Friday, April 10, 2009
Tuesday, March 17, 2009
Deductions: The Facts about Tuition & Fees
**this notification is simply an attempt to convey IRS meaning into a language the common hillbilly can understand. I follow due diligence practices and will not be held responsible for a mis-interpretation of my posts. I adhere as closely and often more stringent than IRS tax codes. It is always advisable to verify tax advice, as it is always the taxpayer who is responsible for their tax returns. this blog is an effort to perform a free service to those who would pull their hair out as they listen to yet another song on 1-800-829-1040.
1) Many people (taxpayers) miss deductions because they have to take the Standard Deduction, and are not itemizing. They think, "since I can't itemize, I cannot count my Fees, or Tuition for last year", - Hold up! Yes, you can claim a tuition and fees deduction.
1). The way to take this deduction is to get Form 8917. If you are doing your own taxes, search Form 8917, 2008. Follow the Form 8917 Instructions. This will be included with your regular Form 1040 (The Blue One - Long Form) or Form 1040A. (The Pink One - Average Tax Payer Form - usually with Attachment(s) A and / or B). Some software will have this listed as Expenses, Expenditures, Tuition, Fees.
2). You may be qualified for a deduction on tuition and fees expenses. This might be an adjustment to income, a Hope or Lifetime Learning credit, or – sometimes – as a business expense.
3). Reason A. You are not eligible = MFS - Married Filing Separate
4). Reason B. You are not eligible = If you are a Dependent on someone else's taxes. If you do not claim yourself, or if you are not qualified to claim yourself on your tax return.
5). Reason C. You are not eligible = The evil AMT & your filing status has cut into your tax liablilty, it could reduce the amount you can deduct for medical expenses. [very good reason to contact your Rep or Senators] Write or call your representatives and repeal the AMT now.
6). Reason D. Limitations = You cannot claim the tuition and fees deduction if you or anyone else claims the Hope or Lifetime Learning credit for the same student in the same year.
7). Reason E. Limitations = If you can take the educational expenses & are also allowable as a business expense, or the Tuition and Fees deduction may be claimed in conjunction with a business expense deduction. Decide which one and stick with it. One entry for these expenses.
8). You cannot claim a deduction or credit based on expenses paid with tax-free scholarship, fellowship, grant, or education savings account funds such as a Coverdell education savings account, tax-free savings bond interest or employer-provided education assistance.
9). The same rule applies to expenses you pay with a tax-exempt distribution from a qualified tuition plan, except that you can deduct qualified expenses you pay only with that part of the distribution that is a return of your contribution to the plan.
10). IRS Publication 970, Tax Benefits for Education, can help eligible parents and students understand the special rules that apply and decide which tax break to claim. The publication is available at IRS.gov or by calling 800-TAX-FORM (800-829-3676).
Issue Number: TT-2009-52 - March 17, 2009 is where I got my info. :8 - >
1) Many people (taxpayers) miss deductions because they have to take the Standard Deduction, and are not itemizing. They think, "since I can't itemize, I cannot count my Fees, or Tuition for last year", - Hold up! Yes, you can claim a tuition and fees deduction.
1). The way to take this deduction is to get Form 8917. If you are doing your own taxes, search Form 8917, 2008. Follow the Form 8917 Instructions. This will be included with your regular Form 1040 (The Blue One - Long Form) or Form 1040A. (The Pink One - Average Tax Payer Form - usually with Attachment(s) A and / or B). Some software will have this listed as Expenses, Expenditures, Tuition, Fees.
2). You may be qualified for a deduction on tuition and fees expenses. This might be an adjustment to income, a Hope or Lifetime Learning credit, or – sometimes – as a business expense.
3). Reason A. You are not eligible = MFS - Married Filing Separate
4). Reason B. You are not eligible = If you are a Dependent on someone else's taxes. If you do not claim yourself, or if you are not qualified to claim yourself on your tax return.
5). Reason C. You are not eligible = The evil AMT & your filing status has cut into your tax liablilty, it could reduce the amount you can deduct for medical expenses. [very good reason to contact your Rep or Senators] Write or call your representatives and repeal the AMT now.
6). Reason D. Limitations = You cannot claim the tuition and fees deduction if you or anyone else claims the Hope or Lifetime Learning credit for the same student in the same year.
7). Reason E. Limitations = If you can take the educational expenses & are also allowable as a business expense, or the Tuition and Fees deduction may be claimed in conjunction with a business expense deduction. Decide which one and stick with it. One entry for these expenses.
