AAARP (American Association of

Retired Persons), Tax- Aide loca-tions of, 31, 248, 251, 270

ABLE. See Achieving Better Life Experience (ABLE) programs

About.com, 99– 100, 186accordion files, 17Achieving Better Life Experience

(ABLE) programs, 187, 188– 90acquisition debt, deducting interest

on, 46activities of daily living in docu-

menting medical expenses, 115

acupuncture as medical deduction, 111

ADA. See Americans with Disabili-ties Act (ADA)

Adams, Roger B., 237, 238, 239, 270Adjusted Gross Income (AGI), 5, 43,

56, 83, 85, 138, 143, 157, 158, 160, 162, 195, 198, 214, 227, 235, 241– 42, 245

limitations on tax deductions and, 139– 40

medical deductions and, 109, 226tangible effect of adding RMD or

retirement rollovers to, 160– 61advance premium tax credit pay-

ments, need for tax return and, 21

Affiliate Summit, 265AFSP. See Annual Filing Season Pro-

gram Certificate of Completion (AFSP)

AGI. See Adjusted Gross Income (AGI)

Index

274 INDEx

AirBnB rentals, 10, 28, 263guidelines in working with, 4, 81, 85illegal rentals and, 79– 80Peer- Space program of, 75

alcohol consumption, quasi- car services and, 106– 7

alimonyincome from, 10need for tax professionals and, 28

Alternative Minimum Tax (AMT), 48, 157– 58

amateur tax geniuses, falling prey to, 205– 6

American Association of Retired Persons. See AARP (American Association of Retired Persons)

American Opportunity Credit, 36, 196, 198, 199

American Society of Tax Problem Solvers (ASTPS), 35

Americans with Disabilities Act (ADA), 242

service pets and, 217See also disabilities

AMT. See Alternative Minimum Tax (AMT)

animal sanctuaries, volunteering at, 143

Annual Filing Season Program Cer-tificate of Completion (AFSP), 34

appointment calendar in document-ing medical expenses, 112– 13

appraisal fees as charitable contribu-tion, 138

Archer MSA deductions, 229Armed Forces Tax Council, 31Asimov, Isaac, Laws of Robotics and

philosophy of tax preparation, 5– 6, 271

assets, 12, 13, 88, 108, 139, 151, 153, 220, 233

claiming, 222– 23sales of, 10

need for tax professionals and, 28

Assistance Dogs International, 217, 271

ASTPS. See American Society of Tax Problem Solvers (ASTPS)

attorney fees as tax deduction, 229, 231– 32

audit roulette, playing, 204– 5audit trail, creating, 14– 15automobile insurance, rates for, 95automobiles. See vehiclesaward income, 10

Bbaby, Social Security Number (SSN)

for, 209Baby Boomers, 148Baker, Linda, 142Bankrate.com, 180barter income, 10bazaars, charitable contributions to,

134Bean Counter site, 9, 216Bell, Kay, 269beneficial owner, tax deduction as, 51beneficiary, 242billboard, turning car into, 105Birkenfeld, Bradley, 233Bitcoin, 9Blasingame, Jim, 267bonds, investing in, 149Bookkeeping Master, 9breathing treatments as medical

deductions, 111burnout, philosophy about, 3business

income from, 9mileage related to, 96, 97, 102– 3need for tax professionals, 27starting, in raising income in your

Social Security account, 168– 69

CCAA. See Certified Acceptance

Agents (CAA)

275INDEx

Cake Girl (Baker), 142California

Mello- Roos fees in, 40State Film Commission in, 75

California Society of Enrolled Agents, 143

cameras, installing, in short- term rentals, 79

canceled checks, keeping copies of, 11canceled debt, income from, 10capital gains, 237– 38capital losses, 237caregivers

medical deductions and income of, 125

philosophy about, 4carrybacks, 214– 15carryovers, charitable contributions

and, 140carryovers, net operating loss

(NOL), 214– 16cars. See vehiclescash

in the collection plate, 133expense requirements in record

keeping and, 11paying, 11for silent auctions, charity auc-

tions, bazaars, etc., 134to street people, 133– 34

casual rentals, 83casualties, need for tax professionals

and, 29C corporations, controlling earned

income and, 164– 65CC&Rs. See Covenants, Conditions,

and Restrictions (CC&Rs)Certified Acceptance Agents (CAA),

238, 256certified public accountants (CPA),

32– 33CFR. See Code of Federal Regula-

tions (CFR)Chandel, Amit, 266

chaplains, contributions to section 403(b) plans, 229

charitable contributions, 127– 45appraisal fees as, 138carryovers and, 140cash for silent auctions, charity

auctions, bazaars, etc., 134cash in the collection plate as, 133cash to street people as, 133– 34confirming contributions to estab-

lished charities, 128contemporaneous acknowledg-

ments and, 132– 33costs of volunteering, 141– 42disguised donations and, 133documenting, 11donations of money to specific

