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Boy meets Girl. Boy marries Girl. After five years, Boy files for divorce from Girl and skips town. Shortly thereafter, IRS contacts Girl, because Boy didn't report all his income on their last joint tax return. Girl signed the return, so she was liable for the tax. Girl screams. Okay, so it's not exactly a classic love story. But, sadly, it's a story that rings true for many an unfortunate taxpayer -- with some variations. Sometimes, Boy passes away, leaving Girl with the unpaid taxes. Sometimes Boy is available, but bankrupt. Sometimes it's Girl who underpays her taxes and leaves Boy with the bill. Whatever the circumstance, the IRS ends up collecting tax from someone who's liable only because he or she filed a joint tax return. But, wait -- don't ALL married couples file joint tax returns? Isn't that in the vows somewhere, right after "til death do us part" or "in sickness and in health"? Well, it's true that most married couples do file jointly, simply because it's usually simpler and cheaper to do so. But it's important to keep in mind that filing jointly is an elected practice, and can sometimes create problems. Filing a joint return means that both individuals...more
Its human nature to commit mistakes. In fact, making and learning from mistakes is the very thing that makes us successful.And when it comes to making mistakes on tax returns, mistakes can be costly.Outlined below are the most pedestrian IRS Tax mistakes according to the IRS. If you can check and double-check the items below, you would have...more
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Many people are unaware of an inheritance tax exemption that could be saving families a fortune. The tax exemption is for military personnel who die as a result of injuries or diseases sustained while on military service. Even if they die years later...more
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In Part I, we discussed the different tax brackets for the Regular Tax and for the Alternative Minimum Tax, as well as the AMT exemption. For 2009 for married couples filing jointly (MFJ) the AMT exemption was $70,950. In this article we will...more
If you earn more than £100,000, your tax code also allows for the income-related reduction to the Personal Allowance. If you earn more than £150,000 from your main source of income, tax is deducted at 50 per cent as appropriate. It may be that your...more
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