Divorce Raises Questions About Your Tax Return

If you are in the midst of a divorce, or if your divorce was finalized in 2015, your tax return will require extra attention this year. It’s important to consult with a qualified tax professional to ensure that your return is completed properly and accurately and that you claim all of the tax benefits to which you are entitled.

Below are just a few of the questions that your recent or pending divorce may raise about your return.

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When Do You Need to File Form 1099-MISC?

If you pay someone who is not your employee in connection with your trade our business, you may be required to file Form 1099-MISC to report these payments. If you’re unsure whether you need to submit a 1099-MISC for expenses you’ve paid, these guidelines will help you decide.

Generally speaking, you must file a 1099-MISC and provide a copy to the recipient of payments

  • To someone who is not your employee
  • Who is an individual, partnership, or estate (or in limited circumstances, to a corporation)
  • In an amount of at least $600
  • For services in the course of your trade or

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Keep an Eye Out for Form 1095

If you or some members of your family had health insurance during 2015, you’ll want to keep an eye out for Form 1095, which should arrive in the mail sometime in early 2016. Make sure to keep this form with your W-2s and other income tax forms that your tax preparer will need.

Depending on what type of health insurance you had or were offered during 2015, you will get one of three 1095 forms.

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How Your New Child May Affect Your Taxes

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You’re welcoming a new child into your family. Congratulations! This young person will bring many things into your life – joy, frustration, love, anxiety, additional costs, and, thankfully, additional tax benefits. Here are some of the ways your tax return may change this year: Read more

Using the Simplified Method of Calculating the Home Office Deduction

home_office

Prior to 2014, taxpayers who wished to claim the home office deduction had to fill out a lengthy form (Form 8829) and often make complex calculations in order to do so. In an effort to lighten the burden on small, home-based businesses, however, the IRS introduced a simplified method for taking the home office deduction, which became available for the first time for tax year 2013. This new, simplified method makes it easy to claim the home office deduction to which you’re entitled. Read more

What Is the Gift Tax, and When Does It Apply?

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What is the Gift Tax?

The gift tax is a tax levied on the transfer of property from one person to another in exchange for nothing or for less than the property’s full value. While this seems to cover many transactions that most of us make many times throughout the year, the exceptions to the gift tax actually make taxable gifts fairly rare. Read more

I Just Won a Lawsuit! Is My Award Taxable?

Law gavel on a stack of dollars isolated on gray

When you receive money from a lawsuit or settlement, it’s important to consider your tax liability before you start spending it. The IRS rules make distinctions between different types of awards when determining what you must claim as income and what you can leave out.

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Tax Tips For Starting a Business

Tax Tips For Starting A Business

Starting your own business can be exciting and rewarding.  It is critically important, however, to understand all of your tax and recordkeeping obligations. Use this guide to help you make sure you are ready for tax season.

One of the first things you will need to do is decide what type of business you will establish.  Each carries its own legal and tax requirements.  For detailed information on the types of business taxes to which you may be subject, see http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Business-Taxes.

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