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Tax Preparation Questions

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Tina Said:

How to answers this tax preparation question?

We Answered:

If you were a full time student but provided over 1/2 your own support for 2008, then no one else should be claiming you as a dependent. Support is a subject that takes into account many different things, such as the home you live in, food, and all other expenses that account for your support. I am attaching a link to the IRS Pub 17, page 33. Support Worksheet. So if you live with your parents, were a full time student in any part of 5 months of the year and you did not provide over 1/2 your own support, they could be able to claim you as a dependent.

Back to your original question, so if you were a full time student and you can prove that you did support yourself, no one else can claim you then you should check the option that fits this situation.

Laura H – H&R Block – Senior Tax Advisor 5
**This advise was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided.

Ralph Said:

Why do I see so few questions about the Fair Tax?

We Answered:

One reason there are so few questions about the Fair Tax is that it is a very simple concept. There is not a lot of ambiguity that would give rise to questions.

The same simplicity that makes the Fair Tax easy to understand also makes it easy to attack and misrepresent as a tax to benefit the rich. Many people have been led to believe that “Fair” is the same as “Flat” and believe everyone would pay, say, 10% of their gross income. In fact, the Fair Tax has flat brackets so that people at different income levels would pay different percentages of their income. The Fair Tax, as proposed, is revenue neutral. It also proposes to simplify the tax preparation process. Almost anyone could prepare his or her tax return in a matter of minutes and would not need to pay accountants, lawyers and tax preparation firms to prepare their returns for them.

A big problem with the Fair Tax is its transparency, which is the last thing our spendthrift politicians want. Another one is that it is a federal tax and would not govern the tax policies of state and local governments.

IMO, too many people think of “the government” as an entity separate and apart from the people. It’s like the coming tax rebates. Many people are “grateful” that “the government” is going to return to us some of the money it took away from us. Why doesn’t “the government” just offer a one-time tax credit that will reduce the amount of income taxes withheld from our paychecks? The obvious answer is that some people would direct their gratitude towards their employers rather than “the government” and others would see right through the so-called “economic stimulus” and wonder why they paid so much tax in the first place.

Unless and until we the people recognize that WE ARE THE GOVERNMENT things will never change. Politicians are increasingly talking about pay and severance packages for CEOs of large corporations. They really don’t need to because shareholders are increasingly demanding a say in the compensation of their companies’ top executives. What many people don’t see is that “the government” is OUR large corporation and we pay our managers more in power and influence than in dollars. If WE ever decide to hold our managers accountable for their performance, things will improve. That’s a pretty big “If,” but we need to take control or we will continue to pay a heavy price.

We need to fire some of our managers and provide them with a severance package that includes a lengthy, all expenses paid “vacation” in a prison. The kind of corruption that goes on in “the government” makes what goes on in the private sector look like excellence in management.

Cody Said:

T: The new tax deduction for transitioning. I have a couple questions.?

We Answered:

Hello, I'm here!

YES, transitional medical care that is rendered after a diagnosis of transsexualism IS tax deductible. That includes endo visits, blood work etc.

His Mom can claim the deduction if he is her dependent.

You can amend previous tax returns up to 3 years after. Expenses for this year are filed as part of her 2010 return next year.


Hope this helps.


p.s. By the way since we won this case in Tax Court all major tax preparation companies should be aware of this change and be able to answer questions. Your Ad Here

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