Hybrid Accounting Method – Dealing With Inventory

Hybrid Accounting Method - Dealing With Inventory
(NOTE: This post fits in with a case study looking into tax implications of starting up a small business. Click here to go back to the start) A while back, I addressed the cash and accounting methods and how to choose which one you want to use in a small business. I was trying to keep things ...

Deducting That Student Loan Interest

Deducting That Student Loan Interest
(This is part of a series looking at various common 1040 questions. To go back to the summary page, click here) First, my condolences on your student loan. The good news is that there is a student loan interest tax deduction. Which isn’t really that great of news, but it’s something. I’d say it rates somewhere above finding ...

Deduct Penalty on Savings Withdrawal

Deduct Penalty on Savings Withdrawal
(This is part of a series looking at various common 1040 questions. To go back to the summary page, click here) It’s been a while since I’ve talked about tax helps, so I thought it was about time to get back on that cart. I mean, how else am I going to have enough content to ...

Is Any Portion of Self Employment Tax Deductible?

Is Any Portion of Self Employment Tax Deductible?
(This is part of a series looking at various common 1040 questions. To go back to the summary page, click here) Self employment taxes are the bear trap of the tax world: technically you should have read that small sign warning about them, and maybe you should have seen them hidden just off the beaten path, but ...

Moving Expense Tax Deduction for 2014

Moving Expense Tax Deduction for 2014
(This is part of a series looking at various common 1040 questions. To go back to the summary page, click here) My dad speaks German, and when he overhears someone speaking German in the US, he can’t help but interject for a brief chat. When he asks the tourist what they think of the US, they almost all ...

1040 Line 24 – Reservists, Performing Artists, etc.

1040 Line 24 - Reservists, Performing Artists, etc.
(This is part of a series looking at various common 1040 questions. To go back to the summary page, click here) Sometimes tax law is confusing on its own, and sometimes the IRS makes it confusing by jamming too much information into one line. 1040 Line 24 qualifies for the latter treatment, with so much information that ...

A Token of Help: Educator Expense Deduction 2014

A Token of Help: Educator Expense Deduction 2014
(This is part of a series looking at various common 1040 questions. To go back to the summary page, click here) My grandpa worked as a high school biology teacher for forty years, and one of his great pearls of wisdom to his three kids was to never go into teaching. Considering that two of them teach, and ...

Other Income Taxes and Self Employment

Other Income Taxes and Self Employment
(This is part of a series looking at various common 1040 questions. To go back to the summary page, click here) When working through the 1040, one line that can cause a bit of panic is the Other Income on Line 21. The rest of the lines are nice and specific, or at least specific enough to ...

Income Tax on Social Security Benefits

Income Tax on Social Security Benefits
(This is part of a series looking at various common 1040 questions. To go back to the summary page, click here) Social Security Benefits, like Unemployment Benefits, is one of those items that it seems odd that income tax would be required. The government is giving the money out–shouldn’t they just keep the part that they ...