Today TaxMama® hears from Hamed in the TaxQuips Forum, who is quite annoyed. “I sent a change of address form to my IRS auditors with my response to the audit. They ignored the change of address and sent their response to my response to the old address

Today TaxMama® hears from Dave in the TaxQuips Forum, with this question. “How do we deduct interest on a reverse mortgage?” Dear David. You don’t. In a reverse mortgage, the homeowner isn’t paying any interest. They are receiving

Today TaxMama® reads the Tax Prof Blog’s notes about who benefits from the mortgage deduction. According to an analysis reported in the NY Times, only 30% of Americans really benefit from this deduction. They are essentially in the “upper-middle and

Today TaxMama® hears from John with this naïve question. “I have been mulling about this idea for a long time. I want to start a tax prep and services business. I have been doing returns for friends and associates for the past 2 years and want to inco

Today TaxMama® hears from Don with this intriguing question. “My homeowner’s association had a lawn vendor that didn’t charge sales tax for several years. He charged us all at once. Now that the payment is made, what is the correct account to which

Today TaxMama® hears from Michael with this earth-shattering question. “I received a small class action settlement ($3.50) from a class action against Classmates.com . Is this settlement taxable for IRS purposes?” Dear Michael, Sure, isnâ€

Today TaxMama® hears from Kevin with an idea others have had. “Recently our investment property is actually turning into a little bit of income property. If I hire out a job to be done, I usually write off the expense, including labor. If I do the work

Today TaxMama® hears from Larry with this concern. “At age 64, I am still working full time. My hours and pay rate have been reduced so that I now have a $ 600 + per month deficit. My mortgage payment is $700 per month. (My wife is a full time student

Today TaxMama® hears from Tasha with a disturbing problem. “My girlfriend is thinking of filing for an education tax credit even though she is not enrolled in school at the moment. She says the person doing her taxes can issue a 1098T form if and when

Today TaxMama® hears from Rando with a question that has become more and more common in today’s economy. “What is the maximum income my son can earn, who lived with us all year, and still be declared as a dependent on my tax return?” Dear Rand