Frequently asked questions
How quick can I get a copy of my tax return? As soon as you properly
identify yourself, with social security number and date of birth.
Can my ex-spouse and I both claim our child? No, only one can take the
dependent exemption, which means you should contact your ex to be sure
you both do not take the dependent on the same year. IRS is good at
holding up refunds when that happens.
Is the inheritance I just received taxable? No as to principal, yes as
to interest, dividends, or capital gains earned when you invest the
money. State and possibly federal (if large enough in amount)
estate/inheritance tax has probably already been paid before
the funds were transferred to you.
Can I deduct my home repairs? No, as a general rule. Gain from sale
of your own home is now exempt, if you meet certain criteria, up to
$250,000 of gain. Hence, no deduction for repairs. One significant
criterion is if you lived in the residence three of the last five years
and did not sell another home within the past 2 years.
However, beginning in 2006, energy credits will again be available for
home improvements involving certain energy saving equipment. The
qualifying expenses for the energy credit include insulation, replacement
windows, and energy efficient furnaces and air conditioning systems.
Check with your contractor or supplier as to whether your expenditures qualify.
The energy credit is only for 2006 and 2007 (unless Congress extends it).