An economic stimulus payment oops...

You're waiting patiently for your money from the now-famous federal economic stimulus package. You're happy, because you'll get your payment a little sooner because you used direct deposit. You're waiting. And waiting.

Oops. You had your 2007 tax refund direct deposited into your retirement account, not a bank account. Now what? You guessed it... Your money for the economic stimulus is also going to be deposited into your retirement account too. This, of course, can create troubles for those who aren't eligible to contribute money to that account or those who didn't want their money to go into the retirement account.

The good news is that you can get your money out of that retirement account with no tax problems. The bad news is that it may take you a little time and effort to do so. This is one of the unfortunate consequences of distributing money in this way.

I, of course, wish these payments wouldn't be going out at all. The government should just reduce taxes for the rich who pay a disproportionate share of the tax bill as it is. This silly redistribution of money through a process that sends a bunch of checks to people who don't pay any income tax to begin with is completely unfair... especially when those who pay most of the taxes to start with aren't "eligible" to receive this money because they "make too much money." Oh well. Have fun spending!

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

Should I Include a Dependent's Income on My Tax Return?

It may be easier and less expensive to include dependents' income on your tax return rather than have them file their own return—in certain circumstances.

Read More

Brought to you by TurboTax.com

Great Ways to Get Charitable Tax Deductions

Generally, when you give money to a charity, you can use the amount of that donation as an itemized deduction on your tax return. However, not all charities qualify as tax-deductible organizations. While there are many types of charities, they must all meet certain criteria to be classified by the IRS as tax-deductible organizations. There are legitimate tax-deductible organizations in many popular categories, such as those listed below.

Read More

Brought to you by TurboTax.com

Tax Tips After January 1, 2019

TurboTax gives you ten tax saving tips for the new year. Find strategies to lower taxes, save money when preparing your tax return, and avoid tax penalties.

Read More

Brought to you by TurboTax.com

Should You and Your Spouse File Taxes Jointly or Separately?

Married couples have the option to file jointly or separately on their federal income tax returns. The IRS strongly encourages most couples to file joint tax returns by extending several tax breaks to those who file together. In the vast majority of cases, it's best for married couples to file jointly, but there may be a few instances when it's better to submit separate returns.

Read More

Brought to you by TurboTax.com
Read Full Story