| Deductions for Daycare Providers |
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| Normally, a taxpayer seeking to take deductions for the business use of his or her home must meet the following qualifications: the business use of part of the home must be exclusive, regular, and for a trade or business AND the business part of the home must be either the principal place of business, the place where the taxpayer meets with clients, patients, or customers, or a separate structure not attached to the home. More... |
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| Death Benefits for Survivors of Public Safety Officers |
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| Congress has passed special tax rules that apply to amounts received by the survivors of a public safety officer. For the purpose of these provisions, the definition of a public safety officer includes a law enforcement officer, fire fighter, ambulance crew member, or rescue squad member. In addition, the law applies to a chaplain killed in the line of duty while responding to a fire, rescue, or police emergency as a member or employee of a fire or police department. More... |
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| Clean Fuel Tax Deduction |
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| A taxpayer who is the original owner of a qualifying hybrid vehicle that combines an electric motor with a gasoline-powered engine may be eligible to claim a one-time tax deduction on his or her federal income tax return. In an attempt to encourage consumers to purchase more fuel efficient automobiles, Congress has enacted a federal tax law that allows individuals to claim a deduction for the incremental cost of buying a motor vehicle that uses a clean-burning fuel. Hybrid vehicles obtain higher fuel efficiency and produce fewer harmful emissions than similar gasoline-powered vehicles. More... |
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| Federal Taxation of Workers' Compensation Income |
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| Generally, gross income received by an individual is taxable by the federal government. A notable exception is for workers' compensation income. Workers' compensation, either received by the injured worker or his survivors, is completely exempt from federal taxation as long as it is paid under a Workers' Compensation Act or a statute that operates in the nature of a Workers' Compensation Act by providing income for injuries or illness suffered in the course of the worker's employment. Basically, the statute must restrict the payment of benefits to work-related disabilities. More... |
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| Taxation of Legal Damages |
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| When a taxpayer receives an award as the result of a settlement or judgment resulting from a legal action, the question arises as to whether any or all of the award is subject to taxation. The answer depends on what type of damages or losses the award is supposed to replace. More... |
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