The Federal Tax Credits Blog

Tea Party Finds Power Leads to Policy Splits

HARRISBURG, Pa. — When Tea Party groups celebrated their victories here in November — they had helped take the governor’s office and the legislature — it seemed that one of their priorities, school choice legislation, would have an easy time passing.

Question: Accounting for Tax Refunds according to GAAP?

Hi Everyone,

I’m just wondering how a C-Corporation would properly record receiving a tax refund according to GAAP. I’ve heard some say that returned taxes should be included as the income statement as revenue, and others say that it should be recorded as a credit to the tax expense account.

In particular, the company has paid taxes on a certain type of revenue that, by law, it didn’t owe in the first place. The money was returned to the corporation a few years later by the Department of Revenue.

I don’t have access to GAAP itself or the FASB Codification. I tried to search through IRS guidelines, but couldn’t find anything that specifically cited that this type of returned tax should be classified as revenue on the corporation’s books or not. Could an experienced person please help out? If possible, please reference or at least point me in the right direction as to what your source is. Thanks so much and I appreciate your time!

Answer: In 45 years of accounting and taxation I’ve never heard of anyone treating a tax refund as revenue. You simply debit cash and credit the relevant account that was debited when it was originally paid.

Reforms to the Foreign Investment Real Property Tax Act Will Spur Investment, Create Jobs and Encourage Economic Growth

Contact: Scott Sherwood, +1-202-639-8400, sherwood@rer.org; Xenia (Ksen’ya) Jowyk, +1-202-639-8400, xjowyk@rer.org

$8000 Federal Tax Credit Explained (We Buy Houses Maryland DC VA)

Question: do you know if the tax credit only applies to wood stoves?

what about wood furnaces? i just installed one in my home and was wondering if the wood furnaces qualify. becuz all i can find info on is wood stoves.

Answer: yes it does, need qualified installer that gives you receipt and proof of furnace. or maybe seller of same can give you receipt.

HearthStone Tribute Wood Stove Basics

Question: How much do rental car companies hold on your credit card?

I am renting a car from Alamo at SEA-TAC airport for $57 including taxes. How much will they hold on my credit card when I pick up the car?

Answer: The full price of rental and all fees DUH!!!!!

Spain—2011 Article IV Consultation Concluding Statement of the Mission

In the face of serious economic and financial challenges, the authorities implemented a strong and wide-ranging policy response over the last year. This has helped the economy to gradually recover and get the necessary rebalancing underway.

California Tax 9 Credit for New Home Buyers

Question: Education credits for 2009 for a student who graduated their fifth year?

I graduated from High School in 2004 but just graduated from college this year. Are there any credits I can file on my taxes? I got the education credit last year and the year before but from what I’ve read it’s only for the first four years of post-secondary education. Any help?

Answer: The American Opportunity Credit is an extension of the Hope Credit. The AOC can be taken four times, whereas the Hope Credit could only be taken two times.

If on 1/1/2009 you were classified as an undergraduate, and you had not completed four years of full-time undergraduate credits as defined by your institution, then you may qualify for the AOC. You also have to be attending at least half-time and not have a felony drug conviction.

The AOC is probably going to be more valuable to you than the Lifetime Learning Credit. If you do not qualify for the AOC because you were a less than half-time, you can still get the LLC.

Pappas Details Impact of Local Government Debt on Cook County Taxpayers

Cook County taxpayers are on the hook for a staggering amount of local debt, according to figures presented by Cook County Treasurer Maria Pappas today. Cook County’s numerous local governments face mounting debts totaling more than $108 billion.

American Recovery & Reinvestment Act Survey | ARRA Survey | Liberty Tax Service