people as, 135donations of things, 135– 38donations of vehicles as, 138– 39educating yourself on use of

money, 128– 31Foundation Center and, 129– 30,

144gifting of money for donations as,

139information needed on receipts,

131intangible rewards for, 142limitations on, 139– 40need for tax professionals and, 29nondeductible donations and, 140retirement income and, 158– 59starting own nonprofit organiza-

tions and, 144– 45TechSoup and, 144time donations as, 135timing in getting receipts, 131– 32volunteering as fun and, 142– 43

charitable mileage, 96charitable parking, 96checks, keeping copies of canceled, 11child support, need for tax profes-

sionals, 28

276 INDEx

chiropractic treatments as medical deduction, 111

Claim of Right, repayments under a, 234– 35

cloud, storage of information in, 14, 16Code of Federal Regulations (CFR),

242collection plate, cash in, 133college

College Application Training, 190, 262

using whole life insurance to save for, 190

See also educationCollins, Shawn, 265common area fees as tax deduction,

41commuting mileage, 219– 20CompleteTax.com, 25– 26Computax, 195computers, removing from short-

term rentals, 78contact lenses as medical deduc-

tions, 110contemporaneous acknowledg-

ments, 132– 33contracts

keeping copies of, 13provisions for stolen goods in, 79

convalescent home fees, as medical deductions, 111, 115– 16

cosmetic surgeryas medical deductions, 111as nondeductible, 219

court costs as tax deduction, 229, 231– 32

Covenants, Conditions, and Restric-tions (CC&Rs), 242– 43

Coverdell Education Savings Accounts, 181– 84, 183– 84

strings on withdrawals, 182– 83CPA. See certified public accoun-

tants (CPA)CPAP machines as medical deduc-

tions, 111

CPE Link, 46, 272Crawford, Willie, 271Crazy Cat Lady, 258

See also Van Dusen v. Commissionercredit, philosophy about extending, 4credit bureaus, 209crowdfunding sites, 120, 121CrunchBase.com, 84

Ddeath, early withdrawal penalties

and, 172DeductR, 16dental treatments, as not reim-

bursed by insurance as medical deductions, 110, 116– 17

dependentsmedical deductions for, 112need for tax professionals, 28

depreciationgetting new car and, 107hidden, in mileage, 104home rentals and, 86, 87– 88

DirectInvesting.com. See The MoneyPaper

disabilities, 10Achieving Better Life Experience

(ABLE) programs and, 187, 188– 90

allowable tax deductions for ser-vice pets and, 217

early withdrawal penalties and, 172as medical deduction, 71– 72need for tax professionals, 28

disasters, need for tax professionals and, 29

disguised donations, 133dividend reinvestment programs

(DRIPs), 178, 179, 243divorce, need for tax professionals, 28divorce, TaxMama’s class at CPE

Link, 272Doctors without Borders, 143, 271documentation of tax return

records, 2

277INDEx

DogVacay, signing up as pet- sitter for, 89– 90

Dome Record Books, 17Dow Jones, MarketWatch.com

column at, 2, 132, 203, 233, 237, 239, 263, 265

DRIPs. See dividend reinvestment programs (DRIPs)

Eearly withdrawal penalties, 150, 172,

219exceptions to, 172– 73

earned income, 149, 243controlling, 164– 65

easements, need for tax profession-als and, 29

eBay income, 10education

Achieving Better Life Experience (ABLE) programs, 188– 90

Alternative Minimum Tax and, 196American Opportunity Credit

(AOC) and, 196, 198College Application Training, 190,

262consequences of not getting finan-

cial help when needed, 185costs of, 191– 92Coverdell Education Savings

Accounts and, 181– 84deducting interest expenses of

student loans, 194– 95direct gifts of costs, 184early withdrawals in paying for,

219eligible expenses for higher, 182home schooling for, 201letting student loans go into

default, 194Lifetime Learning Credit and,

197– 98MAGI and, 194, 195, 198, 199qualified expenses, 173SavingForCollege.com, 263

saving for with whole life insur-ance, 190

scholarships and, 192Section 529 plan and, 185– 87Section 529A plan and, 187– 88special needs, as medical deduc-

tion, 111student loans and, 193– 95, 198, 199tax deductions and credits for, 195tax- free work benefits and, 192tax savings for, 191– 201vocational, 182withdrawing money from retire-

ment plans to pay for, 219work- related, 192– 93, 198, 200

education IRAs, 181eligible access expenditures, 71– 72Emerson, Melinda (@SmallBizLady),

268employees, 71, 114, 167, 181, 192, 193

business mileage, 102household, 122need for tax professionals and, 29time test for moving expenses, 101

employers, matching of retirement money, 148

energy credits, 60– 70alternative energy devices as, 61,

64– 65cost analysis form for, 66– 69do- it- yourself installations and, 63Energy Star certification and, 64, 70hiring of casual help and, 63hiring of professionals and, 63leasing of systems in, 69– 70lifetime credit amount and, 61– 62Nonbusiness Energy Property

