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Tax Preparation (graded)
IRS Website (graded)
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IRS Website (graded)

Please research a topic on the IRS website that may be germane to your personal
circumstances, and share your information with the class. Please pick a topic that
your classmates have not already shared. A link to the IRS website is located in the
course Webliography.

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(an instructor response)
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IRS as a resource
9/5/2015 10:19:56 AM

Professor Rodriguez Email this

We tend to think of the IRS as our adversary but a quick look at the website will
show just how many resources are provided to those that look. Which topic is
addressed or what resource is provided that you find relevant on this website?

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RE: IRS as a resource
9/6/2015 6:54:23 AM

Gerald Spencer Email this

The IRS is a great resource for a variety of things... for my wife i used the site to
obtain her EIN number to start a business as well as it was needed to utilize for a
checking account.

(an instructor response)

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RE: IRS as a resource
9/8/2015 11:33:17 AM

Professor Rodriguez Email

Gerald, that will just be the starting point for her if she is operating a small
business. The resources for small businesses are substantial.

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RE: IRS as a resource
9/6/2015 11:25:29 AM

Megan Staub Email this

One resource that I find helpful is the link to all of the IRSs forms and publications.
If an individual is viewing the IRS.gov website and is on the home page, there is a
link on the top left that says Forms and Pubs. Click this link to go to all of the
IRSs forms and publications. The next page will load, and you can click on another
link that says Find all Current Forms & Pubs. Click on the link and it will take you to
a searchable list of all of the IRSs current forms, publications, and instructions. I
am currently paying back my student loans, so I did some research on student loan
interest deductions. I searched the IRSs website for form 1040 instructions and
found out that the student loan interest is deductible on line 33 on the 2014
individual tax return 1040 (IRS.gov). I already knew that the maximum student loan
interest deduction that could be applied per year is currently set at $2,500, but the
IRSs website showed me how this is calculated. This can be a helpful financial
planning tool for anyone who is paying student loans. An individual can try to pay
as close to $2,500 in student loan interest per year as possible (as long as they
have this much to pay), because it will decrease their tax burden. I also already
knew that a deduction on the 1040 is an expense that decreases an individuals
taxable income, which means their tax is lowered by less than the deduction
amount. However, I did not know that a credit reduces an individuals tax burden,
not their taxable income (IRS.gov). This means that a credit reduces a taxpayers
owed taxes dollar for dollar and a deduction reduces a taxpayers owed taxes by the
deduction amount times their tax rate.

http://www.irs.gov/pub/irs-pdf/i1040gi.pdf

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RE: IRS as a resource
9/7/2015 5:13:54 PM

Nicole McDaniel Email

Megan,

I'm trying to see your example as numbers:

Deduction = expense = decreases taxable income = tax lowered by less than

deduction

credit = reduced tax burden

I'll use round numbers to make it easier. So, if someone makes $50,000, and the
standard deduction is 5,000 then the taxable income is $45,000.

$45,000 * 17% = $7,650

So, a credit would be applied to the $7,650, correct? A credit of $500 would be
subtracted from $7650, right?

$7,650 - $500 = $7,150

??

When would you receive a credit? If you over-paid taxes the year before? Or is this
where capital losses comes into play?

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RE: IRS as a resource
9/8/2015 5:54:39 PM

Megan Staub Email this

Nicole,

I should have clarified my wording in my previous post. A deduction is an expense

that a taxpayer is allowed to take on page one of the 1040. The deductions I am
referring to are listed from line 23 to 35 on page one of IRS form 1040 (IRS.gov).
These deductions, like the student loan interest deduction, reduce a taxpayers
adjusted gross income, which is the amount of income the IRS taxes before
standard or itemized deductions. The credits I was referring to are on page two of
form 1040. Credits are listed from line 48 to 54 on page two of the IRS form 1040
(IRS.gov). These credits reduce the amount of tax an individual owes dollar for
dollar, which means they reduce the individuals tax burden for the amount of the
credit. So using your example, lets say an individual makes $50,000 per year.
Also, assume the same individual paid $2,500 of student loan interest and qualified
to take the full $2,500 as a deduction. This means the taxpayers adjusted gross
income would come down to $47,500. If this individuals tax bracket was 10% (for
simplicity purposes), the individual would owe $250 less in taxes. This is because
$2,500 less of income times the 10% tax bracket is $250 (assuming the deduction
didnt drop the individual out of the 10% tax bracket). Now lets assume the same
individual gets a child tax credit for having two kids and the credit is worth $2,000.
If the individuals taxable income was $50,000 and their tax rate was 10%, the
individual would owe $5,000 before any deductions or credits. However, when the
$2,000 child tax credit is applied, the individual now only owes $3,000 in taxes.
This example demonstrates how deductions reduce taxable income, which reduces
tax by a percentage of the deduction, while a credit reduces the amount of taxes
owed by an individual dollar for dollar. Also, keep in mind that this example is very
simplified and tax rates and brackets are not 10% for an individual who makes
$50,000 per year!

http://www.irs.gov/pub/irs-pdf/f1040.pdf

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RE: IRS as a resource
9/8/2015 6:38:42 PM

Nicole McDaniel Email

Modified:9/8/2015 6:40 PM
I haven't done my own taxes in years as my step father is a CPA; however, he had a
stroke a few months ago so I will be doing my own taxes next year.

I did not realize you could see the tax forms at any time of the year on the IRS
website. I see now the examples you are citing and know full well that a person
who makes $50,000 a year does not fall into the 10% tax bracket, no worries.

What I also did not realize was that we use a progressive tax structure. Per our
book on page 77, I calculated my average taxes. Here's my next question, let's say
I make $80,000 per year, but my take home pay doesn't really change throughout
the year, does that mean my company is using averages based on how much I will
make over the entire year? Also, our bonus always seems to be taxed more, I see
now why, it's due to the progressive tax structure, and since bonuses are just that,
they are not factored into the "average" for the rest of the year. Is my
understanding correct?

Source: Gitman, Lawrence J., Michael D. Joehnk, and Randy Billingsley. Personal
Financial Planning, 12e, 12th Edition. Cengage Learning, 2014. VitalBook file.

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RE: IRS as a resource
9/9/2015 1:49:09 PM

Carrah Burton Email this

Nicole,

You bring up a great question about bonuses being taxed much higher than your
income. It's actually not because of the progressive tax rate, but instead because
bonuses are "supplemental income." Supplemental income is held to a higher tax
rate no matter which tax rate you fall into based on your annual income. Here is an
article from business insider that helps explain this which helped me better
understand it as well: http://www.businessinsider.com/why-bonus-taxed-high-201412. I actually didn't find anything on the IRS web site that explained this, but there
were forms for supplemental income available.

Kane, Libby. "Why Your Bonus is Taxed So High." Business Insider, December 16,
2014. Retrieved 9/9/15 from: http://www.businessinsider.com/why-bonus-taxedhigh-2014-12

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RE: IRS as a resource
9/10/2015 2:50:36 PM

Nicole McDaniel Email

Carrah,

Thank you for the article. I like their suggestion to cut the taxes of the bonus by
depositing more of a percentage into my 401K instead of eating the higher taxes.
Perhaps this is the answer to my question of should I pay off my house or build my
401K. I'll hold my question of how withdraws from 401K are taxed until we get to
the 401K week.

