TaxAudit Blog

There is no tax benefit for applying to enter a college. However, many benefits are available when your application has been accepted and after you enroll.

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Much like the IRS, California’s taxing agency, the California Franchise Tax Board (or CA-FTB), expects to collect your owed taxes throughout the tax year.

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You can deduct an unpaid invoice as a business expense if all the following are true: (1) You have already included the amount of the invoice as income…

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Now that the pandemic is officially over, can I still deduct the cost of masks and hand sanitizer for my classroom or place of business? Let's find out.

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With all the required tuition, books, and fees for college students, not to mention the cost of room and board - what education expenses are tax deductible?

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Under some circumstances, you can indeed deduct off-campus housing on your taxes while attending college – but the amount of the benefit is limited.

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The short answer is yes, you can deduct education expenses for your dependents, but some limitations and qualifications must be met. Let's explore more.

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The good news is that, at tax time, taxpayers can often deduct part or all of the premiums they pay for long-term insurance for themselves or a dependent.

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Yes, you can deduct educator expenses if you are what the IRS calls an “eligible educator.” However, there are certain limitations and conditions involved.

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According to the Federal tax laws, unreimbursed COBRA payments are deductible as medical expenses on your tax return if you qualify to itemize your deductions.

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There is a very good chance that you can deduct your Medicare Premiums that you paid on your taxes. As always, there are different conditions that must be met.

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Kindergarten tuition is not deductible because the costs to attend are considered educational expenses. However, qualifying childcare expenses are deductible.

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Whether you can write off karate classes on your taxes relies heavily on your personal circumstances. Let's explore more.

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There are some tax-saving opportunities available for graduate school tuition, like the credits for undergraduate expenses. They each have some limitations.

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When it comes to medications, you can only deduct the amounts that you pay for medicines or drugs that have been prescribed for you by a doctor.

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My brother's wife died and he was left with the house. He gifted (no exchange of money) me the house and I sold it. How do I report capital gains?

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Can Grandparents take a deduction for paying the preschool tuition costs when the child still lives with the parents? To qualify you must meet the following.

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Falling behind on your California payroll tax payments effects not only your employees, but also on your business operations as the EDD imposes penalties.

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The IRS is billed you $4,000 due to a $8,000 capital gain or dividend. You don’t know what the $8,000 is from and believe if inherited it should be tax free.

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An Offer in Compromise may help certain taxpayers who cannot pay their tax debt to the California Franchise Tax Board in full. Let's review the requirements.

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Medical expenses are deductible, but whether or not you can claim this deduction depends entirely on the amount you spent and the amount you earned.

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Yes, you can deduct interest on your business and personal credit cards to the extent that the interest relates to business expenses. Let's explore more.

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The IRS uses an annually updated wage garnishment table to determine how much the taxpayer needs to live on and then the IRS takes the rest.

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Insurance policies may cover part of nursing home costs and the unreimbursed expenses can often be deducted on a Form 1040 individual tax return.

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The 2021 expense limit for this credit is $8,000 for one qualifying child, and $16,000 for two or more qualifying children. The credit is a % of those expenses.

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Is there relief from the government in the form of a tax break? Like many things in taxes, this can depend on different things, such as what caused the fire.

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You asked if you could deduct tuition expenses for enrollment in a graduate degree program as a job-related education expense on federal and NY state taxes.

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Under certain circumstances you can indeed claim a tax benefit for preschool tuition - called the Child and Dependent Care Expenses tax credit.

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As long as you used the home as your main residence for at least 730 days during the last 5 years, you may be allowed to exclude up to $500,000 of capital gain.

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You are responsible for paying the taxes on the amount realized in the sale. The buyer is generally not required to withhold income taxes on the proceeds.

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I had investment capital losses of over 17,000 dollars, yet my Schedule D is only allowing a $3,000 loss. Can I take the additional losses in future tax years?

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The IRS takes payroll tax delinquency seriously – so seriously that IRS Revenue Officers have closed down businesses for not paying them. Tax help is available.

