Tax Newsletters

Education Credit

Congress has created two federal income tax credits for qualifying higher education expenses: the Hope credit and the lifetime learning credit. Both credits reduce regular income tax liability, but if the amount of the credit exceeds the tax liability for the year, the taxpayer is not entitled to a refund.

Amortization of Goodwill and Other Purchased Intangible Assets

It is not unusual for a taxpayer to pay more for a business than the fair market value of its tangible assets would seem to command. So why does a taxpayer pay more? The answer is that he or she has actually bought more than hard assets.

Rollovers from Retirement Plans

If you withdraw assets from one qualified employer retirement plan and contribute them within 60 days to another qualified retirement plan or traditional Individual Retirement Account (IRA), you do not have to include the amount withdrawn in your taxable income for the year. You are entitled to roll over most distributions except for the nontaxable part of a distribution, a distribution that is one of a series of payments based on life expectancy or paid over a period of years, a required minimum distribution, or a hardship distribution.

Tax Advice for Newlyweds

Newly married individuals should notify the Internal Revenue Service of name and address changes. A change in marital status will affect an individual's filing status. Marital status is determined on the last day of the year, so if you were married on December 31, the IRS considers you to have been married for the entire year.

Filing Tips

When you are ready to file your tax return, the Internal Revenue Service suggests that you take an extra few minutes to double check certain items to prevent mistakes that could cost you penalties and interest or delay your refund.