8). You cannot claim a deduction or credit based on expenses paid with tax-free scholarship, fellowship, grant, or education savings account funds such as a Coverdell education savings account, tax-free savings bond interest or employer-provided education assistance.
9). The same rule applies to expenses you pay with a tax-exempt distribution from a qualified tuition plan, except that you can deduct qualified expenses you pay only with that part of the distribution that is a return of your contribution to the plan.
10). IRS Publication 970, Tax Benefits for Education, can help eligible parents and students understand the special rules that apply and decide which tax break to claim. The publication is available at IRS.gov or by calling 800-TAX-FORM (800-829-3676).
Issue Number: TT-2009-52 - March 17, 2009 is where I got my info. :8 - >
Saturday, February 21, 2009
Here is a notification from the IRS.
There is a lot of talk around about the Stimulus Package, the following will help clearify what is really going on and how it may affect you.
The new American Recovery and Reinvestment Act of 2009 is the subject of
many conversations and is generating many questions. Many of these questions
center on how will this affect taxpayers this filing season and next. We have
placed information to help answer that question, and others, a special
website:
Tax Provisions in the American Recovery and Reinvestment Act of
2009
The Service is working diligently to complete an analysis
of this new legislation to determine its full effect on processes and forms and
to implement them. We are committed to doing this as quickly – but more
importantly – as thoroughly as possible and will be providing updates via
IRS.gov. So, please monitor our Website (www.irs.gov) for the latest
information over the course of the next few weeks and months.
The link above - was sent via IRS notification 2-20-09
For those of you with CPA's, and other Tax Professionals, make sure they update you on upcoming changes that may affect your particular tax scope. Many of you do not realize how much an hour you pay to these sages ahold of your "books", so make them earn it. Ask to be put on an e-mail notification list, or go to the IRS website and do a "search" for your item, include the tax year you are considering ie; 2008, 2009, 2010
Wednesday, February 18, 2009
Deductible Medical Expense Records!!! Easy!
Tax Professionals & Tax Payers,
A company that I love, is Walgreen's. Many of their products are Made in America, and they have reasonable prices and are coupon friendly.
Walgreen's also has on-line service for Prescriptions and many of their other products. Today they sent me an e-mail on down-loading their paid medical expenses for 2008. Way to go Walgreen's!! Thank you for making life easier.
I do not receive any compensation from Walgreen's for recommending their easy and helpful service.
walgreens@email.walgreens.com
A company that I love, is Walgreen's. Many of their products are Made in America, and they have reasonable prices and are coupon friendly.
Walgreen's also has on-line service for Prescriptions and many of their other products. Today they sent me an e-mail on down-loading their paid medical expenses for 2008. Way to go Walgreen's!! Thank you for making life easier.
I do not receive any compensation from Walgreen's for recommending their easy and helpful service.
walgreens@email.walgreens.com
Tuesday, February 10, 2009
Be Ware of Unknow Advertisers - Who is Legitimate?
Dear Everyone - The Gay CPA is legitimate! 02/10/2009
I check every advertiser on my site. It may take a day or two, but please use Safety tips blogged yesterday, when accessing any site.
I reported a fake advertiser yesterday evening and they are gone. The reason for Grizzly Bear Tax Care is because so many individuals who need good tax care are not given dignity during their return and it is reasonable to acknowledge not the best tax service. The Gay CPA will offer planning and sound advice for those in the gay community.
Grizzly Bear is to protect people and give dignity.
I check every advertiser on my site. It may take a day or two, but please use Safety tips blogged yesterday, when accessing any site.
I reported a fake advertiser yesterday evening and they are gone. The reason for Grizzly Bear Tax Care is because so many individuals who need good tax care are not given dignity during their return and it is reasonable to acknowledge not the best tax service. The Gay CPA will offer planning and sound advice for those in the gay community.
Grizzly Bear is to protect people and give dignity.
Thank you for choosing my site.
Grizzly Tax Cares and Helps advocates due diligence.
Bless us Everyone
Monday, February 9, 2009
ONLY TRUST www.irs.gov
I. Safety tip! when you look at the Title of a Site you are Searching, it may say File Free Here on the top, but where it says www. there will be the site name ie; irs and since it is a government agency - .gov. Misleading sites will say www. freeirs. com, leading you to think it is irs. The name of the business or agency should be the First Thing after www or don't go there.I am seeing some
advertisers on my site that are not familiar. The best way to get to a Secured site; like a tax preparation site, you want to go directly to that site.