Source: Kane, Libby. "Why Your Bonus is Taxed So High." Business Insider,
December 16, 2014. Retrieved 9/9/15 from: http://www.businessinsider.com/whybonus-taxed-high-2014-12

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RE: IRS as a resource
9/10/2015 11:20:40 PM

Nick Brown Email this

Carrah and Nicole great discussion about why bonuses are taxed higher. From one
of my previous employers experiences I recall; they would give us as employees a
yearly bonus reward that happen to be based on company performance and also
individual performance. Each year from working their for more then 5 years I caught
on to the event of going completely exempt for just that one pay period so I would
be able to receive the highest amount of that bonus.

Many employees would talk about this activity and some would have pro's and con's
for this. However for me I actually never ran into complications. However taxes year
over year would still kill me. I never really had deductions so because I made to
much money including this bonus it was great to get the money exempt free
however taxes would always be a pain.

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RE: IRS as a resource
9/12/2015 10:30:24 PM

Shawnte Strachan Email

About a year or so ago, I received a retention bonus when my company was

acquired by an industry giant. The bonus was substantially large and broken up into
multiple distributions over the year. Of course I saw significantly less than the
contract amount because of taxes. Each payout was about 1/4 less than the amount
stated. When it came time to do my taxes, I was pushed into a much higher tax
bracket which I was uneasy about. I understand that everything that we earn or
receive can be counted as income but it somehow does not seem right to penalize
for bonuses.

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RE: IRS as a resource
9/13/2015 9:36:17 AM

Nicole McDaniel Email

It is my understanding that bonuses are always taxed at a higher rate no matter

what, so I"m not sure adjusting exemptions or percentages deposited into 401K is a
successful way to avoid higher taxes, is it?

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RE: IRS as a resource
9/13/2015 9:50:18 PM

Joann Morales Email this

There are two ways bonuses are taxed: percentage method and the aggregated
method

In the percentage method, IRS sets forth a supplement rate of 25%. If you receive a
bonus of $6000, under the supplemental rate $1500 (6000 x 25%) goes to the IRS.
A lot of companies use the percentage method because it is easy.

Under the aggregated method, payroll will add your bonus to your recent paycheck.
They will determine the withholding based on the IRS withholding table and subtract
what they withheld from your last paycheck and withhold the rest from your bonus.
The problem with this method is that you are taxed a higher tax rate because of the
combined amounts.

http://www.irs.gov/irb/2006-37_IRB/ar09.html

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RE: IRS as a resource
9/6/2015 7:58:33 PM

Stacie Tucker Email this

I was able to use the IRS website to obtain information to set up E-filing of federal
taxes for my husband's business; he is a contractor at FEDEX. We have two
employees in addition to himself and we make monthly federal 941 tax deposits
thru E-file. There is a wealth of information for small business owners and self
employed businesses: what tax returns are you responsible for filing and when, how
to pay and what manner in which you should pay (you cannot always just write a
check anymore, you must make some payments electronically). All federal
employment deposits have to be made using the EFTPS system (the Federal
Electronic Funds Transfer system).

http://www.irs.gov/Filing/Self-Employed-&-Small-Businesses

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RE: IRS as a resource
9/10/2015 8:56:28 PM

Andrew Plaza Email this

That's awesome Stacie, I actually helped a friend of mine do the same exact thing a
few years back. My friend was also a contractor with FedEx and he actually had a
few more employees. He was making very good money at a young age. He has
always been one of my inspirations. God bless you because that definitely took us
some time being new to it and all. A lot of searching to make sure we got everything
correct. I'm pretty sure we might of botched something.

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RE: IRS as a resource
9/7/2015 5:22:59 PM

Angela Williams Email

There have been many topics that I found quite beneficial on the IRS website,
especially the forms needed to actually file taxes. I especially found this beneficial
when I had to get my sister caught up on actually filing her taxes. At one point in
time, prior to us moving in together, she had not filed her taxes for at least 5
years...quite amazing to say the least. At one point, the IRS actually completed her
taxes and sent her a notification of how much she owed. I was actually able to go
to the IRS website and find all the forms necessary to get her caught up with filing.
Another feature that I find very helpful each year is the 'Where's my refund', which I
take advantage of each year. This link actually allows you to monitor the status of
your refund, if receiving one, and it informs you when your taxes were received,
accepted and when to expect your refund.

http://www.irs.gov/Refunds

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RE: IRS as a resource
9/7/2015 6:10:56 PM

Gerald Spencer Email this

Hello, that is probably the best part of the website is the refund section. I use the
app that is available as well.

Another area of resources with the IRS is for foreign nationals or other residency
filers, there on the site it shows you how to obtain tax id's as well as what is needed
to file.

The side has basic info as well, 1040 filers, or EZ 1040's... forms for schedule E,
schedule D, Schedule A's, etc. Its a large resource of documents available.

(an instructor response)

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RE: IRS as a resource
9/8/2015 11:38:46 AM

Professor Rodriguez Email

Angela, I need to ask if your sister was operating as a W2 employee or an

independent contractor. Five years is a long time to go and since most Americans
seem to receive a refund as W2 employees I need to assume she wouldn't have
fallen into this camp if she filed.

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RE: IRS as a resource
9/8/2015 6:27:22 PM

Angela Williams Email

Professor, yes, my sister is operating as a W-2 employee and I can honestly say that
I have absolutely no idea how she was able to go so long without filing her income
taxes. Every time I would ask her how she managed to pull that off, she just shrugs
her shoulders with the same reply: I don't know. If I wouldn't have actually used the
self-help tax services, such as Turbo Tax, I wouldn't have believed it either.
Nonetheless, it was true, she just completely ignored that fact that she had to file. I
believe that her primary reason for not being a candidate to receive a refund was
because she received several sources of income and didn't have enough taxes
withheld. For instance, when her husband died, she began receiving SERS survival
benefits. When I reviewed her information, I noticed that she didn't have any taxes
withheld from that income and not enough being withheld from her employee
wages. We noticed a significant difference when I suggested that she have a
certain amount withheld from her monthly SERS benefits. Things are slowly looking
up for her but will take some time to get her out of the mess she was in, but she is
currently filing on a regular basis.

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RE: IRS as a resource
9/12/2015 10:44:35 PM

Joann Morales Email this

I have used the "Where's my refund" feature every year. What I like about this
feature is that the process becomes available within 24 hours after they receive
your efile and/or 4 weeks after they receive your paper return. The IRS website is
becoming more user friendly and convenient to use.

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RE: IRS as a resource
9/7/2015 7:55:47 PM

Fausto Melara Email this

I personally like to research the new tax laws that will come out that affect small
businesses. Usually when I read those laws it gives me a headache with all the legal
jargon. Usually I'll ask the CPA what it all means. Does it affect my business and how

can it be utilized to help us. Other things I like to look for are the links to help your
business with programs that can help businesses with tax breaks. Its all about
making the most money without being taxed a whole lot. Maximize profits

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RE: IRS as a resource
9/7/2015 8:19:51 PM

Carrah Burton Email this

After browsing the web site I found the links for the different required documents
and help identifying which document is appropriate for the many types of filers, as
well as information about refunds. What I didn't know existed was the Interactive
Tax Assistant (ITA). This allows you to answer a series of questions and the
automated interactive tax assistant will help you answer questions about filing. This
is a great resource for the public and helps with the adversarial perception Professor
Rodriguez brings up. These are truly resources that can help.

