10 Popular Tax Questions

No - Income averaging has not been available for over 25 year.

No- That was an old rule than has not existed since the 1980s. Currently, if you are single and live in your home for 2 out of the last 5 years, you can exclude up to $250,000 of the gain. A married couple filing jointly can exclude up to $500,000 of the gain. Any gains that exceed these amounts would be taxed at the capital gains rate.

No- Unfortunately burial and funeral costs are not a deduction on your income tax return

Contributions to a 529 Plan for your child's education are not deductible on the federal return. However, some states like NY do allow a deduction for contributions to a 529 plan. The advantage of making contributions to a 529 plan are that the earnings in the plan will not be taxed if the distributions are made for qualified educational purposes.

Generally the answer is no. There are various tests that must be met for someone to be claimed as a dependent. One of the tests is the "relationship"test. If the person was a qualifying relative that you provided 50% support and they lived with you all the entire year and made less than $4,050 of earned income, then the answer could be yes.

Sorry- you cannot deduct the value of your time for the services you provided. . However you may deduct the actual travel expenses incurred or use a mileage allowance of 14 cents a mile. This can be taken on Schedule A as a non-cash contribution.

No - Consumer - non business debt is not an allowable deduction.

Finding out the status of your refund is easy. Just Go to the IRS website at Where's My Federal Refund?

In the mid 1980s the alternative minimum tax was introduced to make sure high earners paid their fair share of taxes. Unfortunately over the years, as a result of inflation, more and more individuals are subject to this tax computation. The Alternative Minimum tax is almost like a flat tax in that it limits the tax deductions one can take. If the alternative minimum tax calculation, computed on IRS form 6251, results in a higher tax than the regular income tax computation, then you pay the alternative minimum tax. Certain deductions may trigger the alternative minimum tax including, but not limited to, deductions such as real estate taxes, state taxes and interest on home equity loans , and miscellaneous investment or job expenses.