Personal Taxes

The taxpayer Has the Burden of Proof. To deduct a casualty loss, the taxpayer must meet all of the following tests and requirements to take a casualty loss:
•Be able to show that there actually was a casualty loss including showing all of the following:
The type of casualty, Its date of occurrence, That the loss was a direct result of the casualty , That the taxpayer owned the property or was liable for the damage to the owner of the property, and whether there is a claim for insurance reimbursement with a reasonable expectation of recovery. and Justify the amount taken as a deduction.

The President has the authority to declare certain areas as Federal Disaster Areas, which can accelerate a tax refund claim when claiming a casualty loss. Thus, the federal government allows a casualty loss claim to be effective for the tax year immediately preceding the tax year in which the casualty event occurs.
Many areas in New York, New Jersey, and Connecticut that were affected by Hurricane Sandy were declared Federal Disaster Areas and, while Hurricane Sandy occurred in tax year 2012, a casualty loss can be claimed for tax year 2011 if the casualty took place in one of those designated areas.
The taxpayer has three years from the due date of a return to file an amended return and claim a refund. Importantly, claiming the loss in the prior year is at the election of the taxpayer for disaster area losses. He or she can choose the tax year in which the loss is claimed.
If the Hurricane Sandy-loss occurred in a location not declared a disaster area then the loss can be claimed only for the 2012 tax year.

ATRA for 2012 allows nonrefundable personal credits to reduce the AMT.

The AMT Patch was the mechanism used by Congress to offset the failure of the tax law to automatically require an adjustment of the AMT brackets for inflation.
This failure, with the resulting need for the annual Patch, has been going on since 2000.
Congress permanently addressed the AMT issue by indexing the annual exemption limits for inflation retroactive for 2012.

For 2012 tax years, the alternative minimum tax exemption for a child subject to the Kiddie Tax is limited to the sum of (1) the child's earned income for the taxable year, plus (2) $6,950.

Generally damages received for Wrongful termination are taxable as compensation.

Punitive damages are taxable even if they relate to a physical injury or sickness. An exception to this exists for damages awarded under a state wrongful death statute.

If you meet certain tests- the distance test ( your new job location is 50 miles or more from your old home) and time test ( you work full time as an employee for at least 39 weeks at the new location) :

1.Traveling related costs incurred by you or your family, moving from the old home to the new location are deductible. This includes lodging, your auto expenses if you drive, airfare, parking and tolls. Family members may move on separate dates and they are all deductible
2. Costs of moving your household items like furniture, shipping your personal goods are deductible.

Your filing status and gross income determine if you have to file a 2016 tax return. In the year 2016 if your filing status is single and under age 65 then the gross income must be more than $10,350 If 65 or older than the gross income must be more than $11,900 .
If your filing status is Married and living with your spouse as of the last day of the year and both people are under age 65 then the gross income must be more than $20,700 If one over 65 and one 65 or older then the gross income amount must be more than $21,950 . If both people are 65 or older then the gross income must be more than $23,200
If your filing status is Head of Household and under age 65 then the gross income must be more than $13,350 If 65 or older than the gross income must be more than $14,900 . If your filing status is Widow(er)and under age 65 then the gross income must be more than $16,650.if 65 or older than the gross income must be more than $17,900.
If your filing status is Married filing a separate return the the gross income must be more than $4,050 regardless of the age.