Retrieved 9/7/15 from: http://www.irs.gov/uac/Interactive-Tax-Assistant-%28ITA%291

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RE: IRS as a resource
9/8/2015 11:51:45 PM

Nick Brown Email this

Carrah great post. When I actually looked at the IRS website the first time I did not
actually see the interactive tax assistant. But amazing how your post clearly
explains its functions and how beneficial it actually is. I visited the website again
and was able to use the ITA and how helpful it actually was. It walks you through a
series of questions about common tax questions and helps you find the answers
you're looking for.

From interacting with the ITA I was able to get informative information about the
eligibility of the premium tax credit and answers to the Affordable Care Act. What I
thought was very helpful was it seriously had a series of questions to help
determine if one is eligible for it.

Very informative!

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RE: IRS as a resource
9/12/2015 1:51:16 PM

Gwendolyn Geever Email

Carrah, thanks so much for sharing this information. It is great to know that the IRS
has the Interactive Tax Assistance to help filers file. The IRS is always looked at the
bad guy taking away all of our hard earned dollars. I think for 2015 taxes I will
definitely be using this took that is offered for free. Since I purchased a house
earlier this year there are so many things that I have never had to deal with in the
past. I'm hoping that it can alleviate the stress a little bit.

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RE: IRS as a resource
9/8/2015 8:01:23 AM

Kelli Toth Email this

One link on the IRS website I have found useful is Get Transcript. This allows you to
request an account transaction or a line-by-line copy of your taxes for a given tax
year. It is really important to keep all your taxes but 5 years ago I moved from
Minnesota to Florida. During the move we were in the middle of selling a house,
renting till we sold, and I was starting a new job. All our stuff ended up everywhere
in a storage unit, at my parents, or even boxed in the apartment. I could not find the
year before taxes anywhere. I was able to use this function to get the numbers I
need to file current years taxes. The IRS website is a good tool for helping with
questions on taxes.

Link: http://www.irs.gov/Individuals/Get-Transcript

Currently the on line function is not working but, you can still get a transcript by
requesting through mail. The attached forms and information need to request are on
the site.

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RE: IRS as a resource
9/12/2015 9:26:10 AM

Jason Donald Email this

I agree, this is a good link to be aware of and use on the IRS website. You can use it
to help you prepare for future tax returns and amend prior year returns. I need to
inform my friend about this link because he is trying to apply for a loan to buy a
home, but he doesnt know where previous returns are located. With this form he
can just fill out the required forms and have the information that he needs in a few
days. This will really help. Also, I need to use this link because like you I lost some of
my past taxes and I wanted to use them as a reference to keep up with my
increase/decrease in returns.

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RE: IRS as a resource
9/13/2015 1:48:42 PM

Gwendolyn Geever Email

Kelli, I also find this section very help full. You can get up to 3 copies a year for free
from the IRS. They used to offer a service where you could get an electronic copy of
your tax return transcripts or account transcript but due to fraud had to shut it
down. I believe that they are working diligently to get it up and running again but it
is a bit of an inconvenience to have to wait 10 days for the copy to come in the mail
when just months ago you could download it instantly. while looking at this part of
the IRS website I also saw that you can get the exact copy of the taxes you filed
with the IRS if you lost it but there is a $57 fee per tax year on that.

http://www.irs.gov/uac/Newsroom/How-to-Get-a-Transcript-or-Copy-of-a-Prior-YearTax-Return

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RE: IRS as a resource
9/9/2015 6:55:41 AM

Heather Elliott Email this

I have used the IRS website has a resource in the past a few times. One instance
was helpful and another, it seemed so grey that I did not find it so helpful. When I
was trying to find information on filing for our adoption tax credit, it seemed as
though the information was clear and concise and I was able to follow it clearly.
Luckily I had kept a shoebox with 2 years worth of receipts in it and had the
forethought to make copies because the thermo heat type receipts had faded. When
I was trying to get a better grasp on the head of household deduction, I found that
to be very grey and cloudy. I wasn't sure whether it pertained to me or not. So, I

used deductive reasoning in that I had lived in a condo with just my son and myself
for over half the year prior to moving in with my boyfriend so, I felt as though that
qualified me for head of household.

(an instructor response)

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RE: IRS as a resource
9/9/2015 9:37:05 AM

Professor Rodriguez Email

Heather, unfortunately deductive reasoning is necessary at times. With a 74,000

page tax code it seems nearly impossible to have a complete understanding. In fact
this 74,000 pages is only applicable to personal filings so you can quickly see why I
can see why deductive reasoning is required.

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RE: IRS as a resource
9/10/2015 6:21:07 AM

Heather Elliott Email this

I agree. I even went so far as to call and they referred me back to their website. I
went out of my way to try to seek clarification, I felt like since I am an accountant,
they may say, "you should know!". At the end of the day, I felt pretty confident that
with it being so grey and the fact that I spent more of the year on my own than
living with my boyfriend that if I did or do get audited, I will be ok. I learned in my
tax class that I took years ago, there are many grey areas, it is up to us to provide a
burden of proof that can easily sway the IRS to understand our logic behind doing or
filing a certain way so, I feel like I should be ok.

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RE: IRS as a resource
9/9/2015 7:08:20 PM

Jacinda Smith Email this

Well I will say I have not thought to look on the IRS website before for resource
information. I have found it to be very useful. I took a look at the credits and
deductions section. I own my own business and am also a contract worker as a

fitness instructor so I need to figure out the whole deducting expenses for these two
businesses.

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RE: IRS as a resource
9/9/2015 8:34:59 PM

Alice Contreras Email this

With the Affordable Care Act now in effect, there is good information on how it will
affect this year's tax preparations. Both for Individuals and Employers. I know this
has been a confusing topic for many people - once tax time rolls around, the
confusion will start all over again!

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Mohammed Email this Author

RE: IRS as a resource

9/10/2015 11:04:23 PM

Abdul Raheem

Modified:9/13/2015 9:41 PM
I personally like to research the new tax laws that will come out that affect small
businesses. Usually when I read those laws it gives me a headache with all the legal
jargon. Usually I'll ask the CPA what it all means. Does it affect my business and how
can it be utilized to help us. Other things I like to look for are the links to help your
business with programs that can help businesses with tax breaks. Its all about
making the most money without being taxed a whole lot. Maximize profits.

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Relevant IRS Website Information
Email this Author 9/7/2015 7:23:13 PM

Nick Brown

Browsing through the IRS website there are many successful tools that one could
use when wanting to obtain information about taxes, the IRS, payments, refunds
and so much more. After looking through the website the part I wanted to share was
the helpful link of Where is My Refund? This link allows you to watch a helpful video
as well as allows you to put in your tax information to check on the status of your
income tax refund.

