FEBRUARY 14TH IS MORE THAN JUST VALENTINE'S DAY!

Amanda asks:
Is it true that if one wants to file long form (claiming ones mortgage &/or mortgage that we have to wait to file after Feb. 20th or 22nd? If so, why and is that going to be the case every year?

January 15 at 5:44pm

Deb answers:

No, you can file as early as February 14th, 2011.  It is not going to be like this every year.  This year was delayed due to late tax law changes that occurred on December 17, 2010. 

Gambling Winnings and Losses: 7 important facts to know

Anonymous asks...

I'm going to be making a casino visit soon and was wondering: If I win enough money that it has to be reported to the IRS, can I write off my losses from other trips? Thanks!

January 27, 2011 12:08 AM 

Deb answers...

Gambling income includes – but is not limited to – winnings from lotteries, raffles, horse and dog races and casinos, as well as the fair market value of prizes such as cars, houses, trips or other noncash prizes.

Depending on the type and amount of your winnings, the payer might provide you with a Form W-2G and may have withheld federal income taxes from the payment.

The full amount of your gambling winnings for the year must be reported on line 21 of IRS Form 1040. You may not use Form 1040A or 1040EZ. This rule applies regardless of the amount and regardless of whether you receive a Form W-2G or any other reporting form.

If you itemize deductions, you can deduct your gambling losses for the year on line 28 of Schedule A, Form 1040.

You cannot deduct gambling losses that are more than your winnings.

It is important to keep an accurate diary or similar record of your gambling winnings and losses.

To deduct your losses, you must be able to provide receipts, tickets, statements or other records that show the amount of both your winnings and losses.

Self-employed health insurance deduction

If you think you might benefit from this deduction, let me know I can help you figure out if you qualify.


If you were self-employed and paid for health insurance, you may be able to deduct any premiums you paid for coverage after March 29, 2010, for any child of yours who was under age 27 at the end of 2010, even if the child was not your dependent.

IRS2GO Phone App

I just downloaded this app to my Iphone to track the payment of my federal tax return.  It's easy and takes about three seconds!

IRS new short form!

Medical Expenses

Anonymous asks...

Are medical expenses tax deductible? I was sick a lot in 2010 and have a ton of medical bills.

Deb answers... Sorry you were so sick in 2010, sounds like you're better now because you ask great questions!  If you have a ton of medical bills, it is likely you will be able to deduct a portion of them. Be sure to keep track of what you paid and what your insurance paid.  If you've kept track, I can easily let you know how much you can deduct.

Car Expenses

Anonymous asks:  If I have to use my car for work, can I write off things like depreciation, insurance and maintenance?

Deb answers:  Yes you can!  The IRS lets you choose to use their standard mileage rate or your actual expenses.  

As of  Jan. 1, 2010, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) are:

• 50 cents per mile for business miles driven
• 16.5 cents per mile driven for medical or moving purposes
• 14 cents per mile driven in service of charitable organizations

The new rates for business, medical and moving purposes are slightly lower than last year’s. 

If you were reimbursed by your employer for business miles driven at a lower rate than what the IRS allows, you might be able to deduct the difference. 

Child Tax Credit

Amanda asks: My daughter turned 17 in February, I heard a rumor that I cannot claim the Child Tax Credit for her this year.  Is that true?

Deb answers: Amanda, thanks for the great question! Yes, it is true, your daughter will not qualify for the Child Tax Credit in 2010.  There are a number of criteria for claiming the Child Tax Credit in 2010 and one of them is that your child must be 16 or younger on December 31, 2010.  Obviously, Uncle Sam has never raised a teenager!  Copy and paste this link to get the full details straight from the IRS.
http://www.irs.gov/publications/p972/ar02.html#en_US_2010_publink100012085

Qualifying Child

A qualifying child for purposes of the child tax credit is a child who:

1. Is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of them (for example, your grandchild, niece, or nephew),
2. Was under age 17 at the end of 2010,
3. Did not provide over half of his or her own support for 2010,
4. Lived with you for more than half of 2010 (see Exceptions to time lived with you below),
5. Is claimed as a dependent on your return, and
6. Was a U.S. citizen, a U.S. national, or a U.S. resident alien. For more information see Publication 519, U.S. Tax Guide for Aliens. If the child was adopted, see Adopted child below.

Many Happy Returns is open for business!

Looking for a dependable tax expert to prepare your 2010 return to insure you get the biggest possible refund? You've come to the right place.

Debra S. Lawrence is 1992 graduate of the University of Michigan-Flint who has a degree in accounting and has worked in the financial industry for almost 25 years.

Visit her to make sure you Don't Get Burned On Your Return when dealing with  Uncle Sam.

Appointments are available by calling 810-867-4394 or by emailing deb.mhr@comcast.net.

New clients receive a $20 discount on their 2010 return.