Credit and, 61– 62residual energy property credit

and, 62, 65swimming pools or hot tub energy

costs and, 218Energy Star certification, 64, 70enrolled agents, 23, 24, 32, 35, 143,

153, 177, 222, 238, 251

278 INDEx

ePage income, 10Equifax, 209equitable owner, tax deduction as, 51Equivalent Railroad Retirement

Benefits, taxability of, 159escrow costs as tax deduction, 41estate taxes, avoiding with medical

deductions, 119estimated tax payments, 11Etsy income, 10even, philosophy about getting, 3Excel, 16expense requirements in record

keeping, 11– 12charity deductions, 11credit card statements, 11estimated tax payments, 11home improvement invoices and

proofs of payment, 12keeping copies of canceled checks,

11mileage logs, 11paying cash, 11property tax bills, 11tip details, 12vehicle registration bills, 11

Expensify, 16expensive things, donation of, 137– 38Experian, 209eyeglasses as medical deduction, 110

FFAFSA (Free Application for Federal

Student Aid) form for financial aid, 187, 259

family support, need for tax profes-sionals, 28

FICO, Fair Isaac, 61, 193, 263film location, renting property for,

75– 76financial transactions, need for com-

plete records, 8FIRE (Filing Information Returns

Electronically), 92

First- Time Penalty Abatement (FTA), 208, 243, 257

flexible spending accounts, medical deductions and, 121– 23, 218

flipped real estate, 28foreign income taxes as tax deduc-

tion, 45– 46Foundation Center, 129– 30, 14414- day rental loophole, 74– 75401(k), withdrawing money from,

219free apps, drawbacks of, 15Frequently Asked Questions (FAQs),

244FreshBooks, 16, 251frivolous. See tax protester movementFromm, Steven J., 270FTA. See First- Time Penalty Abate-

ment (FTA)funding fee, 56

Ggambling income, 10

need for tax professionals and, 29Garber, Julie, 186gifts

income from, 10need for tax professionals and, 29

gift taxes, avoiding with medical deductions, 119

GiveForward, 120, 264Glink, Ilyce, 267GoFundMe, 120, 265government officials, writing letters

of commendation to, 3GPS, tracking mileage with your, 15GrantSpace.org, 131, 258guarantee fee, 56GuideStar, 128– 29, 258

HH&R Block, 23– 24, 195Hatch, Richard, 212health care marketplace, 256

279INDEx

health insurance premiums as medi-cal deductions, 110

health saving accounts or arrange-ments, medical deductions and, 121, 123– 24, 218

HELOC. See home equity line of credit (HELOC), tax deductions and

hobby income, 10need for tax professionals, 28

Holtgrefe, Susan, 270home- based businesses, disabled

access credits and, 71– 72home buyers, first- time, need for tax

professionals, 28home equity line of credit (HELOC),

tax deductions and, 46– 47home improvements, documenting

expenses for, 12home office for pet daycare, 90– 91home rental, 14- day rental loophole

for, 74– 75home schooling, 201hotel- type rentals, 82– 83hot tubs, residential energy credits

and, 218house

change in value of, 73, 74down payment on first, 173withdrawal money from retire-

ment plans to pay for first, 219household income, extra, 73– 93

AirBnB rentals as, 79– 81, 85casual rentals as, 83depreciation and, 86, 87– 88filing of 1099- MISC and, 92– 93film location as, 75– 76for- profit rentals as, 83– 8414- day rental loophole and, 74– 75hotel- type rentals as, 82– 83paying for services and, 91– 92pet care income and, 89– 90pet daycare home offices and,

90– 91

pet hosting and, 88– 89residential rentals as, 81– 82roommate as, 74short- term rentals as, 76– 80tax deductions and, 85– 86tracking of pet daycare direct

costs, 90household records, need for knowl-

edge of, 8– 9HUD- 1 summary, 41– 42, 262Humanity and Pets Partnered

Through the Years Act, 217

Iidentity theft

Stolen Identity Refund Fraud (SIRF) and, 209– 10, 248

tax return preparation and, 20, 26illegal aliens, hiring of, 63income

adjusted gross, 5, 160– 61barter, 10from canceled debt, 10caregiver, 125deductible expenses related to,

