Tax News

Using Tax Prep Software Doesn’t Avoid Penalties
June 24, 2010 12:00 am

Each year, more and more individuals use tax preparation software to complete and file their tax returns. However, a recent case demonstrates that failing to properly report taxes is not necessarily e...

June 14, 2010 12:00 am

When you withdraw funds from a time-deposit savings account or similar deposit account before the maturity date, the bank penalty imposed on the withdrawal is deductible from gross income. This penalt...

June 13, 2010 12:00 am

The gambling industry in the United States generates more than $92 billion in revenue. The revenue comes from such activities as commercial casinos operating in 12 states, casinos on Indian tribal lan...

June 9, 2010 12:00 am

Gain on the sale of a principal residence can be excluded up to $250,000 if single, or $500,000 on a joint return as long as the seller has owned and used the home as his or her principal residence fo...

June 4, 2010 12:00 am

Summertime for many people means vacation time and travel opportunities. As summer rapidly approaches, recognize that the type of vacation you schedule can produce favorable tax results. Combine Busin...

May 27, 2010 12:00 am

If you send your child to camp or summer school, can you obtain a tax benefit? It depends on your child's age and other factors. For Children under Age 13 If your child is under age 13 and you work, l...

May 24, 2010 12:00 am

Identity theft results when someone uses another person's name, Social Security number, or other identifying information without permission, to commit fraud or other crimes. It can take a victim month...

May 23, 2010 12:00 am

The economy in general and the housing marketing in particular may get you thinking about disposing of a second home. It may be too costly to keep, you may need the funds for other purposes, use of th...

May 19, 2010 12:00 am

The IRS reported in its latest Statistics of Income Bulletin that the number of taxpayers making noncash charitable contributions increased between 2006 and 2007. More specifically, for 2007, 23.8 mil...

May 17, 2010 12:00 am

Some states give payments to a parent to look after his or her disabled child. These payments may fall under a foster care system. The tax law excludes from income the amount of foster care payments. ...

Unmarried Couple Can’t File a Joint Tax Return
May 17, 2010 12:00 am

The tax law allows married persons to file joint tax returns, which enables them to use the standard deduction amount and tax rates exclusively for joint filers. Whether a person is "married" for purp...

May 16, 2010 12:00 am

The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) created numerous tax breaks that are scheduled to expire at the end of this year. Expiration, or "sunsetting," means that the tax...

May 3, 2010 12:00 am

In tough economic times, more people are filing for bankruptcy protection. According to the American Bankruptcy Institute, in 2009 there were more than 1.4 million filings for consumer-type bankruptci...

May 2, 2010 12:00 am

Taxpayers have a duty to file an accurate tax return. But errors occur nonetheless. There can be mathematical errors or omissions of income and overstatements of deductions. When the errors are the re...

Gifts to Needy Individuals Aren’t Deductible Donations
April 23, 2010 12:00 am

Americans are kind-hearted people who reach out to those in need. Taxpayers who itemize their personal deductions can claim a write-off for charitable contributions. But not every example of generosit...

April 19, 2010 12:00 am

When couples divorce, they settle financial matters between themselves. For instance, one spouse may receive the family home and agree to make all future mortgage payments for this home. How do these ...

April 9, 2010 12:00 am

Certain arguments made by taxpayers in the past have been determined to have no validity in the law and, thus, are deemed to be "frivolous." As such those who continue to advance them can be subject t...

April 8, 2010 12:00 am

The Patient Protection and Affordable Care Act, which was signed into law on March 23, 2010, mandates that every American, with few exceptions, have health coverage starting in 2014. Failure to obtain...

April 1, 2010 12:00 am

There is a program under way that encourages consumers to replace their old appliances with energy-efficient ones. Like the cash-for-clunkers program that supported new car purchases in 2009, the appl...

March 31, 2010 12:00 am

As a supplement to the Patient Protection and Affordable Care Act, which was signed into law on March 23, 2010, Congress has made a few tweaks, including: A tax of 3.8% of the lesser of the individua...

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Tax Glossary

Percentage depletion

A deduction method that applies a fixed percentage to the gross income generated by mineral property.

More terms