About Experts Sitemap - Group 50 - Page 55 2014-11-25

Tax Law (Questions About Taxes): Distributions in S Corp and LLC taxed as Partnership, form 1120s, corp earnings
form 1120s, corp earnings, seperate accounts: Whether you maintain seperate accounts or not, you will make 1 k-1 distribution form the business to the owner. That distribution is a dividend and taxable as income to you. A capital gain would only be realized as dissolution of the business. Then the...

Tax Law (Questions About Taxes): Distributions From S Corporations, financial expenditures, treasury stock
financial expenditures, treasury stock, equity stake: They would have to do that with after tax dollars. That means a distribution first and then a repurchase. All investments by taxpayers are done after tax . Keep in mind that if all stockholders repurchase, the benefit becomes deminimus, since the percentage...

Tax Law (Questions About Taxes): Dividends, correct conclusion, limited partnerships
correct conclusion, limited partnerships, general partnerships: the term Organization is not a recognized type of Entity. But I think I can give you enough of an explanation that you can come to the correct conclusion. An LLC is a passthrough entity, as is a sub-S and are Partnerships of all kinds (general Partnerships,...

Tax Law (Questions About Taxes): Dividends paid by S corp to shareholders, s corp, distributive share
s corp, distributive share, stancil: Harry, Thanks for your question. Technically, S Corps don t pay dividends. The owners pay taxes based on their distributive share of the income, whether withdrawn or left in the company. As a result, all withdrawals from an S Corp are tax free. So...

Tax Law (Questions About Taxes): Dividends from Stock, stancil, future years
stancil, future years, taxable income: Chris, Thanks for your question. Sorry, but no matter what you do at this point, the dividends are taxable income. Sellng the stocks would create a loss, which would reduce your overall taxable income. I would caution you, however, that you can...

Tax Law (Questions About Taxes): Dividends, capital gains distributions, interest dividends
capital gains distributions, interest dividends, form 8814: Dear Hasan, YES, you still have to file her tax return because the financial institutions and brokerage firms etc have sent copies of her income to the IRS and if she does not file a return, and it is determined that she should have, then she will have a...

Tax Law (Questions About Taxes): Divorce and 401k taxes, income tax rate, joe thanks
income tax rate, joe thanks, qualified domestic relations order: Joe, Thanks for your question. If she does not roll the $60,000 into a qualified retirement plan, she will be subject to tax at her regular income tax rate. The 20 percent is only the withholding amount. Her actual tax can be between 10 and 35 percent...

Tax Law (Questions About Taxes): Divorce and claiming children, www irs gov, divorce situations
www irs gov, divorce situations, divorce decree: Adam, Since you were divorced during 2007, you can not file a joint tax return with your ex-wife. To file a joint 2007 tax return, you need to be legally married on 12/31/07. There are new rules in place regarding who can claim a child as a dependent....

Tax Law (Questions About Taxes): Divorce and Dependent Spending Account, dependent exemption, form 2441
dependent exemption, form 2441, joint custody: Mecklin, The best way to figure this out in future years is to determine which of you will be claiming your child as a dependent. If you are alternating years, the parent with the dependent exemption should contribute the full $5,000 to the DSA account...

Tax Law (Questions About Taxes): Divorce & LLC, full time job, payroll deduction
full time job, payroll deduction, llc business: Lisa: Your EX is reading from a different book than the book I am reading from. Even if you get married on 12/31 you can still file as married for the whole year conversely if you get divorced on 12/31 you get to file single for the whole year. You are...

Tax Law (Questions About Taxes): Divorce Situation, divorce situation, form 8332
divorce situation, form 8332, custodial parent: Molly, it does not matter if she works or not. I m not sure who has the 8332. If she signed it over to your husband, AND it is valid for 2005, he can claim the child. If your husband signed the 8332 and it covers 2005, he cannot claim the child. ...

Tax Law (Questions About Taxes): Divorced with Head of Household, head of household, time michael
head of household, time michael, schedule c: Michael sorry but because you were not separated for six months neither of you qualify as head of household married filing separately is the answer unless you guys want to make peace but i suspect it may not be that terrible to file separately. Why...

Tax Law (Questions About Taxes): Divorced for half the year, deducting mortgage interest, divorce settlement
deducting mortgage interest, divorce settlement, stancil: Greg, Thanks for your question. There are two requirements for deducting mortgage interest and property taxes. First, you must be legally liable for the debt. Second, you must be the one making the payments. You would divide the payments based on...

Tax Law (Questions About Taxes): Divorced parents and education tax credit, education tax credit, qualified education expenses
education tax credit, qualified education expenses, dependency exemption: Debby, Thanks for your question. She appears to qualify to take the dependency exemption, based on what you have told me. If she takes the dependency exemption, she will qualify to take the education credit for the amount of qualified education expenses...

Tax Law (Questions About Taxes): DOCTOR VISITS, income tax return, adjusted gross income
income tax return, adjusted gross income, financial stress: Medical costs are deducted on Schedule A, the form used to itemize deductions. In order to use Schedule A, the total of your itemized deductions much be greater than the standard deduction. If you are single that amount is $5,150. Other expenses that are included...

Tax Law (Questions About Taxes): DONATING A VEHICLE TO CHARITY, donating a vehicle, unfortunate person
donating a vehicle, unfortunate person, janet janet: Janet, Thanks for your question. You cannnot get a deduction for the car until the charity provides you with a 1098-C. If the organization is not going to sell the car (use it themselves or donate it to a needy individual) they still provide a 1098-C....

Tax Law (Questions About Taxes): Documentation and Reporting Contributios, church address, stancil
church address, stancil, tax preparer: Al, Thanks for your question. You will not have to provide the documentation to the IRS except in the case of an audit. The taxpayer will need proof of all contributions - statement from the organization, canceled check, etc. All contributions must...

Tax Law (Questions About Taxes): Documents needed to substantiate a claim, form 1098t, education credit
form 1098t, education credit, time status: You will need form 1098T which indicates if your student was at least 1/2 of full time status as well as the amount of tuition, books, fees and related expenses for each year. You will also need to give the amount of any scholarships or grants received which...

Tax Law (Questions About Taxes): Dog Breeding, irs publication 523, cattle breeder
irs publication 523, cattle breeder, stancil: Daniel, Thanks for your question. There are no laws that are unique to the dog breeding business. You should be aware that you are allowed depreciation for the breeding stock, much as for a horse or cattle breeder. I would refer you to IRS Publication...

Tax Law (Questions About Taxes): Domestic Partner Settlement, lifetime gifts, taxable gifts
lifetime gifts, taxable gifts, stancil: Cindy, Thanks for your question. As far as income taxes are concerned, there are none. If the money is legally construed as a gift, the donor should file a gift tax return, but there will likely be no tax to pay. There is a lifetime exemption of...

Tax Law (Questions About Taxes): Donate a car, donee organization, stancil
donee organization, stancil, charitable organization: Nicole, Thanks for your question. If you donate a car to a charitable organization, you can deduct the amount the organization sells the car for. If they do not sell it, you can deduct the car s fair market value at the time of the donation. In no...

Tax Law (Questions About Taxes): Donating Advertising Space (write-off?), billboard advertising, time professor
billboard advertising, time professor, charitable contribution: Bryan, Thanks for your question. You cannot deduct the value of the advertising, but you can deduct your out-of-pocket costs. In other words, if you lease the billboard and the least payment was $500, you could treat the $500 as a charitable contribution....

Tax Law (Questions About Taxes): Donating ESPP stock, capital gain tax, irs publications
capital gain tax, irs publications, fmv: if you dispose of the stock in less than two years you would not qualify for ESPP rules and all the price benefit would be ordinary income the 15% would have to be a capital gain for more try WWW.irsustreas.gov do not hesitate if you have a follow...

Tax Law (Questions About Taxes): Donating Land to a church, adjusted gross income, fmv
adjusted gross income, fmv, charitable contributions: Joan, You will be able to deduct the FMV of the donated land on your Schedule A. Charitable contributions can not be deducted on Schedule C. The amount you will be able to deduct will be limited to 30% of your adjusted gross income. This is a limitation...

Tax Law (Questions About Taxes): Donation, personal tax return, quarterly installments
personal tax return, quarterly installments, charity gifts: Hi Jimmy: You can pay for services rendered to a person outside the USA if indeed services were rendered. You must have a written agreement detailing the services provided. If you have a foreign partner you will need to file form 1042-S and withhold...

Tax Law (Questions About Taxes): Donation, personal tax return, social security number
personal tax return, social security number, tax deductible donation: Jimmy, The same rules apply. If she is not a US citizen and does not have a social security number and you wanted to pay her for services, you would be required to withhold Federal income tax. Regards, Neil Johnson The Tax Dude™ www.thetaxdude.com...

Tax Law (Questions About Taxes): Donation, income tax return, www irs gov
income tax return, www irs gov, tax exempt status: Mark, Thanks for your question. If the organization does not receive its tax exempt status the contributions are not deductible. This is retroactive. http://www.irs.gov/charities/charitable/article/0,,id=164254,00.html From that page: When the IRS...

Tax Law (Questions About Taxes): Donations to Church, john thanks, stancil
john thanks, stancil, missionary: John Thanks for your question. If the church has a fund to support this student, you can make a contribution to the church and take it as a deduction on your taxes. If you merely decide to support this student and try to do it through the church,...

Tax Law (Questions About Taxes): Donations: deductable: Then who actually pays?, lower your taxes, govenment
lower your taxes, govenment, taxable income: No, that means you have reduced your net income and therefore reduced your taxable income, reducing your taxes. For example, if you earned $100,000, putting you squarely into the 30% tax rate. If you gave 10% or $10,000 to charity, you would reduce your...

Tax Law (Questions About Taxes): Donations that are tax deductible, www irs gov, resale shops
www irs gov, resale shops, ebay: IRS does have a basic guideline in Pub 561 which is available at www.irs.gov. If this does not help you, use the value at resale shops or other methods for an item of similar type and value. I suggest looking at www.Ebay.com for resale value of auctions...

Tax Law (Questions About Taxes): Donations and tax deductions, tax accountant, tax deductions
tax accountant, tax deductions, sculptor: Anyone can donate cash, items, etc up to 50% of their income and deduct it, and any more than 50% is carried forward to the following year. HOWEVER, your deduction, if giving a piece of work to a charity, is only the medium that you used. Your time is...

Tax Law (Questions About Taxes): Donations and tax deductions, adjusted gross income, tax accountant
adjusted gross income, tax accountant, charitable contribution: Alfredo, Thanks for your question. In one sense, he is right. Generally speaking, you may make charitable contributions up to 50% of your adjusted gross income. However, I would add that a 30% limitation applied to capital gain property, which a sculpture...

Tax Law (Questions About Taxes): Donations and tax deduxtions, sculputure, tax accountant
sculputure, tax accountant, andthen: Some of it happens to have some basis in fact.But it would have to be a Bona Fide Transaction such as for example you bought a sculputure for a $1000 andthen you contributed to a Recognized Charity and it was valued at 1500 you would have a contribution...

Tax Law (Questions About Taxes): Donations/Volunteer mileage/airline tickets?, check donations, cash donation
check donations, cash donation, stancil: Maggie, Thanks for your question. The mileage would be included on the line 15. Although they are not cash or check they are considered out-of-pocket expenses for which you expended cash. Line 15 contributions other than for cash or check is for...

Tax Law (Questions About Taxes): Donations, irs law, tax id number
irs law, tax id number, indiana tax: Dear Garry, Charitable contributions that are deductable are not always deductable just because the organization is a non-profit organization.... Since I do not know the relationship of the Indiana non-profit tax laws with conjuction to the IRS law, you...

Tax Law (Questions About Taxes): A Doozy of a tax question, deptartment of labor, twenty one years
deptartment of labor, twenty one years, incometax: Ms. Woodard: The tax law was written many years ago requiring employers to withhold from employees check the predefined tax amount for incometax based on you wages. Also the employer is to withhold 7.65% for social security/medicare taxes of this amount...

Tax Law (Questions About Taxes): A Doozy of a tax question, contacting the irs, twenty one years
contacting the irs, twenty one years, proper determination: Amanda, Thanks for your question. First, what he has done is illegal. He is responsible for withholding the proper taxes from your check, adding his portion of SS and Medicare, and making those payments to the government. However, you are the one...

Tax Law (Questions About Taxes): Double Taxation?, comptroller of maryland, federal adjusted gross income
comptroller of maryland, federal adjusted gross income, income tax return: You were given correct information and incorrect. The proper proceedure is to report on both state returns your total federal adjusted gross income. Maryland should be filed as a resident and will tax all of your earnings. You will also receive a...

Tax Law (Questions About Taxes): DPAD Deduction, productive activities, stancil
productive activities, stancil, being a teacher: Susan, Thanks for your question. The Production Activities Deduction applies when you are engaged in domestic productive activities. Being a teacher is not defined as a production activity. Additionally, the deduction is limited to 3 percent of the...