II. A site is secure (safe from normal to high intrusion attempts), when the browser address [example: http://www.yahoo.com/yadayada] that is standard. Secure is https://www.taxslayer.com with a padlock on the browser. Continue to check for the "s" at the end of the http_. You are then secure.
STOP - LOOK - LISTEN UP FRIENDS *
Many tax returns are coming to the IRS in error. The IRS is sending public notices asking tax payers to take just a minute to familiarize yourself with the Recovery Rebate & the Stimulus Package.
Tax Scams
The Tax Gap
Noticias en Español
e-file
Forms and Publications
Frequently Asked Questions
Taxpayer Advocate Service
Questions and Answers about the Recovery Rebate Credit
The following are answers to some basic questions regarding the recovery rebate credit. Check back periodically for updates and additional questions and answers that may be added.
Basic Information
Q. What is the recovery rebate credit?
A. This credit is a new refundable credit that is related to the 2008 economic stimulus payment. Generally, a credit increases the amount of a refund or reduces the amount of taxes owed. Those who did not receive their economic stimulus payment (or did not receive what they were fully entitled to) in 2008 are eligible for the credit.
Q. What is the basis of the recovery rebate credit calculation?
A. The recovery rebate credit is calculated the same way and with the same requirements as the 2008 economic stimulus payment. The only difference is that the credit is based on the tax year 2008 income tax return and the stimulus payment was based on the tax year 2007 income tax return.
Qualifying for the Rebate
Q. Who is eligible?
A. Those who were eligible for the stimulus payment but did not receive it (or did not receive what they were fully entitled to) in 2008 are eligible for the credit. Also eligible for the credit are those who did not meet the requirements for the stimulus payment last year but whose circumstances have since changed, causing them to now meet the requirements.
Q. Why doesn’t everyone qualify for the rebate?
A. Most taxpayers have already received their full benefit in advance in the form of the 2008 economic stimulus payment. However, if certain conditions changed for taxpayers in 2008, they may be eligible for an additional benefit.
Q: How will the recovery rebate credit payments be made?
A: The Treasury won't send out separate economic stimulus payments for 2009. Instead, those eligible will claim the rebate credit on their 2008 returns. Credits generally increase the amount of a refund or reduce the amount of taxes owed.
Q. I was claimed as a dependent on my parents’ 2007 tax return, and was not eligible for the stimulus payment, but I lived on my own in 2008. Do I qualify for the rebate?
A. That depends on whether you can be claimed as a dependent on your parents' 2008 return. The rebate is based on circumstances that occurred in 2008, while the stimulus payment was based on the 2007 tax return filing information. You'll have to use the tax booklet's worksheet on claiming the recovery rebate credit to see if you're eligible to claim it.
Claiming the Credit
Q. How do I claim the recovery rebate credit?
A. Use the recovery rebate worksheet that is found in your 2008 tax booklet to figure the credit you can take, if any. Then, include that figure in the payments section of your 2008 tax return.
Q. How do I get help figuring the credit?
A. The IRS will figure the credit for you, if you enter “recovery rebate credit” next to line 70 on your Form 1040 (line 42 of Form 1040A; line 9 of Form 1040EZ). You can also access the online recovery rebate tools using the recovery rebate credit link on this Web site. For taxpayers filing electronically, the software will calculate any credit they may be due.
Q. What information do I need to figure the credit?
A. You need to know the amount of your 2008 economic stimulus payment to complete the recovery rebate worksheet. The IRS sent recipients Notice 1378, Economic Stimulus Payment Notice, which reported this amount and any reductions that were made to pay other debts. If you don’t have your notice, you can use the online tool How Much Was My 2008 Stimulus Payment? to find the amount.
Q. My filing status in 2007 was different than it is for 2008. Does this impact the amount of the credit I can claim?
A. Maybe. That's because married taxpayers who file jointly are each assumed to have received half of the economic stimulus payment. So, if your filing status for 2008 changed to or from Married Filing Jointly or if you remarried in 2008, follow these directions to determine the amount you need to use when determining the recovery rebate credit.
Q. What tools are available to help figure the credit?
A. The IRS will post interactive tools on this Web site to help figure the Recovery Rebate Credit: the Recovery Rebate Credit Calculator and How Much Was My 2008 Stimulus Payment?. The 2008 tax packages also include a worksheet to help figure the credit.
