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I try to add tax blog articles weekly on tax topics that may be interesting to you. Please browse. If there is a topic you would like to see here or would like to more information on, please contact me.

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My Tax Blog

October 23, 2020 | 0
COVID Reveals a BROKEN “Tax Cookie Jar” for At Home Employees

A question received: I’ve worked from home since March 2020 because of COVID. Can I claim my home office expenses on my 2020 taxes? The tax year and the employment status (employee vs sub contractor or self employed) matters. For 2020 tax year, there may be a home office tax deduction for: 1. Subcontractor (No … COVID Reveals a BROKEN “Tax Cookie Jar” for At Home Employees

October 7, 2020 | 0
How to Handle a Tax Notice (“Bill”)

woman setting at computer desk holding her head

It’s Tax Notice season, IRS, State and Local Tax Districts are issuing those wonderful “love letters” for tax due . . . questions: 1.Is the Notice legitimate? 2.Is it Correct? 3.How to respond? Legitimacy: If the Tax Notice (“Bill”) has spelling or grammar errors, asks for payment in bit coin or cash cards or threatens … How to Handle a Tax Notice (“Bill”)

August 27, 2020 | 0
IRS Pays ME Interest?!

Yes, under certain conditions. FOR TAXPAYERS: The IRS must pay interest if the taxpayer’s tax refund is paid more than 45 days after the tax return due date. Because of the COVID-19 shutdown, some individual taxpayer refunds have interest added. Extra money from the IRS . . .Yay! Careful: CATCH22!! IRS interest received is taxable. … IRS Pays ME Interest?!

July 22, 2020 | 0
SCAM ALERT—Some of the IRS’s Favorites:

Accountant holding books bag of cash beside him. policeman beside him holding a pair of handcuffs

Pfishing: Fake emails made to look like coming from the IRS to steal personal information. IRS never contacts taxpayers by email. Don’t click on any “IRS” links Fake Charities—unsolicited contact from questionable charities. Have similar names to legitimate charities to fool people into giving money or financial information. Legitimate charities have an employer identification number … SCAM ALERT—Some of the IRS’s Favorites:

October 16, 2019 | 0
Selling a Home . . .There May be a Tax Break for That. . .

Yellow house with porch and steps with tree

If you’re a homeowner and selling your principal residence two questions: Did you live in it as your only home (principal residence) for at least two years? Was the time period lived there end within five years of the home sale date? If you answered both of the above questions as Yes and you did … Selling a Home . . .There May be a Tax Break for That. . .

September 10, 2019 | 0
Retirement Withdraw for Home Downpayment is Tax Free? Right?

Partially correct. Most retirement distributions (withdrawals) are taxable. However, the distribution might qualify for exception to the Early Distribution Penalty (no additional 10% tax) if: Taxpayer is under age 59 ½ and no other early distribution tax penalty exceptions apply Distribution is from an Individual Retirement Account (IRA) Taxpayer qualifies under the IRS rules as … Retirement Withdraw for Home Downpayment is Tax Free? Right?

August 14, 2019 | 2021
BitCoin/Virtual Currency Owners BEWARE IRS Has Its EYE on You . .

engraving part of face and eye from US currency

Virtual Currency may not be as private as previously thought. The IRS is reviewing Virtual Currency holders (e. g. Bitcoin and related currencies) tax returns because these taxpayers may not have reported income (or paid taxes) when the currency was redeemed (used to buy goods and services), traded or sold. The IRS is sending a … BitCoin/Virtual Currency Owners BEWARE IRS Has Its EYE on You . .

July 19, 2019 | 0
IRS Loves Seniors—Form 1040SR

gransparents outside holding young children

Are you over age 65? Congress and the IRS are thinking of you . . . They’re developing a new Tax Form just for you for 2019 Tax year. It’s called Form 1040SR. It is styled much like the discontinued Form 1040EZ. The differences: It’s 2 pages It’s for Seniors age 65 and older No … IRS Loves Seniors—Form 1040SR

July 10, 2019 | 0
Doesn’t City Income Tax Use the Same Numbers as Federal Taxes?

The short answer is No. The numbers are different. Federal and most State tax returns subtract for fringe benefits (e. g. 401K), adjustments (e. g. student loan interest) and/or a standard deduction before calculating total taxable income also known as Adjusted Gross Income or AGI. However, Cities usually base their taxable income on the Box … Doesn’t City Income Tax Use the Same Numbers as Federal Taxes?

May 29, 2019 | 0
Saving $ on Health Insurance?

Health Insurance costs are rising. One way to reduce health insurance premiums is to enroll in a high deductible health insurance plan and to pair that plan with a (tax deductible) Health Savings Account. For 2019 A high deductible health insurance plan has deductible of at least $1,400 (for individual coverage) or $2,750 (for family … Saving $ on Health Insurance?

Welcome

My Tax Blog

October 23, 2020 | 0 COVID Reveals a BROKEN “Tax Cookie Jar” for At Home Employees

October 7, 2020 | 0 How to Handle a Tax Notice (“Bill”)

August 27, 2020 | 0 IRS Pays ME Interest?!

July 22, 2020 | 0 SCAM ALERT—Some of the IRS’s Favorites:

October 16, 2019 | 0 Selling a Home . . .There May be a Tax Break for That. . .

September 10, 2019 | 0 Retirement Withdraw for Home Downpayment is Tax Free? Right?

August 14, 2019 | 2021 BitCoin/Virtual Currency Owners BEWARE IRS Has Its EYE on You . .

July 19, 2019 | 0 IRS Loves Seniors—Form 1040SR

July 10, 2019 | 0 Doesn’t City Income Tax Use the Same Numbers as Federal Taxes?

May 29, 2019 | 0 Saving $ on Health Insurance?

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