Tax Law (Questions About Taxes): Dual State taxation, proper gears, comptroller of maryland
proper gears, comptroller of maryland, federal adjusted gross income: AAmir, Thanks for your question. Different states handle this differently, but you probably do not owe the tax. Send a letter to the State of Maryland, explaining the situation as you have to me, asking them to abate the tax, interest, and penalties....

Tax Law (Questions About Taxes): Dual use of SSN #, ssn number, problem child
ssn number, problem child, dual use: You can contact IRS to have an explanation of the problem sent to you. You may also go the long route if you are within 3 years of the due date of that return. Amend your return to include any person that you excluded, ONE BY ONE, until you find the...

Tax Law (Questions About Taxes): Dual use of SSN #, ssn number, dual use
ssn number, dual use, statute of limitations: It really depends what tax year you are talking about. If not 2003, 2002 or 2001; nothing can be done, the statute of limitations is up. The IRS will not tell you who is using the SSN, however, if you felt you were the legal parent to use it, you should...

Tax Law (Questions About Taxes): Dual use of SSN #, ss number, taxpayer advocate
ss number, taxpayer advocate, ssn number: Tony, Thanks for your question. That seems kind of strange, as the IRS normally informs you which SS number has been claimed on two returns, they just don t identify the other party making the claim. If more than three years have elapsed from the...

Tax Law (Questions About Taxes): Duplex, macrs depreciation tables, stancil
macrs depreciation tables, stancil, cpa: Meghan, Thanks for your question. The only way you can determine how much depreciation has been taken is to ask them. You can determine the proper amount of depreciation allowed for the past three years plus determine the depreciation for the current...

Tax Law (Questions About Taxes): I had my daughter and grandson..., dependency exemption, stancil
dependency exemption, stancil, time student: Karen, Thanks for your question. In order for you to claim either as a dependent, certain tests must be met. The rules are different this year than in the past. Each must be what is rferred to as a qualifying child. This means they must: 1. Be...

Tax Law (Questions About Taxes): My daughters mothers boyfriend wants to claim my daughter., dependency exemption, custodial parent
dependency exemption, custodial parent, stancil: Scott, Thanks for your question. If you provide over half the support for the child, you are entitled, even as the non custodial parent to take the dependency exemption. A non-relative may take a dependency exemption if the dependent: 1. Lived in...

Tax Law (Questions About Taxes): daycare credit, child care expenses, income tax liability
child care expenses, income tax liability, stancil: Michelle, Thanks for your question. If you qualify for 20% that means that 20% of your child care expenses, up to $3,000 per child can be taken as a credit against your income tax liability. A credit of $1 reduces your taxes by $1. Hope this helps....

Tax Law (Questions About Taxes): dba question, self employment taxes, filing taxes
self employment taxes, filing taxes, stancil: Julia, Thanks for your question. You report your revenue and expenses on Schedule C. You can do this and file a joint return with your husband. You will also need to file Schedule SE for any self-employment taxes if your profit exceeded $400. Hope...

Tax Law (Questions About Taxes): deadline question, mark thanks, stancil
mark thanks, stancil, cpa: Mark, Thanks for your question. Theoretically, there is no penalty for filing late if you are due a refund, as the penalty is assessed as a percentage of the tax you owe. However, why risk it? You can file a Form 4686 by midnight and get an automatic...

Tax Law (Questions About Taxes): deadline question, failure to file penalty, special forms
failure to file penalty, special forms: Dear Mark, IF you have figured your taxes and KNOW for sure that you are getting a refund, then you can file after 4/15/05 and not owe a penalty.... You simply file your 1040 return with no special steps or special forms.... However, you need to make...

Tax Law (Questions About Taxes): death estate tax return, tax angles, taxable estate
tax angles, taxable estate, college loans: Nancy, Thanks for your question. If the estate tax return has not yet been filed, you may be able to use the alternative valuation date. Under this election, the entire estate is valued based on its fair market value 6 months from the date of death...

Tax Law (Questions About Taxes): death of sole director of sub chapter S corp, stock holder, s corp
stock holder, s corp, sole director: you should name members of your family as officers and have a least one director remember you may not die but you could be incapacitated. Also you may want to have life Insurance to cover the business in case of your death,just a thought. good luck...

Tax Law (Questions About Taxes): death of a taxpayer, death of a taxpayer, john brooks
death of a taxpayer, john brooks, john thanks: John, Thanks for your question. According to the rules listed by the IRS, death of a taxpayer does not prohibit the taking of the EIC. However, I would point out that it is not available to taxpayers who have reached their 65th birthday. You would...

Tax Law (Questions About Taxes): decaring residency for state tax purposes, tax factors, stancil
tax factors, stancil, mail: Jane, Thanks for your question. Since he is working there he is liable for income taxes in Massachusetts regardless of where he establishes residence. Normally, the IRS determines your residency by where you receive your mail, but this is not conclusive....

Tax Law (Questions About Taxes): deceases parent taxes returns, income tax return, daughter helen
income tax return, daughter helen, money property: That poor child. If there was an executor, she needs to give them the W-2 so they can file the final income tax return. If she is the executor (or if there is none), she can file the tax return just as if her mother was alive. If there is a refund,...

Tax Law (Questions About Taxes): deducations, search expenditures, deductible moving expenses
search expenditures, deductible moving expenses, miscellaneous itemized deductions: Kris, Thanks for your question. Living costs are not deductible. Job search expenditures are deductible as miscellaneous itemized deductions, subject to the 2% limitation. This must be a search for a new job in your present occupation. Deductible...

Tax Law (Questions About Taxes): Can I deduct mileage I pay to our nanny?, personal income tax, irs rate
personal income tax, irs rate, stancil: Sure. Since you are already treating her as an employee, it would be to her benefit to receive reimbursement - if it is an accountable program. In other words, she submits her travel expenses to you in written form and you reimburse her at the IRS rate or...

Tax Law (Questions About Taxes): deductability of interest on Hm Eq Line, investment interest expense, home equity line
investment interest expense, home equity line, form 4952: Doris, A clever tax pro could make an argument to deduct the equity line interest against your rental income on Schedule E. Deducting the interest as a rental expense might have more value than deducting it as an itemized deduction. The correct way...

Tax Law (Questions About Taxes): what is deductable for dependent in college, publication 970, hope credit
publication 970, hope credit, stafford loans: Hi Pat this can get pretty complicated depending on facts and choices you make there are two types of higher education breaks : the hope credit or the lifetime learning deduction what I suggest is that you look up the IRS site www.irs.ustreas.gov ask for...

Tax Law (Questions About Taxes): deductable taxes, stancil, state tax
stancil, state tax, cpa: L, Thanks for your question. Fuel taxes are not deductible items. State, local, and city taxes are deductible if they are a tax based on income or are ad valorem taxes. Ad valorem means the tax is based on value. For example, if the tax on your automobile...

Tax Law (Questions About Taxes): deductable?, grant county kentucky, paul thanks
grant county kentucky, paul thanks, itemized deduction: Paul, Thanks for your question. The vehicle tax - the portion that is based on the value of the vehicle - is an itemized deduction on Schedule A. The registration and license fees, which are flat fees are not deductible. Hope this helps. John...

Tax Law (Questions About Taxes): deductible?, electric wheelchair, stancil
electric wheelchair, stancil, charitable donation: Roger, Thanks for your question. No, gifts to individuals are not deductible. You can only deduct contributions to qualified charitable organizations. And you cannot donate the wheelchair to an organization with the stipulation that it be given to...

Tax Law (Questions About Taxes): deductible appliance donations, form 8283, stancil
form 8283, stancil, ebay: Chrystal, Thanks for your question. If your total non-cash charitable contributions are $500 or more for the year you must complete Form 8283. Programs such as Deduction Pro can give you a good idea about the value of your appliances. eBay values...

Tax Law (Questions About Taxes): What is deductible, irs guideline, thanks hank
irs guideline, thanks hank, advertising management: Hank, Thanks for your question. I am not aware of such a book. Items such as a computer or camera may be reported by capitalizing them and taking a depreciation deduction. However, I would caution you that only the percentage used for the rental activity...

Tax Law (Questions About Taxes): deducting business purchase, section 179, business purchase
section 179, business purchase, cost basis: You will be eligible to use the 179 rule if the trailer is new(not used), purchased(not with trade) and used in your business. The 179 rule is limited to a total of 100000 of property value for the entire tax year OR the cost of the asset OR the profit in...

Tax Law (Questions About Taxes): deducting moving expenses, moving expense deduction, full time work
moving expense deduction, full time work, deducting moving expenses: Sorry, Jason, nice try, but it is not going to work. In order to deduct moving expenses, you must have already been working in that field and moved due to work. If you have not been working in that field, you cannot move due to work. Look at form 3903...

Tax Law (Questions About Taxes): deducting/pro-rating travel to 2nd home, denise thanks, electrical sales
denise thanks, electrical sales, texas sun: Denise, Thanks for yur question. If the purpose of the trip is purely business, he may deduct the cost of his airfare. The cell phone can be prorated, deducting the percentage of its cost that is for business purposes. Hope this helps. John...

Tax Law (Questions About Taxes): deduction, head of household, first mortgage
head of household, first mortgage, stancil: Christina, Thanks for your question. In order for you to take the taxes and mortgage interest as a deduction, you must meet two requirements. First, you must be the one legally liable for the mortgage payment or the taxes. Second, you must be the one...

Tax Law (Questions About Taxes): deduction, pella windows, 1040 instructions
pella windows, 1040 instructions, al brown: Al i do not know to which useless credit this belongs (useless in the manner of saying why is the price not reduced to be included in the final price) but the vendors usually make a big deal of this thy can point exactly also the 1040 instructions andmay...

Tax Law (Questions About Taxes): deduction, high efficiency heating, pella windows
high efficiency heating, pella windows, al brown: Al, You don t get a deduction. You actually get a tax credit. Tax credits are more valuable than deductions. Tax credits are available for many types of home improvements including adding insulation, replacement windows, and certain high efficiency heating...

Tax Law (Questions About Taxes): deduction adjustment, retirement gift, new mercedes
retirement gift, new mercedes, case thanks: Greg, Thanks for your question. No, you are stuck paying taxes on $100K. In order to avoid the taxes, you could not have accepted the car initially. I don t cite code or cases in this forum, as that requires additional research. Hope this helps....

Tax Law (Questions About Taxes): deduction for assisted living expense, dementia unit, fed tax
dementia unit, fed tax, stancil: Roger, Thanks for your question. The meals and lodging are deductible if the primary purpose of her confinement is to receive medical care. Therefore, the entire amount she pays should be deductible (less the 7.5% of course). The amount of deduction...

Tax Law (Questions About Taxes): deduction or credit, appraisal fees, form 1040
appraisal fees, form 1040, wages: List this as a deduction on Schedule A, line 22 if it is 3000 or less. If your repayment is more than 3000 you can use the listed method OR elect to refigure the tax on the year it was reported as income and enter any difference on line 65 of form 1040...

Tax Law (Questions About Taxes): deduction for meals, meal allowance, meal expenses
meal allowance, meal expenses, percentage increases: Cyndi, Thanks for your question. Truckers can take 75% of the standard meal allowance. That amount varies depending on where you are traveling. In 2008 the percentage increases to 80%. You can determine the amount allowed by location at www.gsa.gov/perdiem....

Tax Law (Questions About Taxes): deduction?, irs gov, incidental expense
irs gov, incidental expense, applicable rates: Performing any job away from your home area overnight will incur a deduction. You will reduce the allowance by any reimbursements you receive. The amount varies by the area in which you work. There are seperate per diem amounts for meals and incidental...

Tax Law (Questions About Taxes): deductions, deductible expense, cost basis
deductible expense, cost basis, capital gain: Dear R.A., Who ever told you this is wrong.... This IS an improvement, but it is not deductable on your tax return... This improvement is figured into your cost basis of the home and used only if you ever decide to sell the house and in figuring your capital...

Tax Law (Questions About Taxes): deductions, capital improvements, cost basis
capital improvements, cost basis, receipts: Hi, The improvements you make to your home are not deductible. However, the cost of capital improvements add to your cost basis in the house so it s a good idea to keep all those receipts to reduce the gain if you ever sell it. Ordinary repairs and maintenance...

Tax Law (Questions About Taxes): deductions, screen movie theater, irs publication
screen movie theater, irs publication, publication 463: Hi Nicholas. To get a deduction for meal expenses, the meal generally must meet the following three requirements (from IRS Publication 463): 1. The main purpose of the combined business and entertainment was the active conduct of business, 2. You did engage...

Tax Law (Questions About Taxes): deductions for advertisers, victim witness program, sexual assault survivor
victim witness program, sexual assault survivor, profit entity: Susan, This is quite an endeavor! Have you considered setting up your activity as a not for profit entity? If you plan to donate the profits, a not for profit is the way to go. Your advertisers will be able to deduct the full cost of placing advertising...