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You can "deduct" real estate taxes paid over the course of owning a piece of land in the year the land is sold, if the land was vacant, but there is a catch.

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Generally, as long as the incarcerated person is a US citizen (or resident alien), has a valid SSN, and is not claimed as a dependent, they may qualify.

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Replacing an entire roof will increase the cost basis of the home. However, any costs paid or reimbursed by an insurance are not added to the home's basis.

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Depending on the nature of the education, there may be an avenue to account for work related education expenses on one's tax return.

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The general rule is that you can deduct the costs of vitamins as a medical deduction only if your doctor prescribed them to treat a specific medical condition.

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You can deduct certain state and local taxes (SALT) if you choose to itemize deductions on your tax return rather than claiming the standard deduction.

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We know our senior citizen population can be particularly vulnerable to being targeted by scammers looking for free money or personal information. 

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A tax deduction for qualified tuition expenses has generally been available for many years. However, it has never been a permanent part of the tax code.

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Credit card interest for personal expenses is generally not deductible. However, credit card interest connected to trade or business expenses can be deductible.

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The IRS has published a “Dirty Dozen” list to warn taxpayers to beware of joining the thousands of people who lose millions of dollars to scammers each year.

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Taxpayers must constantly be on the lookout to avoid getting caught up in the many scams and schemes that try to separate us from our hard-earned dollars.

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There is a growing number of criminals and fraudsters that are constantly trying to gain access to our bank accounts through clever scams and schemes.

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For federal tax purposes, there is no deduction available at this time. However, the loss may or may not be deductible on your state tax return.

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Paying for college tuition is an expensive endeavor. Fortunately for those who qualify, there are some tax breaks available.

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The most likely answer for most people would be no, as the general rule is that you cannot deduct the cost of the gym membership. However, there are exceptions.

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The good news is that you can deduct car insurance from income when preparing your taxes – but the bad news is that you must first meet certain conditions.

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If the taxpayer has costs for after school care of a qualifying dependent, those costs may provide some tax benefits. Let's explore these tax benefits.

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Sales tax on a car or automobile purchase might be deductible. It depends on the taxpayer’s circumstances. Generally, the following conditions must all be met.

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In regard to the personal home mortgage interest deduction on the Schedule A, the answer is yes, but only if certain criteria are met.

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One way to offset the rising costs of health care is by claiming an itemized deduction for qualified medical expenses paid during the year on your income taxes.

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If you paid someone to care for your child so that you could work or look for work, you may be able to take the credit for child and dependent care expenses.

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The IRS declared that any cryptocurrency with an equivalent cash value is to be treated as property for tax purposes, and transactions are therefore taxable.

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Prescription eyeglasses for correcting your vision are deductible as a medical expense, but you may not be able to deduct them based on other factors.

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Yes, you can deduct student loan interest on your tax return if you meet the specific requirements to claim this deduction. The amount you can claim will vary.

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Inmates are responsible for filing taxes. While you can certainly help your boyfriend file his taxes, you can’t sign and submit the return on his behalf.

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The first thing to do is to check every name and Social Security number listed on the return with what is listed on their Social Security cards.

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Below is a list of misconceptions and examples of misinformation taxpayers may encounter during the upcoming tax season.

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You can reduce your risk of falling victim to scammer's schemes by developing a basic understanding of what the IRS can and cannot do.

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For the American Opportunity Credit, a student is required to be in pursuit of a degree or recognized education credential and be enrolled at least half-time

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Have you or someone you know experienced loss from a disaster? You may be able to deduct the loss you incurred on your federal income tax return.

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The IRS recently issued a warning that tax-related scams are still on the rise and are urging taxpayers to take caution!

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Congress reauthorized the IRS to use private debt collection agencies, or PDC, to collect outstanding tax liabilities.

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The IRS can request the State Department to revoke a currently active passport of a U.S. taxpayer with severely delinquent tax debt.

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While real IRS letters go through the mail, tax scammers have shipped out their own tax bills in an attempt to take advantage of the unsuspecting taxpayer.

