Ask a CPA

If the Estate pays the decedents personal medical expenses within 1 year of the date of death, the expenses can be deducted on the decedent’s final 1040 tax return as itemized deduction subject to the 10% or 10% / 7.5% AGI floor.

If you live in the same house as your ex-spouse and are legally separated or divorced, you cannot deduct your alimony payments, nor is your ex-wife required to report the alimony as income.

Yes. By mutual agreement one spouse can forego the deduction for alimony and the other spouse can receive the benefit of not being required to pay taxes on the alimony received.

Debt cancelled in a Title 11 bankruptcy case is not includable in your gross income if the cancellation is granted by the court or under a plan approved by the court. Certain losses, credits and basis of property must be reduced by the amounts excluded by cancellation of debt.

Generally you may deduct on Form 1040 Schedule A qualifying mortgage interest on up to 2 residences as well as premiums paid for mortgage insurance.
A residence may be a coop unit, condominium, mobile home, houseboat, that has cooking, sleeping and toilet facilities.
Interest on debt secured on more than 2 residences may still be deductible if you use the proceeds for investment or business purposes.

If Points qualify as mortgage interest they are deducted over the term of the lease unless they are paid as part of the purchase of your principal residence. Refinanced points are amortized over the life of the mortgage.

Yes. Members of the armed forces serving in a combat zone which is considered tax free can contribute to Traditional and Roth IRA plans.

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.

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.

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.