Tax Law (Questions About Taxes): deductions on home sale, income tax liability, realtor fee
income tax liability, realtor fee, realtor fees: Ms. Pennabecker: It is not that simple. First are you purchasing a new home? Is this your home you have lived in 3 of the last 5 years. Is this an investment house that you were renting out? Are you buying a new home? If you bought the home for $50,0000.00...

Tax Law (Questions About Taxes): deductions for small businesses on SUVs, 6000 gvw, buick enclave
6000 gvw, buick enclave, bush tax cuts: Hi Alice I see no mention of this change in the IRS site (instructions for 1040C) right now congress is in the process of improving the tax law mainly the AMT but as far as I know any instructions the other rules of the Bush Tax Cuts are not due to expire...

Tax Law (Questions About Taxes): deductions on taxes, financial hardships, withholding allowance
financial hardships, withholding allowance, bad decisions: Dennis, It is illegal to claim more withholding exemptions than you are entitled to. Granted, if you claim 99, little, if any income tax would be withheld. However, this may mean you end up owing on April 15, along with a possible penalty and interest....

Tax Law (Questions About Taxes): deductions for work-related moving expense, irs pub 463, personal income taxes
irs pub 463, personal income taxes, federal personal income: If your assignments are expected to last less then a year and do last less than a year, your expenses may be deductible PROVIDING you have a home someplace. But if you have no place to call home (and I would call that itinerent), there is no deduction for...

Tax Law (Questions About Taxes): deductions, denise thanks, personal hygiene
denise thanks, personal hygiene, relationship test: Denise, Thanks for your question. No, he cannot be claimed as a dependent. In order to do so, he must be related to you or lived in your house for the entire year. Since this is not the case, he does not pass the relationship test for dependency. ...

Tax Law (Questions About Taxes): deductionson sale of investment property, depreciation deductions, theft losses
depreciation deductions, theft losses, capital gains tax: Monica, Basis is your investment in property for tax purposes. The difference between the selling price of your assets and your basis determines whether there is a taxable gain or loss on the disposition of your property. You need to determine your basis...

Tax Law (Questions About Taxes): dedudctions I can use regarding my partnership in a small buisness, small buisness, small construction
small buisness, small construction, computer etc: Yes but as an employee things become complicated on the other hand if the partnership owned the assets then you would account only for personal use I do not understand what you mean the company is incorporated either it is a corporation or partnership? please...

Tax Law (Questions About Taxes): deed in lieu of foreclosesure tax liability, non recourse loan, debt cancellation
non recourse loan, debt cancellation, deed in lieu of foreclosure: Shelly, Thanks for your question. It will be treated as a sale of the home for the amount you owe. Subtract your cost basis from the proceeds of the sale, and you have your gain (or loss) from the sale of the home. If you have lived in it for 24 of...

Tax Law (Questions About Taxes): deeding house, itemized deduction, e tax
itemized deduction, e tax, hi jack: Hi Jack, You can give an individual (or any number of individuals) $12,000 per year with no tax consequences. You don t have to file a gift tax return. If you give a gift in excess of that you are required to file a gift tax return. I don t understand...

Tax Law (Questions About Taxes): deeding interest in lieu of paying debt, reverse exchange, exchange agent
reverse exchange, exchange agent, dear john: I am afraid I don t have much in terms of useful suggestions. Before forming an LLC, I would make a thorough investigation to make certain that the related party rules would not apply. I don t know where these properties are and if you live in Florida or...

Tax Law (Questions About Taxes): defaulted loan, ford motor company, stancil
ford motor company, stancil, defaulted loan: Cindy, Thanks for your question. No, that is not deductible. All that is occurring here is a payment of your son s debts. Since your husband was a co-signer, they were also his debts. These type items are not deductible. Hope this helps. John...

Tax Law (Questions About Taxes): Can you defer income with the state tax deduction?, state tax deduction, pile of money
state tax deduction, pile of money, refund check: as a cash tax basis you can make excess payments on you estimated to cover the two years but it must be reasonable if your state tax is $1000 you could have paid when due and a $2000 estimate paid in December for the current year(1000)AND $1000 for the...

Tax Law (Questions About Taxes): per deim, otr truck driver, stancil
otr truck driver, stancil, transportation workers: Donna, Thanks for your question. The meals per diem is for the location where he is traveling, not your work or home base. However, there is a special rule for transportation workers so they do not have to keep track of where they are traveling. ...

Tax Law (Questions About Taxes): delequent tax returns for contractor, delinquent tax returns, self employment tax
delinquent tax returns, self employment tax, offer in compromise: The first thing he may find out is that the IRS has filed some of those returns for him based on the 1099 s. He will need to file those returns so he can claim expenses as well as any not filed for the last six years. Despite only making $30,000 per year,...

Tax Law (Questions About Taxes): delinquent filing, stancil, out of sight
stancil, out of sight, tax return: Dell, Thanks for your question. Just go ahead and send it in, along with the amount owed. You might attach an explanation about why it was late, asking them to forgive any penalties. They will bill you for any interest and penalties they assess....

Tax Law (Questions About Taxes): delinquent tax properties, delinquent tax properties, full disclosure
delinquent tax properties, full disclosure, tax expert: You are not responsible for the debt owed UNLESS the purchase agreement indicates that you are accepting the debt as well as the delinquent tax price. You may not sell the property unless you have a clear title, however, unless the purchaser makes the same...

Tax Law (Questions About Taxes): delinquent taxpayer, delinquent taxpayer, bad advice
delinquent taxpayer, bad advice, irs: Dan: You must file a tax return for every year that you have wages. Since most of the issues beyond the mechanics of filing a tax return, you should seek the advice of an attorney for the legal issues. I am not an attorney and therefore can not advise...

Tax Law (Questions About Taxes): My dep child had a summer job., form 1040ez, dependent parent
form 1040ez, dependent parent, yes box: Dear John, NO.... She will have to file her own tax return especially if they withheld any federal or state taxes.... This is the only way she can get the money she paid in, back as a refund.... She will file form 1040EZ and on the line where it asks...

Tax Law (Questions About Taxes): dependant, section 8, child support
section 8, child support, irs: Bruce: You must call and talk with the IRS for instructions on how to proceed. It appears from what you are saying that someone has claimed your son. You maybe be able to file a paper return with a copy of the court order putting the IRS on notice that...

Tax Law (Questions About Taxes): dependant deductions, income tax filing, father hope
income tax filing, father hope, dependency exemption: Bob, Thanks for your question. Under the tests set up by the IRS you qualify to take the dependency exemption for the granddaughter, presuming you pay more than 1/2 of her support. How you proceed from there is up to you. You could take the exemption,...

Tax Law (Questions About Taxes): dependant, form 1040 ez, claiming dependents
form 1040 ez, claiming dependents, irs gov: Dear Charlotte, The answer is BOTH.... You can claim her as a dependent on your tax return and she will also file her own tax return for the money she made from her job... However, when she files she will NOT claim herself... Usually single college students...

Tax Law (Questions About Taxes): dependants, max number, withholding tax
max number, withholding tax, dependents: Hi Andy, If you mean on your tax return there is no maximum but, of course, you can only claim those who qualify as dependents. If you mean on a W4 for purposes of withholding tax, you can claim as many as you like but if you end up owing taxes because...

Tax Law (Questions About Taxes): dependants, male companion, irs gov
male companion, irs gov, filing taxes: Dear Michelle, Please ignore the other e-mail answer that was sent to you..... It may not be correct.... I need to know how long you and your son lived with this male companion for in 2005.... How much income you had for 2005 including ALL s.s. death benefits...

Tax Law (Questions About Taxes): dependants, divorce agreement, custodial parents
divorce agreement, custodial parents, custodial parent: Dear Amy, The ONLY way a non-custodial parent can claim this child is if it was put in the FINAL divorce agreement that on certain years he/she could claim the child OR if the custodial parents sign a release of dependent form (IRS) to the non-custodial...

Tax Law (Questions About Taxes): dependants, custodial rights, joe thanks
custodial rights, joe thanks, stancil: Joe, Thanks for your question. I presume that you e-filed your return. File a paper return. You will likely get a letter from the IRS stating that your fiance s son was claimed on another return, instructing you to file an amended return if you are...

Tax Law (Questions About Taxes): How many dependants to claim?, federal tax increases, federal changes
federal tax increases, federal changes, dependants: Dear Heather, My suggestion would NOT be to claim the entire amount of 5.... My suggestion would be for the one who is making the MOST income to claim 3-4 dependents and the other one to claim 0 dependents... This way it will give you extra money in each...

Tax Law (Questions About Taxes): dependants, dependency exemption, stancil
dependency exemption, stancil, tax return: Pam, Thanks for your question. Since she is under age 19 at the end of the tax year you have the right to claim her as a dependent. However, since she has already taken her dependency exemption, you cannot claim her unless she files an amended return...

Tax Law (Questions About Taxes): dependency exemption, dependency exemption, paul thanks
dependency exemption, paul thanks, stancil: Paul, Thanks for your question. You parents can claim you as long as you are a full time student, they provide over half your support, and you are under age 24 as of December 31. You income will not be taxed at their rate, but at your rate, which...

Tax Law (Questions About Taxes): dependent, step daughter, fiancee
step daughter, fiancee, relatives: Dear Stephany, NO! He can NOT claim you or your son as a dependent..... You are NOT relatives and there were changes in 2005 that now make it necessary for a dependent to be a relative or a relative by marriage (e.i. step-son or step daughter..... ...

Tax Law (Questions About Taxes): dependent or not, cell phone bills, ss number
cell phone bills, ss number, dependency exemption: Becky, Thanks for your question. I apologize for the delay in answering your question. However, the AllExperts website has been malfunctioning and I have not been able to answer my questions for a couple of days. First, the boyfriend is NOT entitled...

Tax Law (Questions About Taxes): Would I be a dependent, dependency exemption, head of household
dependency exemption, head of household, resident tuition: Alexia, Thanks for your question. Your mother would not claim you as independent, she just would not list you as a dependent on her tax return. If she does not take you as a dependent, she loses the $3,300 dependency exemption. You don t mention...

Tax Law (Questions About Taxes): dependent, stancil, gross income
stancil, gross income, cpa: Howard, Thanks for your question. It depends. If the dependent is a qualified child, there is no income limit. If the dependent is a qualified relative, you cannot claim them if their income is $3,300 or more. The criteria for qualifying child are...

Tax Law (Questions About Taxes): dependent or not?, maximum credit, time graduate
maximum credit, time graduate, education credit: Hi, No, your parents cannot claim you because even though you were a full time student, you were not under age 24. Even if they paid more than half of your support they cannot claim you because your income was more than $3,300. However you can claim...

Tax Law (Questions About Taxes): dependent, income tax, cousin
income tax, cousin, social security: Hi, You didn t mention whether or not she lives with you so I ll assume that she does. If you provide more than half of her support, you could claim her as a dependent provided that: - she is a US citizen or a resident of the US, Mexico or Canada -...

Tax Law (Questions About Taxes): My dependent, girlfriend lives, custodial parent
girlfriend lives, custodial parent, time student: The custodial parent (in this case the baby s mom) is the parent that claims the child. If your girlfriend did not work or worked and made less than $3400 or is under the age of 19 (or 24 and a full time student), then her mother can claim her and claim the...

Tax Law (Questions About Taxes): dependent care tax, stancil, dependent care
stancil, dependent care, cpa: Julia, Thanks for your question. Normally, that is correct. However, in addition to them living with you, you must provide over half their support. Their father would be able to claim them only if you agreed to allow him to do so, or if a court...

Tax Law (Questions About Taxes): dependent claims, dependent claims, eic
dependent claims, eic, single mother: Your child will be the dependent of the person who pays more than 50% of his total support for the tax year. Support furnished by you and his father combined will be considered to be support furnished by you. The expenses of the home (rent, utilities,...

Tax Law (Questions About Taxes): dependent income, self employment income, form 1040
self employment income, form 1040, schedule c: The wages of the child will not be put on the parent s return. The child may wish to file a return as a dependent to get a refund of any federal tax withheld(or state). If the income was from self employment, income tax will not be due but SE tax will be....

Tax Law (Questions About Taxes): Does your dependent qualify for the home exclusion tax?, stancil, john thanks
stancil, john thanks, tax exclusion: Jeff, You asked if you claiming them as dependents qualified you to take the exclusion. The answer is no, as I outlined. As they were the legal owners of the house, if they meet the test ownership and use tests, they can take the exemption and exclude...

Tax Law (Questions About Taxes): dependent status of college student, higher tax bracket, irs rules
higher tax bracket, irs rules, utma account: Mike, I apologize. I did not explain myself very well. Your daughter has the right to claim her own dependency exemption. However, if she chooses not to do so, you would be allowed to claim her. Frequently, this is the case when the parents are in...

