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 ...

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 ...

Happy 9/15

Happy 9/15
The tax preparers’ real deadline

Best Tax Pictures on Flickr

Best Tax Pictures on Flickr
While placed on an interminable hold with ThomsonReuters, I decided to check out Flickr for the best Creative Commons images that come up when you search for the word “tax.” Although the majority were pictures from protests (either for or against other people paying taxes), I was able to weed out a few that are ...

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 ...

Yep, You Do Pay Taxes on Unemployment

Yep, You Do Pay Taxes on Unemployment
(This is part of a series looking at various common 1040 questions. To go back to the summary page, click here) My wife and I had a short time where we received unemployment benefits. It was not long after I’d received my tax degree, so of course, the first thing that came to mind was “Wait? Do you pay taxes ...

Figuring Out Taxes On Home Sales

Figuring Out Taxes On Home Sales
(This is part of a series looking at various common 1040 questions. To go back to the summary page, click here) For generations, the American Dream has meant a spouse, two kids, a dog, and a house with a white picket fence. But happens when you need to sell part of that dream (The house part! I ...

Ordinary vs. Qualified Dividends: Fight!

Ordinary vs. Qualified Dividends: Fight!
(This is part of a series looking at various common 1040 questions. To go back to the summary page, click here) The entertainment world is chocked full of iconic fights through the years: Tyson vs. Holyfield, Batman vs. Superman (or Batman v Superman, for some reason), Kirk vs. Picard. All great clashes. In the tax world, the best we can ...

1040 Tax Preparation Tips

1040 Tax Preparation Tips
A few months ago I hitched up the ol’ wagon and started a case study that outlined some tips and tricks for filing a business tax return for a sole proprietorship. I finished all I had planned last week. An outline of the study can be found back on my original posting. If you have any additional ...