The Varnum ruling was a historic case in Iowa that allowed same-sex marriage in the state. This article examines the ruling from a tax perspective.
Federal taxes provide for 5 different filing statuses. This blog post examines the definition of filing status and explains each type of filing status.
In the tax world, “IRA” stands for “individual retirement account.”
The term “head of household” refers to a filing status on a tax return available to unmarried people caring for children or parents. In simple terms, head of household creates a standard deduction and a tax bracket that is halfway between the single and married filing jointly filing statuses. Here are the requirements for filing […]
In the tax world, the term “asset” often comes up. An asset can refer to a broad variety of property. For a business, the term “asset” typically means something the business purchases that has a useful life of more than one year (equipment or land, for example). For individuals, an asset typically means things like […]
The term “refundable credit” refers to a tax credit that can produce a tax refund even if your tax liability is $0. Contrast this with “nonrefundable credits,” which can reduce your tax liability to $0 but don’t generate a refund by themselves. Examples of refundable credits include: income tax withheld from your wages; estimated tax […]
These glossary posts are intended to be an expansion on the brief definitions given in this website’s “Glossary of Tax Terms.” Unfortunately, when talking about passive activities, it’s hard to expand on the topic without making a reader’s head spin. But here goes. As stated in the Glossary: “A passive activity is an investment activity […]
What is an Enrolled Agent? The EA designation has existed since 1884 but sadly, EAs toil in obscurity (I once opined that EAs are like Liechtenstein while CPAs are like the United States). The National Association of Enrolled Agents has a great FAQ about EAs, which I am publishing in its entirety here: What is […]
I like to say that there are two types of dependents in the tax world: a “dependent dependent” and a “medical dependent.” A “dependent dependent” is someone who you claim as a dependent on your tax return. (Note that the “dependent dependent” terminology is something I made up; it’s not intended to be a technical […]