I recall a few years back using google to search for a way to check the status of my
refund and when this popped up in the search inquiry and I actually seen that it was
provided by the IRS, I thought what a great and amazing tool to have that allows for
people to conveniently check the status of there refund. I bet it saves the IRS many
calls a day that they actually have this online web-tool available. All you simply
need is your SSN, filing status, and refund amount.

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RE: Relevant IRS Website Information Gerald
Spencer Email this Author9/8/2015 5:37:08 AM
The iRS website will even assist with questions about earned income credits
browsing the website this information is useful for those that are applicable.

The Earned Income Tax Credit and the Child and Dependent Care Credit help
millions of families every year. There are also a number of credits for small and
large businesses. You may have taken deductions when you prepared your annual
tax return. In addition to the standard deduction for individuals, common deductions
include home mortgage interest, state and local tax, and charitable contributions.
Many business expenses are deductible as well.

http://www.irs.gov/Credits-&-Deductions

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RE: Relevant IRS Website Information Michael
Fakeh Email this Author 9/8/2015 1:22:06 PM
For me, it's the time now to start searching how to file my own tax without going to
tax offices, as after reading a lot i found that IRS provide free software to use it to
file your own tax.
last year i paid $75 for filling my tax while after i studied the federal tax last class, i
found it's not difficult to start do it by my self. all what i need a minimum guide with
easy or simple software.
http://www.irs.gov/uac/Newsroom/Resources-to-Help-You-Prepare-Your-Tax-Returnand-Resolve-Tax-Disputes

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RE: Relevant IRS Website Information Raynell
Miller Email this Author 9/9/2015 12:42:30 AM
Modified:9/9/2015 12:42 AM
Hi Michael,

Filing taxes seem so tedious and intimidating to international persons like myself so
hats off to you for taking that step in filing your own taxes. I have a question, based
on your prior experience with filing taxes, who ensures that the information
provided is correct? Does the IRS do their own calculations or do they rely on the
information provided?

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Contreras Email this Author

RE: Relevant IRS Website Information Alice

9/9/2015 8:38:09 PM

They do their own calculations but it is based on the income information, etc... that
you provided in your submission. It is basically a double check of your math and
your results.

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RE: Relevant IRS Website Information Stacie
Tucker Email this Author 9/9/2015 9:48:25 PM
In addition to what Alice said, they also receive income information from companies
so that they can verify that you are using the correct W2 and income information.
Programs like Turbo Tax that do the calculations for you makes completing your
taxes much easier.

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RE: Relevant IRS Website Information Raynell
Miller Email this Author 9/10/2015 6:30:23 PM
Thank you for your responses.

It is good to know that there are software programs that can be used to log
information throughout the year.

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RE: Relevant IRS Website Information Michael
Fakeh Email this Author 9/10/2015 6:59:53 PM
Hi Raynell,

First thanks but i have to take that step. let me answer your questions.
at the end of the year you should have the W 2 form which shows your income and
deductions the whole year, and you don't fill it by your hand while the employer
gives it to you. and as per your status you file your tax and you will find answers to
all your questions when you do it .
but at the end don't worry IRS knows very well how to get information and how to
avoid any fraud.

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RE: Relevant IRS Website Information Kelli Toth
Email this Author 9/9/2015 3:31:58 PM
I agree, I have done my own taxes for years. I hired a professional 2 years since
being married. In those 2 years we has unusual things I didn't want to mess up. The
first was when I got married we has a lot of expenses and fees due to getting
married to someone from outside the US, buying a house, and other items and the
second is when we relocated from Minnesota to Florida for a job. The selling of our
old house, travel/move expense and the company paid a lot of the expense by
putting it on my pay check as income. This caused us to owe a lot of money since
the company paid well over 100,000 all in for moving expenses. It was crazy and I
didn't want to mess taxes up.

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RE: Relevant IRS Website Information Michael
Fakeh Email this Author 9/12/2015 3:54:18 PM
yes Kelli, More income , more taxes, but it's so strange that the company did this
under your income.
they should at least ask you first or ask the accountant before put all this expenses
in your paycheck .

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RE: Relevant IRS Website Information Abdul
Raheem Mohammed Email this Author 9/13/2015 9:42:21 PM
Browsing through the IRS website there are many successful tools that one could
use when wanting to obtain information about taxes, the IRS, payments, refunds
and so much more. After looking through the website the part I wanted to share was
the helpful link of Where is My Refund? This link allows you to watch a helpful video
as well as allows you to put in your tax information to check on the status of your
income tax refund.

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9/8/2015 9:54:30 PM

IRS Website Stacie Tucker Email this Author

Did you know that you could claim some adoption expenses incurred on an eligible
child? Apparently, you can deduct up to $13,190 in 2014, court costs and attorney
fees, and some travel costs incurred during the adoption process. I just learned this
today as I was reading another article on the IRS website. I think that is a wonderful
added benefit to that process!

http://www.irs.gov/taxtopics/tc607.html

(an instructor response)

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RE: IRS Website
9/9/2015 9:46:48 AM

Professor Rodriguez Email this

Stacie, I know that stats show the cost of adoption ranges from $10-30,000 but the
families I know seem to always push this upper limit of $30,000. I really do like that
the cost can be claimed but I do not like that we have a set limit since it can easily
cost double this and this doesn't take into account that the average cost to raise a
child is another $250,000.

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9/9/2015 3:25:35 PM

RE: IRS Website

Kelli Toth Email this Author

yes, it is nice the IRS lets people deduct expense like adoption on taxes but the
reality is the cost is much more than the IRS allows. I believe these amounts need to
increase with the reality of the actual cost.

One example I found is child care tax credit. The maximum amount per child is
$3000. One important fact is the amount is 35% of your total cost and does depend
on income. For sure daycare cost way more than $3000 a year.

IRS website for child care credit: http://www.irs.gov/uac/Newsroom/Dont-Overlookthe-Child-and-Dependent-Care-Tax-Credit

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RE: IRS Website
9/9/2015 4:50:11 PM

Rachel O'Rourke Email this

I agree that the amount allowed per child is far less then what we actually spend on
that child through out the year. Especially when talking about daycare. The part I

found interesting regarding child care expenses and deductions is that the max
amount allowed for 2 or more qualifying individuals is $6000. So form my
understanding even if you have 3 or 4 kids your max is always set at $6000 which is
even less compared to a home with one or 2 children.

(an instructor response)

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RE: IRS Website
9/10/2015 1:58:18 PM

Professor Rodriguez Email this

Kelli and Rachel, we have actually seen several proposals to increase the child credit
since our population replacement ratio is not high enough. In other words we are
not having enough children and it has been noted that this may be a way to
increase the birth rate. Now the next question would be whether you want a
deduction to be a motivating factor to have children...