229disability, 10, 28earned, 149, 164– 65, 243earning of additional, in order to

raise Social Security benefits, 169– 70

eBay, 10ePage, 10Etsy, 10extra household, 73– 93gambling, 10, 29gift, 10hobby, 10, 28inheritance, 10from jury pay, 10, 229, 230– 31from pet care, 89– 90phantom, 173– 74raising in your Social Security

account, 167– 69

280 INDEx

income (continued )rental, 10retirement (see retirement

income)scholarship, 10, 28unemployment, 10

income requirements in record- keeping

awards, prizes, scholarships, 10bank and brokerage statements, 9business income, 9canceled debt, 10gambling income, 10hobby income, 10inheritances and gifts, 10miscellaneous income sources, 10partnership distributions, 9pay stubs, 9rental income, 10retirement income, 10sales of assets, 10securities trades, 9W- 2s, 1099s, 1098s, K- 1s, and

other third- party notifications, 9In Compliance, 244Indian tribal government, taxes

imposed by, 45Individual Retirement Accounts

(IRAs), 148, 244comparing with Roth IRAs, 149,

152– 54deductions for funding, 13– 14education, 181establishing self- directed, 150fees related to transfers, 220– 21instant gratification with, 150– 51medical deductions and reduction

of account balances, 118– 19rolling over balances and, 149– 50self- directed, 175See also myRA

inheritances, income from, 10in- home nursing care, as medical

deductions, 111, 113– 15

insuranceautomobile, 95buying whole life, 149Medicare premiums as medical

deduction, 110moving, 99– 100premiums on health as medical

deduction, 110private mortgage, 55– 58whole life, 190

insurance contracts, keeping copies of, 13

interest, mortgage. See mortgagesInternal Revenue Code (IRC), 6, 81,

132, 140, 157, 185, 214, 221, 240, 244– 45, 255

knowledge of, 2Medicaid waiver, 125size of, 1, 240

Internal Revenue Manual (IRM), 92, 257

Internal Revenue Service (IRS)acceptance of appraisals and,

137– 38Criminal Investigation, 206, 257foreign currency rates, 257Free File Alliance system of, 22, 257Free File Fillable Forms system

of, 22free tax filing systems offered by, 19lawsuit settlements, awards and

judgments, Audit Technique Guide, 257

leviessteps to release (TaxMama course), 272

looking beyond, for tax credits and rebates, 59

philosophy about dealing with, 3Sales Tax Calculator of, 43tracing and, 50

Internal Revenue Service (IRS) instructions, 222

Internet millionaire provision, 174

281INDEx

Intuit, ItsDeductible software of, 136Intuit Payroll, 92investment offers, evaluation of, 223IRC. See Internal Revenue Code

(IRC)IRM. See Internal Revenue Manual

(IRM)IRS Form 211, 30, 233IRS Form 990, 128, 129IRS Form 1023, 145IRS Form 1024, 145IRS Form 1040, 43, 227– 28

adjustments and, 227– 28IRS Form 1040X, 125, 216IRS Form 1045, 216, 217IRS Form 1098- C, 138IRS Form 1098s, as source of income

information, 9IRS Form 1099- MISCs, 9

avoiding filing of, 92– 93filing of, 92

IRS Form 2120, 117– 18IRS Form 3903, 100IRS Form 5498- SA, 123IRS Form 5695, 218IRS Form 8275, 213IRS Form 8453, 36IRS Form 8826, 71IRS Form 8829, 90IRS Form 8863, 197IRS Form 8879, 36IRS Form 14157, 30IRS Notice 2004– 27, 239IRS Publication 17, 12, 230IRS Publication 463, 104IRS Publication 502, 72, 111, 218IRS Publication 521, 102IRS Publication 525, 235IRS Publication 526, 140IRS Publication 527, 81IRS Publication 561, 138IRS Publication 587, 90IRS Publication 915, 160IRS Publication 925, 82

IRS Publication 946, 88IRS Publication 969, 123, 124IRS Publication 4524, 210Israel, solar water heaters in, 64Itex, 9

JJensen, Steven, 212jobs

getting new, in raising income in your Social Security account, 167– 68

getting second, in raising income in your social security account, 168

jury pay, income from, 10, 229, 230– 31

KK- 1s as source of income informa-

tion, 9kiddie tax, 10

need for l tax professionals and, 28kid’s portfolio, 179Kirchheimer, Sid, 270

Llaetrile as nondeductible, 218– 19Lang v. Commissioner, 121laundering costs as charitable dona-

tion, 141Lawrence, Virginia, 142– 43, 270levy. See Internal Revenue Service:

leviesLewis, Rita, 269license fees as tax deduction, 43lifetime learning credit, 61– 62, 197–

98, 199LITC. See Low Income Taxpayer

Clinics (LITC)live- in schools as medical deduc-

tions, 111loan modification documents, costs

of fees related to, 220– 21

282 INDEx

loansdocumentation of, 13paying off, 220

long- term savings and retirement tax issues, 177– 90

Lori Singleton v. Commissioner, 200, 265

Los Angeles Conservancy, 142, 271Los Angeles Tall Ships, 142– 43, 271Low Income Taxpayer Clinics