Q. When can I expect to receive my rebate?
A. The rebate is part of your 2008 income tax refund. The amount you receive for the recovery rebate credit will be included as part of your refund, as shown on your tax return. Unlike the stimulus payment, it will not be issued as a separate check. You can check the status of your refund under Where’s My Refund?. Generally, you will receive your refund within 6–8 weeks after you file your return.
Q. I am not required to file a tax return, but I still would like to get the rebate. How do I claim the rebate?
A. You must file a tax form to claim the credit, and be sure to fill in lines 7, 20a and 70 of your Form 1040 (lines 7, 14a and 42 of Form 1040A; lines 7 and 9 of Form 1040EZ).
Q. Because the IRS applied part of my stimulus payment to an outstanding debt, I actually received less than the total amount as stated on my Notice 1378. What amount should I use when figuring my credit?
A. You must use the total amount — the amount before the deduction to satisfy the debt — as stated on your Notice 1378. That total is considered to be the amount of your stimulus payment, even though part of it was used to satisfy a debt.
Economic stimulus payments received
Q. Do I have to claim my stimulus payment as income on my 2008 income tax return?
A. No, the stimulus payment is not reportable as income on your 2008 income tax return.
Q. My stimulus payment was more than what the worksheet calculates my recovery rebate credit to be. Does this mean I will have to pay the difference?
A. No, you do not need to repay the difference, and the difference will not affect your return. However, your recovery rebate credit will be zero.
Q. Will the payment I received in 2008 reduce my 2008 refund or increase the amount I owe for 2008?
A. No, the stimulus payment will not reduce your refund or increase the amount you owe when you file your 2008 tax return. The combined amount you received in the form of an economic stimulus payment plus any additional amount you receive, if any, in the form of a recovery rebate credit is independent of the normal tax you would have paid.
Q. I have no earned income and no filing requirement, but I filed a 2007 economic stimulus payment return to get the payment. Do I have to file a 2008 tax return?
A. If you received your stimulus payment, no. If you did not receive the stimulus payment, and do not pay income tax but have at least $3,000 in qualifying income for 2008, then you should file a 2008 tax return to receive the recovery rebate credit.
Related items:
Recovery Rebate Credit Information Center
Economic Stimulus Payment Information Center
1040 Central
Page Last Reviewed or Updated: January 16, 2009
Accessibility Freedom of Information Act Important Links IRS Privacy Policy USA.gov U.S. Treasury
There is a lot of information and much of it false telling people they are supposed to be getting these big checks for $12,000.00. They are mis-representing, don't fall for the Scam! I have included the announcement. If you need any help understanding, just leave a post or get with me, but if you have a question, probably 23 other people do too...
Tax Scams
The Tax Gap
Noticias en Español
e-file
Forms and Publications
Frequently Asked Questions
Taxpayer Advocate Service
Questions and Answers about the Recovery Rebate Credit
The following are answers to some basic questions regarding the recovery rebate credit. Check back periodically for updates and additional questions and answers that may be added.
Basic Information
Q. What is the recovery rebate credit?
A. This credit is a new refundable credit that is related to the 2008 economic stimulus payment. Generally, a credit increases the amount of a refund or reduces the amount of taxes owed. Those who did not receive their economic stimulus payment (or did not receive what they were fully entitled to) in 2008 are eligible for the credit.
Q. What is the basis of the recovery rebate credit calculation?
A. The recovery rebate credit is calculated the same way and with the same requirements as the 2008 economic stimulus payment. The only difference is that the credit is based on the tax year 2008 income tax return and the stimulus payment was based on the tax year 2007 income tax return.
Qualifying for the Rebate
Q. Who is eligible?
A. Those who were eligible for the stimulus payment but did not receive it (or did not receive what they were fully entitled to) in 2008 are eligible for the credit. Also eligible for the credit are those who did not meet the requirements for the stimulus payment last year but whose circumstances have since changed, causing them to now meet the requirements.
Q. Why doesn’t everyone qualify for the rebate?
A. Most taxpayers have already received their full benefit in advance in the form of the 2008 economic stimulus payment. However, if certain conditions changed for taxpayers in 2008, they may be eligible for an additional benefit.
Q: How will the recovery rebate credit payments be made?
A: The Treasury won't send out separate economic stimulus payments for 2009. Instead, those eligible will claim the rebate credit on their 2008 returns. Credits generally increase the amount of a refund or reduce the amount of taxes owed.
