The Tax Questions Blog

Posts Tagged ‘sharing’

Question: Does the tax code need to be this big or this complex?

I read that the complete tax code in paper form would exceed the rating for a 1/2 ton pickup truck. And although I don't make a ton of money I wouldn't dream of doing my own taxes just because I have multiple income sources.

Now those people who make a ton of money can afford tax accountants and tax lawyers to find every loophole to minimise the tax burden they bear. But to me it's just insurance in case the IRS comes after me.

Shouldn't the tax laws be simpler? I know it would put many CPAs out of business but wouldn't it be better if you and I didn't need a CPA to figure out taxes?

Answer: The problem is that every time the congress goes to simplify the tax code they take out a lot of complications but then add in new ones. Every lobbyist comes rushing in to remind legislators that there are urgent needs in their home district that can be met by adding a new wrinkle to the laws that benefits only their clients and screws the rest of us.

Oversight of tax preparers? It’s about time

Most of us don’t do our own tax returns. My husband did ours for years. He finally surrendered, too frustrated with the never-ending task of keeping up with changes to the tax code. We now pay a professional, and it is money well spent to pass on the aggravation to someone else.

Tax Day SUCKS!!! - Doing my taxes and paying what I DO NOT OWE!

Question: Can I claim a donated website as a tax deductible donation?

I am a web designer and I donated a website to a non-profit organization. Normally I would invoice a client for $800 for this website, but like I said, it was donated so I didn't receive a dime. Is there a way to write this off as a tax deductible donation? What kind of documentation would I need to provide?

Answer: Normally not! It would appear that you did not have any out of pocket expense and only donated your time. If that is the case there is no deduction allowed.

Ten Tips For Deducting Your 'Hobby'

Here's how to keep Uncle Sam from claiming your small side business is really a hobby.

Help Save A Life

Question: How do I amend a tax return to reflect a change in social security income?

I am trying to help out a relative who accidentally listed their monthly social security amount instead of the yearly on their 2007 tax return. None of the social security is taxable, but she was disqualified from a stimulus payment because the amount she put on her taxes was under $3000.

There isn't a space to include this on the amended return. Is it okay just to send a regular 1040A?

Answer: File a 1040X and state the reason for the amendment in the explanation section, with the dollar amount of the Social Security payment.

Write a notation across the top of the 1040X such as "Social Security Rebate"

IRS gets tougher on tax preparers

The days of sitting down with a shoebox of receipts and filling out a tax return yourself on paper are largely gone.

The Big Tax Return Pt2of2