Identity Theft Scheme Against Non-Resident Aliens

Identity theft is big news these days, and we all know not to give our social security or credit card numbers over the telephone to strangers. But just as we are beginning to think that we are safe from the identity scammers, the Internal Revenue Service has discovered a new scheme, which is aimed at non-resident aliens who have income from a United States source. This scheme uses fake IRS correspondence and an altered IRS form to trick the foreign person into releasing personal and financial data, and the thieves use this information to steal the individual's identity and financial assets.

Mortgage Interest Credit

Low-income taxpayers who purchase a residence may be entitled to a federal income tax credit for part of their home mortgage interest paid each year. The credit is a direct dollar for dollar reduction of taxes owed. Generally, a qualifying principal residence may not cost more than 90 percent of the average area purchase price, but it can go as high as 110 percent in some targeted areas.

What to Do If You Have Not Received a Form W-2

You are familiar enough with the tax laws to know that you should receive a "Wage and Tax Statement" (also known as a Form W-2), from every one of the employers that you worked for during the year. You need it to prepare your federal, state, and local income tax returns because it contains a summary of your taxable and non-taxable wages along with all the taxes, both income and social security, that have been withheld.

What to Do If You Have Not Received a Form 1099

You received a certain type of income during the year, and you know that you should be getting some type of form in the mail from the payer in order to prepare your federal income tax return. You wait and you wait, but your mailbox is filled with nothing but after Christmas sale flyers. You really wanted to file early this year and get your refund, but you don't know how long you should have to wait.

Tax Implications of Tuition Reimbursements

If you receive tuition reimbursement from your employer for undergraduate or graduate level courses, you may not have to include the payment in taxable income if it satisfies certain Internal Revenue Service requirements. First, the reimbursement must be pursuant to a qualified educational assistance plan, and second, it must not exceed $5,250 each year. If the reimbursement meets both of these requirements, your employer should not include the benefit with your wages, tips, and other compensation.