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9/10/2015 7:39:17 PM

RE: IRS Website

Megan Staub Email this Author

I believe that the child tax credit should be increased to help families out because
children are very expensive. I do not have any children, but some of my friends
have children and I can see how expensive a child is and will be during their
lifetime. With this being said, there are many other deductions and credits that
taxpayers can tax advantage of when filing their taxes, as long as the situation
presents itself. There are credits for families, education, homeowners, and
savings/retirement accounts (IRS.gov). Also there are deductions for work related
expenses, educational expenses, medical and dental expenses, and many other
expenses that many taxpayers pay on a regular basis. I believe these credits and
deductions are vital for making taxes less of a burden on average Americans and
can really effect a taxpayers financial situation if used appropriately. Once
deductions that I have used every year since graduating from college was the
student loan interest deduction. Individuals who do not phase out of this deductions
are allowed to deduct up to $2,500 of student loan interest paid during the tax year.
This credit has saved me money every year by lowering my taxable income and
alleviating my tax burden. I try to do a quick review of tax credits and deductions
each year so I can tax advantage of anything that may benefit my tax situation.

http://www.irs.gov/Credits-&-Deductions/Individuals

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9/11/2015 10:22:41 AM

RE: IRS Website

Kelli Toth Email this Author

This is a great question. I am not sure even if they did increase the deduction/credit
amount it would help to decide to have another child. This is just me personally I am
not sure the credit could ever be enough. Raising a child is very expense and in a 2
parent household with us both working having more kids would not allow us to
spend time with the ones we have. It is not just money for me.

In may ways increasing this credit may help families who want more but can't find
the funds to decide to expand their family. It is an interesting point. I mean families
are much smaller than before. It is becoming less and less common to see families
with lots of children.

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RE: IRS Website
9/11/2015 10:40:47 AM

Rachel O'Rourke Email this

Very interesting question. I dont feel increasing the child credit will necessarily be a
motivating factor to make people have children, however I do believe it will make it
easier for those that do want children. The biggest issue with couples wanting to
raise a family is money. The amount it cost to raise a child can certainly put a strain
on family finances. The average cost of raising a child is roughly $12,800 - $14,970
per child per year for a two-parent family with a median annual income between
$61,530 and $106,540 (according to the latest annual "Cost of Raising A Child"
report from the U.S. Department of Agriculture). Those figures are reason enough
for a family to put their baby making dreams on hold. So I do agree that there
should be larger child credits for families with children. I do not believe we can be
influenced to have children we do not want, but by increasing the tax credit it can
help to have the children we do want.

http://www.huffingtonpost.com/2014/08/18/cost-of-raising-a-child_n_5688179.html

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9/9/2015 9:27:24 PM

RE: IRS Website

Stacie Tucker Email this Author

The IRS probably needs to look into that to see if they need to increase the
deduction amount if the average spent is that high! I wonder when the last time
that amount was increased, I will have to research that. It is sad that an adoption
costs that much money, I did not know that. It would also be nice if all daycare
costs were deductible and not just a portion.

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9/11/2015 6:17:20 AM

RE: IRS Website

Heather Elliott Email this Author

Stacie, having gone through the adoption process myself, I know the adoption tax
credit exists and you can receive it back. I know this section very well. There are a
few things to point out with this section, an adopted child is not considered eligible
until the adoption is finalized. Having adopted my son from S. Korea 5 years ago,
the way it worked for us was our adoption was not considered completed until a
year after having our son home, we had to have 3 more home visits from our social
worker in order for it be completed. Although this was a pain, I felt it was a good
thing, she had to come shortly after we arrived home, 6 months and then again at 9
months or 12 months I believe. So, we had to be very meticulous with our receipts
that we kept in a shoebox for 2 years. I made copies of receipts that were on the
thermoheat receipts because I knew they had a tendency to fade after 6 months or
so. I had to keep receipts of agency fees, airline fees, anything that had to do with
the travel portion of our trip, hotel, food, transportation, lawyer fees (for the
finalization of adoption), fingerprinting fees, background check fees, anything and
everything to do with the adoption. I kept receipts of anything that had to be
overnighted or sent priority mail to the agency (I always made them sign for stuff so
I had a record they received it). When I finally go to file for the credit, we were at
$45K for the adoption, the best money I ever spent. I had someone help me file and
she was awesome. We broke it down by categories and stapled the receipts behind
each tally sheet (I also made a second copy for myself), I am so grateful she was
like this and anything she felt we could not support, we did not claim. Thankfully,
she made me do this because the IRS made us turn over all the receipts and the
tally sheet before they would give us the check for the credit. We were able to get
the maximum amount which I believe was about $12.5K at that time. Unfortunately
my ex kept most of it in our divorce, that is a whole other story but I would have put

at least 1/2 in savings for my son's education. The point is, this is a wonderful tax
credit and I have signed many a petition to keep this as a credit for future adoptive
parents. It is tedious to keep up with all the receipts but if you do it right and are
meticulous, it is real and you can earn it.

(an instructor response)

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RE: IRS Website
9/12/2015 7:43:59 AM

Professor Rodriguez Email this

Heather, thank you for the detail. I didn't know many of those details. Is there any
particular reason why you hit the 45,000 mark? I know only one other couple that
hit that amount and it was because they traveled the country on many occasions
thinking they were getting a child only to find out last minute they did not. I think it
finally worked out on the fourth trip.

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9/13/2015 9:34:04 AM

RE: IRS Website

Heather Elliott Email this Author

Modified:9/13/2015 9:39 AM
With our adoption, like probably many adoptions, we got our travel call and were
expected to be in the country within the next 10 days. So, this causes ticket prices
to be a little higher than if you could plan in advance. We did not fly first class or
anything like that but we did request the bulk head on the way back as we wanted
the extra foot room and the bassinet for our new son. The other issue we had was
we worked with an agency out of New York but they had to work with an agency in
FL in order to get our home study and everything done so, we did have higher
agency fees as we had to use in a sense 2 agencies. I will say I am so happy we
worked with the agency in NY as we got our son a lot quicker than had we used the
agency in FL and by that I mean a year quicker. I did my research, I used an agency
that had been doing Korean adoptions for over 30 years and had been doing
adoptions in general for somewhere close to 89 years I believe it was at the time.
When you are adopting, you have to research, research, research, emotions are
high and you want an agency that you can feel are in your corner and are
comfortable with. The other thing we faced was the FL agency was moving away
from Korean adoptions in FL right after we got home with our son so, luckily I had a
social worker that I already knew and was able to get her to pick up where the other
agency left off and this also added more to our costs. Then we had the finalization
so, we had to pay for a lawyer and also the court costs for the judge. We did not

have to physically be there, I would have loved to of done but I had just started a
new job and was not able to take the day off to travel to Tallahassee but we were
able to do it via phone and luckily there was a notary where I worked and she was
able to witness our signatures and everything else. I honestly would not change one
detail about our adoption. The son I have was the son I was meant to have and he is
such a beautiful and loving soul. I am sure the adoptions for Korea may have gone
up in price as now it is required to do two trips but is now finalized in Korea so, like
China, once you hit American soil, you are a citizen. I will say I did not find humor in
the welcome we received once we hit Atlanta, (we had to fly from FL to ATL and
then nonstop to Korea and the reverse coming home, oh we opted to fly Korean Air
because of the customer service I knew we would receive on the plane) The guy
thought he was funny by looking at my son and saying welcome to America, now
find a job. Let's just say, I did not want to get arrested, I did however say, sounds
like you need to be retrained on how to do yours. (momma bear was in full effect)
We also made sure to tour our son's country and learn as much as possible. We
found out some very interesting facts about Korea and also visited the DMZ. As we
got closer, it went from a "safe trip" to a "somewhat safe trip" and were told to look
out for the orange upside down triangles as they represent landmines are present
and in the words of our guide, "they won't kill you but you may lose an ankle". The
trip to the DMZ was very similar to what you see in a video game, they had items in
place in case the enemy came knocking, you could not drive straight on some of the
roads closest to the DMZ, it was quite an experience. I am looking forward to taking
my son back when he is about 12 to visit his homeland and see where he came
from.

