Does the Government Subsidize Gambling Losses?

Does the Government Subsidize Gambling Losses?
A while back, I had a client receive a notice from the IRS demanding why he didn’t include his over $100k in gambling winnings on his tax return. “But I don’t gamble!” he promptly reported, figuring that the issue was a mistake and would be quickly put to rest. The IRS responded by sending slip ...

The Itemized Deduction – Its Benefits and Limitations

The Itemized Deduction - Its Benefits and Limitations
(NOTE: if you’re looking for a list of itemized deductions, go back to the 1040 summary page here) The term itemized deduction is thrown around in comment sections and news articles like its a delicious ball of cotton candy, ready to be plucked by whoever is willing to pull off a handful. The reality is that there’s ...

Dealing with Taxable Refunds

Dealing with Taxable Refunds
(This is part of a series looking at various common 1040 questions. To go back to the summary page, click here) Receiving a tax refund can produce feelings of elation matched only by winning the lottery–very minor lotteries, at least. Heck, the IRS even has an app whose entire purpose is so you can track your Federal refund status when ...