Tax Law (Questions About Taxes): dependent status, gross income test, head of household
gross income test, head of household, head of household filing status: Hi Clem, Your son does not have to live with you for you to claim him as a dependent so long as he is not the qualifying child of anyone else, does not exceed the gross income test ($3200 for 2005, slightly more for 2006) and you provide more than half...

Tax Law (Questions About Taxes): dependent, child tax credit, head of household
child tax credit, head of household, dear bill: Dear Bill, In 2005 you will NOT be able to claim ANY child tax credit for your son.... THis could and will cause your tax line figure to increase and will cause you to owe more tax than in 2004 and prior years... You will be able to take the EIC if...

Tax Law (Questions About Taxes): dependents, gross income test, citizenship test
gross income test, citizenship test, relationship test: Bob, Thanks for your question. I am not sure what you mean by saying your daughter was on your taxes until July 2003. That is a determination that is made annually at the end of the year. She can be claimed as your dependent if all five dependency...

Tax Law (Questions About Taxes): dependents, irs gov forms, irs gov forms and publications
irs gov forms, irs gov forms and publications, www irs gov: There have been changes in this area in the past year. I will refer you to pub 17 at www.irs.gov, starting around page 24 (the pdf) version. Just go to www.irs.gov - forms and publications - publication 17 and pdf. You can go thru the flowcharts there...

Tax Law (Questions About Taxes): dependents/1099???, screen actors guild, joint bank accounts
screen actors guild, joint bank accounts, adjusted gross income: Brandon, Thanks for your question. To claim a dependency exemption, you must meet 3 tests. The person must 1) have lived in your household for the entire year. 2) must have over half her support from you. 3) have less than $3,200 in gross income. In...

Tax Law (Questions About Taxes): dependents, dependency exemption, head of household
dependency exemption, head of household, john thanks: John, Thanks for your question. If the child is born in 2006 you may file as head of household if you provide over half the cost of keeping up the household and are unmarried. You will also be able to claim a dependency exemption for this child. ...

Tax Law (Questions About Taxes): dependents, tie breaker, dependents
tie breaker, dependents, diapers: Hi, If you pay more than half of the children s support you could claim their dependency but you couldn t claim them for EIC purposes. If both you and he claim them the IRS would decide who gets their exemptions. Since he is their parent the IRS would...

Tax Law (Questions About Taxes): dependents, form 8332, dependents
form 8332, dependents, irs: I m confused as to claiming your wife first of all. Normally, a spouse is never a dependent. If you are planning on filing a joint return - that is okay, just know you are as liable for everything on the return as she is. Claiming her tho -as a dependent...

Tax Law (Questions About Taxes): dependents, taxes on line, dependents
taxes on line, dependents, dependant: Hi, You didn t say whether or not your son lived with you for more than six months. If he did, you would be entitled to claim EIC and you don t need to do anything. If he didn t, you should file an amended return and pay back the EIC. Regards, Carol...

Tax Law (Questions About Taxes): dependents, claiming dependents, dependency deduction
claiming dependents, dependency deduction, form 8332: Billie, As long as you are the custodial parent and the kids spend more than half the year with you, your ex-husband can not claim the kids as dependents. The only way he can do so is if you release your claim to these dependents. This is done using IRS...

Tax Law (Questions About Taxes): dependents, social security numbers, form 8332
social security numbers, form 8332, divorce decree: Billie, Short of getting a court order (which may be cost prohibitive), this will be handled between you, the IRS and ex-husband. Whether or not you worked this year, your husband can not legally claim the kids as dependents unless you sign the release...

Tax Law (Questions About Taxes): dependents, ktap, favorable answer
ktap, favorable answer, relationship test: Steven, Thanks for your question. I think you mean you 2007 taxes which will be filed in 2008. You cannot claim them as qualifying children, as they do not meet the relationship test. They would meet the relationship test as qualifying relatives....

Tax Law (Questions About Taxes): dependents, social security income, dependency exemption
social security income, dependency exemption, form 2441: Lynn, Thanks for your question. If the social security income is all the income your mother has, and you provide over half her support, you may claim a dependency exemption for her. If you qualify to claim the dependency exemption, you may take the...

Tax Law (Questions About Taxes): dependents, irs laws, time student
irs laws, time student, dependents: Dear Laura, NO.... He made more than $3000.00 for tax year 2004, and he is NOT a full time student, so therefore, he does not qualify as your dependent.... You are basically just a mother who allows her son to live off of her according to the IRS laws........

Tax Law (Questions About Taxes): about dependents, head of household, standard deduction
head of household, standard deduction, dependants: Hi Rosa, If you are single on the last day of 2005, you are considered single for the entire year. If you maintain a home for your child and you pay more than half the upkeep of that home in 2005, you can file as head of household. If your divorce...

Tax Law (Questions About Taxes): dependents, gross income test, gross income tax
gross income test, gross income tax, citizenship test: Edith, Thanks for your question. There are 5 tests to claim a dependency exemption. All five tests must be met/ 1. Citizenship test - the person must be a US Citizen or resident. 2. Relationship test - the person must be related to you or lived...

Tax Law (Questions About Taxes): dependents, stay at home mom, irs rules
stay at home mom, irs rules, many different things: Lori, Thanks for your question. There are five tests for dependency. All five must be met in order to take the dependency exemption. 1. Relationship test - The individual must have lived with the taxpayer the entire year, or be related to him. 2....

Tax Law (Questions About Taxes): dependents, gross income test, citizenship test
gross income test, citizenship test, relationship test: Stephany, Thanks for your question. There are 5 tests for dependency. All 5 tests must be met in order to take the exemption. 1. Relationship test. The person must be related or have lived in the household for the entire year. 2. Citizenship test....

Tax Law (Questions About Taxes): dependents, unmarried adults, dependency exemption
unmarried adults, dependency exemption, stancil: Margie, Thanks for your question. This year, the requirements for being eligile for a dependency exemption have changed. You must qualify as a qualifying relative. In order to meet this requirement you must 1)Have lived in his house for the entire...

Tax Law (Questions About Taxes): dependents, withholding allowances, stancil
withholding allowances, stancil, dependents: Nancy, Thanks for your question. No, that is not true. It is illegal to claim more withholding allowances than you are entitled to. There is a civil fine of $500 for doing so. Additionally, the IRS has the power to levy criminal penalties if you wllfully...

Tax Law (Questions About Taxes): dependents living abroad, irs publication 519, living in the philipines
irs publication 519, living in the philipines, ss number: Kerwin, Thanks for your question. It is not just the SS or ITIN that is preventing you from taking a dependency exemption for them. In order to claim a dependency exemption they must be U. S. citizens or residents and they must live in your household...

Tax Law (Questions About Taxes): dependents, child tax credit, dependency exemption
child tax credit, dependency exemption, time donna: Donna, Thanks for your question. There are 5 tests for dependency. All five tests must be met. Two deal with citizenship and filing a joint return. Those are not issues you are concerned with, as the baby will not be filing a joint return. A third...

Tax Law (Questions About Taxes): depreciaiton of residential rental property, depreciation deductions, long term capital gains
depreciation deductions, long term capital gains, residential rental property: John, The 25% tax on depreciation occurs in the year you sell the asset. Sales of business use assets are reported on Form 4797. On this form, you will compute the capital gain and the depreciation subject to recapture. These amounts are then transferred...

Tax Law (Questions About Taxes): depreciate, equipment expenditures, sec 179
equipment expenditures, sec 179, stancil: There is no typical threshold. It simply becomes a matter of materiality. How many depreciable assets do you have and at what point, in your judgment, is is easier just to expense them? I would probably go with something in the area of $250 or so. Additionally,...

Tax Law (Questions About Taxes): depreciation, macrs depreciation tables, www irs gov
macrs depreciation tables, www irs gov, stancil: Stephanie, Thanks for your question. You should use the MACRS depreciation tables. They are available at www.irs.gov. A piano probably would fall into the 7-year class life. Since the piano is 10 years old, you may want to complete a Form 3315 to allow...

Tax Law (Questions About Taxes): depreciation, llc report, fitness business
llc report, fitness business, e bay: When an LLC member is bought out the LLC does a short Close as of the date of the buy out and the income/loss is distributed to the members as of the date of the sale of her interest. You would receive a sch K-1 for that period which will reflect the income/loss...

Tax Law (Questions About Taxes): depreciation, bank loans, stancil
bank loans, stancil, depreciation: Robert, Thanks for your question. The only way for him to take the depreciation is for you to transfer title (and therefore risk) to him. If you do this, you cannot deduct the interest on the mortgages, as you do not own the mortgaged property. Hope...

Tax Law (Questions About Taxes): depreciation, section 179 deduction, depreciation schedule
section 179 deduction, depreciation schedule, sec 179: Ray, Thanks for your question. You can deduct the entire cost through a Section 179 deduction. There are limits to how much can be taken as a Sec 179, and limits on who can take it. For 2007, the amount will be $112,000. If you purchase more than...

Tax Law (Questions About Taxes): depreciation of home computers, business profits, schedule c
business profits, schedule c, investment portfolio: The Government has a program to encourage purchasing depreciable assets thereby recirculating money, and supporting the economy. That program is the 179 deduction. However this deduction is for businesses. Many people have been falsely lead to believe that...

Tax Law (Questions About Taxes): depreciation on principal residence converted to rental, depreciation expense, capital improvements
depreciation expense, capital improvements, principal residence: Hi, First of all you can t depreciate the land so you ll need to separate the cost of the house and land. You can depreciate the house based on the LOWER of the fair market value at the time of conversion to rental property or the cost. So you will...

Tax Law (Questions About Taxes): depreciation recapture, irs code section, www irs gov
irs code section, www irs gov, irs website: Mike, Thanks for your question. I am unaware of any such provision about proving you have not claimed any depreciation. It may be possible to file a Form 3115 and claim that prior depreciation not taken. This is a rather complicated procedure, and...

Tax Law (Questions About Taxes): depreciation on rental property, cement work, stancil
cement work, stancil, rental house: Jose, Thanks for your question. The windows should be added to the cost of the rental house and depreciated over the remaining life of the house. The concrete should be depreciated over a 15 year period. Hope this helps. John Stancil, CPA ...

Tax Law (Questions About Taxes): depreciation schedule for 1120 S, depreciation schedule, stancil
depreciation schedule, stancil, what this means: Deanne, Thanks for your question. You should go ahead and take the depreciation this year, despite the loss. You can carry a loss back 2 years and forward for 15. Regarding depreciation the IRS reduces the basis in your assets for depreciation allowed...

Tax Law (Questions About Taxes): depreciation - sole prop., standard mileage deduction, mike piper
standard mileage deduction, mike piper, sole proprietor: Hi Yani. As long as you are not using the standard mileage deduction, yes you will be able to depreciate the car. Of course, you ll only be able to depreciate the business-use percentage of the car s value. (That is, if you use it 30% of the time for business,...

Tax Law (Questions About Taxes): depreciation, depreciation system, poultry farm
depreciation system, poultry farm, macrs: David, Thanks for your question. When you take depreciation, it lowers your basis in the asset, causing a higher gain when the asset is sold. The amount of depreciation taken is normally subject to ordinary income rates, rather than capital gain rates....

Tax Law (Questions About Taxes): Can you describe the tax treatment..., stocks dividends, stancil
stocks dividends, stancil, capital gain: Duran, Thanks for your question. A mutual fund has income from two sources, dividends paid on the stocks it owns and gains on the sale of stocks. Dividends paid on stocks are ordinary dividends to the mutual fund shareholder and reported as such...

Tax Law (Questions About Taxes): more details about health insurance ..., insurance premium, business expense
insurance premium, business expense, day job: John: You have it calculated correctly based on the information you have provided the $800.00 will be the net amount put on your itemize deduction sheet. If you had a business and could count that as a business expense it would put you in a better position....

Tax Law (Questions About Taxes): details of tax free gift money from parents, form 709, gift money
form 709, gift money, stancil: Jenny, Thanks for your question. Actually, the amount is $12,000. A person can give up to $12,000 per person per year and not have to file a gift tax return. Your parents may elect gift splitting, which means that 1/2 of the gift is treated as coming...

Tax Law (Questions About Taxes): determining cost of mutual fund, mutual fund shares, stancil
mutual fund shares, stancil, cost basis: Johnny, Thanks for your question. You will have to research to determine the average price in the year in which you purchased the shares and use the average price as your cost basis. However, most likely you will have received taxable dividends...

Tax Law (Questions About Taxes): determining a dependant, dependency exemption, stancil
dependency exemption, stancil, s child: Jami, Thanks for your question. In order to take a dependency exemption for a non-relative, you must meet the following criteria: 1. The person must be a member of your household for the entire year. 2. The person to be taken as a dependent must...

