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Money in the News: 2012 Tax Edition

Jeff Hayward, CPA posts some good information about avoiding cyber criminals this tax season.

The IRS does not initiate contact with taxpayers by email to request personal or financial information. If you receive an e-mail from someone claiming to be the IRS or directing you to an IRS site, do not reply to the message.

The Consumerist posts about some warnings from the IRS about tax scams.

Tax refunds put large amounts of money in peoples’ hands, meaning tax season provides opportunities for con artists to prey on unsuspecting marks. The Internal Revenue Service is attempting to get ahead of the game by sending out warning signs of potential scams in a press release sent through the Better Business Bureau. posts an estimated tax return for Mitt and Ann Romney that just makes me go “Wow”.

Daily Finance posts about how tax time for single parents can be extra aggravating.

If you’re a single parent and you’re filing tax returns as “Single,” you should consider switching to “Head of Household” status, as it can reduce your taxes. The standard deduction is higher for heads of households, for example. Some of the criteria to qualify for the status include your providing more than 50% of the financial support for your household and your children having lived with you for more than 50% of the year.

My Two Dollars posts about 12 commonly overlooked tax deductions.

Airline Baggage Fees – Self-employed? Traveling a lot for work? Be sure to keep track of any and all of those annoying baggage fees the airlines are imposing every time you want to bring an extra bag with you. Come tax time, they can be written off along with your other business expenses.

FiPath posts the list that the IRS posted about the Dirty Dozen Tax Scams for 2012

The Dirty Dozen listing, compiled by the IRS each year, lists a variety of common scams taxpayers can encounter at any point during the year. But many of these schemes peak during filing season as people prepare their tax returns.

“Taxpayers should be careful and avoid falling into a trap with the Dirty Dozen,” said IRS Commissioner Doug Shulman. “Scam artists will tempt people in-person, on-line and by e-mail with misleading promises about lost refunds and free money. Don’t be fooled by these scams.”

About Crystal Groves, Google+

Crystal Groves is a farmer, web developer, musician, blogger, and personal finance enthusiast from the back hills of Maryland and Pennsylvania. She started Money Drain as a project to encourage people interested in fixing their financial situation to share their stories and learn from the stories of others. We all make mistakes, but in order to change we have to make changes.

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