(LITC), 31– 32lump sum income

need for tax professionals, 28from Social Security, 162– 63

Lyft, 105, 106– 7, 264Lynch, Pat, 269

MMadoff, Bernie, 240MAGI. See Modified Adjusted Gross

Income (MAGI)mail, stopping, in short- term rentals,

78Make- a- Complaint- About- a- Tax-

Return- Preparer, 30Mammen, Jean, 267mantra, TaxMama’s, about keeping

records, 3marijuana

medical, as nondeductible, 218– 19TaxMama’s class at CPE Link, 272

massages, doctor- prescribed, 124McCotter, Thaddeus, 217medical copays as medical deduc-

tions, 110medical deductions, 109– 25

AGI and, 109, 226avoiding gift and estate taxes and,

119breathing treatments as, 111caregiver income and, 125cosmetic surgery for medical pur-

poses as, 111CPAP machines as, 111

dependent costs as, 112disabled access deductions as, 72eyeglasses, contacts, etc., 110flexible spending accounts and,

121– 23health insurance premiums as,

110health saving accounts or arrange-

ments and, 121, 123– 24in- home nursing care as, 111,

113– 15live- in schools as, 111medical copays as, 110medical mileage as, 96, 97, 110medical travel as, 110, 116– 17Medicare insurance premiums as,

110need for money in paying medical

bills, 120– 21nonconventional medical treat-

ments as, 111nursing home and convalescent

home fees as, 111, 115– 16parking fees and tolls for medical

care as, 112– 13prescribed drugs as, 110reducing IRA account and retire-

ment plan balances and, 118– 19routine medical and dental

treatments not reimbursed by insurance, 110

sandwich generation and, 117– 18special needs tutoring, education,

or therapy as, 111TENS muscle stimulators as, 111time of payment and, 109– 11tolls and parking fees for medical

care or treatment as, 110medical marijuana as nondeductible,

218– 19medical treatments not reimbursed

by insurance, as medical deduc-tions, 110

Medicare benefits, fees for, 161

283INDEx

Medicare insurance premiums as medical deductions, 110

Medicare Secondary Payer statute, legal fees paid for private cause of action under, 233– 34

Mello- Roos fees in California, 40MetroMile’s mileage app, 16mileage

charitable, 96commuting, 219– 20hidden depreciation in, 104medical, as medical deduction, 96,

97, 110moving, 96, 97, 98– 99noting on odometer, 97– 98related to business, 96, 97, 102– 3tracking with GPS, 15

mileage logs, 11GPS in keeping, 15top applications for, 16

military service, need for tax profes-sionals and, 29

Mint (personal record- keeping sys-tem), 16, 24

mobile record applicationsbenefits of, 14– 15drawbacks, 15

Modified Adjusted Gross Income (MAGI), 151, 181, 245

education and, 194, 195, 198, 199money

educating yourself on use of, 128– 31

gifting of, for donations, 139need for, in paying medical bills,

120– 21The MoneyPaper (DirectInvesting.

com), 177, 178, 262mortgages, 21

need for tax professionals, 28, 36points, 54– 55reverse mortgages, 53– 54tax deductions for interest on, 46–

53, 226– 27, 256, 262, 272

moving costsinsurance costs in, 99– 100nondeductible, 100reimbursements and, 100tax deductions for, 99time tests in, 101– 2

moving insurance, 99– 100moving mileage, 96, 97, 98– 99myRA, 179– 81, 263

NNational Association of Enrolled

Agents (NAEA), 32, 35National Association of Tax Consul-

tants (NATC), 35National Association of Tax Profes-

sionals (NATP), 35National Society of Accountants

(NSA), 35negatively amortizing loans, 53NetBasis, 263Net Investment Income Tax (NIIT),

29Net Operating Loss (NOLs), 214–

16, 238, 245, 255Neugart, Layne, 76– 77NIIT. See Net Investment Income

Tax (NIIT)NOLs. See Net Operating Loss

(NOLs)Nonbusiness Energy Property

Credit, 61– 62nonconventional medical treatments,

as medical deductions, 111nondeductible donations, 140nonprofit organizations, 144– 46NSA. See National Society of

Accountants (NSA)nursing home fees as medical

deductions, 111, 115– 16

OOANDA Foreign Currency

Resource, 263

284 INDEx

odometer, noting mileage shown on, 97– 98

Olson, Nina, 1Outright, 16overseas educational institutions,

182over- the- counter drugs as nonde-

ductible, 218

PPACE (property- assessed clean

energy) program, 61Paine v. Commissioner, 240Palma, Miquel, 190paper records, storing, 16– 17Paradise Regained in Utila, Hondu-

ras, 84, 271parking fees for medical care or

treatment as medical deduc-tions, 103– 4, 110, 112– 13

partnership distributions, income from, 9

Pasadena Doo Dah Parade, 143PATH. See Protecting Americans

from Tax Hikes Act (PATH) (2015)

