Income Tax
Taxable and Nontaxable Income
In a perfect world, all of our income would be nontaxable income, instead of taxable. But, alas, that is not the case. In fact, it us most likely the reverse – most types of income are taxable, instead of nontaxable. … read more
Income Taxes – A Long Road Traveled
As news comes in this morning of our almost leap over the fiscal cliff, you may ask, “How did we get here and has it always been this complicated?” Well, President Lincoln signed the first revenue-raising measure to help pay Civil War … read more
I am Not a Person; Therefore I Have no Tax Liability
Are you a person? I think I am last time I checked. But IRS says there are some individuals and groups that maintain that they are not a “person” as defined by the Internal Revenue Code, and thus not subject … read more
Do I Need to Pay Taxes if I don’t Work for the Government?
Another frivolous tax argument hanging around is based upon the contention that the only “employees” subject to federal income tax are employees of the federal government. This argument asserts that the federal government can tax only employees of the federal … read more
Taxpayer Not A “Citizen” of U.S. – Are They Still Subject to Federal Income Tax Laws?
It has been well publicized recently that some wealthy individuals have renounced their U.S. citizenship in favor of a foreign country in order to obtain more favorable tax treatment. However some individuals try a bit of a different angle on … read more
Does Military Retirement Pay Count As Income?
First of all I am very thankful that we have a military that is second to none on this planet. In no small way they help protect the freedoms we all have today in their service to our great country. … read more
What to do if you Make an Excess Contribution to Roth IRA
If you over contributed to your Roth IRA (either because you contributed too much and/ or your adjusted gross income was above the contribution limit), you will need to withdraw the excess contribution(s). Contact the institution your IRA is with … read more
Frivolous Tax Arguments: Contention that Wages, Tips, and Other Compensation Received for Personal Services are Not Income
This would sure be nice if true wouldn’t it? Maybe when it comes to paying taxes, but not so much if you’re applying for a loan and they want to know your income. But I guess some folks just want … read more
New Arizona School Tuition Organization Tax Credit
Recently enacted Arizona SB 1047 establishes a new “overflow” tax credit for contributions to a qualified school tuition organization (STO) that exceed the amount allowed under the existing STO tax credit. Under current law, a nonrefundable individual and corporate tax … read more
No Net Income and He Still Owes Tax!
I recently prepared a tax return for a client that had a loss on their tax return. If fact, he had a Net Operating Loss on his return that we were planning on carrying back to prior years. He seemed … read more