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9/8/2015 10:09:40 PM

IRS website Fausto Melara Email this Author

One thing I looked up the IRS website was when I was going to school for my
undergrad. While going to school I was working as a hockey referee. Every yer I was
receiving a 1099 which was a bit frustrating because I was never getting my taxes
taken out of my check at the time it was great but by the end of the year, I was
getting hit with a huge tax liability. I looked on the website and found all sorts of
information about deductions taxable income and school benefits. This was about
13 years go, the IRS website has improved more over the years but I thought it was
very helpful

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9/9/2015 12:37:49 AM

RE: IRS website

Raynell Miller Email this Author

Modified:9/9/2015 12:38 AM
Having explored the website I found it helpful to have information broken down for
small businesses & self employed, corporations, charities & non profits, government
entities, tax pros & partners, excise taxes and estate and gift taxes. I chose to
research gift taxes because Americans in my opinion are very generous when they
give. I read that the tax applies whether the donor intends to transfer the gift or
not. The gift applies to the transfer of any property whether it is money, use of or
income from property without expecting to receive something of equal value in
return.

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Gift-Tax

(an instructor response)

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RE: IRS website
9/11/2015 11:50:03 AM

Professor Rodriguez Email this

Raynell, we can actually give well beyond the annual limit but the issue is that this
will eat into your lifetime estate max which is at just over $5 million. However,
realistically I would venture to say that this limit is a nonissue as compared to the
size of estates at death.

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9/13/2015 8:01:13 PM

RE: IRS website

Raynell Miller Email this Author

Thank you for this information Professor, I am surprised there is a lifetime max.

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Small Business & Independent Contractor
Michael White Email this Author 9/9/2015 1:19:15 PM

Many small business cannot afford to hire employees to support the company
objectives. Business will contract work out to individuals to assist in their operation
and support the objectives. As a previous owner of a tax, accounting and consulting
practice I needed a secretary/office manager to assist with calling client and filing
document. I needed to know how to report payment to the IRS for the persona as
an independent contractor and the forms to file. The IRS web site was helpful in
providing the reporting of payments to the contractor. I was able to use the small
business and self-employed section to research the issue.

(an instructor response)

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RE: Small Business & Independent Contractor
Professor Rodriguez Email this Author 9/10/2015 2:03:13 PM
Michael, the classification of an independent contractor or employee is often not
black and white. Even with all of my research I am still not 100% certain that those
that report to me are independent contractors which is how I have classified them.
This is a big deal given the reporting requirements necessary for an employee.

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Contreras Email this Author

RE: Small Business & Independent ContractorAlice

9/11/2015 1:37:21 PM

Professor,

Do you have to withhold fed/state taxes from their pay and report their earnings ? if
they are independent contractors, wouldn't they have take care of that on their own
somehow?

(an instructor response)

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RE: Small Business & Independent Contractor
Professor Rodriguez Email this Author 9/12/2015 7:47:37 AM
Alice, you are correct. I do not do any of this since they are contractors. My issue
was that I am their primary income source and struggled trying to make sure that I
could maintain their status as contractors.

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RE: Small Business & Independent Contractor
Carrah Burton Email this Author 9/13/2015 8:07:52 AM
The class I took prior to this through Keller was Legal Environment of Business and
we discussed independent contractors vs. employee, especially with regards to
legal liability of the employer for both. The textbook from that class states:

"When called on to distinguish between an employee and an independent

contractor, courts scrutinize the degree of control the employer has over the agent.
Courts also consider factors such as (1) whether the hired persons had a distinct
occupation or profession, (2) whether they supplied their own tools and equipment,
(3) whether they were employed only for a specific time period, (4) whether they
were paid hourly or on completion of a job, and (5) what degree of skill was required
to do the job. (Kubasek 397)

Since the courts will have to use these 5 different techniques of judgement, it
confirms our discussion that it is not always clear how to categorize individuals
reporting to you for different jobs and how to tax them. Here is the site on the IRS
web site that tries to help clarify and guide on the issue:
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/IndependentContractor-Self-Employed-or-Employee

Kubasek, Nancy K., Bartley Brennan, M. Browne. The Legal Environment of Business,
7th Edition. Pearson Learning Solutions, 12/2013. VitalBook file.

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Contreras Email this Author

RE: Small Business & Independent ContractorAlice

9/13/2015 10:33:43 AM

Good Job Carrah!! Perfect answer and right on target

Way to bring out the books you never thought to use again :)

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9/9/2015 5:30:42 PM

IRS Website Andrew Plaza Email this Author

I used the IRS website to help me with a 1099 some years back. At that time I was
into multi-level marketing businesses. It definitely took me some time. If I ever had
to do another one I would probably hire an accountant and check it over myself.

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9/9/2015 6:43:47 PM

IRS Website Gwendolyn Geever Email this Author

This topic to me is a bit ironic, since I just received a notice in the mail last week
form the IRS. It was a CP2000. I like any normal person panicked at the first site of a
letter from the IRS. The CP2000 is an auto generated notice sent to anyone who's
income and/or payment information that was filed does not match what the IRS has
on file. The notice looks like a billing statement so I was very concerned. The first
thing I did was read the paperwork carefully and then I google searched the form
(just like I suspect most of you would). I didn't come up with much so I called the
number provided on the CP2000. The IRS representative was very helpful and told
me exactly what to do.

I learned that the CP2000 can be sent for many different reasons it is kind of like a
catch all for the IRS. They auto send them out when they cross check the numbers
that companies/schools/and other organizations give them against your tax return.
My CP2000 notice is for my education credit I claimed in 2013. They said in box 1 of
the 1098-T (tuition statement) my school did not list any expenses. So naturally I
looked at my 1098-T to check AND THEY DIDN'T. I did see that they posted the
information in box 2. I asked the IRS representative if this is common, she stated
that most schools put it in box 2 rather than box 1.

So now I need to submit a written statement along with any supporting

documentation to the IRS by the date on the notice or I will be in violation. The
process is very straight forward but at the initially seamed pretty scary. So with this
discussion topic I decide to type into the IRS websites search feature CP2000 and

low and behold all the info that I found on the internet and got while speaking with
the IRS rep was there in its own FAQs section. If I would have checked there first I
guess I might not have had a mini panic attack!

So just so you all know DeVry/Keller fill out box 2 of the 1089-T not box 1, just incase
any of you also get a lovely CP2000 in the mail!

(an instructor response)

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RE: IRS Website
9/12/2015 7:52:52 AM

Professor Rodriguez Email this

Gwendolyn, that is very timely. The good new for us is that you have a current
example to share. I hope that the written statement and supporting documentation
is adequate to put it to rest.