PayPal, 9, 11paystubs as source of income infor-

mation, 9Pender, Kathleen, 267pension plans, tax deductions and,

229people in general, philosophy about, 3Perez, William, 271Perry, Gail, 266personal property

deductible expenses related to rental of, 231

taxes on, as tax deduction, 41– 42personal record- keeping systems,

recommended, 16personal residence

points as tax deduction, 54short- term rental of, 76– 80

petsallowable deduction for service,

217daycare for

home office for, 90– 91tracking direct costs in, 90

hosting of, 88– 89income from care of, 89– 90short- term rentals and, 78tax deductions related to, 217, 271

PFICs, 28phantom income, 173– 74philharmonic venues, volunteering

at, 143philosophy

about burnout, 3about caregivers who don’t report

income, 4about dealing with the IRS and

state officials, 3about extending credit, 4about finding treasure, 4about getting even, 3about not filing, 3– 4about people in general, 3about taxes, 2about tax filing, 3about working outside the sys-

tem, 4PMI. See private mortgage insurance

(PMI) as tax deductionpoints. See mortgages: pointsPonzi scheme losses, 240, 260Porter, “Uncle Bill,” 270Preparer Tax Identification Number

(PTIN), 30– 35, 245, 248, 252prescribed drugs as medical deduc-

tions, 110private lenders, mortgage interest

paid to, 52private mortgage insurance (PMI) as

tax deduction, 40, 52, 55– 58prize income, 10Probate Referee, 137

285INDEx

Professional Tax Identification Number (PTIN), 30, 34– 35

profit, rentals for, 83– 84property tax bills, 11Protecting Americans from Tax

Hikes Act (PATH) (2015), 1– 2, 56, 62, 88, 236

PTIN. See Preparer Tax Identifica-tion Number (PTIN)

Pummer, Chris, 239

QQualified Direct Transfer (QDT),

140, 157, 196Qualified Domestic Relations Order

(QDRO), 173Qualified Education Expenses

(QEE), 173, 245– 46Qualified Tuition Program (QTP),

185– 87quasi- cab services, 105, 106– 7QuickBooks, 16, 24, 250Quicken, 16, 24, 250

Rracehorse investment, 28real estate

flipped, 28investing in, 149need for tax professionals for

rental, 28real property taxes, as tax deduction,

39– 41receipt

information needed on, 131timing in getting, 131– 32

record- keeping tips and tools, 7– 17expense requirements, 11– 12importance of, 8income requirements, 9– 10keeping of tax preparation

records, 14keeping of tax returns, 12,

13– 14

knowledge about household records, 8– 9

mobile applicationsbenefits of, 14– 15drawbacks of, 15

need for complete records, 8recommended applications for, 16saving of paper records, 16– 17saving records in the Cloud, 16time permitted for audit of tax

returns, 12– 13top personal record- keeping

systems, 16Reed, Mike, 269refinancing

increasing deduction for mortgage interest and, 49– 50

points as tax deduction, 54– 55reforestation amortization and

expenses, 229refundable credits, 246refund anticipation loans (RALs),

avoiding tax offices that push, 35– 36

reiki treatments as medical deduc-tion, 111

reimbursements for moving expenses, 100

religious schools, IRS audit of, 133rental income, 10rental real estate, need for tax pro-

fessionals and, 28Required Minimum Distributions

(RMDs), 140, 152, 155– 61, 246avoiding taxes on, 156– 57legitimate delay for, 155Roth IRAs and, 156tangible effect of adding to AGI,

160– 61Residential Energy Credit, 65retail establishments, tax prepara-

tion outfits in, 35retirement, timing in starting to save

for, 178– 79

286 INDEx

retirement income, 10, 147– 75adding money to your draw, 171– 72Alternative Minimum Taxes as,

157– 58collection of Social Security bene-

fits, 163– 64commonly used exceptions and,

172– 73comparison of Roth and regular

IRAs, 149– 51, 152– 54controlling your earned income,

164– 65deficiencies in Social Security

payments and, 166distributions from all accounts,

155– 56drawing money from accounts

early, 170– 71early withdrawal penalties and,

150, 172– 73Equivalent Railroad Retirement

Benefits as, 159Internet millionaire provision and,

174lump sum payments from Social

Security as, 162– 63medical deductions and reduction

of, 118– 19Medicare benefits as, 161need for tax professionals, 28paying back and, 164, 165– 66paying tax on IRA contributions,

