If you've received a Form 1099-C, don't freak out -- but don't ignore it either.
If a creditor has forgiven or canceled a debt of $600 or more, it is obligated to send you and the IRS a copy of this form. This includes debts discharged in bankruptcy and those forgiven by credit card companies.
Now that you know why you received a Form 1099-C, you need to determine whether or not you must pay taxes on the reported amount.
Presidential candidate Mitt Romney's tax returns have called attention to capital gains. As you probably now know, capital gains are usually taxed at a lower rate than other types of income -- but they're not just for the super-rich.
Anyone with a capital asset can claim a capital gain when that asset is later sold, according to the Internal Revenue Service. A "capital gain" is how much money you made by selling the asset. (However, if you lost money in the deal, and it's investment property, it's called a "capital loss.")
So what is considered a capital asset? And can you claim the sweet 15% capital-gains tax rate like Mitt Romney does?
If you're squirreling away money in an offshore account, 2012 may be the right year to come clean. The IRS' amnesty program will be in full swing again later this year.
The IRS started the voluntary program in 2009 and opened it again in 2011. The 2009 program has already collected around $3.4 billion. A total of more than 15,000 taxpayers came forward.
The 2011 program brought in $1 billion. This figure is expected to grow as the IRS processes more cases. And it seems clear that the government believes there are more wealthy Americans hiding their assets overseas.
As marriage rates continue to decline in the United States, unmarried couples may be looking to the IRS for an excuse to stay unhitched.
That's because in this day and age, love and marriage also go together with adverse tax consequences, attorney and tax planner Jeff Schnepper writes for MSN Money. Unmarried couples who cohabitate may end up paying less in taxes than married couples, Schnepper suggests.
How does that happen? The answers can be found in five of Schnepper's top tax reasons not to get married.
This season, consider giving the gift of a charity. Many consumers give charitable donations (and get tax deductions as an added bonus) during this time of year.
If you're considering making a donation, brush up on tax law first. This way, you can ensure you get the most out of your contributions. So, what are some issues you should be aware of?
Sex change surgeries are now tax deductible. Those who undergo gender reassignment surgery will now be able to deduct these costs from their taxes according to the Internal Revenue Service.
The IRS has recently notified the Tax Court that it will abide by its 2010 decision that allowed Rhiannon O'Donnabhain to deduct the $5,000 she spent on the surgery.
O'Donnabhain was born male and fathered three children. She was married but divorced in 1996, and had the surgery in 2002. She underwent an IRS audit in 2003, and the lawsuit was filed in 2006. She told the court she was uncomfortable with her gender starting at age 10.
O Christmas Tree Tax! O Christmas Tree Tax! Much pleasure thou can't give me!
The Christmas tree industry is taxing itself. Or shall we say, it is passing a 15-cent self-imposed tax onto consumers. And all with the government's approval.
The Agricultural Marketing Service (USDA) has created a new industry-funded Christmas tree promotion program, which places a 15-cent tax on each produced or imported tree.
The money will be used improve the public's perception of real, live, trees.
Alaska's same-sex couples will now be enjoying some additional tax privileges. An Anchorage judge ruled last Friday that same-sex couples will now qualify for tax exemptions traditionally reserved for married spouses.
At issue is a property tax exemption that requires local governments to give seniors and disabled veterans a $150,000 exemption on their primary residence.
Same-sex couples that qualified for the property tax exemption ran into problems with the law. Married couples get the full amount of the exemption even if only one spouse qualifies and the other owns the home.
Is child support tax-deductible? In the same vein, is alimony tax-deductible?
While the dissolution of a marriage is undoubtedly personally difficult and emotionally draining, there's no doubt that it can also create a strain on a person's finances.
And, it can raise some serious questions as to what should go on your tax return and what shouldn't.
A new FindLaw.com survey has shown that about 1 in 4 Americans have challenged their property tax. And the result? Often, a property tax reduction.
The survey found that around 24% of the homeowners asked had challenged their property assessments at some point of their home ownership. And, around 75% of those who challenged their assessment found their property tax reduced as a result.
The net reduction in the property tax was between 1 and 4%. As a home owner, what do you need to do to challenge your property assessment and get a similar reduction in your property tax bill?
