Taxes: this intricated game
http://www.amcastonline.com/news/articles/46/1/Taxes-this-intricated-game/Page1.html
Tomaso Veneroso
By Tomaso Veneroso
Published on 02/27/2008
When you think that you have a clear idea on taxes the Government make sure to confuse you even further.
Confusion arise especially when the government hands out money.
Time limit when Treasury owns money.
If you are entitle to a refund but you do not file your tax return you have to file whitin three years from the date of return was due in order to collect that refund.
A year ago the IRS announced that unclaimed founds totaling $2.2 billion were awaiting about $1.8 million people who hadn't file a fed tax return for 2003.
In order to benefit from the economic-stimulus check this year you simply need to file a tax return for 2007.If you do not file for this year you wont get anything for 2008.
If you sell your home for more than you have paid for it you do not need to reinvest in a new home whitin certain time to get the most tax benefit.
In particular you can exclude up to $250,000 or $500,000 if you are married and file joint.
To qualified for the exclusion you need to live in the home that you have owned for at least two of the five years prior to sale.
You may be entitle for those exclusions if you are going to change a job or health.
There is some help on the way for widows and widowers from Congress.Under the new law a widow can take advantage of up $500,000 of exclusions if she sells the home in within two years from the death of the husband.
In case of a loss on a sale of a home the IRS it is very strict and states that the " loss on a sale of your main home cannot be deducted". ( IRS 523)
The law allowing to deduct the state and local sales taxes has expired at the end of last year therefore you can still take advantage of it on your tax return for 2007.
You do not have to live in a state with no income tax to be eligible to deduct sales taxes.
Congress did not change the rule for the alternative minimum tax ( the so called patch applies only to the 2007 tax year and not 2008). Unless Congress take action about 26 million people will be ensnared by the AMT.
If you have neglected to claim the one-time phone -tax refund on the last year tax return you need to file an amended return for 2006 on Form 1040X.
Confusion arise especially when the government hands out money.
Time limit when Treasury owns money.
If you are entitle to a refund but you do not file your tax return you have to file whitin three years from the date of return was due in order to collect that refund.
A year ago the IRS announced that unclaimed founds totaling $2.2 billion were awaiting about $1.8 million people who hadn't file a fed tax return for 2003.
In order to benefit from the economic-stimulus check this year you simply need to file a tax return for 2007.If you do not file for this year you wont get anything for 2008.
If you sell your home for more than you have paid for it you do not need to reinvest in a new home whitin certain time to get the most tax benefit.
In particular you can exclude up to $250,000 or $500,000 if you are married and file joint.
To qualified for the exclusion you need to live in the home that you have owned for at least two of the five years prior to sale.
You may be entitle for those exclusions if you are going to change a job or health.
There is some help on the way for widows and widowers from Congress.Under the new law a widow can take advantage of up $500,000 of exclusions if she sells the home in within two years from the death of the husband.
In case of a loss on a sale of a home the IRS it is very strict and states that the " loss on a sale of your main home cannot be deducted". ( IRS 523)
The law allowing to deduct the state and local sales taxes has expired at the end of last year therefore you can still take advantage of it on your tax return for 2007.
You do not have to live in a state with no income tax to be eligible to deduct sales taxes.
Congress did not change the rule for the alternative minimum tax ( the so called patch applies only to the 2007 tax year and not 2008). Unless Congress take action about 26 million people will be ensnared by the AMT.
If you have neglected to claim the one-time phone -tax refund on the last year tax return you need to file an amended return for 2006 on Form 1040X.