IRS Provides Guidelines on How to Claim New Wrongful-Incarceration Exclusion; Use Special Address for All Back-Year Refund Claims; Dec. 19 Deadline for Older Claims 

The Internal Revenue Service released guidelines on how wrongfully-incarcerated taxpayers can take advantage of the new retroactive exclusion from income for any civil damages, restitution or other monetary award received in connection with their incarceration. The guidelines are contained in a set of frequently-asked questions, posted today on IRS.gov. According to the FAQs, taxpayers who […]

Aides assist seniors with filing forms

More than 70 free tax preparation sites are open in Rhode Island as the Internal Revenue Service (IRS) continues to expand its partnerships with nonprofit and community organizations. The sites provide vital tax preparation services for low- to-moderate-income and elderly taxpayers. The IRS Volunteer Income Tax Assistance (VITA) Program offers free tax help generally to […]

Check insurance exemptions under ACA

The individual shared responsibility provision of the Affordable Care Act requires you and each member of your family to have qualifying health insurance coverage, also called minimum essential coverage; qualify for an exemption; or make an individual shared responsibility payment when you file your federal income tax return. Many people already have minimum essential coverage […]

Proceeds from home sale can be exempt

Do you know that if you sell your home and make a profit, the gain may not be taxable? That’s just one key tax rule that you should know. Here are 10 facts to keep in mind if you sell your home this year. • If you have a capital gain on the sale of […]

Advice for correcting income tax mistakes

  Did you discover that you made a mistake after you filed your federal tax return? You can make it right by filing an amended tax return. Here are the top 10 things to know about filing an amended tax return. • Use Form 1040X, Amended U.S. Individual Income Tax Return, to correct errors. You must file […]

Latest technology makes paper forms obsolete

Are you still doing your taxes on paper? If so, join the 122 million taxpayers who e-filed last year. They already know that the Internal Revenue Service’s e-file is the best way to submit a federal tax return. Here are five great reasons why you should e-file your tax return: • E-file is the best way […]

IRS: Do your homework before hiring tax preparer

By Meg Chevalier Many people look for help from professionals when it’s time to file their tax returns. If you use a professional to file your federal income tax return, the Internal Revenue Service (IRS) urges you to choose that preparer carefully. Even if someone else prepares your return, you are legally responsible for what […]

Avoid hitting panic button when receiving IRS letter

Each year the Internal Revenue Service (IRS) sends millions of letters and notices to taxpayers. Although some people may feel anxious when they receive one, many are easy to resolve. Here’s what to do if you receive a letter or notice from the IRS: • Don’t panic, and follow the instructions in the letter. • There are […]