College Costs & Taxes

Education - Employer Reimbursements

Asked Tuesday, February 28, 2012 by an anonymous user

CPA Answer:

You must include in your income reimbursements your employer gave you for expenses of education that you need to meet the minimum educational requirements for your job, or is part of a program of study that can qualify you for a new trade or business.
Your employer will combine the amount of any reimbursement or other expense allowance paid to you under a nonaccountable plan with your wages, salary, or other pay and report the total in box 1 of your Form W-2.
CPAdirectory
Answer Provided by: CPAdirectory

Can I Deduct?

Education - Employer Reimbursements

Asked Tuesday, February 28, 2012 by an anonymous user

CPA Answer:

You must include in your income reimbursements your employer gave you for expenses of education that you need to meet the minimum educational requirements for your job, or is part of a program of study that can qualify you for a new trade or business.
Your employer will combine the amount of any reimbursement or other expense allowance paid to you under a nonaccountable plan with your wages, salary, or other pay and report the total in box 1 of your Form W-2.
CPAdirectory
Answer Provided by: CPAdirectory

Educational Tax Benefits

Employer Reimbursements - Education = Nonaccountable Plan = W-2 box 1

Asked Tuesday, February 28, 2012 by an anonymous user

CPA Answer:

You must include in your income reimbursements your employer gave you for expenses of education that you need to meet the minimum educational requirements for your job, or is part of a program of study that can qualify you for a new trade or business.
Your employer will combine the amount of any reimbursement or other expense allowance paid to you under a nonaccountable plan with your wages, salary, or other pay and report the total in box 1 of your Form W-2.
CPAdirectory
Answer Provided by: CPAdirectory

Dividends

How are liquidating dividends reported and taxed?

Asked Thursday, February 23, 2012 by an anonymous user

CPA Answer:

Liquidating distributions, sometimes called liquidating dividends, are distributions you receive during a partial or complete liquidation of a corporation.
These distributions are, at least in part, one form of a return of capital.
They may be paid in one or more installments.
You will receive Form 1099-DIV from the corporation showing you the amount of the liquidating distribution in box 8 or 9
When a liquidating dividend occurs, it is considered to be a return of capital and not profit.
If the distribution is more than your basis, you would have to report the difference as a capital gain. If the distribution is less than your basis, you may be able to claim a capital loss.
CPAdirectory
Answer Provided by: CPAdirectory

Can I Deduct?

Value of my time donated to a charity

Asked Thursday, February 23, 2012 by an anonymous user

CPA Answer:

You cannot deduct the value of your time or services rendered to your charitable organization.
CPAdirectory
Answer Provided by: CPAdirectory

Can I Deduct?

Blood given at a blood bank

Asked Thursday, February 23, 2012 by an anonymous user

CPA Answer:

You cannot deduct the value of blood given at a blood bank.
CPAdirectory
Answer Provided by: CPAdirectory

Charitable Deductions

Charitable Organizations - Selective Recipient listing

Asked Thursday, February 23, 2012 by an anonymous user

CPA Answer:

A partial list of acknowledged Registered organizations
Churches, temples, synagogues, mosques and other religious organizations.
Public charities such as United Way, Salvation Army, Goodwill Industries, Red Cross, Boys and Girl scouts, Boys and Girl Clubs of America, CARE etc.
War veterans' groups
Nonprofit volunteer fire companies, hospitals and schools.
Public Parks and recreation facilities.
CPAdirectory
Answer Provided by: CPAdirectory

Charitable Deductions

What are the IRS Publications detailed Charitable Contribution?

Asked Thursday, February 23, 2012 by an anonymous user

CPA Answer:

IRS Publication 526 and 561.
CPAdirectory
Answer Provided by: CPAdirectory

Charitable Deductions

How much of a deduction can I take for my donated goods?

Asked Thursday, February 23, 2012 by an anonymous user

CPA Answer:

There are valuation guides available to the public to calculate an amount for noncash contributions.
You can go to the Salvation Army website to view their Donated Goods Valuation Guide at www.salvationarmyusa.org
CPAdirectory
Answer Provided by: CPAdirectory

Charitable Deductions

How much am I allowed to claim as a charitible cash deduction?

Asked Thursday, February 23, 2012 by an anonymous user

CPA Answer:

The answer is, how much did you contribute and how much can you substantiate.
For contributions of $250 or less, a cancelled check or credit card statement is sufficient.
A written acknowledgement from the charity documenting the contribution's amount and date is also acceptable
For contributions of $250 or more, you must have written substantiation from the organization. A cancelled check is not sufficient.
CPAdirectory
Answer Provided by: CPAdirectory