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Sandra Bullock Some Tax Advice and the DUH Factor
By Stacie Clifford Kitts, CPA
Everywhere I turn someone is talking about Sandra Bullock and how Jesse James done her wrong. Boy, I do understand her pain and there is no doubt that the situation sucks. But really, should we all be this shocked?
I think a More Tax Tips reader put the situation into the proper perspective when he said there really is no surprise about how [the marriage] turned out. If you marry a bad boy, you shouldn’t be surprised when he acts badly.
Moreover, Sandra is old enough to know that she should not have latched onto a fixer upper. After all, he was married to a porn star; this might have been a clue that his take on the whole monogamy thing was a little different from say America’s Sweetheart. DUH
Anyway, I’m just sayin’.
So on to the tax part of this post.
If you are headed for divorce court here are a few things to keep in mind for tax time.
- Your marital status on the last day of the year determines your marital status for the entire year.
- Single filing status generally applies to anyone who is unmarried, divorced, or legally separated according to state law.
- A married couple may file a joint return together. The couple’s filing status would be Married Filing Jointly.
- A married couple may elect to file their returns separately. Each person’s filing status would generally be Married Filing Separately. This would be the proper election if you did not want to be tied to your spouse’s tax return particularly if you thought that he or she was evading taxes.
- You may qualify for head of household status even if you are still legally married at the end of the tax year.
- You are unmarried or “considered unmarried” on the last day of the year.
- You paid more than half the cost of keeping up a home for the year.
- A “qualifying person” lived with you in the home for more than half the year (except for temporary absences, such as school). However, if the “qualifying person” is your dependent parent, he or she does not have to live with you. See Special rule for parent , under Qualifying Person.
Check out IRS Publication 501 for more information
IRS Presents:Eight Important Facts about the Health Coverage Tax Credit
The Health Coverage Tax Credit pays 80 percent of health insurance premiums for eligible taxpayers and their qualified family members. However, many people who could be receiving this valuable credit don’t know about it, and are missing out on big savings that can help them and their families keep their health insurance.
Here are the top eight things the IRS wants you to know about the HCTC:
- The HCTC pays 80 percent of an eligible taxpayer’s health insurance premiums.
- The HCTC is a refundable credit, which means it not only reduces a taxpayer’s tax liability but also may result in cash back in his or her pocket at the end of the year.
- Taxpayers can receive the HCTC monthly—when their health plan premiums are due—or as a yearly tax credit.
- Nationwide, thousands of people are eligible for the HCTC.
- You may be eligible for the HCTC if you receive Trade Readjustment Allowances—or unemployment insurance in lieu of TRA—through one of the Trade Adjustment Assistance programs.
- You also may be eligible for the HCTC if you are a Pension Benefit Guaranty Corporation payee and are 55 years old or older.
- The most common types of health plans that qualify for the HCTC include COBRA, state-qualified health plans, and spousal coverage. In some cases, non-group/individual plans and health plans associated with Voluntary Employee Benefit Associations established in lieu of COBRA plans also qualify.
- HCTC candidates receive the HCTC Program Kit by mail. The Kit explains the tax credit and provides a simple checklist to determine eligibility. Also included in the Kit is the HCTC Registration Form.
For more information on the HCTC and how it may benefit you, call the HCTC Customer Contact Center toll free at 1-866-628-HCTC (4282). If you have a hearing impairment, please call 1-866-626-4282 (TTY). You also can visit the HCTC online at www.IRS.gov/hctc.
Link: The Health Coverage Tax Credit (HCTC) Program
Stacie's Tax Stuff 