Claiming a dependent is usually pretty simple: you give the IRS their social security number, and claim that your relationship with your dependent satisfies a few simple rules. But things can get more complicated: someone else can also claim the same person as a dependent, and if they get their filing in first, the IRS will assume it’s legitimate. What can you do then?
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Archive for June, 2009
“Someone Else Claimed My Dependent” — How To Straighten Things Out
Tuesday, June 30th, 2009Amazon.com And North Carolina Split Over Sales Tax
Tuesday, June 30th, 2009One of the keys to Amazon.com’s remarkable growth has been their “affiliate” program. They allow anyone to link to Amazon products and get a cut of every purchase. It’s a great program for Amazon, because it gives them a sales force with hundreds of thousands of members, none of whom need a salary. And it’s good for customers, too, since it gives people an incentive to write about the products they like, that others might like, too. In fact, some bloggers have been able to make a decent income off of Amazon affiliate payments. But all is not well for Amazon or Amazon’s affiliates.
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Where are the First Time Home Buyer’s Checks?
Monday, June 22nd, 2009With the recent talk of raising the first-time homebuyer’s credit, one important question is still open: why are the current checks taking so long to go through? No one expects the tax credit to be instantaneous, and of course the IRS will need to validate each claim. But reports of delayed tax credits are pouring in — and when the tax credit is a key part of financing a new home, this has people nervous.
Realtors Association Calls for Higher New Home Tax Credit
Monday, June 22nd, 2009One of the fastest responses to the real estate slump was a new homebuyer credit. The plan, of course, was to stimulate new home purchases. It may have already had an effect — housing starts have jumped lately, and the property market has stabilized — but that may not be enough. If the National Association of Realtors gets their new plan enacted, the credit will be nearly doubled, and the “First-Time” part of “First-Time Home Buyer Credit” will be dropped.
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New Jersey Cleverly Increases Back Taxes by 1000%
Friday, June 19th, 2009New Jersey made headlines today after the state collected as much as $600 million from a tax amnesty. It looks like great news: the state is collecting extra money during a recession, and late tax filers are able to pay back the money they owe without getting bitten by high interest and fees.
The problem is the behavior this engenders. A quick look at their previous tax amnesties reveals the effect this kind of program has on New Jersey taxpayers:
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IRS Commissioner and Treasury Secretary Talk Up a Tax Cut
Wednesday, June 17th, 2009Contrary to recent rumors, the IRS isn’t trying to tax employee mobile phones as a benefit. Instead, they’re getting rid of the existing tax — which nobody had bothered to pay.
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State Income Tax: Living in One State, Working in Another
Monday, June 15th, 2009Most people in the US live and work in the same state, which can make state taxes pretty easy to understand: you’re earning money, and you’re paying a tax on it. But what if you live in one state and work in another? Are you getting taxed on where you live when you make money, or where you make your money?
One Tax Falls $50B Short, but a New $500B Tax is On The Way
Saturday, June 13th, 2009Two big, related stories today:
New Regulations Ahead: Will Your Taxes be Affected?
Tuesday, June 9th, 2009The IRS has announced an overhaul of their tax preparer regulations. This comes at a time when a tough economy makes scams more attractive. At the same time, the possibility of a safe income from preparing taxes has encouraged less qualified people to join the industry. The IRS’s attention to this issue makes sense, but there are more questions about their actual plan.
What do State Tax Hikes Mean for You?
Saturday, June 6th, 2009States are facing unprecedented budget deficits, as sales, real estate, and income tax revenue evaporate. From California to New Jersey are raising taxes, cutting benefits, and scrambling to borrow the money they need to pay the bills.
As CNN reports on tax hikes:
Already, 16 states have taken this unpopular step this fiscal year, and another 17 have proposed tax hikes for the coming year, according to the Center on Budget and Policy Priorities, a policy group. In many cases, they are making small increases in specific taxes, rather than imposing a broad rate hike.