Taxes

You know the saying, nothing is certain but death and taxes. Well, we can't help you with the first one, but here you'll find all the latest tax planning news, advice and calculators you need to help you with the second.

Learn how to maximize the money you keep in your pocket without setting off red flags to the IRS.

Stay on top of today's top tax news and take advantage of expert advice.

Don't forget about unemployment benefits at tax time

Kelly Phillips Erb Feb 11th 2010 @ 4:30PM EST Filed Under: Tax, Tax - Advice

There's finally some good news to report on the job front. In January, the national unemployment rate dropped to 9.7%, the lowest since August 2009. And the news got even better last week when the Labor Department reported that there were 440,000 initial jobless claims filed in the week ended February 6, down almost 10% from the previous week.

It may be a sign that the economy is on its way to recovery -- but more work is still needed in Washington. It will clearly take some time to climb out of a hole that saw 150,000 jobs lost last December alone.

Last year, the federal government took measures to offer some relief to the more than 4.5 million people still looking for work. The American Recovery and Reinvestment Act (ARRA) included a provision that exempts the first $2,400 in unemployment benefits from federal income tax. In prior years, all unemployment benefits were taxable for income tax purposes at the federal level.

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Forget tax break when you donate vacation home stays to charities

Ann Brenoff Feb 10th 2010 @ 8:00AM EST Filed Under: Real Estate, Tax, Wealth, Recession

Vacation home ownership used to represent a higher standard of wealth: It meant you could afford not one, but two mortgages, two tax bills, two sets of utility bills etc. In the current economy, a vacation home very often represents just one thing: A financial burden you can no longer handle.

The second home market has been hit hard, if not harder than the primary home market, so most people's efforts to unload the ski condo or lakefront house have been strained. The second best choice for many who are unable to sell that adorable little cabin in the woods has been to rent it out to vacationers. But growing in popularity is the idea of donating a vacation stay in your second home to charity. To that end, schools, houses of worship, and even the local animal rescue group all gladly will accept vacation stays as items they can raffle off.

But here's the rub: It may not be the tax deduction you think it is.

In general, donating a stay at your vacation home cannot be used for a tax deduction or write-off says Christine Karpinski, author of How to Rent by Owner. The donated time might also be counted as personal use time by the owner. If you file your vacation home as income property, you cannot personally use it for more than 14 days a year and you run the risk of this charitable contribution pushing you over the IRS' allotted number of days.

Karpinski advises speaking with your accountant to prevent any negative tax implications before you make a donation. She notes that donating a stay as a charitable contribution may make you feel warm and fuzzy, but it will likely require the same amount of time and effort as a regular booking and in this case, you won't be making any money. You also give up the right to screen your guests since the tenant will be whoever bids the highest in the charity's auction.

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IRS has no information on missing stimulus checks

Kelly Phillips Erb Feb 9th 2010 @ 3:00PM EST Filed Under: Tax, Tax - Advice, Tax - Credit

After the popular "stimulus checks" issued as part of efforts to jump start the economy in 2001 and 2008, many taxpayers were again looking forward to a check in 2009. This year, however, checks weren't in the cards for most Americans.

Most of the taxpayer relief for American Recovery and Reinvestment Act of 2009 (ARRA) focused on the Making Work Pay credit. The Making Work Pay credit allows up to $400 per individual worker and $800 per working married couple and is figured on your tax return. Those who did not work during the year are not eligible for the credit.

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The pitfalls of Refund Anticipation Loans

Kelly Phillips Erb Feb 9th 2010 @ 2:45PM EST Filed Under: Tax, Tax - Advice

Anyone fortunate enough to be getting a tax refund will probably want that money sooner rather than later. But don't let your haste cloud your good judgment. There are a number of less-than-scrupulous outfits out there that are waiting to prey on your desire (or need) for quick cash.

One of my clients is a good example.

When she learned she was getting a refund on her taxes this year -- money she desperately needed to pay the oil bill -- it was all she could do to fight back the tears of joy. Last year, it had been a whole different story.

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10 ways to maximize your tax deductions -- without itemizing

Kelly Phillips Erb Feb 9th 2010 @ 6:30AM EST Filed Under: Tax, Tax - Advice, Tax - Deduction

Too often, taxpayers are led to believe that if they don't itemize, then there are no real deductions available to them beyond the standard deduction. In reality, there are a number of deductions that a taxpayer can claim without itemizing.

Here are 10 ways to maximize your tax deductions -- without going through the trouble of itemizing:

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Taxes: Sources of income you might not have thought of

Zac Bissonnette Feb 8th 2010 @ 9:00AM EST Filed Under: Tax

With piles and piles of fine-print, the IRS is here to make understanding tax code easy: just spend a few hours flipping through the booklets, and you're sure to find a reference to the topic you're wondering about.

If you're unsure about what exactly constitutes income, Publication 17 (2009) is your source of information. Here's some sources of income that a lot of people often overlook:

Gambling winnings. You must include your gambling winnings in income on Form 1040, line 21. If you itemize your deductions on Schedule A (Form 1040), you can deduct gambling losses you had during the year, but only up to the amount of your winnings. See chapter 28 for information on recordkeeping.

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Are you an early filer? If so, odds are you're getting a refund

Josh Smith Feb 8th 2010 @ 8:00AM EST Filed Under: Tax, Tax - Basics

There are a few things in life that are clear cut. You like Pepsi or you like Coke, you like Ford or you like Chevy and you file your taxes early or you line up at the post office at 11:58 on April 15th. For most people, choosing when to file your taxes boils down to one thing; will you owe Uncle Sam or will you be paying off the HDTV you bought for the Super Bowl with your refund. The good news is that, statistically, if you do file early you are more likely to receive a refund -- and a generous one at that.

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File your taxes free with the help of Walmart, United Way and others

Josh Smith Feb 5th 2010 @ 12:00PM EST Filed Under: Tax, Video, Tax - Online

Great news for anyone who makes under $58,000. You'll be able to file your taxes for free, including free tax prep, thanks to a $4 million grant from the Walmart Foundation to United Way Worldwide, One Economy and the National Disability Institute. This is the second year for the free tax prep program, which allows Americans who meet the criteria to get free assistance at community locations and online at Myfreetaxes.com.

According to the Walmart Foundation, last year's program provided more than 650,000 people with tax prep, and helped them save over $950 Million in tax preparation fees, refunds and tax credits.

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Your tax questions answered

Kelly Phillips Erb Feb 5th 2010 @ 6:00AM EST Filed Under: Tax, Tax - Advice

It's an annual rite of passage that almost every taxpayer goes through: Interpreting the latest and greatest IRS rules. Of course, that leads to lots of tax questions.

Luckily, we have the answers. Below tax blogger and attorney Kelly Phillips Erb tackles some of your top tax questions.

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