MFJ or MFS
March 12, 2010 by Tax Blog
Filed under Questions & Answers
Today TaxMama hears from Madhu in Minnesota who needs help. “I have a peculiar case and need your opinion here. I am living & working in MN and make a lot of money. My wife lives & studies in WI and she has an on-campus job, earning enough to cover her basic living expenses. Our state of residence is different and so is our tax bracket. So I am not sure whether I should be filling jointly or separately. If I file jointly, I would end up paying a lot of state tax to WI. I am paying her tuition fees and I suppose that would be taken into account irrespective of whether we file jointly or separately.” http://taxmama.com/forum/taxquips/should-i-be-filing-as-mfj-or-mfs/

Hi Madhu,
Actually, this is much easier than you think.
File an MFJ IRS tax return. You will both benefit.
Then, in MN, file a non-resident/part-year resident return. Show yourself as a resident. Show your wife as a non-resident.
Do the same thing in Wi, expect your wife is the resident – and you are the non-resident.
You won’t end up paying any taxes to states where you or your wife don’t income.
Any competent tax pro can help you with that. It’s a bit complicated to do yourself.
Good luck! And I hope this all works out for you both.
And remember, you can find answers to all kinds of questions about multi-state marriages and other tax issues, free. Where? Where else? At www.TaxMama.com.
[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the join TaxMama.com link – it’s free!]
Please post all Comments and Replies in the - New TaxQuips Forum
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Ask TaxMama Issue 543 - Change Your Clocks
March 12, 2010 by Tax Blog
Filed under Questions & Answers
Dear Family,
Tax season is in full force. Lots to do to meet next week’s filing deadlines (see below, or here http://taxmama.com/tax-calendar-2010/ ). Remember to change your clock Saturday night, or you will be late for everything on Sunday. (Huh! Didn’t Daylight Savings Time used to come in April?)
People are sending me LOTS of questions about TaxMama’s EA Exam Review Class. Please read the note below, under EA Exam Review Class. The early bird discount for the class ends on March 16th – sign up now – or forever pay more.
http://irsexams.com/registration/
Mark your calendar. March 18 – 8:00 am – 9:00 am Pacific
TaxMama’s Tax Roundtable for all Family Members and EA Exam Students
Bring your questions – it’s open mike time, just for you.
Information will be in the Family Member Resource Center next week.
We’ve lost Charles Rangel – resigned as chairman of the House Ways and Means Committee. The House Ethics Committee didn’t pressure him because of his tax reporting scandal. Nope, the Ethics Committee is upset about trips he accepted. Go figure! Rep. Sander Levin, D-Mich., will succeed Rangel as chairman. I wonder how this will change the balance of power on that most powerful of committees? Our tax legislation runs through here before being sent to the House floor for voting. Or it never gets past their door.
We still have no legislation on the estate tax, the Jobs bill, or healthcare. At least we’re getting closer to getting the Jobs Bill – it passed the Senate yesterday. It still needs to be passed by the House and signed by the President. Don’t hold your breath. The House still wants to make changes.
http://abcnews.go.com/Business/Tax/149-billion-bill-jobless-aid-tax-breaks/story?id=10075222
Of course the Credit Bill become effective recently, as you may have noticed from the flurry of mail you’ve gotten from your credit card company, with all the new terms. The intended protections on your behalf have been pre-empted by advance chances by the credit card issuers. You need to know more about your rights – and pitfalls.
AccountingWeb.com has a special series this week about credit, credit cards and merchant accounts. You’ll even find an article by TaxMama providing some guidelines and valuable resources.
http://www.accountingweb.com/
This week TaxMama’s TaxWatch talks about withholding, how to pay your taxes and…look for the TaxWatch column tonight.
http://www.marketwatch.com/taxes
In IRS News today you will FINALLY be able to learn if you got an Economic Recovery Payment! IRS Outlines Additional Steps to Assist Unemployed Taxpayers and Others. They add Saturday hours in select locations, too.
http://taxmama.com/category/asktaxmama/irs-news/
In today’s Money Funny we see what jury members have to hear when they sit in that jury box. Since I am scheduled for Jury Duty shortly after tax season, this is especially meaningful to me.
http://taxmama.com/category/asktaxmama/money-funnies/
In TaxQuips this week we learn about unfiled returns, paying balances due; how to file when a married couple lives and works apart – in two different states; what to do when you donate a vehicle that went UP in value; and whether you can draw $10,000 from your IRA to pay for building a new home.
http://taxmama.com/category/tax-quips/
As always, we love your feedback, opinions and ideas.