Tax Law (Questions About Taxes): didn't file taxes for five years, www irs gov, irs documents
www irs gov, irs documents, file taxes: If your income was below the threshold for filing, you do not have to file. You can check past years of IRS documents to determine this level, as it varies from year to year and depends on your age and filing status. Just file the regular 1040 for the...

Tax Law (Questions About Taxes): per diem, adjusted gross income, taxable wages
adjusted gross income, taxable wages, employee wages: Hi, I m a little confused. You said They add this in to our regular taxeble income so we don t taxes taken out of these amounts. If they add it to you regular taxable income, then don t they take taxes out? An employer can reimburse employees...

Tax Law (Questions About Taxes): Per diem, question pool, contract income
question pool, contract income, legal obligation: Chad, I found your question in the Question Pool, so I m not sure that Carole answered your question. The issue about whether or not you can receive a per diem is based on how your employer wants to deal with your temporary living expenses while in Minnesota....

Tax Law (Questions About Taxes): per diem, contract job, tax consequences
contract job, tax consequences, travel expenses: Richard the per diem amount is ok. However in in order to qualify for the per diem rules the expenses must be for temporary travel expenses which in your case does not seem to apply. Please consult with a local professional to see what your tax consequences...

Tax Law (Questions About Taxes): Per diem, employee business expenses, short term lease
employee business expenses, short term lease, adjusted gross income: Hi, You can claim your expenses as an itemized deduction on Schedule A as unreimbursed employee business expenses. They are deductible to the extent they exceed 2% of your adjusted gross income. I would use the meal per diem but not the lodging per diem....

Tax Law (Questions About Taxes): per diem, gsa rates, form 2106
gsa rates, form 2106, itemized deduction: Sue, Thanks for your question. Just complete Form 2106, showing the amount of your allowed per diem and subtracting the amount that you were reimbursed. Carry whatever amount is left to Schedule A as a miscellaneous itemized deduction subject to the...

Tax Law (Questions About Taxes): per diem, temp employee, government rate
temp employee, government rate, personal vehicle: Matthew: Do you get per diem to drive back and forth to work? If it is then its all reportable as income. But on the other hand if you are getting per diem to use your vehicle to do errands for your employer that is fine. But you do not get to claim...

Tax Law (Questions About Taxes): per diem, cash register tape, high on the hog
cash register tape, high on the hog, entertainment costs: No you are not required to pay a per diem. The Per diem was initially set up by and for the Federal Government that didn t want to manage mountains of papers, including cab receipts and cash register tape that is accumulated to justify expenses. They also...

Tax Law (Questions About Taxes): Per diem, income tax purposes, additional income
income tax purposes, additional income, tax rate: Melanie, Taxable per diem is treated the same as wages for income tax purposes. Per diem does not receive a separate higher tax rate. It s possible the additional income could shift you into a higher tax rate. Regards, Neil Johnson The Tax Dude™...

Tax Law (Questions About Taxes): per diem, irs laws, employee perspective
irs laws, employee perspective, related travel: Danielle, Per Diem is one of the most misunderstood terms used as it relates to our tax system. To help clear up this misunderstanding, you need to understand per diem does not equal tax free compensation. The Federal government established per diem rates...

Tax Law (Questions About Taxes): Does my per diem expense need receipt?, federal per diem, employee business expenses
federal per diem, employee business expenses, adjusted gross income: Hi, If your employer is paying more than the Federal per diem rate, they are required to include the additional amount as taxable income on your W2. If your expenses exceed the amount they paid you, you can claim the additional expenses as unreiumbursed...

Tax Law (Questions About Taxes): Per diem expenses, federal per diem rates, drilling rig
federal per diem rates, drilling rig, federal per diem: Hi, If an employer pays less than the Federal per diem rates for their area, the employees are not required to pay taxes on the amounts received. $32/day is less than any per diem rate so you need not report the amounts and the employees do not include...

Tax Law (Questions About Taxes): Per diem expenses, www irs gov, irs website
www irs gov, irs website, irs pub: Hi Jennifer, Yes you can use per diem rates instead of actual receipts for meals but whichever method you choose, you can only deduct 50%. The per diem rate to use depends upon where he travels. You can find the rates in IRS Pub 1542 at the IRS website...

Tax Law (Questions About Taxes): per diem nursing, gas receipts, business mileage
gas receipts, business mileage, auto expenses: Anthony, Thanks for your question. You can take your auto expenses two ways - you can take mileage or actual expenses. If you take mileage, you simply multiply your miles by 48.5 to get the deduction. You do not need to keep track of your auto expenses...

Tax Law (Questions About Taxes): Per diem for OCONUS travel, papua new guinea, airfare costs
papua new guinea, airfare costs, helicopter company: Andrew, Here is the best solution for you. Have your employer pay for your airfare and provide you with a per diem while you are out of town. Here is a link to look up per diem rates for foreign locations: http://aoprals.state.gov/web920/per_diem.asp...

Tax Law (Questions About Taxes): per diem pay, negative ramifications, stancil
negative ramifications, stancil, contract position: Kelly, Thanks for your question. That is not correct. Per diem amounts paid to an employee without accountability for the expenditure of the funds is taxable income. In order for the payments to be tax free, he would need to account for his deductible...

Tax Law (Questions About Taxes): per diem rate, irs publication, publication 1542
irs publication, publication 1542, independant contractor: Terrance, Thanks for your question. If you are subject to the Department of Transportation s hours of service limits, you are entitled to deduct 75% in 2006 (70% for 2005). The per diem amount varies on when and where you travel. Rates can be found...

Tax Law (Questions About Taxes): per diem and taxes, employee reimbursements, federal per diem rates
employee reimbursements, federal per diem rates, oceanside ca: Hi, There are 2 Federal per diem rates. One is for meals and incidental expenses and the other is for lodging. Employees and self employed persons (including contrat workers)may deduct IRS approved rates for meals and incidental expenses provided they...

Tax Law (Questions About Taxes): Per diem and working out of state as a contractor, employee perspective, starting a new job
employee perspective, starting a new job, related travel: JC, Per Diem is one of the most misunderstood terms used as it relates to our tax system. To help clear up this misunderstanding, you need to understand per diem does not equal tax free compensation. The Federal government established per diem rates to...

Tax Law (Questions About Taxes): per diem, income subject, stancil
income subject, stancil, code sections: Norman, Thanks for your question. It appears that the reimbursement you receive is based on a non-accountable plan, where you receive a set amount from your employer and do not account to him for the use of the $40. In these situations, the per diem...

Tax Law (Questions About Taxes): diff. ways to file, getting a divorce, head of household
getting a divorce, head of household, happy holidays: Hi, If you are divorced by the end of the year you will have to file Single unless you maintain a home for a child and pay more than half the upkeep of that home. If that is the case you could file as Head of Household. You may have a balance due for...

Tax Law (Questions About Taxes): differance between 01 and 00, wife need, w2 form
wife need, w2 form, differance: Hi, You and your wife need to coordinate your W4s. If you each claim Married and 2, you won t have enough withheld to cover your tax liability. Unless one of you makes a lot more than the other, you would be safe if you each claimed Married and 1. If...

Tax Law (Questions About Taxes): disability exemptions, single father, standard deduction
single father, standard deduction, itemized deductions: Hi, If you have taxable income, you would have your own exemption and that of your child as well as your standard deduction or itemized deductions. Since you don t have any earned income, you wouldn t receive the earned income credit. You might qualify...

Tax Law (Questions About Taxes): disability payments and tax filing, lump sum settlement, disability payments
lump sum settlement, disability payments, e bank: Hi, It is normal for lenders to ask for tax returns when considering a loan. He could still file tax returns for those years if he had any income at all to report (i.e., bank interest). Otherwise he should explain his situation to the lender and offer...

Tax Law (Questions About Taxes): disability and stock options, professional trader, disability benefits
professional trader, disability benefits, investment income: Drew, Income from trading options is considered investment income. You can not lose disability benefits because of the amount of investment income you report on your tax return. The only risk you might have is if your trading activities were substantial...

Tax Law (Questions About Taxes): disability, long term disability, stancil
long term disability, stancil, charitable contributions: Linda, Thanks for your question. The only Schedule A deductions that you can carry over are the charitable contributions. You do not have to purchase a replacement house. The $250,000 exclusion only requires that you own and live in the house for...

Tax Law (Questions About Taxes): disabled, social security disablity, retirement fund
social security disablity, retirement fund, stancil: DJ, Thanks for your question. No, if you are permanently disabed and unable to work, you can draw from your retirement fund without paying a penalty. You may, however, be subject to the regular income tax on the withdrawals. Hope this helps. John...

Tax Law (Questions About Taxes): disabled, experience thanks, tax benefit
experience thanks, tax benefit, department of labor: oe: There are some tax credits available for employers thru your local job service office which is operated by your state department of labor. Should you get hired your employer needs to check with that state agency to get the credits they are entitled....

Tax Law (Questions About Taxes): disabled/unemployed/adult dependant?, food stamp benefits, excise tax refund
food stamp benefits, excise tax refund, social security disability: Hi, If you have no income other than Social Security disability, you don t need to file a tax return. If you are eligible to claim the telephone excise tax refund, you can file a 1040 EZ-T to claim it. To be eligible you must have made at least some long...

Tax Law (Questions About Taxes): disabled, sole proprietorships, s corporations
sole proprietorships, s corporations, experience thanks: Dear Joe, There is NOT a blanket tax break for companys who hire the disabled.... Since there are Corporations, S-Corporations, Partnerships, LLC and sole-proprietorships, they all have different tax breaks that can be considered... Sole-proprietorships...

Tax Law (Questions About Taxes): disbursement of 401k in a divorce, disbursement, custodian
disbursement, custodian, 401k: Hi, If the money is taxable to you it is taxed as ordinary income at whatever rate your total income dictates. Unless you can somehow roll the 401(k) money into an IRA there isn t a program to invest in to avoid the taxes. Ask your attorney or the custodian...

Tax Law (Questions About Taxes): dissolved limited partnership, new jersey state government, limited partnership
new jersey state government, limited partnership, stancil: Connie, Thanks for your question. You can check with the department of the New Jersey state government that handles limited partnerships and see if the partnership has dissolved. If not, it is likely, you would be able to obtain some contact information....

Tax Law (Questions About Taxes): dissolving an llc, creating an s corp, federal tax rate, joe press
federal tax rate, joe press, payroll taxes: Each entity would file a separate tax return for itself for whatever time in the tax year it was operating. As for the individuals tax return, assuming no additional capital was paid, their basis would remain the same, sinmply there was an exchange of ...

Tax Law (Questions About Taxes): dissolving an llc, disolved, taxable gain
disolved, taxable gain, stancil: Stephanie, Thanks for your question. I cannot answer the first part, as that is a legal question. As a CPA, I am prohibited by law from answering legal questions outside the area of tax. As for the tax implications, the member s basis (investment)...

Tax Law (Questions About Taxes): per dium taxation, traveling nurses, traveling nurse
traveling nurses, traveling nurse, incidental expenses: Hi Donna, Per Diem paid that exceeds the maximum Federal rate is to be included in wages. Effective October 2005 using the high-low method, the highest Federal rate was $199 per day for lodging, meals and incidental expenses. Of course mileage would be...

Tax Law (Questions About Taxes): Is it a dividend or distribution or neither?, section 179 deduction, tax situation
section 179 deduction, tax situation, business advisor: An S-corps taxable income is allocated to the shareholders who pay tax on the allocated share. The only way you can save money on the taxes is to take advantage of a section 179 deduction if you purchased assets to be used in the business before 12/31/07...

Tax Law (Questions About Taxes): What is a dividend, de minimus, scorp
de minimus, scorp, riflescope: The date the items were removed from the control of the SCorp is the date the 1099 should have been issued. For example: he was allowed to use the canoe which was purchased by the SCorp prior to his termination....distribution will be the date of his...

Tax Law (Questions About Taxes): dividends draw in S corp, s corp, tax liability
s corp, tax liability, taxable income: By design a Sub-S is a passthrough entity, that means that all the income (or at least the tax liability) is passed through to the owners. You can take in any way you choose (daily, weekly, monthly, occasionally or just at the end of the year) but it will...

Tax Law (Questions About Taxes): dividends, what are qualified dividends, maximum tax rate
what are qualified dividends, maximum tax rate, self employment tax: No, you did not quite understand me properly. With an S Corporation, distributions are not taxable to the shareholder. Each shareholder pays taxes are ordinary rates on his or her share of the profits - regardless of whether distributed. S Corporations do...

Tax Law (Questions About Taxes): divorce, divorce agreement, divorce settlements
divorce agreement, divorce settlements, paul thanks: Paul, Thanks for your question. Divorce settlements are not deductible. The only thing associated with a divorce that is deductible is alimony provided for specifically in the divorce agreement as alimony. Hope this helps. John Stancil, CPA ...

