All Things Tax

All Things Tax

Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.

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Valued Pioneer
Posts: 3
Registered: ‎02-27-2017

Notice of Proposed Assessment

Hello, I got a letter saying I owe an additional $822.74 for the 2014 tax year.  The things that are different are...

 

Taxable Wages --- 92.00

Securities --- 8715.00

Student Loan Interest Deduction --- 1707.00

 

Can somebody point me in the direction of figuring out what the securities amount even is and why Student Loan interest is having issues.  This raised my taxable income by 10,514.

 

Thank you in advance.

Esteemed Neighbor
Posts: 220
Registered: ‎02-28-2016

Re: Notice of Proposed Assessment

Securities would be gains from asset sales such as stocks, mutual funds, investments, property, etc.

Perhaps your student loan interest deduction is being recalled due to ineligibility.

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Associate (Neighbor)
Posts: 77
Registered: ‎03-22-2016

Re: Notice of Proposed Assessment

Dear DewDrinker:

 

You should find out more about the Securities Sale.  The IRS only knows about the proceeds, and assumes it all to be gain.  If you sold securities, find out the basis of the securities sold.  You may even have a loss and can offset some of your other income.

 

As for the Student Loan interest, it could have been phased out because your income got too high with the additional income.

 

It may be worth a visit to a tax professional in this case.

 

Good luck.

 

Simon Tung

(Tax Preparer)