You are what makes all this fun – and interesting!
Please use the Comments link online.
http://taxmama.com/asktaxmama/ask-taxmama-issue-543/
TaxNerd gear makes a bold statement year-round. And it helps attract the opposite sex!
Shop at www.taxnerd.net or http://www.zazzle.com/taxmama*
Hugs from your favorite TaxNerd,
http://www.zazzle.com/taxmama*
Eva Rosenberg, EA
Your TaxMama® is watching…out for you.
www.TaxMama.com
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www.IRSExams.com
www.TaxNerd.net
————————————————————-
EA EXAM NEWS & SOLVING THE TAX PUZZLE————————————————————-
Take TaxMama®’s 2010 EA Exam Review Class
http://irsexams.com/
People are sending me LOTS of questions about TaxMama’s EA Exam Review Class. Let me just tell you a couple of things, so you come to understand why I am not taking phone calls.
The class is essentially ME.
I teach most of the classes.
I devote my life to you and answer your questions from May – February.
I help you out and give you the guidance you need, often even with client issues. I refer clients to my best, most capable students. I don’t have a large staff to take care of operations, or customer service or anything else.
It’s ME. TaxMama. Period.
I’ve been teaching the class for years.
I LOVE to teach these classes and help you grow into savvy, ethical tax professionals who can make a real difference in the lives of your clients. You will get so much more value from this class than you can ever imagine.
Either you trust me or you don’t.
If you don’t, there are a dozen other good choices. Use them.
If you do, we’ll be living together for more than half the year. We’ll be getting to know each other really well.
But for now, there’s simply isn’t enough time to spend an hour on the phone with each person during tax season answering the dozens of questions you have. We have to do tax returns, write articles and books and meet deadlines. Practically ALL the information you need is on the www.irsexams.com website. EXPLORE IT! Listen to the hour of audio. Read the information about the exam and about the classes.
CONSIDER THIS A TEST.
If you can’t do sufficient research to get your questions answered on one simple website, how are you going to get answers to your clients questions when you have to research something complex, like the Tax Code?
The early bird discount for the class ends on March 16th – sign up now – or forever pay more – ttp://irsexams.com/registration/
Read the ebook – Everything You Wanted to Know About the EA Exam
http://taxmama.com/free-member-resources/
=== CPA Exam Review
Looking for a great course?
You can’t do any better than this!
Phil Yaeger’s CPA Exam Review Course
http://www.yaegercpareview.com/
- Ask TaxMama :: Where taxes are fun and answers are free
- www.TaxQuips.com :: The number ONE free tax podcast online
IRS Outlines Additional Steps to Assist Unemployed Taxpayers and Others
March 12, 2010 by Tax Blog
Filed under Questions & Answers
IRS has added a new resource – just for you.
They have opened up their offices on Saturdays. How that helps people who don’t have jobs and can come in on weekdays, I don’t understand. It certainly is a big help to people who work, though!
Video
Owe Taxes But Can’t Pay? English
Unemployment Compensation: English | Spanish
Job Search Expenses: English | Spanish | ASL
For these and other videos: YouTube/IRSVideos
WASHINGTON — The Internal Revenue Service today announced several additional steps it is taking this tax season to help people having difficulties meeting their tax obligations because of unemployment or other financial problems.
The steps –– an expansion of efforts that began more than a year ago –– include additional flexibility on offers in compromise for struggling taxpayers, a series of Saturday “open houses” offering taxpayers extra opportunities to work out tax problems face to face with the IRS, special outreach with partner groups to unemployed taxpayers and the availability of more information on a special section of the IRS Web site.
“Times are tough for many people, and the IRS wants to do everything it can to help people who have lost their job or face financial strain,” IRS Commissioner Doug Shulman said. “We continue to make adjustments to key programs and expand ways for people to get help. We’re doing everything we can to help ease the burden on struggling taxpayers.”
New Flexibility for Offers in Compromise
For some taxpayers, an offer in compromise –– an agreement between a taxpayer and the IRS that settles the taxpayer’s debt for less than the full amount owed –– continues to be a viable option. IRS employees will now have additional flexibility when considering offers in compromise from taxpayers facing economic troubles, including the recently unemployed.
