Find Out the Status of Your Amended Federal Tax Return

irs-building1

Every so often, taxpayers have to make changes to the returns they have filed with the IRS. To do so, the taxpayer would simply fill out what’s called an amended tax return.

This amended tax return allows them to make any number of changes for that tax year. For instance, it may include income that was previously left off the first return. It may also allow them to take a deduction that might have been left off the initial return. Either way, the corrections can be made and submitted to the IRS.

Once the IRS receives the amended return, the taxpayer should give the IRS between 3 and 16 weeks to process the new return. The length of time for processing really comes down to how simple or complicated the corrections are.

If the taxpayer gets anxious and thinks they should have heard something already about the amended return, they can check online.

They will simply need to provide their social security number, date of birth and zip code at the following link and they will get a brief status update on their amended federal tax return.

Find out the status of your amended federal tax return

For more on TaxAssurances, check out our reviews, photos and links on Google Reviews.

Also, here is a link to our Signup Form to subscribe to our list.

Advertisements

Facebook Chat on Whether to Use 401k Money to Payoff Student Loans

Student-Loans

Here is the text from a recent Facebook chat I had with a friend about whether or not to take money out of her 401k to pay off her student loans:

Her:
If I withdrew money from my 401k to pay off student loans, does that result in double taxation?
TaxAssurances:
There’s a tax on the 401k as income and the 10% penalty for taking it out to early.
TaxAssurances:
Also, with the student loan you lose out on the future deductibility.
Her:
That will happen this year as result of my raise.
TaxAssurances:
Then it’s a cash flow/total savings debate.
Her:
I was thinking about it because we are approaching > $250 combined income and reduction in mortgage interest deduction.
TaxAssurances:
understand. It all comes to your overall comfort level. How much you have saved versus using the money now to get rid of the student loan debt. Are you comfortable for emergencies and general savings.
Her:
It will put me in no debt status…which means more cash flow for savings. I’m not worried about retirement because I plan to work until my brain stops.
TaxAssurances:
Seems like you thought it out….your husband on board?
Her:
Nope
TaxAssurances:
Talk it out.
Chat Conversation End

This chat goes to some of the issues and concerns surrounding the decision to take a lump sum and pay off student loans. Each circumstance is different but ultimately it comes down to what works best of all.

For more on TaxAssurances, check out our reviews, photos and links on Google Reviews.

Also, here is a link to our Signup Form to subscribe to our list.

Can I Write off My Work Clothes on My Taxes?

EarthWindFire_Legacy

Every so often, I get a variation of the same question from friends and clients, “can I deduct the cost of my clothes on my taxes?” The answer depends. If you are part of Earth, Wind & Fire or Twisted Sister, sure. If not, probably not.

In all seriousness, the IRS allows individuals to write off the purchase and care of their clothing if it is unique, special and required for the job. For instance, nurses, police officers and other professionals who have to wear a uniform for work, can write off the purchase and upkeep of their clothing.

If someone is a professional that wears a suit every day and needs it to keep up appearance like a news anchor, then they cannot write off the purchase and upkeep of their clothing. If they do write it off and the IRS does an audit, the write off will be reversed and the taxpayer will end up owing the IRS the money for the deduction.

For more information, here is what the IRS says about writing off work clothes:

Work Clothes and Uniforms

You can deduct the cost and upkeep of work clothes if the following two requirements are met.

• You must wear them as a condition of your employment.
• The clothes are not suitable for everyday wear.

It is not enough that you wear distinctive clothing. The clothing must be specifically required by your employer. Nor is it enough that you do not, in fact, wear your work clothes away from work. The clothing must not be suitable for taking the place of your regular clothing.

Examples of workers who may be able to deduct the cost and upkeep of work clothes are: delivery workers, firefighters, health care workers, law enforcement officers, letter carriers, professional athletes, and transportation workers (air, rail, bus, etc.).

Musicians and entertainers can deduct the cost of theatrical clothing and accessories that are not suitable for everyday wear.

However, work clothing consisting of white cap, white shirt or white jacket, white bib overalls, and standard work shoes, which a painter is required by his union to wear on the job, is not distinctive in character or in the nature of a uniform. Similarly, the costs of buying and maintaining blue work clothes worn by a welder at the request of a foreman are not deductible.

Protective clothing. You can deduct the cost of protective clothing required in your work, such as safety shoes or boots, safety glasses, hard hats, and work gloves.

Examples of workers who may be required to wear safety items are: carpenters, cement workers, chemical workers, electricians, fishing boat crew members, machinists, oil field workers, pipe fitters, steamfitters, and truck drivers.

Military uniforms. You generally cannot deduct the cost of your uniforms if you are on full-time active duty in the armed forces. However, if you are an armed forces reservist, you can deduct the unreimbursed cost of your uniform if military regulations restrict you from wearing it except while on duty as a reservist. In figuring the deduction, you must reduce the cost by any nontaxable allowance you receive for these expenses.

If local military rules do not allow you to wear fatigue uniforms when you are off duty, you can deduct the amount by which the cost of buying and keeping up these uniforms is more than the uniform allowance you receive.

You can deduct the cost of your uniforms if you are a civilian faculty or staff member of a military school.

 

For more on TaxAssurances, check out our reviews, photos and links on Yelp.