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RE: IRS Website
9/12/2015 1:42:11 PM

Gwendolyn Geever Email this

I do as well, I have put together a well written letter, made a copy of my 1098-t and
have statements form every session I was enrolled in and had charges for in that
tax year. I put it in the mail yesterday so I'm crossing my fingers that the documents
will satisfy the IRS's requirements.

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IRS Website (graded)
9/9/2015 9:26:29 PM

Jason Donald Email this

Please research a topic on the IRS website that may be germane to your personal
circumstances, and share your information with the class. Please pick a topic that
your classmates have not already shared. A link to the IRS website is located in the
course Webliography.

The topic I picked on IRS website is Understanding your IRS Notice or letter. A few
years ago I attempted to do my own taxes without help from outside professionals.
A few weeks later I received a thick letter in the mail stating that there was error
with my form and I owed some additional money. I went to the IRS website and went
to the Understanding IRS Notice or letter section. It gave me a breakdown on why
they would send me a letter. Some examples include: having a balance due, having
a question about my tax return, and changing my return. It turns out that the reason
for the letter was that I completed the wrong 1040 form when performing my taxes
and they were writing to inform me of error. I sent in the full amount that was owed.
This section really helped me because I was confused about the letter but my
questions was answered on the website.

http://www.irs.gov/Individuals/Understanding-Your-IRS-Notice-or-Letter

(an instructor response)

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RE: IRS Website (graded) Professor Rodriguez Email
9/10/2015 2:05:14 PM

Jason, that is a great resource. Many would just be afraid that they received
anything from the IRS so knowing that we can find resources like this is good to
know.

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RE: IRS Website (graded) Raynell Miller Email this
9/10/2015 7:12:07 PM

Is the IRS ever wrong?

Through research there are numerous ways in which the IRS can be wrong.

Wrong social security number- a data clerk can mistype a number or may be
assigned more than one number.

Wrong income- income can be earned mistakenly by someone else other than
yourself.
Lost return- In some cases the IRS or US Postal Service loses your return and
payment, electronic filing is recommended.
Misapplied payments- payments are sometimes posted to the wrong year or the
wrong tax type.
http://www.ivdgl.org/pages/c-taxtrouble/commonmistakes.html

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RE: IRS Website (graded) Stacie Tucker Email this
9/10/2015 8:31:13 PM

You are correct, the IRS can be wrong at times and so can state tax facilitators. In
my work experience, I've had to deal with misapplied payments and incorrect data
due to clerical error on the agency's side. In each case, it was not difficult to deal
with and have the mistakes corrected by following the instructions that they outline
in their letters; however, the initial notice does tend to rattle your nerves a little.

It is also very important that your information on file with your payroll department
and have any errors corrected prior to year end before W2 are produced. You
should look at your social security number, address, name, payroll amounts,
anything that will be reported to the IRS to make sure its correct.

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RE: IRS Website (graded) Angela Williams Email
9/13/2015 11:01:04 AM

I would like to think that the IRS is wrong on many occasions but they are the IRS
and unless it can be proven in black and white, they will be right most of the times.
The IRS is basically comprised of human beings trained to do a specific job. I know
a gentleman who recently retired from the IRS that informed me of many mistakes
that the IRS makes on a regular basis. Naturally he wouldn't go into detail of these
mistakes but he just told me to make sure that I should keep copies of everything
and be certain that I contact the IRS if I notice anything incorrect. As I mentioned
previously regarding my sister's taxes, when her school credit was not included on

her taxes, I had to send several documents for verification. Although the process
took several months, the mistake (oversight) was corrected and her refund was
issued.

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RE: IRS Website (graded) Jason Donald Email this
9/11/2015 9:41:34 AM

Jason, that is a great resource. Many would just be afraid that they received
anything from the IRS so knowing that we can find resources like this is good to
know.

I agree that this a great resource to have for people when needed, but in the
beginning after receiving the letter I was very afraid because of the unknown of
what it meant for me. For one I was afraid that it might be serious consequences
(jail time, court) because of the seriousness of the letter. The first thing I did was
check my completed forms to see if I made any mistakes (Ex. Computations or
wrong SSN) because that what you think about when you in this situation. It took
me a few hours with the letter to just go to website and see if I could find any
information that could assist me in resolving this problem. After reading the
information the worry decreased because it was my mistake that the wrong form
was done. All that needed to be done was to pay the balance that was owed and
there would be no other punishment.

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RE: IRS Website (graded) Shawnte Strachan Email
9/11/2015 2:46:07 PM

Thank you Jason. My youngest brother just received a letter from the IRS that states
he was over-refunded and owes money. Well the letter is in regards to his 2013
taxes and he had a professional prepare them. He is young and not very financially
literate so this may help him before he goes back to the professional to have her
review the letter. I will probably look at it with him but either way it's good to have
some understanding.

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RE: IRS Website (graded) Heather Elliott Email this
9/12/2015 7:36:34 AM

I have gotten letters before and been able to easily figure them out by looking at
their website too. It's like anything in life I think, you get a little freaked out at first
because it is something you have never dealt with before, it is from the government
and it can be confusing. It's usually a form type letter they use and you have to look
and see where the "x" is to tell you what is wrong. It's hard to think straight at first
because you get in a "panic" over it. I have also found that many times if you call,
they can look it up and explain it over the phone too, just watch your attitude when
you call. It's like customer service anywhere, you come with an attitude, they will
have one right back!! Kill 'em with kindness and using buzz phrases like "can you
help clarify something for me please?", "I am not quite sure what I am looking at?",
and "could you please help me understand what I need to do?" have always worked
for me!!

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9/9/2015 9:58:26 PM

IRS Website Shandanee Shaw Email this Author

At the IRS Web site you can download tax forms, instructions, IRS publications, and
regulations. Once there, you can also click on More Online Tools to access the IRS
withholding calculatoryou can use it to make sure you arent having too much or
too little withheld from your paycheck. (Gitman 88)

Gitman, Lawrence J., Michael Joehnk, Randy Billingsley. Personal Financial Planning,
12e, 12th Edition. Cengage Learning, 01/2014. VitalBook file.

The citation provided is a guideline. Please check each citation for accuracy before
use.

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9/12/2015 7:28:25 PM
Shandanee,

RE: IRS Website

Jacinda Smith Email this Author

Thank you for sharing. I did not know this was on their website! This would've been
very helpful about a year ago when I started a new job and was trying to figure out
how much I needed withheld in taxes. I will need to remember this in case I need to
update my information after I do taxes this coming spring.

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9/9/2015 10:23:09 PM

IRS Website Shandanee Shaw Email this Author

One great tool from the IRS is information on Audits. I was audited a few times.
Once was for a credit card I had. Since I did a settlement, the credit card company. I
did not know they reported the rest as income. For that I was audited. Never more
will that happen.

Here is how Audits occur:

Audit Selection
Selecting a return for audit does not always suggest that an error has been made.
Returns are selected using a variety of methods, including:
Random selection and computer screening - sometimes returns are selected based
solely on a statistical formula.
Document matching - when payor records, such as Forms W-2 or Form 1099, don't
match the information reported.
Related examinations - returns may be selected for audit when they involve issues
or transactions with other taxpayers, such as business partners or investors, whose
returns were selected for audit.