Specifically, IRS employees will be permitted to consider a taxpayer’s current income and potential for future income when negotiating an offer in compromise. Normally, the standard practice is to judge an offer amount on a taxpayer’s earnings in prior years. This new step provides greater flexibility when considering offers in compromise from the unemployed. The IRS may also require that a taxpayer entering into such an offer in compromise agree to pay more if the taxpayer’s financial situation improves significantly.
These immediate steps are part of an on-going effort by the IRS to ensure the availability of the Offer in Compromise program for taxpayers.
Hundreds of Saturday Open Houses to Resolve Taxpayer Issues
In addition, IRS will hold hundreds of special Saturday open houses to give struggling taxpayers more opportunity to work directly with IRS employees to resolve issues. The offices will be open on March 27 and three additional Saturdays in the spring and early summer. Dates, times and locations will be announced shortly.
During the expanded Saturday hours, taxpayers will be able to address economic hardship issues they may be facing or get help claiming any of the special tax breaks in last year’s American Recovery and Reinvestment Act, including the:
- Homebuyer tax credit
- American Opportunity Credit
- Making Work Pay credit
- Expanded Earned Income Tax Credit
In addition to these special Saturdays, taxpayers can take advantage of toll-free telephone assistance and regularly scheduled hours at local Taxpayer Assistance Centers. Taxpayers can find the location, telephone number and business hours of the nearest assistance center by visiting the Contact My Local Office page on IRS.gov.
Special Outreach Efforts to Unemployed
The IRS is working and coordinating with state departments of revenue and state workforce agencies to help taxpayers who are having problems meeting their tax liabilities because of unemployment or other financial problems.
These coordinated efforts may include opportunities for taxpayers to make payment arrangements and resolve both federal and state tax issues in one place.
Special Section of IRS.gov Created
Taxpayers who are unemployed or struggling financially can find information on a new page on the IRS Web site, IRS.gov. This online tax center has numerous resources including links to information on tax assistance and relief to help struggling taxpayers
Other Options Available for Taxpayers
The IRS will continue to offer other help to taxpayers, including:
- Assistance of the Taxpayer Advocate Service for those taxpayers experiencing particular hardship navigating the IRS.
- Postponement of collection actions in certain hardship cases.
- Added flexibility for missed payments on installment agreements and offers in compromise for previously compliant individuals having difficulty paying.
- Additional review of home values for offers in compromise in cases where real-estate valuations may not be accurate.
- Accelerated levy releases for taxpayers facing economic hardship.
In addition, the IRS will accelerate lien relief for homeowners if a taxpayer cannot refinance or sell a home because of a tax lien. As previously announced, a taxpayer seeking to refinance or sell a home may request the IRS make a tax lien secondary to the lien by the lending institution that is refinancing or restructuring a loan. The taxpayer may also request the IRS discharge its claim if the home is being sold for less than the amount of the mortgage lien under certain circumstances.
- Ask TaxMama :: Where taxes are fun and answers are free
- www.TaxQuips.com :: The number ONE free tax podcast online
- IRS Special Tax Center :: Tax Center to Assist Unemployed Taxpayers
Did I Receive a 2009 Economic Recovery Payment?
March 12, 2010 by Tax Blog
Filed under Questions & Answers
If you haven’t been able to remember whether or not you got your $250 from Social Security or your pension; or don’t understand the $400 adjustment to your payroll – IRS finally has some help for you!
Courtesy of IRS
The IRS developed the “Did I Receive an Economic Recovery Payment?” look up tool which gives taxpayers an easy way to determine if they received the one-time ERP payment and which agency made the payment.
Beginning March 8, 2010, taxpayers can call 866-234-2942 to access the phone application.
The Web application will be available in late March on IRS.gov.
Taxpayers who had earned income in 2009 or are government retirees and received an Economic Recovery Payment need to report whether or not they received an ERP and the amount when they prepare their Schedule M, Making Work Pay and Government Retiree Credits.
The one time $250 ERP was paid to individuals in the following categories:
- Retirees, disabled individuals and Supplemental Security Income (SSI) recipients receiving benefits from the Social Security Administration,
- Disabled veterans receiving benefits from the U.S. Department of Veterans Affairs, and
- Railroad Retirement beneficiaries.
Using the IRS look up tool taxpayers will have to enter three pieces of information to determine if they received an ERP:
- SSN
- Date of birth
- Zip code from the last filed return
A separate telephone call or Web inquiry must be made for each taxpayer, even if filing a joint tax return.