Tax Law (Questions About Taxes): divorce, divorce agreement, stancil
divorce agreement, stancil, divorce settlement: Katherine, Thanks for your question. No, that is considered a part of the divorce settlement and not deductible. In addition, the house is considered a personal use asset and losses on those are not deductible. Hope this helps. John Stancil, CP...

Tax Law (Questions About Taxes): divorce/ capital gains, income tax bracket, divorce agreement
income tax bracket, divorce agreement, capital gains tax: Linda, Thanks for your question. Yes, you will owe tax on the gain. If you owned in more than 12 months the capital gain rate applies. This rate is 5% if you are in the 15% or lower ordinary income tax bracket, 15% if you are above the 15% ordinary...

Tax Law (Questions About Taxes): divorce claiming children, stay at home mom, joint custody
stay at home mom, joint custody, dependent children: Christie, There are new guidelines beginning this year for claiming dependent children. The support test for dependent children is no longer relevant. As long your children live live with you for more than half of the year, they are yours to claim. Your...

Tax Law (Questions About Taxes): divorce decree/mortgage interest, decree states, divorce decree
decree states, divorce decree, mortgage interest: Cyn this is a quotation from the IRS www.irs.ustres.gov topic 505 Interest is an amount you pay for the use of borrowed money. To deduct interest you paid on a debt you must be legally liable for the debt. Additionally, you generally must itemize your...

Tax Law (Questions About Taxes): divorce and home sale, irs publication 504, capital gains exclusion
irs publication 504, capital gains exclusion, publication 523: If you and your ex resided and still reside in a community property state (see IRS publication 504)you have the right solution Or else According to IRS: publication 523 your basis would be the basis of the property on the date transferred to ( of course...

Tax Law (Questions About Taxes): divorce and ira withdraw, medical insurance premiums, divorce proceedings
medical insurance premiums, divorce proceedings, inheriting an ira: Colleen, Thanks for your question. What the attorney said is incorrect. As a part of the divorce proceedings an IRA may be a part of the divorce settlement. In this case, the IRA is transferred from one spouse to another with no tax effects. This...

Tax Law (Questions About Taxes): divorce/rental house, capital gains tax, quick reply
capital gains tax, quick reply, rental house: No, your removal from the title will mean you will not be liable for capital gains on the sale of the other house. Each partner, as a part of the divorce settlement receives a one-half interest in one of the houses. Their basis is the same basis the two...

Tax Law (Questions About Taxes): divorce and a second home, loop holes, capitol gains
loop holes, capitol gains, getting a divorce: Jeff, Thanks for your question. You would have to live in the home for 24 of the past 60 months as your main home to qualify for the exclusion of gain. A refinance will have no effect on the tax consequences. Primary home is based upon where you...

Tax Law (Questions About Taxes): divorce settlement, divorce settlement, getting a divorce
divorce settlement, getting a divorce, tax consequences: No tax consequences they are dividing assets owned by the spouses she can deposit the money in a joint account with you but for peace of mind the family open a separate account some banks even offer free account glad to hear that your sister is getting a...

Tax Law (Questions About Taxes): divorce settlement(capital gains), airplane mechanic, redondo beach ca
airplane mechanic, redondo beach ca, divorce settlement: Hi Ronald, If the townhouse is being sold you would not qualify to exclude the capital gain unless you owned and lived in it as your main home for 2 years during the 5 years preceeding the date of sale. The 2 years need not be the last 2 years but since...

Tax Law (Questions About Taxes): divorce settlement, divorce settlement, mike thanks
divorce settlement, mike thanks, stancil: Mike, Thanks for your question. Depending on how the settlement was structured, she may have to pay taxes on any gain on the deemed sale of her portion of the condo to you. The rest of the settlement is not taxable. Hope this helps. John Stancil,...

Tax Law (Questions About Taxes): divorce, divorce papers, legal guardian
divorce papers, legal guardian, husb: Dear Deanna, If you divorce papers say that you are the legal guardian of this child and if this child lives with you and you support this child more than 50%, then you can claim this child and the EIC.... If you are sure that you can claim this child,...

Tax Law (Questions About Taxes): I was divorced this past May...., social security disability, normal retirement age
social security disability, normal retirement age, divorce papers: If your ex is not normal retirement age, his pension may be able to be treated as wages. I would suggest a visit to a local tax pro, as I m not sure how you and he have planned to split it. Unless you got a 1099 or the pension was split by court order,...

Tax Law (Questions About Taxes): I am divorced and have two..., divorce agreement, custodial parent
divorce agreement, custodial parent, dependents: Dear Uwe, Your ex-wife is the custodial parent and therefore, unless you made concessions in the divorce agreement that allowed you to claim both or either of these children on any tax future tax returns, you can NOT claim them no matter what you want to...

Tax Law (Questions About Taxes): What document to send for my LLC income?, accounting records, 1099 forms
accounting records, 1099 forms, time entries: Tony, Thanks for your question. You don t need to send in any documentation for your income. If challenged by the IRS, you need to demonstrate in your accounting records that you received the income, but you do not send documentation to the IRS at the...

Tax Law (Questions About Taxes): Is a domestic partnership=a qualifying relative in the state of MO, stancil, domestic partnership
stancil, domestic partnership, gross income: Jessika, Thanks for your question. I can t tell you if the relationship violates state law. Under the federal law she can claim you as a dependent if your gross income was less than $3,300; you lived in her household for the entire year; and she...

Tax Law (Questions About Taxes): I don't know what I'm in for!..., irs gov, capital gains taxes
irs gov, capital gains taxes, capital gains tax: Dear Teresa, You need to go to www.irs.gov and download publication #523 and there you will find all of your answers about selling #1, pros and cons, sale of home exemption on capital gains etc.... You can also get information from your LOCAL tax professional...

Tax Law (Questions About Taxes): I don't work, filers, fiance
filers, fiance, dependant: Hi, As long as you are married by 12/31, you are considered married for the entire year so you would want to file jointly. As joint filers you could claim your children, assuming that you and he support them and their father isn t entitled to claim one...

Tax Law (Questions About Taxes): I have been donating numerous..., st vincent depaul, irs gov
st vincent depaul, irs gov, form 8283: Dear Linda, If you can itemize deductions and file form 1040-schedule-A, then you can take a deduction for these items.... To get an idea of the value and what you can deduct, go to www.irs.gov then download publication 561....... You also have to...

Tax Law (Questions About Taxes): donation to church, zion lutheran church, irs regulations
zion lutheran church, irs regulations, lisa anderson: Lisa, Thanks for your question. Yes, you can sell the vehicle. It should have no effect on the church s tax situaiton. However, you should give the donor a statement indicating the amount the truck was sold for. The new IRS regulations require this,...

Tax Law (Questions About Taxes): donation of family loan to start up business, internal revenue service, internal revenue code
internal revenue service, internal revenue code, afr rates: John, While it may seem overly formal to document a loan to a family member, without one, the Internal Revenue Service (IRS) could argue that there was no loan at all - that the money you gave was really a gift. What s more, should the borrower be unable...

Tax Law (Questions About Taxes): donation to needy congregation member, sole proprietorship, congregation member
sole proprietorship, congregation member, stancil: Norman, Thanks for your question. The building supplier can get a tax deduction for the donation, but not a credit. If he is a sole proprietorship, partnerhsip, or S-corporation, the donation flows through to his Schedule A. If he is a corporation,...

Tax Law (Questions About Taxes): donation of rental space, profit 501c3 organization, stancil
profit 501c3 organization, stancil, pocket expense: Vicki, Thanks for your question. Unfortunately, there is not much of a deduction available in this case. They cannot deduct the FMV of the rent, about all that they could deduct would be any extra out of pocket expense they incurred on your behalf....

Tax Law (Questions About Taxes): donation, charitable contribution, tax credit
charitable contribution, tax credit, 10 million: Ernie, If you take the goods back, then you really don t have a charitable contribution. The company would need to go back an amend the tax return in which the contribution was deducted, remove the deduction and pay the tax as if the contribution was not...

Tax Law (Questions About Taxes): donations, adjusted gross income, tax exempt organization
adjusted gross income, tax exempt organization, stancil: Mary, Thanks for your question. If you mean donating it in terms of transferring the title to an IRS approved tax-exempt organization you can deduct the value of the donation. However, there are restrictions on the amount of charitable contributions...

Tax Law (Questions About Taxes): donations, electronic keyboards, electronic keyboard
electronic keyboards, electronic keyboard, local newspapers: Hi, You need to have proof available if asked. If the thrift store sold it for $500, that would be great so check with them. I don t know of any specialized publications for electronic keyboards but there may be some or some sites on the internet. If...

Tax Law (Questions About Taxes): donations involving a non-profit, tax exempt status, tax deductible donation
tax exempt status, tax deductible donation, exempt application: You will only have Tax Deductible donation status after the IRS approves your 501 application. And then there will still be limitations and restrictions on your venture. this is a long and tedious road to follow in the hopes of a few people being willing...

Tax Law (Questions About Taxes): donations, standard deduction, tax bracket
standard deduction, tax bracket, charitable contributions: You must itemize to claim charitable contributions. Your savings - whatever your tax bracket is once you go over your standard deduction. For example - 15% tax bracket - you exceed your standard deduction by $1000, you save $150. Helen, EA in P...

Tax Law (Questions About Taxes): driving expenses, money deposits, form 2106
money deposits, form 2106, business miles: She must keep a written log of total miles driven per year, commuting miles driven per year and business miles driven(to the bank, etc). She will use this information on Form 2106 to compute her deduction. The deduction will not help unless your total...

Tax Law (Questions About Taxes): dual taxation 2 states, reciprocity agreements, state income tax
reciprocity agreements, state income tax, stancil: Cheryl, I can t give you a specific answer to your question as I am not familiar with the tax systems of either state. However, I can give you a few principles. Usually, income is not subject to taxation in more than one state. Bordering states tend...

Tax Law (Questions About Taxes): due date for taxes on lump distribution, lump sum distribution, form 1040es
lump sum distribution, form 1040es, irs: Hi, Income from a lump sum distribution would be included with your other income. If you think you will owe more than $1,000 in income tax you could make an estimated payment. If you want to do that ask the IRS for form 1040ES. You can call them at 1...

Tax Law (Questions About Taxes): E-file, irs web site, e filing
irs web site, e filing, labib: IRS only sends efile numbers if they feel you will qualify for that service this year. IRS directs you to several sites that offer free efileing. Tax preparation may have a charge. I recommend H&R Block as the choice to make there since I work for that...

Tax Law (Questions About Taxes): E-filing and form 8379..., form 8379, turbo tax
form 8379, turbo tax, injured spouse: Hi, The IRS accepts Form 8379 electronically but that doesn t necessarily mean that the site you used last year offers the form. Go to the site and see what forms are offered. If you are using Turbo Tax I believe it offers that form for electronic filing...

Tax Law (Questions About Taxes): EARN INCOME CREDIT, stancil, eligible children
stancil, eligible children, eic: Thomasina, Thanks for your question. I do not think the amount of the amount of the credit has changed. However the income limitations have been raised slightly. THe amount varies based on filing status and the number of eligible children. Hope...

Tax Law (Questions About Taxes): EARNED INCOME CREDIT ELIGIBILITY, personal income tax, niece and nephew
personal income tax, niece and nephew, earned income credit: Robert, Thanks for your question. The rules for the EIC do not require that a person be able to take a dependency exemption in order to receive the credit. The residency test merely requires that the child lived with you (your sister) in the United...

Tax Law (Questions About Taxes): EARNED INCOME CREDIT, schedule eic, eic credit
schedule eic, eic credit, earned income credit: Dear Ramez, If the child files his/her own tax return and claims himself/herself as their own personal exemption, then NO, the parent(s) can NOT claim the EIC for that child, but may qualify for their own EIC credit if their income is low enough..... YES,...

Tax Law (Questions About Taxes): Eaerly 401K withdrawl, 401k account, periodic payments
401k account, periodic payments, california 2: Hi, You will pay regular income tax both Federal and California plus a 10% Federal penalty for early withdrawal. Also California may have a penalty for early withdrawal. I would guesstimate about 30% tax so about $45,000 would cover it. There may be...

Tax Law (Questions About Taxes): Early 401K withdrawl, california state tax, 401k account
california state tax, 401k account, federal income taxes: Gary, Thanks for your question. Probably somewhere in the range of $45,000. You would have, of course, the 10% penalty off the top. In addition you would pay federal income taxes. Assuming you would be filing single, you would be in the 25% bracket....

Tax Law (Questions About Taxes): Early 401K withdrawl, 401k account, california 2
401k account, california 2, federal taxes: Dear Gary, First of all right off the top of ANY AMOUNT of money you withdraw there is going to be a 10% penalty because of the early withdrawal... Therefore, if you withdraw $45,000.00 they will automatically take $4,500.00 for the penalty... They they...

