What has to be filed for the non-custodial parent to claim the child as a dependent?
- April 19th, 2023
- David Greene
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This question deals with the same problem the reader had last week, but in a different way. If a taxpayer seeks to claim dependent children after a divorce but is not the custodial parent, he must file Form 8332 with…
How can the IRS deny a taxpayer’s exemption for his child?
- April 12th, 2023
- David Greene
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Usually, when the IRS denies your exemption for a child, it means that someone else filed before you did, claiming the same child as an exemption. This usually arises when a stepparent and biological parent both claim the exemption. However, in…
Requirement for a non-custodial parent to claim child.
- May 6th, 2019
- David Greene
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If a taxpayer seeks to claim dependent children after a divorce but is not the custodial parent, he must file Form 8332 with his return. This form must be signed by the custodial parent. Otherwise the dependency claim will be denied. …
Does a Personal Injury settlement have to be counted as an asset in an Offer in Compromise?
- December 12th, 2018
- David Greene
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Let’s look at the situation where, except for the settlement, you would be eligible for an Offer In Compromise based on doubt as to collectibility. In any Offer in Compromise, the IRS will require that you count the settlement as an…
Here are the Dirty Dozen tax scams for 2018 according to the IRS.
- May 9th, 2018
- David Greene
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The Dirty Dozen: (1) Telephone scams threatening to have you arrested if you don’t pay immediately. The IRS will never call you asking for money. (2) Phony emails asking you to go to a website and give personal information. The…
What does the new Tax Reform mean for Pass Through Entities starting in 2018?
- April 11th, 2018
- David Greene
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One of the most significant changes under tax reform is the tax treatment of businesses. Unlike changes to the individual tax scheme, which are temporary and somewhat piecemeal, the changes to the business tax scheme are permanent and fairly thorough….
Is the rumor that most refunds may be delayed for months this year true?
- April 4th, 2018
- David Greene
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This is one of several myths about refunds that seem to be circulating this year. It is indeed a myth. In truth, most refunds are sent out within 21 days of filing the return. To get your refunds faster, be…
How long should you keep your tax return preparation documents?
- July 11th, 2017
- David Greene
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The answer is not as simple as you might think. If you have the room, it would be wise to keep those records for at least ten years. In these days it is easy to scan paper documents and store…
What are the most common mistakes made on a tax return?
- March 7th, 2017
- David Greene
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Here are the most common mistakes the IRS sees from self-prepared returns: (1) Math errors – be sure to check your math twice; (2) Misspelled name or changed name not updated (be sure the name on the return matches the…
Examples of stupid deductions that the IRS disallows
- March 1st, 2017
- David Greene
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Unfortunately the IRS is not lenient when you try to deduct expenses for which there is no valid reason. Here are a few examples of deductions that have been tried and “shot down” by the IRS. (1) A real estate…