151phantom income and, 173– 74raising income in Social Security

account and, 167– 70reducing IRA and retirement

account balances as, 156Required Minimum Distributions

(RMDs) as, 140, 152, 155– 61, 246Roth IRA contributions as savings

vehicle, 152self- directed IRAs and, 175self- employment and, 166– 67

setting aside money toward retire-ment and, 148– 49

Social Security benefits as, 159, 160Social Security Disability Income

payments as, 163taxes on drawing money out of

retirement account, 170– 71using money prior to retirement,

170retirement plans, withdrawing

money from, 219retirement rollovers, tangible effect

of adding to AGI, 160– 61returns, 246reverse mortgages as tax deduction,

53– 54roommate, getting a, 74Rosenberg, Eva, 1, 273Rosenberg, Dr. Judy, 266Roth IRA, 118, 148

comparison with regular IRAs, 149, 152– 54

myRAs and, 179– 81Required Minimum Distributions

(RMDs) and, 156rolling over balances and, 149– 50as savings vehicle, 152

Rural Housing Service, 56

SSafeGuard One- Write Systems, 17sales taxes, as tax deduction, 42– 43sandwich generation, medical

deductions and, 117– 18SavingForCollege.com, 263savings account, opening of, 148savings in small increments, 179Schneiderman, Eric, 79– 80scholarships, 192

income from, 10need for tax professionals and, 28

Scientific American, 272S corporations, controlling earned

income and, 164– 65

287INDEx

Section 529A plans, 187– 88securities

investing in, 149purchase information on, 13

securities trades, income from, 9security, as drawback with mobile

applications, 15self- directed IRAs, 175self- employed losses, 149self- employment

retirement income and, 166– 67time test for, 101– 2

service pets, allowable tax deduc-tions for, 217

services, paying for, 91– 92Shelters for Israel, 129– 31, 144,

258– 59Shoeboxed, 16, 250short sales, 28short- term home rentals, 76– 80Sidecar, 105, 106– 7signature requirements, professional

tax preparation and, 30silent auctions, donations to, 142SIRF. See Stolen Identity Refund

Fraud (SIRF)smbiz.com, Small Business & Man-

agement website, 97, 187, 265Snipes, Wesley, 213Social Security

deficiencies in, 166delay in collecting, 169early collection of benefits,

163– 64earning of additional income in

order to raise benefits, 169– 70income level and, 160lump sum payments from, 162– 63paying back, 164, 165– 66raising income in your account,

167– 69taxability of benefits, 159, 160

Social Security Administration (SSA), 248

Social Security Disability Income (SSDI), 163

Social Security Form SSA- 1099, fees for Medicare benefits on, 161

Social Security Number (SSN)for baby, 209disclosure of, 208– 9

special needs tutoring, education, or therapy, as medical deductions, 111

specific people, donations to, 135SSDI. See Social Security Disability

Income (SSDI)Stack, Joseph Andrew, III, 213state income taxes, as tax deduction,

43– 46, 226state- licensed tax professionals, 34state officials, philosophy about

dealing with, 3state refunds, income from, 10state renter’s or homeowners cred-

its, 60state tax refunds as tax deduction, 44stocks

investing in, 149purchase information on, 13

stock splits, 28stolen goods, provisions for, in con-

tracts, 79Stolen Identity Refund Fraud (SIRF),

209– 10, 248street people, cash to, 133– 34student loans

deducting interest expenses of, 194– 95, 198, 199

in default, 194working off, 193– 94

swimming poolsresidential energy credits and, 218short- term rentals and, 78– 79

Ttaxable income, tax filing and, 3TaxAct.com, 25, 195, 252

288 INDEx

tax attorneys, 33– 34tax audits

audit roulette and, 204, 205– 6repeating year after year, 221– 22time permitted for, 12– 13

Tax Aware, 7, 19, 85, 175tax basis, 247tax cheats, turning in, 232– 33Tax Counseling for the Elderly

centers, 31tax credits

disabled access credit and, 71– 72energy credits and, 60– 70looking beyond IRS for, 59need for tax professionals and, 29state renter’s or homeowners

credits, 60tax deductions

attorney fees as, 229, 231– 32charitable (see charitable

contributions)common area fees as, 41costs related to pets and, 217court costs as, 229, 231– 32escrow and, 41foreign income taxes as, 45– 46home rentals and, 85– 86investment interest, 226itemized, 226, 227license fees as, 43medical (see medical deductions)mortgage in another’s name as,

50– 52mortgage interest paid as, 46– 53,

226– 27pension plans and, 229personal property taxes as, 41– 42personal residence points as, 54private mortgage insurance as,

55– 58problems with itemized, 225– 27real property taxes as, 39– 41refinanced points as, 54– 55reverse mortgages as, 53– 54

sales taxes as, 42– 43standard, 225state income taxes as, 43– 46, 226state tax refunds and, 44student loan interest as, 198time- share fees as, 40– 41, 50unpaid interest as, 52– 53vehicle- related (see vehicle- related

tax deductions)taxes

disclosures and, 213philosophy about, 3

tax filingphilosophy about, 3tax refunds and, 3– 4

tax geniuses, falling prey to amateur, 205– 6

tax liability, 247TaxMama, 1

resources in the book, 249– 72website of, 1, 204

TaxMama’s Enrolled Agent Exam students, 23– 24

Tax MiniMiser, 17, 251Taxpayer Assistance Centers, 211taxpayer identification numbers

