Taxes Questions and Answers

Medical speculation?

I had surgery finishing year and used my $2500 deductable up.I had to set up payments to the hospital and own not actually rewarded the 2500.Can I use this as a write off?


Answers: Most individuals are bread basis taxpayers, which ability they can only reduce by expenses that are actually rewarded. The IRS allows expenses that have be charged on a credit card in December for payoff in January to discount those expenses if they are deductible for tax purposes. You will know how to deduct the $2,500 amount contained by the year in which you pay envelope it.
You cannot claim unpaid bills.

Need minister to near state due return?

My W2 says close to $200 within state tax but im person refunded $27.. Does not enunciate what its for am i doing something wrong? Have no deductions for myself ... any suggestion?


Answers: you should have something on your w-2 that say

State/taxable earnings and one box, your employer ein#, and then taxes with-held contained by another. You should need adjectives of this info to correctly complete your state taxes, I can't tell you what your return would/should be, because I don't know how much you earn or what state your in. Look and see if your state have a web page that will give support to you with this.
It may solely mean you have enough gross and taxable income within 2007 to warrant taxation by the state. No way to know for absolute without more information on what you earn, what state you're filing within...

Good luck.

What if your child care person gives you a fake ss# and you put it on your tax form to clame child care?




Answers: You can have fraud charges brought against you (fraud is a felony).

You can claim it was an accident, but if they were using a fake number (as opposed to having a legitimate number and telling you the wrong number) and there was anyway you could have known they were, then you are guilty of fraud no matter what you claim.
You are required to use due diligence in giving the IRS information to identify the care provider; their name, address and taxpayer ID #. If at the time you filed your return, to include the Form 2441, you had no knowledge of the "fake #" and can also say you exercised due diligence (or reasonable care) in collecting this info, then you'll not be facing any sort of fraud charges or penalties.

If, however, after filing your return you learn some portion of it is incorrect (such as the SS# here), I think you'd be wise to let the IRS know. You could do so by filing an amended return (1040X) or by writing a letter advising them of your discovery. Retain a copy of any such letter to prove your due diligence.

Good luck (and I hope you can find a more reliable child care provider in the future)!
Now that you know it is fake what is actually going on?
Is the provider an illegal alien, operating a business without a license therefore has no taxpayer ID or what?

Find out what is going on first. How do you know it is fake?

If you're sure it is fake you need to contact the IRS and let them know this. You filed what you were given but they knew it was fake when they gave it to you. They are the fraudulent party not you.

If you are asking a different question, for example, now that I know my provider is operating illegally can I claim my childcare expenses on my tax return...then ask that question when you call the IRS.

Your question was prefaced by "what if" so I am allowing for the fact that none of these scenarios may actually have happened yet and you are wondering what would happened IF someone were to cross that line.

Satisfy your curiosity that this is not a way you want to go if the former paragraph applies in this situation.
The IRS is likely to come back to you for more info, but since you will also have put down their name and address, the IRS might just follow up with them from that. The wrong number will take it out of the computer and into the hands of a live person. If your return shows a fake ss# AND a fake name and address, you will be spending some time explaining that to the IRS.

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