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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.

Nov
23

Basic Tax Terms to Know

Posted by mir

As we prepare our taxes, we come across several terms that may or may not be familiar to us.  In lieu of this, I thought it might be helpful to provide definitions of these terms to hopefully decrease some confusion.  Listed below are some of the most common terms and their accompanying definitions:

Adjusted Gross Income (AGI): Gross income that is reduced by certain amounts, such as a student loan interest, or deductible IRA contribution.

Dependent: A person, other than the taxpayer or husband/wife, who allows the taxpayer to claim a dependency exemption.

Earned Income: This includes salaries, wages, tips, included in gross income, and net earnings that come from self-employment earnings.

Gross Income: Goods, services, money and property a person receives that is required to be reported on a tax return. This includes unemployment compensation and some scholarships, but not welfare benefits and nontaxable Social Security benefits.

Tax Credit: A reduction in tax that is paid out dollar for dollar. This can be directly deducted from taxes owed.

Tax Deduction: An amount that reduces the taxable income. This is usually a personal or business expense.

Tax Exemption: A portion of a person’s income that is not taxed.

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