- Ask TaxMama :: Where taxes are fun and answers are free
- www.TaxQuips.com :: The number ONE free tax podcast online
Jury Duty
March 11, 2010 by Tax Blog
Filed under Questions & Answers

If you’ve ever been called for jury duty, you have to know this is priceless!
If you haven’t…you’ll enjoy it even more.
As for me? I am scheduled for Jury Duty very soon.
These are from a book called Disorder in the Court by by Bob Terrell & Marcellus Buchanan. They are things people actually said in court, word for word, taken down and now published by court reporters who were tormented, trying to keep a straight face while these exchanges were actually taking place.
__
ATTORNEY: Now doctor, “isn’t it true that when a person dies in his sleep, he doesn’t know about it until the next morning?”
WITNESS: Did you actually pass the bar exam?
_ _
ATTORNEY: Are you sexually active?
WITNESS: No, I just lie there.
_ _
ATTORNEY: This myasthenia gravis, does it affect your memory at all?
WITNESS: Yes.
ATTORNEY: And in what ways does it affect your memory?
WITNESS: I forget.
ATTORNEY: You forget? Can you give us an example of something you forgot?
_
ATTORNEY: Do you know if your daughter has ever been involved in voodoo?
WITNESS: We both do.
ATTORNEY: Voodoo?
WITNESS: We do.
ATTORNEY: You do?
WITNESS: Yes, voodoo.
_ _
ATTORNEY: The youngest son, the twenty-year-old, how old is he?
WITNESS: He’s twenty, much like your IQ.
_
ATTORNEY: Were you present when your picture was taken?
WITNESS: Are you shitting me?
_ __
ATTORNEY: So the date of conception (of the baby) was August 8th?
WITNESS: Yes.
ATTORNEY: And what were you doing at that time?
WITNESS: Getting laid
_ _
ATTORNEY: She had three children, right?
WITNESS: Yes.
ATTORNEY: How many were boys?
WITNESS: None.
ATTORNEY: Were there any girls?
WITNESS: Your Honor, I think I need a different attorney.
Can I get a new attorney?
_ _
ATTORNEY: How was your first marriage terminated?
WITNESS: By death.
ATTORNEY: And by whose death was it terminated?
WITNESS: Take a guess.
_ _
ATTORNEY: Can you describe the individual?
WITNESS: He was about 20, medium height, and had a beard.
ATTORNEY: Was this a male or a female?
WITNESS: Unless the Circus was in town I’m going with male.
_
ATTORNEY: Doctor, how many of your autopsies have you performed on dead people?
WITNESS: All of them. The live ones put up too much of a fight.
_ __
ATTORNEY: ALL your responses MUST be oral, OK?
What school did you go to?
WITNESS: Oral.
_ __
ATTORNEY: Do you recall the time that you examined the body?
WITNESS: The autopsy started around 8:30 p.m.
ATTORNEY: And, Mr. Denton was dead at the time?
WITNESS: If not, he was by the time I finished.
_ _
ATTORNEY: Are you qualified to give a urine sample?
WITNESS: Are you qualified to ask that question?
_ _
And the best for last:
ATTORNEY: Doctor, before you performed the autopsy, did you check for a pulse?
WITNESS: No.
ATTORNEY: Did you check for blood pressure?
WITNESS: No.
ATTORNEY: Did you check for breathing?
WITNESS: No.
ATTORNEY: So, then it is possible that the patient was alive when you began the autopsy?
WITNESS: No.
ATTORNEY: How can you be so sure, Doctor?
WITNESS: Because his brain was sitting on my desk in a jar.
ATTORNEY: I see, but could the patient have still been alive, nevertheless?
WITNESS: Yes, it is possible that he could have been alive and practicing law.