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This scam involves cybercriminals approaching a tax preparer in the guise of a potential client, sending an email which asks about using the preparer’s services

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Thieves are creating convincing IRS CP2000 letters and sending them to unsuspecting taxpayers via the postal service and as an email attachment from the “IRS.”

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Some people can claim an exemption from the health insurance requirement, but everyone else needs to show the IRS that they are covered or else pay a penalty.

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I got a phone call from the IRS last week.

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Scammers, despite their many flaws, tend to be clever, and often create fake charities that have names strikingly close to vetted non-profit organizations.

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The Child and Dependent Care Credit is available to help offset some expenses of childcare or daycare costs.

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While tax season may have ended, scam artists are still working around the clock and the IRS is continually encouraging taxpayers to keep a vigilant eye out.

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The TAS is an independent organization within the IRS, created with the intention of identifying and resolving problem areas within the tax system.

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As this year’s tax season shifts into full gear, tax scammers are at hard at work.

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The Cadillac tax has zero to do with automobiles and everything to do with health care.

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Tax nightmares aren’t just for scammers. They can happen to people who make innocent mistakes, and even to those who believe they are doing the right thing.

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Are Education Tax Credits Available When the Education Expenses are Covered by a Scholarship or Grant?

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We wanted to let you know that, yes, there are some tax benefits to hitting the books.

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My boyfriend and I are buying a house together, and the property includes a rental apartment above the garage. How should we report our rental income?

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I received a 1095-A form for health insurance after I had already filed my taxes.

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The IRS estimates they received over 2.4 million fraudulent returns for the 2013 filing year. If you’ve been the victim of this type of crime…

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These thieves use a legitimate taxpayer’s name, address and social security number to file a fraudulent return claiming a large refund, and then divert...

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The IRS opened up its LITC grant application process for organizations looking to serve and educate low-income taxpayers.

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You might have thought that with the new Health Care Reform more of all the money you spend on health insurance and medical expenses would be deductible.

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With the costs of obtaining a Master of Business Administration skyrocketing - often costing up to $80,000 - you might be wondering: is my MBA tax deductible?

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I am considering buying Gold Bullion. I am 68 and do not plan on using an IRA of any kind for this. What are the tax implications of buying gold?

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With the tax filing season in full swing, the IRS has reissued warnings to all taxpayers to be on alert for tax scams.

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What form do I file with the IRS for 2014 for a fraud case where I lost lots of money. The fraud case was adjudicated and the offender now sits in Fed Prison.

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You inherited a retirement account, and you opted to transfer the assets into a beneficiary or inherited IRA. What now? The “what now” depends on whether RMDs..

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 received a phone call from IRS telling me that I owe them $2,500. They said they sent me a letter in January of 2014 that I signed for telling me the errors...

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We heard about it all the way back in 2010, but the Individual Mandate − or Minimum Essential Coverage − did not go into effect until this year.

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Now that the furor, for the most part, over the Affordable Care Act has subsided a bit, let's take a quick look at the PENALTY for not abiding by this law?

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My son was arrested in December of 2012 and spent the entire year of 2013 in jail awaiting trial. During that year I paid his attorney fees, car payments...

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Continuing on with Scams 8-12, let’s look at the third set of scams in The Dirty Dozen. False Income, Expenses or Exemptions: Another set of scams...

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Continuing on with Scams 5-7, let’s look at the second set of scams in The Dirty Dozen:  Return Preparer Fraud: Most preparers are honest, and want the best...

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Every year during awards season, the IRS announces its list of the Top Twelve Scams of the Year, or, The Dirty Dozen. Watch for these scams and report them...

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In a recent case of tax evasion, Ty Warner, the creator of “Beanie Babies” was hit with $53.6 million in penalties for hiding money offshore.

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Tax scams increase exponentially during the income tax filing season. If you want to avoid being a victim, be aware that when someone offers you a “chance of...

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Phone Scams: There are numerous phone and internet scams claiming to be the IRS (or other government agencies). Do not give personal information to anyone...

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There’s a new wave of “phishing” scams involving phony emails from tax software companies such as TurboTax.

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