Time-Share Use as a Charitable Contribution

If you have ever attended a charity auction, it is not uncommon to see a week’s use of a time-share included in the items donated for auction. The time-share owners who donate these weeks generally do so in anticipation of being able to take charitable donation deduction on their tax returns. How does one determine […]

Receiving Cash Tips? The IRS Is Watching

Anyone who collects tips must include them in their taxable income. This requirement is not limited to waiters and waitresses; it applies to anyone who collects tips, including taxicab drivers, beauticians, porters, concierges, etc. Tips are amounts freely given by a customer to a person providing a service. They are generally given as cash, but […]

Employers, Don’t Miss the Work Opportunity Tax Credit

Through 2019, employers who hire individuals from targeted groups are qualified to claim the work opportunity tax credit (WOTC). The credit is elective, and if claimed it reduces the employer’s wage deduction dollar for dollar. The credit is a percentage of the employee’s first-year wages, generally up to $6,000 per eligible employee, paid during the […]

Oops, Did You Forget Something on a Tax Return?

If you have already filed your tax return and overlooked an item of income or forgot to claim a deduction or credit, it is not too late! You can file an amended return to correct an already filed tax return. Failing to report an item of income will most certainly generate an IRS inquiry, which […]