Friday, 20 February 2009 14:56
Our understanding of the tax code might be based on half truths, used to be truths and pure fiction. It is always important to consult a tax professional to have the best understanding of the current tax law. The US tax law changes almost every year from new tax code being added to old tax laws expiring to limits changing and so on. Many myths abound about deductions, filing statuses and how the IRS treats different types of income.
What can you do? Read the entire US Tax code yourself and all the publications and supplements or utilize the services of tax planning tools or if your situation is a little more complex, consult a qualified tax professional. See if you are definitely, positively certain of your answer to the following questions.
Is there an exemption for students that excludes them from paying any tax at all?
Can you still claim your child as a dependent if they are working full time but you provide all of the child’s support?
If you are married, do you automatically have to file a joint return?
If you aren’t sure of the answer, call a tax professional. You might be surprised at some of the answers or you might have read the tax code and be right on.