Q. I was claimed as a dependent on my parents’ 2007 tax return, and was not eligible for the stimulus payment, but I lived on my own in 2008. Do I qualify for the rebate?
A. That depends on whether you can be claimed as a dependent on your parents' 2008 return. The rebate is based on circumstances that occurred in 2008, while the stimulus payment was based on the 2007 tax return filing information. You'll have to use the tax booklet's worksheet on claiming the recovery rebate credit to see if you're eligible to claim it.
Claiming the Credit
Q. How do I claim the recovery rebate credit?
A. Use the recovery rebate worksheet that is found in your 2008 tax booklet to figure the credit you can take, if any. Then, include that figure in the payments section of your 2008 tax return.
Q. How do I get help figuring the credit?
A. The IRS will figure the credit for you, if you enter “recovery rebate credit” next to line 70 on your Form 1040 (line 42 of Form 1040A; line 9 of Form 1040EZ). You can also access the online recovery rebate tools using the recovery rebate credit link on this Web site. For taxpayers filing electronically, the software will calculate any credit they may be due.
Q. What information do I need to figure the credit?
A. You need to know the amount of your 2008 economic stimulus payment to complete the recovery rebate worksheet. The IRS sent recipients Notice 1378, Economic Stimulus Payment Notice, which reported this amount and any reductions that were made to pay other debts. If you don’t have your notice, you can use the online tool How Much Was My 2008 Stimulus Payment? to find the amount.
Q. My filing status in 2007 was different than it is for 2008. Does this impact the amount of the credit I can claim?
A. Maybe. That's because married taxpayers who file jointly are each assumed to have received half of the economic stimulus payment. So, if your filing status for 2008 changed to or from Married Filing Jointly or if you remarried in 2008, follow these directions to determine the amount you need to use when determining the recovery rebate credit.
Q. What tools are available to help figure the credit?
A. The IRS will post interactive tools on this Web site to help figure the Recovery Rebate Credit: the Recovery Rebate Credit Calculator and How Much Was My 2008 Stimulus Payment?. The 2008 tax packages also include a worksheet to help figure the credit.
Q. When can I expect to receive my rebate?
A. The rebate is part of your 2008 income tax refund. The amount you receive for the recovery rebate credit will be included as part of your refund, as shown on your tax return. Unlike the stimulus payment, it will not be issued as a separate check. You can check the status of your refund under Where’s My Refund?. Generally, you will receive your refund within 6–8 weeks after you file your return.
Q. I am not required to file a tax return, but I still would like to get the rebate. How do I claim the rebate?
A. You must file a tax form to claim the credit, and be sure to fill in lines 7, 20a and 70 of your Form 1040 (lines 7, 14a and 42 of Form 1040A; lines 7 and 9 of Form 1040EZ).
Q. Because the IRS applied part of my stimulus payment to an outstanding debt, I actually received less than the total amount as stated on my Notice 1378. What amount should I use when figuring my credit?
A. You must use the total amount — the amount before the deduction to satisfy the debt — as stated on your Notice 1378. That total is considered to be the amount of your stimulus payment, even though part of it was used to satisfy a debt.
Economic stimulus payments received
Q. Do I have to claim my stimulus payment as income on my 2008 income tax return?
A. No, the stimulus payment is not reportable as income on your 2008 income tax return.
Q. My stimulus payment was more than what the worksheet calculates my recovery rebate credit to be. Does this mean I will have to pay the difference?
A. No, you do not need to repay the difference, and the difference will not affect your return. However, your recovery rebate credit will be zero.
Q. Will the payment I received in 2008 reduce my 2008 refund or increase the amount I owe for 2008?
A. No, the stimulus payment will not reduce your refund or increase the amount you owe when you file your 2008 tax return. The combined amount you received in the form of an economic stimulus payment plus any additional amount you receive, if any, in the form of a recovery rebate credit is independent of the normal tax you would have paid.
Q. I have no earned income and no filing requirement, but I filed a 2007 economic stimulus payment return to get the payment. Do I have to file a 2008 tax return?
A. If you received your stimulus payment, no. If you did not receive the stimulus payment, and do not pay income tax but have at least $3,000 in qualifying income for 2008, then you should file a 2008 tax return to receive the recovery rebate credit.
Related items:
Recovery Rebate Credit Information Center
Economic Stimulus Payment Information Center
1040 Central
Page Last Reviewed or Updated: January 16, 2009
Accessibility Freedom of Information Act Important Links IRS Privacy Policy USA.gov U.S. Treasury
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