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What do I do if my employer went out of business and and I can't get a W2?
If you cannot get a W2 from your employer, a special form must be filed with your return explaining how you arrived at your income and withholding amounts.
Why did I receive a 1099 from the state?
If you itemized last year and deducted state income taxes paid, you may need to report your state income tax refund as taxable income this year.
If I received unemployment during the year, does that affect my return?
Yes, unemployment is taxable income and must be reported on your return.
How do child support and alimony affect my return?
Child support is not considered taxable income to the recipient nor is it considered a tax deduction to the payer. On the contrary, alimony is considered taxable income to the recipient and an adjustment to income for the payer.
Do I have to report my gambling winnings if I lost more than I won?
Yes, gambling winnings must be reported in full based on the 1099-G’s that you receive. Gambling losses are deductible on Schedule A, but only to the extent of gambling winnings. If you don’t itemize, gambling losses are not deductible.
If I gave my grown daughter $20,000 this year, does she need to report it as income?
No, but you will need to file a gift tax return. No tax will be due on the return, but the gift will apply to your lifetime exemption for gifting.
Can I deduct sales tax?
Yes, if you itemize. Most people use the IRS table amount, but you can calculate actual sales tax paid based on your records. If you purchased a vehicle or boat, you may deduct that sales tax in addition to the table amount.
If I refinanced my home during the year, can I write off the points?
Refinance points are amortized over the life of the loan. However, if you refinanced with a different company you may be eligible to write off remaining points from a previous refinance.
Are mortgage insurance premiums tax deductible?
Yes, but the deduction is phased out at higher income levels.
If I bought a home this year, can I deduct the supplemental property taxes?
Yes, all property tax paid during the year is deductible. Also check your escrow statement for amounts paid through escrow.
Can I deduct credit card insurance?
No, in general, interest must be secured by real estate in order to be deductible.
Can I deduct the interest on my RV?
In general, if an RV or boat has sleeping, cooking and toilet facilities, the vehicle can be considered your second home and the mortgage interest deducted.
What proof do I need to write-off cash donations?
For amounts less than $250, no deduction is allowed unless you have either bank records, such as a cancelled check, or written acknowledgment from the charity documenting the amount and date. For amounts of $250 or more, you must have written acknowledgement from the charity.
Can I write-off non-cash donations?
Detailed records must be maintained including a reasonably detailed description of the property and the method used to value the property. For amounts of $250 or more, you must also have written acknowledgement from the charity. For amounts over $500, your records must also include information about the original acquisition. For amounts over $5000, a written appraisal is required.
Can I donate my car for a deduction?
Yes, but if it’s worth over $500, the deduction will generally be limited to the amount received by the charitable organization upon selling the vehicle.