Category IRS

Morningstar article on dependent-care FSA vs tax credit

A must-read from Morningstar for anyone with kids in daycare, with a nanny, etc. In particular, there are some great examples of how much less is going to be paid in taxes one way vs. the other. The dependent care FSA lets one put away money (through one’s employer, only) on a pre-tax basis […]

IRS: Standard Deduction vs. Itemizing – Seven Facts to Help You Choose Worth reading the article linked to above.  When working with folks on their taxes, the question of itemizing vs. taking the standard deduction comes up very frequently. The short story is that you should do whichever allows you to pay less in taxes.  Your standard deduction (if you are allowed to take it) effectively […]

(Almost) Everyone can file their federal individual income taxes electronically for free

From the IRS: For folks who earn $57,000 or less (and – don’t be surprised – it’s an awful lot of folks — 70% of the nation’s taxpayers!) may use brand-name software and secure e-filing for free. The providers who are participating include H&R Block, TurboTax, Liberty Tax services and others. Start here and […]

How to get your prior-year tax information from the IRS

We all file our taxes each year, and dutifully, we each keep copies in our files, right?  You know, along with all the receipts, your copies of your W-2 and 1099s. So what happens if you need some of the information but can’t find it?  The IRS can’t necessarily help with everything – they don’t […]