- Ask TaxMama :: Where taxes are fun and answers are free
- www.TaxQuips.com :: The number ONE free tax podcast online
- Read more in - Disorder In the Court :: by Bob Terrell & Marcellus Buchanan
- Disorder in the Court: Great Fractured Moments in Courtroom History :: by Charles M. Sevilla
- Disorderly Conduct: Excerpts from Actual Cases :: by Rodney R. Jones (Editor), Charles M. Sevilla (Editor), Gerald F. Uelmen (Editor), Lee Lorenz (Illustrator)
New Posting
March 11, 2010 by Tax Blog
Filed under Questions & Answers
Today TaxMama hears from Madhu in Minnesota who needs help. “I have a peculiar case and need your opinion here. I am living & working in MN and make a lot of money. My wife lives & studies in WI and she has an on-campus job, earning enough to cover her basic living expenses. Our state of residence is different and so is our tax bracket. So I am not sure whether I should be filling jointly or separately. If I file jointly, I would end up paying a lot of state tax to WI. I am paying her tuition fees and I suppose that would be taken into account irrespective of whether we file jointly or separately.” http://taxmama.com/forum/taxquips/should-i-be-filing-as-mfj-or-mfs/

Hi Madhu,
Actually, this is much easier than you think.
File an MFJ IRS tax return. You will both benefit.
Then, in MN, file a non-resident/part-year resident return. Show yourself as a resident. Show your wife as a non-resident.
Do the same thing in Wi, expect your wife is the resident – and you are the non-resident.
You won’t end up paying any taxes to states where you or your wife don’t income.
Any competent tax pro can help you with that. It’s a bit complicated to do yourself.
Good luck! And I hope this all works out for you both.
And remember, you can find answers to all kinds of questions about multi-state marriages and other tax issues, free. Where? Where else? At www.TaxMama.com.
[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the join TaxMama.com link – it’s free!]
Please post all Comments and Replies in the - New TaxQuips Forum
- Ask TaxMama :: Where taxes are fun and answers are free
- www.TaxQuips.com :: The number ONE free tax podcast online
$10,000 from IRA
March 10, 2010 by Tax Blog
Filed under Questions & Answers
Today TaxMama hears from PA in the TaxQuips Forum with a quick question. “I recently completed my home construction. I used a loan from my credit card to consolidate other credit card purchases for material. I have a paper trail documenting the transactions. Can I use a withdrawal of $10,000 from my IRA, penalty free to pay this credit card debt without penalty?”
http://taxmama.com/forum/taxquips/irs-10k-1st-time-home-1/

Dear PA,
Believe it or not, there is a difference between using the $10,000 to pay for home improvements, and to pay off a credit card.
With the right ADVANCE planning (yes, redundant), you would have been advised to draw the money from the IRA to use to pay your home construction bills.
Then, you would not have had to use your credit cards to buy the material. You would not have had to use another credit card to consolidate your other credit card bills.
Incidentally, three more rules that apply to this $10,000 IRA draw:
1) It’s only an exclusion from early withdrawal penalties – not from taxes.
2) It only applies to the purchase or construction of a first home.
3) It only applies to money drawn from an IRA, not any other kind of retirement plan.
http://www.irs.gov/retirement/participant/article/0,,id=211440,00.html
And remember, you can find answers to all kinds of questions about getting around the IRA penalties and other tax issues, free. Where? Where else? At www.TaxMama.com .
[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the join TaxMama.com link – it’s free!]
Please post all Comments and Replies in the - New TaxQuips Forum
- Ask TaxMama :: Where taxes are fun and answers are free
- www.TaxQuips.com :: The number ONE free tax podcast online
- IRS Articles :: Tax on Early Distributions
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Donated Car Increased in Value
March 8, 2010 by Tax Blog
Filed under Questions & Answers
Today TaxMama hears from Dawn in the TaxQuips Forum with a simple question. “I donated a vehicle to charity. The vehicle increased in FMV from the time I purchased it 14 years ago. I donated it for the use of the charity (not for resale). It’s a charity that uses vehicles in their daily activities. Can I take a deduction of the FMV or do I have to use my purchase price? It looks like I can use FMV, but I want to be sure I get it right!”
http://taxmama.com/forum/taxquips/charitable-vehicle-increased-in-value

Hi Dawn,
No kidding? A car that went up in value? Wow! What was it?
The charity needs to give you paperwork about the use and the value.
Here are the rules for property that has increased in value.
Amount of deduction – general rule. When figuring your deduction for a gift of capital gain property, you generally can use the fair market value of the gift.
Exceptions. However, in certain situations, you must reduce the fair market value by any amount that would have been long-term capital gain if you had sold the property for its fair market value. Generally, this means reducing the fair market value to the property’s cost or other basis. You must do this if:
Then it goes on to list some instances… It sounds like double-speak, because it is. This question is not as simple as it looks, is it?