I was able to review their publications on my rights, my steps if I accept the audits,
and if I disagree with the audits.

I was able to rectify one of the audits with these guidelines

Retrieved on September 9, 2015 from http://www.irs.gov/Businesses/SmallBusinesses-&-Self-Employed/IRS-Audits

(an instructor response)

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RE: IRS Website
9/11/2015 11:41:27 AM

Professor Rodriguez Email this

Shandanee, did you represent yourself or did you use an agent? It is seldom
recommended to represent yourself so I am curious if you were able to handle it
without help.

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RE: IRS Website
9/12/2015 3:13:31 PM

Shandanee Shaw Email this

Actually, I represented myself. I asked what they were looking for in regards for me
to submit as supporting documentations. I was able to give the additional
information needed. Even though the IRS audited me, they were able at the same
time help me rectify the situation or maybe the customer service rep was nice that
day. I was able to provide the documents that were needed to help support the
findings they were looking for. I also consulted with my accountant who asked me
the questions and if there was something I forgot to enter or gave while they were
completing my taxes.

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9/11/2015 1:10:13 PM

RE: IRS Website

Fausto Melara Email this Author

Something else I found interesting on the IRS website, Is that the IRS is taking large
security precautions and educating the public on how to protect themselves from ID
theft. With technology growing at at tremendous rate there is always room for
thievery and manipulation. IRS website goes to great lengths in showing how to
safeguard yourself which I felt that is very helpful.

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9/11/2015 1:43:13 PM

RE: IRS Website

Raynell Miller Email this Author

Thanks Fausto for your insight.

I looked at the information on identity theft and found some information on how you
would know that you are a victim of identity theft.

When you owe additional tax, you have a refund offset or have had collection
actions taken against you for a year in which you did not file.
You've received wages from an unknown employer.

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9/13/2015 2:59:16 AM

RE: IRS Website

Andrew Plaza Email this Author

I actually dealt with ID theft too Fausto. I never reverted to the IRS website back
then, but I would now. People think the websites that ask for your card information
are the skeptics but it's crazy how much those websites spend on making sure
people's identification are not stolen. That's something I didn't learn to recently.

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9/13/2015 3:06:25 AM

RE: IRS Website

Nick Brown Email this Author

Fausto great post. Seriously the IRS website is very useful and informative. I went
back on the site and found as you mentioned a whole section on identity theft and
prevention. I even noticed different links on what the IRS is doing to combat identity
theft. With different enforcement efforts and steps on IRS criminal investigation.
Never would have thought that the IRS website would be so useful.

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RE: IRS Website
Email this Author 9/9/2015 11:05:03 PM

Abdul Raheem Mohammed

Modified:9/13/2015 9:41 PM
the IRS website is very useful and informative. I went back on the site and found as
you mentioned a whole section on identity theft and prevention. I even noticed
different links on what the IRS is doing to combat identity theft. With different
enforcement efforts and steps on IRS criminal investigation. Never would have
thought that the IRS website would be so useful.

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9/10/2015 8:38:10 PM

IRS Website Joann Morales Email this Author

My husband and I use the the site to check the status of our refund and since now
he is now self employed. We have been going to the Self-Employed Individual Tax
Center section to learn what are his obligations. On their site, I learned that they
have an app called IRS2Go, it is suppose to provide refund tips, give preparation
help and give you the status of your return.

http://www.irs.gov/Individuals/Self-Employed#who
http://www.irs.gov/uac/IRS-New-Media-1

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Lifetime Learning Tax Credit
Email this Author 9/13/2015 10:45:31 AM

Alice Contreras

Below is a copy of the information on the IRS.GOV website on a tax credit we may
all be eligible for, if you meet the requirements of course. I have used this credit in
years past as I have been in this program for 3 years now. It is worth taking
advantage of while you can, especially considering the amount of time and money
we are all spending to further ourselves.

There are other credits available as well, the AOTC. The AOTC does a have a 4 year
benefit limit, meaning you can only use it 4 years totally and then you are no longer
eligible to receive it. They do not have to be consecutive years.

The Lifetime Learning Credit of up to $2,000 per tax return is available for both
graduate and undergraduate students. Unlike the American Opportunity Tax Credit,
the limit on the Lifetime Learning Credit applies to each tax return, rather than to
each student. Also, the Lifetime Learning Credit does not provide a benefit to people
who owe no tax.
Though the half-time student requirement does not apply to the lifetime learning
credit, the course of study must be either part of a post-secondary degree program
or taken by the student to maintain or improve job skills. Other features of the
credit include:
Tuition and fees required for enrollment or attendance qualify as do other fees
required for the course. Additional expenses do not.
The credit equals 20 percent of the amount spent on eligible expenses across all
students on the return. That means the full $2,000 credit is only available to a
taxpayer who pays $10,000 or more in qualifying tuition and fees and has sufficient
tax liability.
Income limits are lower than under the American Opportunity Tax Credit. For 2015,
the full credit can be claimed by taxpayers whose MAGI is $55,000 or less. For
married couples filing a joint return, the limit is $110,000. The credit is phased out
for taxpayers with incomes above these levels. No credit can be claimed by joint
filers whose MAGI is $130,000 or more and singles, heads of household and some
widows and widowers whose MAGI is $65,000 or more.
http://www.irs.gov/uac/Newsroom/Back-to-School-Reminder-for-Parents-andStudents-to-Check-Out-College-Tax-Credits-for-2015-and-Years-Ahead

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RE: Lifetime Learning Tax Credit Shandanee Shaw
Email this Author 9/13/2015 1:05:21 PM
This is for all of us going to school and how it affects the filing of taxes

Qualified tuition and related expenses includes expenses for any course of
instruction at an eligible educational institution to acquire or improve job skills. This

means that the credit may be used for part-time study, not just students enrolled at
least half-time in a degree program.

Qualified higher education expenses include tuition and fees. Nonacademic fees
such as student activity fees, athletic fees and insurance are excluded. The
expenses must be related to the student's academic course of instruction. Expenses
related to sports, games or hobbies are excluded unless they are part of the
student's degree program.

The expenses must have been paid by the taxpayer or by the student, and the
taxpayer must list the student as an exemption on their income tax return. (Any
qualified tuition and related expenses paid by the dependent are treated as though
they were paid by the taxpayer, per 26 CFR 25A(g)(3).)

Taxpayers who are married cannot claim the tax credit if they are filing separate
returns.

Scholarships and financial aid do not count as qualified tuition and related expenses
paid by the taxpayer. Only out-of-pocket expenses count. Gifts, bequests and
inheritances do count as though paid by the taxpayer.

The credit applies to expenses paid after June 30, 1998.

Retrieved on September 13, 2015 from

http://www.finaid.org/otheraid/lifetimelearning.phtml

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RE: Lifetime Learning Tax Credit Jacinda Smith
Email this Author 9/13/2015 10:44:49 PM
Alice,
This is an awesome wealth of information! Thank you for sharing! I will have to say I
know in times past I have used the Lieftime Learning Credit before. I am not sure
how many times I have used it and I know I didn't use it last year when I filed with
Turbo Tax. I will have to see how things go this spring when I go back to my family

tax person. I will have to look into the American Opportunity tax credit, I am not
familiar with that one.

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