One of the things I love in life is when my tax dollars are used…

Posted: March 9, 2010 by datechguy in opinion/news, personal
Tags: , , , , ,

…in ways I approve of. That would be my description of the very nice woman at the IRS office in Fitchburg that helped me with three tax questions I had concerning rules.

It’s true there is a computer program she is required to use, but she was friendly, helpful and enthusiastic about giving a hand. She puts the “serve” in public servant.

She also had some answer concerning the Have Fedora will Travel business stuff that I’m going to need to know when next year’s taxes come around.

So a hearty well done to #1. The IRS for hiring this woman, #2 The IRS for that new program she was using. it is more likely than not to give consistent answers to everyone and #3 To the woman herself for doing her job well.

And in case you have the same questions I had, here were my tax questions (all line number refer to form 1040):

#1. My wife is a school Nurse, the Nurses in the town she works in were put under the teachers contract and made to join the union. Because of this can her dues be considered Educational expenses on line 29?

Answer: No. As a school nurse she does not qualify as a teacher, counselor, instructor, aide or a principal. We can claim them under Schedule A, Itemized deductions but that amount is limited based on the size of the expenses and our Adjusted gross income.

#2 The new temporary “Making work Pay” credit is $400 if single or $800 if married and filing jointly. Is that figure based on filing status? (Married filing jointly so we get $800) or $400 per worker (only the wife worked so the credit is $400)?

Answer: Filing status. The maximum credit is 6.2% of income up to $400 if single or $800 if married filing jointly. It is the filing status that allows the $800. My wife qualifies for the full $800 and that full amount can be claimed on line 63.

#3 My wife and I established an Ugma when my oldest was 1 year old. We put in 100 a month and later $50 a month sometime after his brother was born. Since he was entering college and the market was crashing the money was withdrawn and the account closed. We received a form 1099-b with the amount of the withdrawal. Since this account was paid for with post tax dollars are these fund taxable and do I have to fill out the capital gains forms on it and claim it as income on his form?

Answer: Yes. It must be claimed as a Capital gain to the extent that it exceeded the amount that was invested. If there was an overall loss, (and this was the case) that can be claimed as a long term capital loss for him. Odds are he isn’t going to make enough to make it a big payback for him, but it is better than it being an income. The capital gains forms are just a pain in the neck.

These were the answers I was given, I presume they are correct. If any tax expert thinks otherwise now is the time to say it.

Of course an easier tax system would make all this moot.

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