David Fisher
Maybe they move a lot. Or maybe they’re just forgetful. Whatever the case, the IRS finds itself trying to track down thousands of taxpayers every year who fail to collect their refund checks.
In 2011 alone, the agency reported that 99,123 checks remained uncollected by November, mostly due to what it called “mailing address errors.”
If you think you might be one of the unfound, it could be worth your while to do some checking – the average unclaimed check amounted to more than $1,500.
You have two options for finding out whether there’s a check with your name on
Getting ripped off by a financial scammer can be a devastating and humiliating experience.
But at least you won’t get fleeced twice at tax time.
New IRS rules issued in the wake of the multi-billion dollar Bernie Madoff investment scam have attempted to make it simpler and easier for swindled taxpayers to deduct their theft losses.
The process of determining the amount of losses and pinpointing the tax year in which they occurred is still complicated. But IRS rulings 2009-9 and 2009-20 are intended to help taxpayers calculate their tax-deductible losses and balance them against the prospect of recovery. The
Be forewarned. Even the Internal Revenue Service concedes that the gift taxes are “considered to be some of the most complicated in the Internal Revenue Code,” particularly if you plan to use gifts as an estate planning tool.
However, if you just want to spread a little bit of money around at a time, the rules are not so daunting.
First, the basic definition: A “gift” is any item of value that you transfer to someone that is not paid for, in full, either in money or in assets. The gift giver – not the recipient – generally pays the
Money is just money if you’re trying to buy a cup of coffee.
But to the IRS, not all dollars look alike.
Capital gains – the dollars you make by selling assets for more than you paid for them – are taxed much more lightly than regular income – the dollars you make by toiling in the salt mines.
While regular income can face tax rates as high as 35 percent if you make enough money, long-term capital gains rates are capped at 15 percent as of 2012. While that rate might rise to 20 percent if the Bush-era tax
If you joined the federally subsidized fun back in 2008 and pocketed a tax credit for buying your first home, it’s time to pay the piper. Again.
Buyers who used the credit in 2008 – unlike those who used it in later years – must repay it in 15 installments. The latest of these will be due this year at tax time. The installment payment goes on your 1040 Form, Line 59b.
The credits, which ran up to $7,500 in 2008 then increased to $8,000 in later years, helped to slow the decline in the nation’s plunging housing market. At
Brace yourself.
Despite the 2 percent reduction you got in your Social Security and Medicare taxes last year, your federal income tax refund is likely to be several hundred dollars lighter this year, all things remaining equal.
The reason: The Making Work Pay Tax Credit – a legacy of the 2008 economic stimulus bill – disappeared for the 2011 tax year. That means that the $400 credit you got in 2009 and 2010 if you are single and working – $800 if you’re married and both of you work – won’t be there when you file your 2011 tax return
