be filed for your child if any of these three tests are met:His unearned income (e.g., from investments) was over $950. His earned income (from being an employee and/or self-emplo...

Probably not. The cost of a home health aide whose services are prescribed by a doctor to care for your wife would be considered a deductible medical expense, but cleaning services would not. While no...

The taxable amount (assuming that the traditional IRA was funded entirely with deductible contributions) is the value of the account on the date of conversion. Do not confuse this valuation date with ...

If you repaid amounts in the current year, you simply use that repayment as an offset to unemployment compensation you must report. Add the words “repaid” next to the line on which you report your...

You cannot make a deduction for the value of your services, no matter how much time and effort you put in. However, you can write off your out-of-pocket costs, such as materials, driving your personal...

No. Distributions from qualified retirement plans, such as pensions, are not treated as earned income for purposes of the self-employment tax....

Yes. You must file a separate Schedule C for each business to report the income and expenses of each activity. You may qualify for a home office deduction even though you use the same space for two or...

No. The costs of commuting to and from work (including the cost of parking at your work location) are treated as nondeductible personal expenses. However, if your employer provides free parking, you a...

Not really. Unemployment benefits are fully includible in your gross income. If you looked for a job, you may be able to deduct your job-hunting expenses. They are claimed as a miscellaneous itemized ...

A return must be filed for your child if any of these three tests are met:His unearned income (e.g., from investments) was over $950. His earned income (from being an employee and/or self-emplo...

If you made a contribution to your HSA for 2012, you must complete Form 8889, Health Savings Account. However, you don’t have to attach any receipts or other documentation showing withdrawals from t...

A church can be treated as a public charity eligible to receive the transfer and give you tax-free treatment. Check with your church to learn whether it is an IRS-approved Section 501(c)(3) organizati...

The taxable amount (assuming that the traditional IRA was funded entirely with deductible contributions) is the value of the account on the date of conversion. Do not confuse this valuation date with ...

No. Each year you can convert as much (or as little) as you choose of your traditional IRAs or qualified retirement plan accounts to a Roth IRA. The amount is fully taxable in the current year. In mak...

Yes. The fact that the owner was not taking RMDs at the time of death does not mean you, as the beneficiary, are exempt from this requirement. Regardless of your age, you must start taking distributio...

You are confusing 2 separate issues.First, the receipt of benefits is not reduced, regardless of earnings from a job or self-employment, once you reach the full retirement age. Thus, you can coll...

No. You can combine IRAs and take your RMD for the combined IRAs from one or more IRA accounts. However, RMDs must be figured separately for each 401(k) account. Do not combine a 401(k) with another 4...

Not yet. In 2011, such transfers were tax free, but Congress could still extend this rule for 2012. Back in 2010 when Congress extended the rule late in the year, it gave taxpayers into January 2011 t...

Yes. In tax parlance, the payment for the condemnation of your property is the result of an involuntary conversion and it is taxable. Fortunately, you can treat the payment as a capital gain (to the e...

Not yet. This rule expired at the end of 2011, and Congress has not yet extended it for 2012. But don’t despair. This rule, which is not controversial, could very well be extended for 2012. Unfortun...

It depends on the terms of your new employer’s plan. Usually you have to start RMDs once you reach age 701/2. However, if the terms of the plan allow participants to postponed RMDs until they cease ...

Going mobile? Apps can be used to maintain records you’re required to have, to keep you informed on tax news, and enable you to track the status of your tax refund. Some apps are free; others have a...

A church can be treated as a public charity eligible to receive the transfer and give you tax-free treatment. Check with your church to learn whether it is an IRS-approved Section 501(c)(3) organizati...

In order to arrive at “net investment income,” which is the figure on which this tax is based, start with gross income from your rental activities. Then reduce it by deductions properly allowable ...

Yes. The nonbusiness energy credit for making certain home improvements is effective in 2012 and 2013 and applies to:Insulation Exterior windows, doors, and skylights Certain metal roofs...

Losses on property used for personal purposes are not deductible. You do not have to report the sale unless you received Form 1099-S. If you did receive this form, then report the sale on Form 8949 ev...

The taxable amount (assuming that the traditional IRA was funded entirely with deductible contributions) is the value of the account on the date of conversion. Do not confuse this valuation date with ...

Maybe. Claiming the American opportunity credit or lifetime learning credit is not necessarily dependent on the educational institution reporting the tuition to you and the IRS. The school does not ha...

You cannot make a deduction for the value of your services, no matter how much time and effort you put in. However, you can write off your out-of-pocket costs, such as materials, driving your personal...

In most cases, yes. If the fair market value of the shares equaled or exceeded your adjusted basis (typically your cost) at the time you made the gift, then your wife’s basis is the same. If, howeve...

We’re sorry for your loss, but Uncle Sam won’t allow you to deduct this expense. It’s personal and not deductible....

Going mobile? Apps can be used to maintain records you’re required to have, to keep you informed on tax news, and enable you to track the status of your tax refund. Some apps are free; others have a...

A church can be treated as a public charity eligible to receive the transfer and give you tax-free treatment. Check with your church to learn whether it is an IRS-approved Section 501(c)(3) organizati...

In order to arrive at “net investment income,” which is the figure on which this tax is based, start with gross income from your rental activities. Then reduce it by deductions properly allowable ...

Yes. The nonbusiness energy credit for making certain home improvements is effective in 2012 and 2013 and applies to:Insulation Exterior windows, doors, and skylights Certain metal roofs...

Losses on property used for personal purposes are not deductible. You do not have to report the sale unless you received Form 1099-S. If you did receive this form, then report the sale on Form 8949 ev...

Probably not. The cost of a home health aide whose services are prescribed by a doctor to care for your wife would be considered a deductible medical expense, but cleaning services would not. While no...

No. The only qualified expenses taken into account in figuring the credit are tuition; student-activity fees; and books, equipment, and supplies needed for courses. Expenses for room and board, travel...

Maybe. Claiming the American opportunity credit or lifetime learning credit is not necessarily dependent on the educational institution reporting the tuition to you and the IRS. The school does not ha...

If you repaid amounts in the current year, you simply use that repayment as an offset to unemployment compensation you must report. Add the words “repaid” next to the line on which you report your...

In most cases, yes. If the fair market value of the shares equaled or exceeded your adjusted basis (typically your cost) at the time you made the gift, then your wife’s basis is the same. If, howeve...