| Taxation of Payments Made to Volunteers |
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| As a volunteer worker in the Peace Corps or similar agencies, you most likely will receive certain payments in the form of allowances or reimbursements. The Internal Revenue Service has provided guidance as to the taxability of these payments. More... |
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| Tax-free Bond Interest Used for Education |
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| If you invest in U.S. savings bonds, you are generally obligated to pay federal income taxes on the interest earned on the bonds. If you do not include the interest in your gross income in the year in which it was earned, you must include it in the year in which you cash in the bonds. However, if you use the proceeds from certain bonds as part of an education savings bond program, you may be entitled to exclude the bond interest in income. More... |
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| Cancellation of Certain Student Loans |
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| The general rule is that if you are responsible for making loan payments and the loan is forgiven, you are required to include the amount of the cancelled loan in your gross income for federal income tax purposes. However, under certain circumstances, a forgiven student loan may be entitled to tax-free treatment. More... |
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| Who May File a Joint Tax Return |
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| When a couple files a joint tax return, they are considered a single economic unit in the eyes of the Internal Revenue Service. But not every "couple" is entitled to file a joint return. Only a married couple may file jointly, They do not have to be married for the entire year. A husband and wife must be married on the last day of the tax year in order to benefit from the joint filing status for the entire year. These benefits include a lower tax rate and certain credits, such as the earned income credit, the tax credit for the elderly, and the credit for child and dependent care expenses, which are only available to married taxpayers who file a joint return. More... |
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| What is an S Corporation |
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| An S corporation is a hybrid entity. It is a type of a corporation, but it is taxed like a partnership. Usually, an S corporation does not pay federal income tax. Similar to a partnership, income or loss is passed through to the shareholders in proportion to their ownership interests, and the shareholders report the income or loss on their federal income tax returns. In addition, the S corporation is a conduit to the shareholders for gains and losses, charitable contributions, dividends, and tax-exempt interest. More... |
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