I gave $10,000 each to my three grandkids. I was told that I should be able to deduct this. Where do I deduct it?

Answer: You don’t. Gifts to individuals, regardless of who they might be, are not deductible at all. You can only take a deduction for contributions to qualified charities.

My wife is primarily a stay at home mom but she did have a part-time job for a little while. She only made about $500. Do we have to claim this income when we file or can we ignore it as it is a small amount?

Answer: Yes, you have to claim it. It is a common misconception that small W2s can be ignored. If your income already puts you and your wife over the filing requirement, any additional income (even $1) must be claimed. In theory, she wouldn’t have to file at all if you two chose to file as Married-Filing Separately, but that would be a bad idea as her income is so low.

Question:  A friend showed me a video on the internet that says that the income tax is unconstitutional.  Is it?

Wayne’s Answer:  No, of course not.  Article 1 Section 8 of the US Constitution states that “The Congress shall have Power To lay and collect Taxes….”  That one statement gives Congress very broad taxing authority.  However, there was one little problem.  The Constitution also stated that direct taxes must be apportioned among the several states.  As such, an amendment was need to the Constitution that removed the apportionment clause.  On February 3, 1913, the 16^th Amendment to the Constitution was ratified making the unapportioned income tax that we now have perfectly constitutional.

The people who claim that income taxes are unconstitutional are called “Tax Protesters”.  While their theories vary, they all have one thing in common.  Since the inception of the income tax, not one of them has ever been victorious in finding a way to get out of paying their taxes.  File your returns and pay your taxes.  You will be much happier in the long run.  Tax protesters usually end up broke and alone.   Often, they end up in prison.