If you have a farming business, several tax issues can impact your tax situation. The following list includes some of those issues. Crop Insurance Proceeds — You must include in income any crop insurance proceeds you received as the result of crop damage. You generally include them in the year they were received. Sales Caused by Weather — If you are a cash-method farmer and … [Read more...] about Things to Know about Farm Income and Deductions
Tax Breaks for Charity Volunteers
If you volunteer your time for a charity, you may qualify for some tax breaks. Although no tax deduction is allowed for the value of services performed for a charity, there are deductions permitted for out-of-pocket costs incurred while performing the services. The normal deduction limits and substantiation rules also apply. The following are some examples: • away-from-home … [Read more...] about Tax Breaks for Charity Volunteers
Out-of-Pocket Expenses of Caring for Foster Cats Qualified for Charitable Deduction
A tax court has held that a taxpayer could claim a charitable contribution deduction for some of her foster cat expenses for Fix Our Ferals, a recognized charitable organization that specializes in the neutering of wild cats to humanely control feral cat populations. The court ruled that the taxpayer substantially complied with the recordkeeping requirements for less than $250. … [Read more...] about Out-of-Pocket Expenses of Caring for Foster Cats Qualified for Charitable Deduction
Next Year’s Tax Refund May Be Lower
Taxpayers accustomed to receiving a tax refund every year should be aware of the fact that there are two tax changes for 2011 that could impact their tax liability, possibly making the refunds anticipated next spring lower or even resulting in tax due for taxpayers who normally have small refunds. For 2011, Congress did away with the Making Work Pay tax credit, which was a … [Read more...] about Next Year’s Tax Refund May Be Lower
Getting Older With No Retirement Savings in Sight?
One of the earliest lessons in life is that actions have consequences, and approaching retirement age without a substantial nest egg is one of those consequences. But if you are in this situation, you are not alone, as millions of other Americans are faced with the same need to save enough to retire comfortably. Our priorities shift throughout our lives. Early in the life … [Read more...] about Getting Older With No Retirement Savings in Sight?