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Haiti Donations in Early 2010 OK For Claiming On 2009 Returns

Posted by Administrator on Feb-1-2010

The IRS announced a new tax relief for people who contributed to providing earthquake relief in Haiti. It allows contributors to get the tax advantage of the donation for their 2009 claim rather than waiting a year for the benefit.

According to the irs.gov website, only cash contributions made after January 11, 2010 and before March 1, 2010 will qualify. All cash donations made after March 1, 2010 will only be eligible to be claimed for the 2010 tax year.

To gain the benefit, you must itemize your tax deductions using Schedule A. For more information, please visit the IRS website at irs.gov.

Oct
02

Filing Taxes the Year of a Divorce

Posted by mir

Divorce Tax Tips

Taxes are bad enough, and so is going through a divorce, but put the two together and you’ve got a huge mess.  If you are currently facing these two issues, here are a few hints that might help along the way.

  1. First and foremost, the day your divorce is finalized is very important.  If your divorce is finalized by no later than December 31 of that year, the IRS will consider you unmarried for the entire year.  Knowing this may help you plan the best day for your divorce finalization.
  2. If you were not yet divorced in the year you’re filing for, you can still file jointly.  You and your partner should probably decide if it’s best to file as “married,” “married filing separately,” or “married filing jointly.” You can run the numbers to see which one would give you both the best return.
  3. Be aware that taxes play a large role in how your property is distributed. The IRS decides how property distribution, child support and alimony are reported.
  4. Alimony is considered taxable income for the recipient and it is tax-deductible for the giver.  Child support, however, is not taxable income for the recipient and it is not tax-deductible for the giver.
  5. The IRS assumes that the parent with custody of the children is allowed to claim exemptions for those children.  However, spouses can trade them back and forth if desired using IRS Form 8332.
  6. Before you do anything, seek out professional help to make sure you don’t get burned.

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