Personal Taxes
The most frequently asked tax questions related to Personal Taxes
I am legally married . Must I file a joint tax return ?
Asked Thursday, January 05, 2012 by an anonymous userCPA Answer:
No. If you are married (as of the last day of the year),you may elect to file using the status of married Jointly or married Separately. Generally, separate tax returns may be more beneficial and save both people money, especially when both people have earnings and taxable income, and high medical or miscellaneous itemized deductions. Filing separately may allow more of the phased-out itemized deductions which are based on the taxpayer(s) Adjusted Gross Income.
I got married during the year. Can I still file as single for this year?
Asked Thursday, January 05, 2012 by an anonymous userCPA Answer:
No. If you are married on the last day of the year, you must file either married filing jointly or married filing separately. You are not allowed to file as a single or Head of Household.
Married filing Separately - benefits lost
Asked Thursday, January 05, 2012 by an anonymous userCPA Answer:
If you are Filing as Married filing separately, you must have lived apart from your spouse for the last 6 months of the year to take advantage of the dependent care, earned income, elderly credits and the $25,000 rental loss allowance.
Also Social Security will be 85% taxable.
Speak to your local CPA about the tax strategy of using married filing jointly or married filing separately.
Also Social Security will be 85% taxable.
Speak to your local CPA about the tax strategy of using married filing jointly or married filing separately.
I am filing as head of household , what is the Gross income amount to determine if I must file a tax return
Asked Thursday, January 05, 2012 by an anonymous userCPA Answer:
For the current year, If your filing status is head of household and you are under 65 then your gross income must be at least $12,850 ($12,500 in 2012). If you are 65 or older then your gross income must be at least $14,350 ($13,950 in 2012). Gross income does not include Social Security benefits.
I am unmarried with a child. Do I file using the filing status single, head of household or widow(er)?
Asked Thursday, January 05, 2012 by an anonymous userCPA Answer:
If you are unmarried at the end of the year, you may be able to file as a head of household or widower if you pay for more than 50% of the household costs for the child or relative that lives with you. You may file as a widow(er) if you became a widow(er) in the 2 prior tax years, and in the current tax year you paid more than 50% of the household costs for you and the dependent child. The tax rates for widow(er) and head of household are more favorable than filing as a single.
Can I claim Head of Household filing status because my relatives signed a multiple support agreement?
Asked Thursday, January 05, 2012 by an anonymous userCPA Answer:
No. You are not eligible to choose head of household filing status if the qualifying person is your dependent because a multiple support agreement Form 2120 was filed.
Leased auto - income inclusion
Asked Monday, November 28, 2011 by an anonymous userCPA Answer:
If you leased a vehicle for more than 30 days and you deduct the lease charges as opposed to using the standard mileage allowance then you must add to your income a income inclusion amount which is based on a IRS table.
IRS pub 463 has the lease tables.
IRS pub 463 has the lease tables.
Are traffic tickets deductible?
Asked Monday, November 28, 2011 by an anonymous userCPA Answer:
No. Fines for traffic violations, parking violations are not deductible.
What is the standard mileage rate for using my car for business
Asked Monday, November 28, 2011 by an anonymous userCPA Answer:
Beginning on January 1, 2012, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be 55.5 cents per mile for business miles driven.
The standard mileage allowance for business use of a auto in 2011 is 51 cents from 1/1/11-6/30/11 and 55.5 cents from 7/1/11-12/31/11.
The standard mileage allowance for business use of a auto in 2011 is 51 cents from 1/1/11-6/30/11 and 55.5 cents from 7/1/11-12/31/11.