Iowa’s taxation of married couples has quirks that can throw a taxpayer or tax preparer for a loop. This post will cover allocation of itemized deductions, and allocation of tax credits, when couples file separately in Iowa.
Answer: this discussion goes beyond sole proprietors, and the short answer is “maybe.”
In my recent post about fraud and the earned income credit, I got a comment from someone who pointed out that tax fraud is committed by people from all walks of life, not just the lower-income folks who qualify for refundable credits. This is a valid point. In a lot of discussions among tax pros, […]
This is something I’ve wanted to research for a long time. Paid preparers are saddled with increasing IRS requirements and scrutiny regarding the earned income credit. The IRS says this is justified because $14.5 billion EIC claims are paid in error. This represents 24% of all EIC claims. But how many of those claims are […]
In 2012, I wrote that new IRS requirements on preparers regarding earned income credit claims would drive up fees. That’s been the case, but it’s not as bad as I had predicted.
The Earned Income Credit refers to a tax credit available to taxpayers between the ages of 25 and 65 whose income is below certain levels.
I’m curious to know if other tax pros are doing any kind of screening of clients and refusing to serve those who qualify for the Earned Income Credit? And if so, how does that work? Like I said in my post-tax-season recap, returns claiming the EIC make me extremely nervous. I know that all of […]
The IRS is now placing tax preparers in the position of “social worker” when it comes to Earned Income Credit claims.
Update: Governor Branstad has vetoed this portion of the bill, so it looks like there will be no increase in the EIC for 2011. Click here for more information. The Iowa Earned Income Credit has increased to 10% of the federal EIC for 2011, up from the previous rate of 7%. So, a taxpayer who […]
Governor Branstad has vetoed a bill that would have coupled Iowa tax law with federal tax law on bonus depreciation for 2011. Bonus depreciation allows an extra depreciation deduction to be taken in the year certain asset are placed in service. For assets placed in service from September 10, 2010, through the end of 2011, […]