filing status. You cannot live with your spouse and file a tax return
under the caption, head of household. This filing status is reserve
for single parents who share a household with their kids or support a
If you are
married at the end of the tax year, filing a separate income tax
return might not be your best option if you want to maximize your
income tax refund.
If you omit
an item from your income tax return, you should consult with your
accountant and do an amended income tax return as soon as possible.
Don’t wait and hope that the Internal Revenue Service will overlook
your mistake. It generally takes up to three years for the Internal
Revenue Service to communicate with you regarding the omission, and
penalty and interest will be added if there is a deficiency.
amend a return up to three years from the original due date.
If you have
not filed and are required to file income tax returns for more than
three years, you will not get a refund beyond the three year
limitation; however you will have to pay if there is a deficiency
regardless of the time period.
filers must keep accurate records to support income and deductions;
guesses and estimation will not work if there is an audit.
deduct business mileage and other automotive expenses on your income
tax return, you are required by law to keep a daily log of your
donate to a charity and get a benefit in return, the portion that is
attributable to the benefit is not a deductible item.
expenses must meet two criteria before they can be deductible; they
must be ordinary and necessary.
losses are only deductible to the extent of gambling winnings.
Gambling losses without winnings are not deductible.
If you are
forgiven a debt and receive a 1099-C (debt cancellation) in the mail,
income from the cancellation must be reported on your income tax
return. Current tax laws, however, can alleviate this burden if
certain requirements are met.
taxpayer gives birth to a child and the child dies within the year, an
exemption is allowed.