| Relief From Retirement Plan Rollover Time Requirements |
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| Under the Internal Revenue Code, a taxpayer is entitled to withdraw assets from one qualified employer retirement plan or traditional Individual Retirement Arrangement (IRA) and place them in another qualified plan so long as the transfer occurs within 60 days of the taxpayer's receipt of the distribution. The Internal Revenue Service and various courts have stringently enforced the 60-day rule even when it was clear that the taxpayer intended to completed the rollover and acted in good faith but that the failure to complete the transfer was beyond his or her control. More... |
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| Tax Benefit Rule |
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| The purpose of the tax benefit rule is to create a balance between what appeared to be a proper deduction at the time it was taken and the fact that the assumptions on which the deduction was based were erroneous. If a taxpayer deducted an amount from his gross income in one year resulting in a tax benefit to him, and an event occurred in a later year that was fundamentally inconsistent with the premise on which the deduction was based, then the taxpayer must include an amount in gross income of the current year to the extent that the amount was deducted in the prior year. More... |
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| Educator Expense Deduction |
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| Eligible educators are entitled to deduct up to $250 from gross income for unreimbursed out-of-pocket expenses incurred for books, supplies, computer equipment (including related software and services), other equipment, and supplementary materials used in the classroom. If the educator teaches courses in health and physical education, expenses for supplies are qualified expenses only if they are related to athletics. More... |
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| What to Do If You Have Not Received a Form W-2 |
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| You are familiar enough with the tax laws to know that you should receive a "Wage and Tax Statement" (also known as a Form W-2), from every one of the employers that you worked for during the year. You need it to prepare your federal, state, and local income tax returns because it contains a summary of your taxable and non-taxable wages along with all the taxes, both income and social security, that have been withheld. More... |
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| Cancellation of Certain Student Loans |
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| The general rule is that if you are responsible for making loan payments and the loan is forgiven, you are required to include the amount of the cancelled loan in your gross income for federal income tax purposes. However, under certain circumstances, a forgiven student loan may be entitled to tax-free treatment. More... |
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