Miscellaneous
The most frequently asked tax questions related to Miscellaneous
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Answer Tax QuestionsEarned Income Credit - Combat Pay
Asked Thursday, February 07, 2013 by an anonymous user
Special Rule for Combat Pay. Combat pay received by members of the military serving in Afghanistan, Iraq and other combat zone localities is usually exempt from tax.
But under a special rule, the taxpayer can choose to count all of this as taxable income when figuring the EITC. In many cases, making this choice enables the person to claim the credit, or if already eligible, claim a larger credit.
But under a special rule, the taxpayer can choose to count all of this as taxable income when figuring the EITC. In many cases, making this choice enables the person to claim the credit, or if already eligible, claim a larger credit.
Employer Disaster relief payments
Asked Thursday, January 24, 2013 by an anonymous user
Qualified disaster relief payments made to individuals by their employers or any other person may be excluded from those individuals’ taxable income.
Employer-sponsored private foundations may provide disaster relief to affected employees without endangering their tax-exempt status.
Employer-sponsored private foundations may provide disaster relief to affected employees without endangering their tax-exempt status.
Fees for requesting prior years returns
Asked Thursday, January 24, 2013 by an anonymous user
The IRS will waive the usual fees and expedite requests for copies of previously filed tax returns for affected taxpayers.
Taxpayers should put the assigned Disaster Designation in red ink at the top of Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, as appropriate, and submit it to the IRS.
Taxpayers should put the assigned Disaster Designation in red ink at the top of Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, as appropriate, and submit it to the IRS.
Casualty Loss - Choosing the Tax Year to claim the loss
Asked Thursday, January 24, 2013 by an anonymous user
Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either this year or last year.
Claiming the loss on an original or amended return for last year will get the taxpayer an earlier refund, but waiting to claim the loss on this year’s return could result in a greater tax saving, depending on other income factors.
Individuals may deduct personal property losses that are not covered by insurance or other reimbursements.
For details, see Form 4684 and its instructions.
Claiming the loss on an original or amended return for last year will get the taxpayer an earlier refund, but waiting to claim the loss on this year’s return could result in a greater tax saving, depending on other income factors.
Individuals may deduct personal property losses that are not covered by insurance or other reimbursements.
For details, see Form 4684 and its instructions.
IRS Website for information
Asked Thursday, January 24, 2013 by an anonymous user
For information on disaster recovery, individuals should visit disasterassistance.gov
or http://www.irs.gov/uac/Newsroom/Help-for-Victims-of-Hurricane-Sandy
IRS Disaster Assistance Telephone number
Asked Thursday, January 24, 2013 by an anonymous user
The IRS toll-free disaster assistance telephone number, 1-866-562-5227, if you are a hurricane victim with specific questions about tax relief or disaster related tax issues.
Can I contribute to an IRA when I only receive Combat pay?
Asked Thursday, January 05, 2012 by an anonymous user
Yes. Members of the armed forces serving in a combat zone which is considered tax free can contribute to Traditional and Roth IRA plans.
In reference to Financial aid, who qualifies as a Veteran?
Asked Thursday, December 29, 2011 by an anonymous user
Veteran status is needed for Federal financial aid purposes when determining dependency status. A veteran is a former member of the US Armed Forces (Army, Navy, Air Force, Marines or Coast Guard) who served on active duty and was discharged other than dishonorably, meaning: received an honorable or medical discharge. You are a veteran even if you serve just one day on active duty, (not active duty for training before receiving your DD-214 and formal discharge papers). In order for a veteran to be eligible for VA educational benefits, they must have served for more than 180 consecutive days on active duty before receiving an honorable discharge. There are exceptions for participation in Desert Storm/Desert Shield and other military campaigns.) ROTC students, members of the National Guard, and most reservists are not considered veterans. Since the 1995-96 academic year, a person who was discharged other than dishonorably from one of the military service academies (the U.S. Military Academy at West Point, the Naval Academy at Annapolis, the Air Force Academy at Colorado Springs or the Coast Guard Academy at New London) is considered a veteran for financial aid purposes. Cadets and midshipmen who are still enrolled in one of the military service academies, however, are not considered veterans. According to the US Department of Education's Action Letter #6 (February 1996), "a student who enrolls in a service academy, but who withdraws before graduating, is considered a veteran for purposes of determining dependency status". Having a DD-214 does not necessarily mean that you are a veteran for financial aid purposes. As noted above, you must have served on active duty and received an honorable discharge.
What is the ROTC program?
Asked Thursday, December 29, 2011 by an anonymous user
The Reserve Officers' Training Corps. (ROTC) provides students with money for college. Generally, the arrangement is, in exchange for the college education, the student must make a commitment to join the armed services after graduation. After graduation, students become commissioned officers in the Marine Corps, Army, Navy or Air Force. ROTC scholarships pay for tuition, fees and books for all four years of college. Lesser programs are available for students who want to make lesser commitments.