The IRS website is an invaluable resource for individuals with general tax questions; with a little digging, all of the information needed to prepare an individual tax return can be found on the IRS website. However, sometimes taxpayers just want an answer to a simple tax question without having to wade through a lengthy IRS publication or scour the website for guidance.
Quickly Locate IRS Guidance on Specific Tax Topics
Taxpayers may use the interactive module to find answers related to tax deductions and exclusions, tax credits, and taxable income, as well as several other tax topics. The Tax Trails menu lists a few business-related topics, but is geared primarily to individuals as of early 2008. The following topics are currently available:
- Eligibility to deduct moving expenses
- Deductibility of home mortgage interest or points
- 50% limitation on expense deductions (business, travel, entertainment, gift, & car expenses
- Limitations on itemized deductions
- Medical expenses
- Business use of the home
- Higher education and work-related education expenses
- Miscellaneous deductions
- Qualified individuals (elderly or disabled)
- Child and dependent credits
- Earned income and education tax credits
- Charitable contributions
- Employee compensation
- Self-employment and other income
- Capital gains and losses
- Tip income
- Child’s income and using Form 8615 to figure a child’s tax
- Withholding exemption (Form W-4)
- Estimated tax
- Simplified method of computing taxable part of pension or annuity
- Using short schedule SE or long schedule SE for self-employment tax
- Filing status, dependents, and personal exemptions
- Extension to file tax return
- Student loan and other interest
- Social security and equivalent railroad retirement benefits
- Amended tax returns
- Injured spouse claims
How Tax Trails Works
From the main menu, taxpayers may click on a topic to explore. They will be asked “Yes” and “No” answer questions until the appropriate answer is reached based on the responses. Some answers are so straightforward that they will be directed to the primary IRS guidance without having to answer any questions, but most topics require at least one answered question before the appropriate guidance will be pinpointed.
It is important to note that further reading may be required once the “answer” portion of the module has been reached. For example, clicking on “Medical Expenses” returns a description of the types of expenses that are deductible on a tax return; however, for actual examples taxpayers must read Publication 502 (to which a link is provided on the answer page).
In addition to offering free guidance on its website, the IRS sponsors free federal tax return preparation programs for qualifying individuals.
Source: IRS Website
Lena Gott - Lena Gott is a Certified Public Accountant who gives practical financial advice to her readers.
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