| Death Benefits for Survivors of Public Safety Officers |
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| Congress has passed special tax rules that apply to amounts received by the survivors of a public safety officer. For the purpose of these provisions, the definition of a public safety officer includes a law enforcement officer, fire fighter, ambulance crew member, or rescue squad member. In addition, the law applies to a chaplain killed in the line of duty while responding to a fire, rescue, or police emergency as a member or employee of a fire or police department. More... |
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| Nonbusiness Bad Debts |
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| Nonbusiness bad debts are uncollectible obligations to you based on transactions not in the course of operating your trade or business. In order to prove that you are entitled to a bad debt deduction, you must be able to first show that you have a genuine debt. Second, you must be able to prove that a valid debtor-creditor relationship existed at the time the debt arose. Third, you must already have included the amount in your income. Finally, you must show that the debt became totally worthless during the tax year in which you are seeking the deduction. More... |
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| Deductibility of Business Gifts |
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| It is a common business practice to give gifts to customers and clients as a way of saying thank you for their patronage and to encourage future business. However, the taxpayer giving these gifts must be aware that certain tax laws limit the deductibility of these gifts. More... |
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| Taxation of Social Security Benefits |
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| The answer to the question of whether or not your social security benefits are taxable is "it depends." If your only income was your social security or equivalent railroad retirement benefits, your benefits are most likely not taxable, and you probably are not even required to file a tax return. However, the benefits may be taxable to recipients who have other income if their adjusted gross income exceeds certain levels established by Congress. A maximum of 85 percent of your benefits may be subject to federal income tax. More... |
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| New Tax Breaks for Military Personnel and Their Families |
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| In response to the wars in Afghanistan and Iraq, Congress enacted the Military Family Tax Relief Act of 2003 to provide certain tax breaks for military personnel and their families. These new provisions exclude certain benefits and gains from income, thereby reducing tax liability. More... |
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