(TINs), 189, 247– 48tax penalties, 206– 8, 257tax preparation records, keeping, 14tax professionals, 27– 37

avoiding retail establishments for, 35

business need for, 27communication between, 203– 4consulting with before financial

steps, 37establishing long- term relation-

ship with, 37financial issues requiring, 27– 29kinds of, 32– 35need for Professional Tax Identifi-

cation Number (PTIN), 30not falling for “too good to be

true,” 223

289INDEx

reading tax return before signing, 36

refund anticipation loans and, 35– 36

signature requirements and, 30too- good- to- be true refunds and,

36volunteer tax preparation services,

30– 32tax protester movement, 212, 257Tax Pushover, 7, 19Tax Reform Act (1986), 81tax refunds, 246

avoiding refund mills, 206filing of taxes and, 3– 4filing on time, 222too- good- to- be- true, 36

tax reporting, importance of record keeping in, 8

tax return preparation, 19– 26advantages of using paid services,

23being good candidate in filing

own, 21CompleteTax.com and, 25– 26free filing options, 19, 22– 23H&R Block and, 23– 24, 25, 195, 252identity theft and, 15, 20, 26, 209–

10, 248, 254, 256importance of always filing, 3, 20IRS questioning of tax returns, 20IRS’s Free File Alliance system

and, 22, 26, 252TaxAct.com and, 25, 252TaxSlayer.com and, 25– 26, 2521040.com in (Drake), 25– 26, 252TurboTax and, 24– 25, 252

tax returnsdocumentation of records, 2including “election statement” in,

215keeping copies of, 12time permitted for audit of, 12– 13

TaxSlayer.com, 25– 26, 252

tax software companies, free filing options of, 19, 22– 23, 252

Tax Theft Loss, 260, 263Tax Vigilante, 7, 19, 85, 175, 208Tax Watch column. See Dow Jones,

MarketWatch.com column atTechSoup, 144, 259telephone

giving out information over the, 210– 11

sending money to people calling you, 211– 12

turning off landline in short- term residence rental, 77

1040.com (Drake), 25– 26, 252TENS muscle stimulators, as Medi-

cal deductions, 111things, donations of, 135– 36third- party notifications, as source

of income information, 9time, donations of, 135time of payment, medical deduc-

tions and, 109– 11time shares

fees as tax deduction, 40– 41, 50renting your, 75

time test, movingfor employees, 101for self- employed persons, 101– 2

TINs. See taxpayer identification numbers (TINs)

tips, documenting, 12tolls

as business deduction, 103– 4as medical deduction, 110,

112– 13tracing, 50Trade Act (1974), repayment of

supplemental unemployment benefits under, 229

Trade Preferences Extension Act (2015), 92

transfer fees, 221Trans Union, 209, 263

290 INDEx

treasure, philosophy about finding, 4TurboTax, 24– 25, 30, 195, 252

UUber, 105, 106– 7, 263unclaimed money, searching site, 4,

264unemployment income, 10, 234uniform costs as charitable dona-

tion, 141United Way Worldwide, 144unlicensed tax professionals, 34– 35unpaid interest as tax deduction,

52– 53US Savings Bonds, 179

buying, 148

Vvacation property, 14- day rental

loophole for, 74– 75Van Dusen v. Commissioner, 142

See also Crazy Cat LadyVeen, Rita, 177– 78vehicle registration bills, 11vehicle- related tax deductions, 96– 108

business mileage, 102– 3charitable mileage, 96charitable parking, 96depreciation in mileage in, 104getting new car, 107moving costs, 96– 99noting mileage shown on odome-

ter, 97– 98parking lot, parking meter, and toll

fees in, 103– 4selling car, 108tracking mileage in, 103turning car into billboard, 105Uber, Lyft, Sidecar, and related

quasi- cab services, 105– 7, 264vehicles

costs associated with, 108donations of, 138– 39

getting new, 107getting rid of, 108turning, into billboard, 105

Vgo Robots, 272vocational schools, 182Volunteer Income Tax Assistance

Program (VITA), 31, 248volunteering, 11, 29, 30, 31, 96, 132,

144, 145, 248, 269, 270, 271costs of, 141– 42as fun, 142– 43opportunities, 143, 259

volunteer tax preparation services, 30– 32

WW- 2G, 10W- 2s, as source of income informa-

tion, 9Ward, Missy, 265warranties, keeping copies of, 13wash sales, 28whistleblower reward, 232, 233Whitaker, Bob, 17whole life insurance

buying policy, 149using, to save for college, 190

Wilson Jones columnar pads and binders, 17

Wood, Robert W., 222, 250work

retirement plans offered at, 148tax- free education benefits at, 192

working outside the system, philoso-phy about, 4

work- related education, 198, 200Wrapify, 105, 264

YYouCaring, 120, 264

Zzoos, volunteering at, 143