Essentially, you’re probably not going to get to deduct the fair market value – or if you do, your deduction will be limited to 30% of your income.
I have to admit, that neither the IRS publications nor the Tax Code has ever made any sense to me about this issue. Thank goodness I never had a client donating appreciated property – except in a decedent’s estate, where basis was easy to determine.
Perhaps someone else here can give you a better answer. Here’s one brave soul:
David Toelkes makes a stab at this: Since you held the tangible personal property for more than a year, you can deduct the FMV of the property as a charitable contribution, provided you also claim the capital gain that you would have reported if you had sold the property instead.
Capital gain tax rate on personal property is 28%, so depending upon your tax bracket, you may come out ahead taking a charitable deduction on the FMV then paying capital gains on the appreciated value.
My understanding may be flawed because the language is so obtuse
Who knows, perhaps someone can actually translate these rules into English – with confidence?
And remember, you can find answers to all kinds of questions about charitable contributions and other tax issues, free. Where? Where else? At www.TaxMama.com .
[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the join TaxMama.com link – it’s free!]
Please post all Comments and Replies in the - New TaxQuips Forum
- Ask TaxMama :: Where taxes are fun and answers are free
- www.TaxQuips.com :: The number ONE free tax podcast online
- IRS Publication 526 :: Charitable Contributions
- TaxMama's Tax Forum :: Where you can post your comments
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Short Term Installment Agreement
March 8, 2010 by Tax Blog
Filed under Questions & Answers
Today TaxMama hears from Joe in the TaxQuips Forum with lots of questions. Edited down he’s asking: “Is it true that you cannot efile prior year returns? I need to file for this year and last year. I expect to owe money for each year, but don’t need a long-term installment agreement. What form shall I use? And what shall I do?”
http://taxmama.com/forum/taxquips/e-filing-prior-year-taxes/

Dear Joe,
At this time, IRS is not set up to accept prior year e-filed returns. They will be in the near future.
If you are filing the current year tax return and expect to have money by October, don’t ask for an installment agreement. Put your tax return on extension. You will have until 10/15/10 to file.
You will have the same level of underpayment penalties and interest as if you filed your tax return in April – you just won’t start the IRS collections process until later.
Go out and earn or borrow the money you need to pay the taxes – and file and pay in full in October.
See how much less complicated this is?
As to installment agreements in general? They are not designed for 36-60 years – they are designed for 36-60 MONTHS! Use Form 9465 http://www.irs.gov/pub/irs-pdf/f9465.pdf
Yes, you need to file tax returns separately for each year.
So figure out your 2009 balance due – file it and pay in October. Next, if you owe money for 2008, file it, along with a Form 9465 and propose a payment plan that pays it off in 12-24 months. Your installment agreement will be automatically accepted as long as your balance due is under $25,000.
And remember, you can find answers to all kinds of questions about balances due and other tax issues, free. Where? Where else? At www.TaxMama.com.
[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the join TaxMama.com link – it’s free!]
Please post all Comments and Replies in the - New TaxQuips Forum
- Ask TaxMama :: Where taxes are fun and answers are free
- www.TaxQuips.com :: The number ONE free tax podcast online
- IRS Form 9465 :: Installment Agreement Form
Splitting the Dependency Exemption
March 3, 2010 by Tax Blog
Filed under Questions & Answers
Today TaxMama hears from Suzan in California with is bewildered. “Someone sent me an email stating that they were told by H&R Block that divorced couples can split their children’s dependency exemption based on a new ruling for 2009. That the exemption can be split six months for Mom and six months for Dad. I’ve looked and can’t find any information on splitting the dependency exemption. Has anyone heard of this? What is the name of the ruling? I did suggest the person who emailed me, request the ruling from the tax prep person giving that information.” http://taxmama.com/forum/taxquips/divorce-couples-sharing-the-dependency-exemption/
<!-more->

Dear Suzan,
Nonsense!
Chalk it up to yet another tax scam or urban legend.
If anyone comes up with a valid citation, I’ll eat my hat!
And remember, you can find answers to all kinds of questions about tax myths and other tax issues, free. Where? Where else? At www.TaxMama.com .
[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the join TaxMama.com link – it’s free!]
Please post all Comments and Replies in the - New TaxQuips Forum
- Ask TaxMama :: Where taxes are fun and answers are free
- www.TaxQuips.com :: The number ONE free tax podcast online



