aarp foundation tax-aide

What Do I Do With an IRS Letter?

Posted on 03/27/2013 by | Money | Comments

Money & SavingsThe following is a guest post by Jim Young. If you are one of those folks who just hate bad news, why take a chance by opening a letter from the Internal Revenue Service? You won’t be receiving a notice that you won the lottery. More likely you will be informed that you owe additional tax or get equally distressing news – it’s audit time. Most initial letters from the IRS ask for additional information regarding a tax return you …

Unemployment Compensation Is Taxable

Posted on 03/7/2013 by | Money | Comments

WorkThe following is a guest post by Alan Kalman. If you or your spouse collected unemployment benefits in 2012, be sure you count that money as gross income when you file your tax return. It may come as a surprise to some workers, but unemployment compensation from your state is taxable. In fact, there’s a specific line on the 1040, 1040A and 1040EZ forms for you to add the amount to gross income. Find tax forms online. In January of …

How Long Should I Keep Tax Documents?

Posted on 02/6/2013 by | Money | Comments

Money & SavingsThe following is a guest post by Jim Young. Ever wonder how long you really need to hold on to your tax documents? Depending on which expert you ask, you might get a range of responses ranging from a few years to a lifetime. See also: Find an AARP Foundation Tax-Aide location near you. IRS Publication 552 gives you a direct answer and says that you are required to keep records as long as they may be needed for the …

Job Loss and Your Taxes

Posted on 01/8/2013 by | Money | Comments

WorkThe following is a guest post by Alan Kalman. Job loss can affect your tax situation in many ways. Here are some things to keep in mind as you are preparing to file your taxes. Your employer may provide you with severance pay or accrued vacation pay or accrued sick pay. These payments are all taxable compensation. A large severance check could easily bump you into a larger tax bracket. If you qualify for and receive unemployment compensation benefits, these …

9 Year-End Tax Moves to Consider

Posted on 11/30/2012 by | Money | Comments

Money & SavingsThe following is a guest post by Alan Kalman. December is an ideal time to review your finances and make sure you are taking advantage of tax benefits and other possible credits or deductions. See also: Sandy Victims Get Tax Relief Consider these things when pulling 2012 paperwork together. Did you move or change jobs this year? Double-check that your your employer (or former employer), banking institutions, investment companies and retirement plan administrators have your current address so you’ll receive your W-2s …