Tax Law (Questions About Taxes): Early distribution from IRA, irs approval, incorrect advice
irs approval, incorrect advice, stancil: T., Thanks for your question. When funds are withdrawn from an IRA and not rolled over or redeposited within 60 days, you will owe tax plus the 10% penalty on the amount not rolled over on a timely basis. Unless the IRS grants an exception, it is...

Tax Law (Questions About Taxes): Early ESOP distribution rollover, distribution schedules, esops
distribution schedules, esops, esop: Harry, There are no Federal standards that define distribution schedules for early distributions. Can you take an early distribution of your entire ESOP balance? ESOPs can take many shapes. This means ESOPs can have its own provisions for distributions....

Tax Law (Questions About Taxes): Early ESOP distribution, employee stock options, rollover ira
employee stock options, rollover ira, ira account: Hi, If the ESOP is a retirement plan you could take possession of the funds and establish a rollover IRA within 60 days without paying taxes or penalties although it is much better to make a trustee to trustee transfer. If taxes are withheld from the distribution...

Tax Law (Questions About Taxes): Early IRA Distribution, ira distribution, roth ira
ira distribution, roth ira, traditional ira: Amy, Thanks for your question. The withdrawal would be reported on Form 8606. Premature withdrawals from a Roth IRA are treated as first coming from the contributions. Once the amount of your contributions is exceed, the remaining withdrawals are considered...

Tax Law (Questions About Taxes): Early IRA distributions, ira distributions, roth iras
ira distributions, roth iras, irs publication: Chris, Thanks for your question. You will be subject to a 10% penalty on any unqualified withdrawal, which this would be. You would not be subject to income tax on the withdrawal of contributions. There is a worksheet in IRS Publication 590, page...

Tax Law (Questions About Taxes): Early Withdrawal IRA, early withdrawal penalty, irs gov
early withdrawal penalty, irs gov, form 5329 instructions: Hello, Instead of a rollover you could take a loan from the 401K for that home purchase. It must be paid back in substantially equal payments. Publication 575 @ www.irs.gov You might be waived from the early withdrawal penalty for this purpose if instead...

Tax Law (Questions About Taxes): Early Withdrawal Penalty Exemption, early withdrawal penalty, 401k plan
early withdrawal penalty, 401k plan, irs penalty: No. You have to wait until you are 59.5 to take out of the IRA OR do a 72T disbursement, which is an amount, based on your life expectancy, that you will take out every year without fail for 5 years, or you turn 59.5, whichever is LATER and for you, that...

Tax Law (Questions About Taxes): Early Withdrawal of reitement fund, early withdrawal penalty, company retirement
early withdrawal penalty, company retirement, retirement fund: Benjamin: Sorry that you withdrew that from the retirement fund. But that is why you should not do that. You will pay the highest tax table also which is 33% not 28% and you may be required to file AMT schedule also. Since the stock is tax deferred it...

Tax Law (Questions About Taxes): Early Withdrawl Exceptions 401K Rollover - 1st time homebuyer, first time buyer, happy new year
first time buyer, happy new year, first time homebuyer: Hi, Since your wife s name is on the title, she is a homeowner whether or not she is on the mortgage. You can t roll over your 401(k) to someone else s IRA; it can only go to your IRA. Sorry to be the bearer of so many bad tidings. Happy New Year,...

Tax Law (Questions About Taxes): Early Withdrawl, roth iras, roth ira
roth iras, roth ira, time home buyer: Hi Ray, In general, you do not include in your gross income qualified distributions from your Roth IRA. You may have to include part of other distributions from Roth IRA(s) in your income. A qualified distribution is generally, any payment or distribution...

Tax Law (Questions About Taxes): Early withdraw Roth/Ed IRA, ed ira, roth ira
ed ira, roth ira, receved: Michael, Thanks for your question. You don t do anything with the amounts received. Since you invested in after tax dollars, that is not income. However, you can deduct your losses as a Miscellaneous Itemized Deduction on Schedule A. Hope this helps....

Tax Law (Questions About Taxes): Early withdrawal of TSP when leaving work and going back to school, tsp account, old geezer
tsp account, old geezer, car payments: Jeremy you asked what I think would be best for you in my opinion roll it over to an IRA so it will grow tax free and be available when you become an old geezer. If you withdraw the money you will have to pay income tax and there will be a 10% penalty...

Tax Law (Questions About Taxes): Early withdrawl of pension, www irs gov, annuity contract
www irs gov, annuity contract, publication 575: Hello, First, for exceptions to the early wihdrawal penalty see form 5329 @ www.irs.gov. A tax free rollover is possible to an IRA. See publication 575. No requirement to take a lump sum. Could stretch out distributions or purchase an annuity contract....

Tax Law (Questions About Taxes): Earned Income Credit, earned income credit, income qualification
earned income credit, income qualification, head of household: If you file as single and have less than $12800 you would qualify for the credit on your on your own your own However if you exceed the above income qualification you may want to calculate what credit you qualify by taking your 2 children as your dependants...

Tax Law (Questions About Taxes): Earned Income Credit, earned income credit, daycare expenses
earned income credit, daycare expenses, jennifer thanks: There are two types of dependents - qualifying children and qualifying relatives. The child must be a qualifying child to qualify you for the EIC. Since you are not filing a joint return with their father, only one of you can claim them as qualifying children....

Tax Law (Questions About Taxes): Earned Income Credit, earned income credit, divorce decree
earned income credit, divorce decree, federal income tax: Wendy, Thanks for your question. No, he cannot legally take the earned income credit, as he does not meet the residency test. This specifies that the qualifying child must live with him for more than half of the year. Hope this helps. John Stancil,...

Tax Law (Questions About Taxes): Earned Income & IRA contributions, sep ira, short term capital gains
sep ira, short term capital gains, ira account: I am not talking about a 401K. You can contribute, first to your SEP limited as previously stated. The balance of your self-employment earnings minus the SEP plus any other earned income you have can be contriuted toward your IRA. The combined contribution...

Tax Law (Questions About Taxes): Earned Income Tax Credit, earned income tax, earned income tax credit
earned income tax, earned income tax credit, www irs gov: Dear Peg, I do not have enough information here to answer your questions since the IRS made MANY NEW CHANGES to who is classified as a dependent.... You will have to go to the instruction for the 1040 and read the NEW RULE for qualifying child and/or...

Tax Law (Questions About Taxes): Earned Income Tax Credit, earned income tax credit, tax return on the internet
earned income tax credit, tax return on the internet, earned income tax: Dear Jane, It is hard to halfway do a tax return on the internet like this, but I would say that b should be YES.. I say this because you turn right around and say the worksheet ask for rental income from PERSONAL PROPERTY for which you had a LOSS of...

Tax Law (Questions About Taxes): Earned income credit, income tax liability, earned income credit
income tax liability, earned income credit, dependency exemption: Jennie, Thanks for your question. Unless the 20 year old is a full time student, you cannot take the EIC for that one anyway. Even if claiming him will not increase your EIC, the dependency exemption could still reduce your taxes more than if he claimed...

Tax Law (Questions About Taxes): Earnings For Babysitting, form 1099misc, irs gov
form 1099misc, irs gov, flexible spending account: Your mother will enter her earnings on Schedule C if she babysits in her own home. Any expenses she incurs will be listed there as well. She will list any profit on Schedule SE(if 400 or more). Your mother will list her earnings on line 7 of her Form...

Tax Law (Questions About Taxes): Ebay selling, marginal tax rate, ebay fees
marginal tax rate, ebay fees, selling on ebay: Since you are selling the entire collection, I would still go ahead and use Sch D. Collectibles are taxed at a max rate of 25%, so if your tax bracket is 30%, you only pay 25% on the collectables. If your tax bracket is 15%, that would be all you would pay...

Tax Law (Questions About Taxes): Ebay Taxes, stay at home mom, taxable earnings
stay at home mom, taxable earnings, self employment taxes: Jodi, Thanks for your question. Yes, those are taxable earnings. You should report your sales on Schedule C. On this schedule you can also deduct the cost of the goods you sell, along with other costs such as eBay and PayPal fees, postage in excess...

Tax Law (Questions About Taxes): Ebay & taxes, personal belongings, stancil
personal belongings, stancil, ebay: Phil, Thanks for your question. Since you are not in business and the items sold were personal items, and you sold the items at a loss, you do not need to report this as income. It will not appear on your tax return. Hope this helps. John Stancil,...

Tax Law (Questions About Taxes): Education credit for 2005 taxes, fall semesters, lifetime learning credit
fall semesters, lifetime learning credit, qualified education expenses: Dana, You would probably be eligible for the Lifetime Learning Credit. This credit is a maximum of $2,000. You determine the amount of your credit by taking 20% of your qualified education expenses. This means that you would maximize the benefit with...

Tax Law (Questions About Taxes): Education credit, tutition, hope credit
tutition, hope credit, scholorships: Dear Sandy, NO..... You take the total for tuition ONLY and then subtract the amount he got for tuition and fees from the Hope and if there is an amount left, this is what you can claim.... If the Hope and/or other scholorships covered ALL of the tuition...

Tax Law (Questions About Taxes): Education Deduction/Credit, lifetime learning credit, instruction booklet
lifetime learning credit, instruction booklet, taxable income: Dear Billie, To take the deduction for line 34 you MUST have done the worksheet for line 34 in the 1040 instruction booklet... You can t just put in $4000 if the worksheet comes out to be something different.... Secondly, you must determine whether using...

Tax Law (Questions About Taxes): Education Deduction/Credit, lifetime learning credit, hope credit
lifetime learning credit, hope credit, education credits: Hi, There are 2 Education Credits which are tax credits. The Tuition and Fees Deduction is an adjustment to income rather than a tax credit. It reduces the amount of your income that is subject to income tax. Generally the Hope Credit gives you the...

Tax Law (Questions About Taxes): Education Deduction, school expenses, grad school
school expenses, grad school, tax return: You can claim your grad school expenses. Gift tax really has nothing to do with anything here unless they gave you the money and you gave it to the school, but I m going to assume they sent the money right to your school. You do not have to send proof,...

Tax Law (Questions About Taxes): Education deduction, student loan interest, irs gov
student loan interest, irs gov, gulf opportunity zone: Dear Bob, If you read the instructions for line 34 you will see that you can ONLY take the education deduction there IF you are paying and claiming student loan interest.... Therefore, since you are not paying any interest (unless you forgot to tell...

Tax Law (Questions About Taxes): Education Expenses Deduction, maryland bar exam, irs publication
maryland bar exam, irs publication, pub 590: Hi Sharon, Pub 590 goes into great detail about teachers getting licensed in another state but doesn t mention attorneys except to say that expenses of preparing for the bar exam are not deductible as work related. If you are already a practicing attorney...

Tax Law (Questions About Taxes): Education expenses, lifetime learning credit, irs gov
lifetime learning credit, irs gov, degree in special education: Dear Harrison, She can ONLY claim Tuition and Fees Adjustment if all three of these tests are met: 1. Her filing status is anything but Married Filing Seperate 2. No one else is claiming an exemption for her on his or her tax return. 3. She paid INTEREST...

Tax Law (Questions About Taxes): Education expenses, lifetime learning credit, degree in special education
lifetime learning credit, degree in special education, education expenses: Harrison, Thanks for your question. Presuming your girlfriend is single, she is entitled to a $4,000 deduction on page 1 of the 1040 as a Tuition and Fees Deduction. Based on the numbers you provide, she will be in the 15% tax bracket which means...

Tax Law (Questions About Taxes): Education Tax Credits, cost of attendance, hope credit
cost of attendance, hope credit, education tax: Gene, I am afraid I did not fully explain my answer. The IRS guidelines do not specify exactly how this is to be handled, so you may get different interpretations. If audited, the IRS may challenge how you approached it. If the award letter does not...

Tax Law (Questions About Taxes): Education Tax deduction, finincial aid, education tax
finincial aid, education tax, education expenses: Jason, Thanks for your question. If you are receiving specific reimbursement for the educational expenses, you cannot take the education credit or deduction. However, if you are paid a lump sum without regard to the expenses you can take the credit...

Tax Law (Questions About Taxes): Education tax credit, education tax credit, dependency exemption
education tax credit, dependency exemption, college expenses: Michelle, Thanks for your question. A few observations. First, I don t know where your son is going to college, but if you are each paying half, you may very well max out the allowable credit anyway. However, the law provides that you can take...

Tax Law (Questions About Taxes): Education tax deduction or credit, dependent care credit, high school education
dependent care credit, high school education, jennifer thanks: Jennifer, Thanks for your question. No, you cannot deduct the cost of tuition for kindergarten, elementary, or secondary schools. However, since it is kindergarten, it may be possible that some of the payments are considered child care and may qualify...

