Nov 14, 2014 | Individual Income Tax Returns, Taxable Income
Retirement plan distributions are generally taxable unless they are from a designated Roth or Roth IRA account. Early withdrawals of funds from a retirement plan are subject to tax, and you may also be hit with a 10 percent additional tax penalty; however there are...
Nov 14, 2014 | Individual Income Tax Returns, Taxable Income
Debt that is forgiven or cancelled by an official lender is deemed to be taxable income. For example, if you settle a $5,000 credit card debt for $2,000, you will owe income tax on the $3,000 that was forgiven. Get Professional Accounting Help! For further questions...
Nov 14, 2014 | Individual Income Tax Returns, Taxable Income
When you receive alimony from a spouse or former spouse, it is necessary to report it as income in the year you received it. Alimony payments you make are tax-deductible but only if they are made under an official divorce decree. Payments not made under an official...
Nov 14, 2014 | Individual Income Tax Returns, Non-Refundable Tax Credits, Tax Credits
These credits can reduce your tax liability to zero but do not provide you with a refund. Here are some examples: Child Tax Credit: There are seven tests to help determine if your child is eligible. These tests include age, relationship, support, and residence. If the...
Nov 14, 2014 | Individual Income Tax Returns, Refundable Tax Credits, Tax Credits
A refundable tax credit can reduce your tax liability below zero, which means you can receive a tax refund from this form of credit. Here are some examples:Earned Income Tax Credit: This credit is designed for lower-income individuals and families who are working. The...
Nov 14, 2014 | Individual Income Tax Returns, Taxable Income
Money gained through gambling is considered taxable income. All cash winnings must be included, along with the fair market value of non-cash prizes won through gambling. You can claim gambling losses as a deduction but will not be allowed to claim more than your...
