Tax News

Damages received from lawsuits and settlements are excludable from gross income only if they are based on a tort or tort-type right and are received on account of physical personal injury or illness. ...

Employees have their tax obligations met largely by income tax withholding from each paycheck. If you are working as a self-employed individual so that you're not on the payroll as an employee, you do...

The next time you receive an IRS notice in the mail, it may be easier to understand. That's because the IRS has a program to redesign taxpayer notices so they are simpler. Within the next 12 to 18 mon...

To be deductible alimony, payments must be made in cash under a divorce decree or separation agreement that designates the payments as alimony. In one recent case, a divorce decree required a husband ...

You may be thinking about filing your 2009 tax return in the coming weeks or months. It's also a good idea to take note of new tax rules for 2010 so you can begin strategies for saving taxes this year...

Usually, you have until October 15 of the year following the year to recharacterize Roth IRA conversion. Thus, if you convert a traditional IRA to a Roth IRA in April 2009, you have until October 15, ...

Starting in 2010, millions of Americans previously barred from converting a traditional IRA to a Roth IRA because of the income limitation are now eligible to do so. The $100,000 modified adjusted gro...

Merchants, including sellers on eBay and Amazon, will have their payment transactions reported to the IRS starting in 2011. This new reporting, which was created in the Housing Assistance Tax Act of 2...

If you own stocks, bonds, and mutual funds in a taxable account (outside of an IRA or 401(k) plan), you have a few weeks left to take actions that can favorably impact your tax return and your investm...

The first-time homebuyer credit came into law in April 2008 as a way to stimulate the sagging housing market. Back then, the credit limit was $7,500 and, in most cases, it had to be repaid to the gove...

If you're a homeowner, you can win in four big ways by making certain energy-saving improvements to your home now: Save on energy costs this winter and for years to come. Increase the value...

A windfall is a sudden, unexpected good fortune. It usually is a sum of money and/or property, and it could be substantial. Taxwise, the windfall may be tax-free income, fully taxable, or something in...

If you're so inclined and can afford to share your wealth, the tax law will reward you. Due to the recession, many charities are reporting that giving is down and your contributions are needed now mor...

The government believes that some wealthy individuals stash funds abroad and engage in complex transactions as a way to hide income and evade taxes. An amnesty program for individuals to report their ...

Generally, when a creditor (lender) agrees to accept less than the full amount owed, the amount forgiven is cancellation of debt income to the debtor (borrower). Unless the debtor is insolvent or in b...

A tax credit is a valuable write-off. It reduces your tax bill dollar for dollar. Now, there is a growing number of federal tax credits that you can use that will pay you money even if the credit is m...

Treasury Secretary Geithner announced the administration’s steps to make it easier for individuals to save for retirement. These steps do not require congressional action. Instead, the IRS has i...

Roth IRAs offer the opportunity to build up tax-free income for your future. You can use this income in retirement at no tax cost or leave the money as a tax-free inheritance for your spouse, children...

According to the Summer 2009 Statistics of Income Bulletin, there were about 23.1 million individual income tax returns that reported nonfarm sole proprietorship activity for 2007. This represents a 4...

As you or family members return to the classroom, remember that federal income tax breaks may help you pay for tuition and other costs of education. As a result of the American Recovery and Reinvestme...