Filing your taxes can be an incredibly daunting process.
Student loans, a mortgage, retirement, savings, stocks – all things that have to be accounted for when filing.
With just days to file before the April 15th deadline, the stress is compiled.
State of Nevada host Joe Schoenmann talked to Las Vegas CPA Todd Cox and Raphael Tulino, IRS spokesman for the Southern United States, inviting listeners to call or write in with questions and concerns.
Here’s some of those questions and their advice.
COLLEGE TUITION AND SCHOLARSHIPS
Megan called and asked about a form she got regarding her daughter’s college scholarship. Does she have to worry about it or pay taxes on it?
Todd Cox: So your daughter is probably eligible for a credit, but she's not going to have to pay any tax of her income… So she's in a good situation. It's not a bad thing. It's a good thing.
Another caller asked if they can use both the American Opportunity Credit and the Lifetime Learning Credit, which can be used for college expenses.
Raphael: I don't believe you can double-dip. You take one of the other, you're not taking both. When you're talking about education credits and deductions … it's an either or.
One more caller said he was asked to refinance his student loan in order to qualify for student loan forgiveness. Both Tulino and Cox questioned that request, but added that the fate of loan forgiveness remains unresolved.
Todd: I would be dubious about having to refinance a loan that they are intending to forgive.
Raphael: As far as I understand this student loan forgiveness, it's in a precarious situation right now.
TAX SCAMS
Raphael: Tax season seems to be scam season. But the bottom line is we're not reaching out under any circumstance via email, which is phishing or text, which is smishing. Or, you know, random phone calls and threatening things like that. And then not in social media, either. Just be wary of what you see on social. But our normal course is letters in the mail, not uninitiated out-of-the-blue random texts, you know, about the pandemic era tax credits or refunds or refund opportunity or send us this or give us this and we'll send you that. Any reputable business or agency is not doing business that way.
STANDARD DEDUCTION OR ITEMIZE?
Raphael: I will tell you that because of the tax cuts and Jobs Act that doubled (the standard deduction) in 2017, or nearly doubled it, it's fully 90 percent of all returns (in 2021 took) the standard. Very few people itemize anymore, including out here in California. Most of us don't itemize anymore, because you want to take the bigger number and use that bigger number to reduce your exposure to taxes.
DISABLED VETERAN CLAIMS
Listener Brenda has a son who is a disabled veteran receiving disability pay from the military. Can she claim him on her taxes?
Todd: Yes, if you're his primary caregiver, and you provide more than 50 percent of his support, or you're pretty safe in claiming him as a dependent … If he's older, over 18, the credit is $500. It's not like a huge, huge amount. If it's a child under 17, that's a $2,000 credit.
Guests: Raphael Tulino, IRS Spokesman, Southwestern U.S.; Todd Cox, Las Vegas Certified Public Accountant
