Can I Take a Bad Debt Deduction?

May 12, 2012

in Business Taxes

When you make a loan that’s not paid back or are unable to collect outstanding invoice in your business, the tax laws sometimes allow you to take a bad debt deduction. If and how you take the bad debt deduction depends on whether it relates to a business, an investment or a personal loan. Under [...]

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Tax Tips for Divorced Parents

May 12, 2012

Getting divorced can be an extremely emotional experience for taxpayers, especially when children are involved and you have to deal with lawyers every day. Once you finalize your divorce, however, you can’t avoid how your annual income tax returns will change because of the divorce. But this may actually be a good change that reduces [...]

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Expenses You Can Write Off as an LLC Consultant

May 12, 2012

Many taxpayers are able to support themselves working as a self-employed LLC consultant. If you make even a small amount of money during the year from consulting new business owners on the legal implications of using an LLC structure, there are a number of write-offs you can take on your income tax return to reduce [...]

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Does Your W-4 Affect State Withholding?

May 12, 2012

If you earn income by working as an employee, your employer will ask you to fill out a federal W-4 form so they can estimate the amount of federal and state income taxes to withhold from your wages each pay period. Despite your employer being able to use your federal W-4 for state income tax [...]

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How to Find Your AGI

May 12, 2012

It doesn’t matter whether you file your income tax return on the 1040, 1040A or 1040EZ form; you can always find your adjusted gross income (AGI) above the “total income” line. When using tax forms 1040 or 1040A, your AGI is reported at the bottom of the first page of the form. However, if you [...]

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How to Calculate AGI for a Past Tax Year

May 12, 2012

If you want to know what your adjusted gross income, or AGI, is for a past tax year, but you’re unable to find a copy of your return or never even filed it to begin with, you can still calculate it with just a few pieces of information. Your AGI is going to change each [...]

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The Purpose of Modified Adjusted Gross Income

May 12, 2012

As its name implies, modified adjusted gross income, or MAGI, is a variation of your adjusted gross income that’s used by the IRS as an income threshold to qualify for various deductions and credits. But unlike the AGI reported on your tax return, your MAGI isn’t a fixed amount. It can require a different calculation [...]

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Can I Amend My Tax Return from Single to Married Filing Separate

May 11, 2012

Choosing the best filing status is an important part of preparing your income tax return since it determines which tax brackets apply to you. And if you ever make a mistake, such as filing as a single taxpayer when it should be married filing separate, you should amend your tax return on IRS Form 1040X [...]

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Modified Tax Return Definition

May 11, 2012

The definition of “modified tax return” is a tax return that you make changes to after filing it with the IRS, more commonly referred to as an amended return. When you modify, or amend, a return on Form 1040X, it’s usually because you forgot to take a deduction or credit or failed to report all [...]

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I Forgot to Claim My Adult Son as a Dependent on My Tax Return

May 10, 2012

All dependent exemptions that the IRS lets you claim for your children, including those who are adults, may save you a significant amount in income taxes. But if you file your taxes and forget to list your adult son as a dependent, you can file an amended return to claim it. However, you have a [...]

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What Happens if I Forgot to List a W-2 on My Tax Return?

May 10, 2012

If you forgot to include the wages from one of your W-2 forms on your tax return, there’s no reason to panic, but you can’t just ignore it either. The only way the IRS allows you to correct the situation is by amending the original tax return on Form 1040X to include all of the [...]

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Can I Amend My Tax Return for Education?

May 10, 2012

If the motivation for amending your tax return is to meet income limitations for your school’s scholarship offerings, maximize your federal student aid package or to take advantage of an educational tax benefit, such as the American opportunity credit for your education expenses, you’re still required to follow the IRS rules and tax laws that [...]

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I Forgot to Claim Someone on My Taxes

May 9, 2012

Reporting dependents on your income tax return is a smart way to save money on your taxes. For every dependent you report, the Internal Revenue Service lets you to claim one exemption that can reduce taxable income. But, if you forget to claim someone on your tax return, you may be able to amend your [...]

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Rules for Amending Your Tax Return

May 9, 2012

The Internal Revenue Service lets you amend your income tax returns on IRS Form 1040X for a large number of reasons, regardless of whether it’s to obtain a larger tax refund than you initially claimed on your 1040 or to voluntarily increase the tax you owe. Be aware, however, that there are IRS rules and [...]

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I Forgot to Claim Something on My Tax Return

May 9, 2012

Nothing is set in stone, and that includes your tax return. If you forgot to claim something on your tax return this year, or even one from a prior year, the IRS allows you to amend it by filing Form 1040X. As long as you were eligible to claim the deduction or credit that you’ll [...]

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