Articles for tag: Itemized Deductions, Taxable Income

Are Transportation Fringe Benefits Subject to Income Tax?

You may receive certain fringe benefits at work to compensate for commuting or parking costs, including direct reimbursements and transit passes. According to the IRS, qualified transportation fringe benefits can be excluded from your taxable income up to certain limits. These benefits include transportation in a commuter vehicle, such as a van, between your home ...

State Income Tax Breaks in Pennsylvania

You generally have to file a Pennsylvania state income tax return if you were a resident, nonresident or part-year resident and you received Pennsylvania gross taxable income in excess of $33 for the year, even if no tax is due. So you may be required to file a Pennsylvania tax return even if you do ...

Guide to the 2009 Tax Brackets

Guide to the 2009 Tax Brackets Benjamin Franklin may have said it best “‘In this world nothing can be said to be certain, except death and taxes.” This may be true but smart planning for taxes will save you a major headache. Due to inflation 2009 tax brackets will be widened. Almost every taxpayer will ...

Net Operating Losses and U.S. Income Taxes

A net operating loss (NOL) for tax purposes, occurs when your deductions for a year are greater than your taxable income for the year. If you have negative taxable income when you prepare your tax return, you may have a net operating loss. This is generally caused by deductions from a trade or business, or ...

Karla News

Income Tax Consequences of Lump Sum Alimony Payments

Generally, alimony payments can be deducted for federal income tax purposes by the spouse who pays the alimony. And the spouse who receives alimony payments must report them as taxable income. This also applies to lump sum payments and can result in significant tax consequences for the spouses. For example, a lump sum payment may ...

Karla News

When Are You Considered Insolvent for Tax Purposes?

Normally, when debt is forgiven, the cancelled debt is considered taxable income for federal income tax purposes for the person whose debt is forgiven. This could occur in the case of a foreclosure or the short sale of a home. The Mortgage Debt Relief Act of 2007, which was extended until the end of 2012, ...