Personal Taxes
The most frequently asked tax questions related to Personal Taxes
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 file as head of household , I am single and live alone and have no dependents ?
Asked Thursday, January 05, 2012 by an anonymous userCPA Answer:
No. To use the Head of Household filing status, you must have paid over half the cost of keeping up a home for you and a child or other qualifying person for over half the year.
AMT Exemption - child subject to the Kiddie Tax
Asked Thursday, January 05, 2012 by an anonymous userCPA Answer:
Children under age 24 who are subject to the Kiddie Tax have a AMT Exemption equal to the child's earned income plus$6,950 ( $6,800 in 2011).
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.
Are traffic tickets deductible?
Asked Monday, November 28, 2011 by an anonymous userCPA Answer:
No. Fines for traffic violations, parking violations are not deductible.
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 there favorable tax deductions for a SUV?
Asked Monday, November 28, 2011 by an anonymous userCPA Answer:
Yes. The full cost of a heavy SUV (sport utility vehicle) can be deducted if not pre owned and placed in service new and used 100% for business. If the weight is between 6000 and 14000 pounds then there is a $25,000 limit on first year expensing of the vehicle.
Artists - Special rules
Asked Monday, November 28, 2011 by an anonymous userCPA Answer:
If you meet certain requirements to be identified as a "Performing Artist" you can deduct all of your car expenses as a adjustment to income directly on Form 1040 instead as a itemized deduction on Schedule A. There is a 5 step requirement test that must be answered before a person is identified as a Performing artist.
Is the costs of me driving to work deductible?
Asked Monday, November 28, 2011 by an anonymous userCPA Answer:
No. In general, costs of commuting between your home and workplace are not deductible. Costs for gas for