Tax Law (Questions About Taxes): Educational Credit, taxable earnings, qualified education expenses
taxable earnings, qualified education expenses, school loans: Michael, Thanks for your question. Look a little closer, and I think you will find that the document is a 1098, not a W-2. You can use the information to take an education credit (Lifetime Learning) on your taxes for the amount of qualified education...

Tax Law (Questions About Taxes): Educational tax write-off for a small buisiness..., civil engineering firm, small buisiness
civil engineering firm, small buisiness, www irs gov: The $5,250 amount is correct, however there are certain limitations. If you would like further assurance, I suggest that you read the following publication (see page 58 for your exact question): http://www.irs.gov/pub/irs-pdf/p970.pdf Read at least...

Tax Law (Questions About Taxes): Educational tax write-off for a small buisiness..., educational tax, taxable compensation
educational tax, taxable compensation, benefit tax: Eli, The company is getting a deduction no matter the amount. You can receive $5,250 of benefit tax-free. The excess amount would be taxable as compensation to you. At the corporate tax return level, a deduction for employee compensation or education...

Tax Law (Questions About Taxes): Educator Award Deduction, milken national educator award, national educator
milken national educator award, national educator, ira deduction: B, Thanks for your question. Sorry, but since you received and accepted the money, it is taxable in the year received - 2004. The only deductions would be if you made some charitable contributions or other deductible expenditures with the funds, but...

Tax Law (Questions About Taxes): Educator Expenses, www irs gov, classroom aides
www irs gov, classroom aides, irs website: Rhonda, Thanks for your question. That was one of the items that was renewed at the last moment (December 17) by Congress. Since the forms had already gone to press by that time, these items were not included in the instruction or on the forms. In...

Tax Law (Questions About Taxes): Educator Expenses, irs gov, tax forms
irs gov, tax forms, educator: It is still there, but it is was put in after the tax forms were printed. It goes on some line in the adjustment area, but I don t know exactly which one. Go to www.irs.gov and look for extenders or educator expenses and it will tell you what line...

Tax Law (Questions About Taxes): Edward D Jones Investments, edward d jones, investment account
edward d jones, investment account, family friend: Hi Ricky, If your father gave you the money you don t have to pay taxes on it. However since he gave you more than $11,000 in one year he is required to file a gift tax return. Most likely no tax would be due but it would reduce the amount he can give...

Tax Law (Questions About Taxes): EE Bonds and Taxes, series ee bonds, alan yarborough
series ee bonds, alan yarborough, u s treasury: Alan, Thanks for your question. You can t directly transfer the ownership in EE bonds. They must be reissued by the U. S. Treasury. Details on doing this follow: Ownership of Series EE bonds can be transferred, which is called a reissue by the...

Tax Law (Questions About Taxes): EE death interest, ee savings bonds, bracket number
ee savings bonds, bracket number, decedent: You have two options: 1. All interest accrued up to the decedant s date of death is reported on her final 1040. Upon redemption of the bonds, the beneficiary reports the interest on their 1040. 2. The beneficiaries can report all of the interest on...

Tax Law (Questions About Taxes): EE Saving Bond Taxes, ee savings bonds, income tax return
ee savings bonds, income tax return, saving bond: Darryl, The only way to figure this out is to obtain copies of the decedent s prior tax returns and ask the executor if any interest was reported from these bonds on the estate s income tax return. The US Treasury and IRS can t help with this. They do...

Tax Law (Questions About Taxes): EE Savings Bonds, coverdell education savings, coverdell education savings account
coverdell education savings, coverdell education savings account, education savings account: Hi Chris, Good question! The issue is not addressed in the IRS Pubs but since the educational institution is not receiving the funds in the year you are making the loan payments, I think it would be disallowed. On the other hand you can use the savings...

Tax Law (Questions About Taxes): Effect of Closing out a Roth IRA Account, roth ira account, irs gov
roth ira account, irs gov, tax consequences: Dear JC, I simply do not have enough information here about your age, and other items that determine tax and penalties etc on taking the money from these ROTH s..... Go to www.irs.gov then pull up publication 17 and go to the section on ROTH IRA S.........

Tax Law (Questions About Taxes): Effect of Closing out a Roth IRA Account, roth ira account, roth iras
roth ira account, roth iras, tax consequences: Your contribution amount to the Roth IRAs is not taxable. The amount that exceeds your contribution amount is taxable IF you are under 59 1/2 and not disabled or making your first time home purchase(limited to 10000). You must also have been a participant...

Tax Law (Questions About Taxes): Effect of Closing out a Roth IRA Account, roth ira account, tax consequences
roth ira account, tax consequences, ustreas: therE is no tax AS SUCH however if you have not reached age 59/1/2 there is a penalty for early withdrwl unless there is an allowed exemption go to IRS.USTREAS.GOV AND IN THE UPPER LEFT WRITE ROTH IRA see if you qualify for an exemptio...

Tax Law (Questions About Taxes): EIC, capital losses, savings bonds
capital losses, savings bonds, stancil: The interest in excluded from taxation, if you qualify, but it still counts as investment income for EIC purposes. To qualify, the bond must have been issued after your 24th birthday, in your name, and the proceeds used for qualified higher education expenses....

Tax Law (Questions About Taxes): EIC, adjusted gross income, physical custody
adjusted gross income, physical custody, parents: The parent who had physical custody for 183 days or more is eligible for EIC(if they are otherwise eligible for the credit). Persons who lived with the child 183 days and are qualified persons may choose which person will claim EIC for the child as long...

Tax Law (Questions About Taxes): EIC, biological children, s child
biological children, s child, biological father: Starting in 2005, you can only claim your biological children, not children of any one else. The law before that was as long as they were a member of your household, but that is not good enough anymore. The only way to claim your fiance s child is...

Tax Law (Questions About Taxes): EIC, 1040ez form, stancil
1040ez form, stancil, dependent children: Clndy, Thanks for your question. Yes, the maximum EIC is given for two dependent children. There is not additional credit for additional dependents. Your son s taxes would be done like anyone else s. Most likely he can use a 1040EZ form and would...

Tax Law (Questions About Taxes): EIC, joe thanks, full custody
joe thanks, full custody, stancil: Joe, Thanks for your question. If they meet the criteria for qualifying relative, you can take the dependency exemptions. The requirements are: 1) They must have lived in your residence for the entire year, 2) they must each have gross income of less...

Tax Law (Questions About Taxes): EIC and Dependent, irs gov, tax publication
irs gov, tax publication, dear mary: Dear Mary, If you are a married couple, LIVING together as husband and wife, AND if this child LIVES with you both in your home, and you pay MORE than 50% of this childs support, the grandparents have ABSOLUTELY no right to claim her for ANY purpose...

Tax Law (Questions About Taxes): EIC, head of household, single mother
head of household, single mother, living space: To use HH filing status, she must have paid more than 50% of the expenses for the household in which they live. Unless she has a seperate living space(including entry, bath, eating area), she will likely not qualify. She may claim EIC for her qualifying...

Tax Law (Questions About Taxes): EIN for Sole Proprietorship, sole proprietorship, sole proprietorships
sole proprietorship, sole proprietorships, s corp: Dear Ray, NO.... You never have to make a change unless you hire employees and on the original had no employees... If you ever went to anything other than a sole-proprietorship with THIS business, then you would have to apply for a NEW EIN for a partnership,...

Tax Law (Questions About Taxes): EIN and tax returns, ss number, sole proprietorship
ss number, sole proprietorship, business checking account: Stacy, Thanks for your question. If you are not going to have any employees, you can use your SS number as your EIN. If you are going to have employees, or need an EIN for some other reason, you use your SS number for your job and file your taxes under...

Tax Law (Questions About Taxes): EITC, social security number, taxpayer privacy
social security number, taxpayer privacy, stancil: Michelle, Thanks for your question. The IRS and most state departmients of revenue are EXTREMELY secretive regarding taxpayer privacy. You will not be able to obtain that information. You can submit a statement to the IRS to the effect that you...

Tax Law (Questions About Taxes): EITC Eligibility, turbo tax software, adjusted gross income
turbo tax software, adjusted gross income, form 8814: You ve gotten into some issue with the program, and I am afraid I can t help you. My suggestion at this point would be to play with the answers on TurboTax and see if you failed to check something, or checked something incorrectly. It is easy to do, as...

Tax Law (Questions About Taxes): Elder needing IRA money after missing RMD payments, ira money, roth ira
ira money, roth ira, minimum distribution: No, you can t backdate income.... She needs to take out the 3 years worth of RMD and in 2005, when she files, cop the plea. If she gets notices in the meantime, the letter should be heartwrenching and the proof that she has now made it right is probably...

Tax Law (Questions About Taxes): Elderly father sale of land gains?, accessible apartment, long term capital gains
accessible apartment, long term capital gains, capital gains tax: Hi, Property tax is deductible each year as an itemized deduction but obviously if he didn t have to file returns he couldn t take advantage of that. I can t advise you to add the property tax to his basis but I know of people in similar circumstances...

Tax Law (Questions About Taxes): EMAIL GLITCH, head of household, dependent status
head of household, dependent status, head of household filing status: Hi Clem, Sorry you didn t get the first email. What I said was that you can claim your son even though he doesn t live with you providing that he is not the qualifying child of anyone else, his income is less than $3200 (slightly more for 2006) and you...

Tax Law (Questions About Taxes): Employee Business Expense Deductions, business expense deductions, workman comp
business expense deductions, workman comp, payroll taxes: Charlotte, You can deduct unreimbursed out of pocket work expenses on Form 2106. If the employer has a policy to reimburse these expenses, the IRS requires you to seek reimbursement from the employer. From what I am understanding from your question,...

Tax Law (Questions About Taxes): Employee benefits, irs publication 15, medical reimbursement plans
irs publication 15, medical reimbursement plans, health insurance premiums: Jonathan, Since you are a highly compensated employee, you cannot exclude any benefit in a plan year that discriminates in favor of the highly compensated employees. Therefore, I do not think your plan will fly with the IRS. John Stancil, CP...

Tax Law (Questions About Taxes): Employee ID #, stay at home mom, tax filing status
stay at home mom, tax filing status, employee id: Having an EIN will not affect your tax return(or hers) with the exception that she will use Schedule C to report her income and any related expenses if she is dealing in stock for sale as a broker or daytrader. Usually an EIN request may be satisfied...

Tax Law (Questions About Taxes): Employee records, stancil, bowen
stancil, bowen, cpa: Bowen, Thanks for your question. The IRS is very protective of their information - you cannot obtain such information from them. It is possible that you might be able to obtain this information through some state agency, but I doubt it. John Stancil,...

Tax Law (Questions About Taxes): Employee Stock Award- taxes?, barter exchange, stocks bonds
barter exchange, stocks bonds, witholding tax: Hi, I don t think you re in any trouble but hang on to all the paperwork just in case you get a letter asking about the $400. When a 1099B is issued, they expect a Schedule D. But with such a small amount you may never get a letter. Don t worry and...

Tax Law (Questions About Taxes): Employee Stock Option/1099 misc, employee stock option, incentive stock options
employee stock option, incentive stock options, 1099 misc: there are various ways to treat this but you need to tell me were these qualified incentive stock options ? do you intend to keep the stock for over a year?if not you have ordinary income as to the diference of what you paid and the market value of the stock...

Tax Law (Questions About Taxes): Employee Stock, employee stock ownership, employee stock ownership plan
employee stock ownership, employee stock ownership plan, capital gains tax: Dear Nicole, YES, you will have to show the sale of these stocks on your 2004 tax return since you sold them in 2004... You will have to file a form 1040 this year and attack to it a 1040-schedule-D to show the stock sale... There may also be capital gains...

Tax Law (Questions About Taxes): Employee Taxable Fring Benefits, fringe benefit, leasing a vehicle
fringe benefit, leasing a vehicle, stancil: Cheri, Thanks for your question. Yes, you are providing the VP with the personal use of a company vehicle. He is required under Federal law to report to you the number of miles of personal use. You, in turn, include the value of this personal use on...

Tax Law (Questions About Taxes): Employee taking no salary, phone computer, office travel
phone computer, office travel, business expense: Alan: You can be an employee and paid any money. It will be up to you to prove to the IRS the expense that you want to write offs are legitimate business expense for the company. You will be required to expense them off on a 2106 form. If this is all...

Tax Law (Questions About Taxes): Employee vs. Contractor for Store Credit, www irs gov, business premises
www irs gov, business premises, store inventory: No matter how you get paid, it is still income. Whether you receive a 1099 or a W-2 - that would be the question. See pub 15 and 15a at www.irs.gov to help that determination. But, no matter the form, store credit is just like cash. Helen, EA in...

Tax Law (Questions About Taxes): Employee vs. Independent Contractor, independent contractor status, irs trouble
independent contractor status, irs trouble, health insurance costs: Moaya: I could not have said it any better than you did. She is attempting to avoid paying employer tax on her employee s wages. Instead she wants to pay contract labor and continue to control all aspects of the business. It is my opinion that you...

Tax Law (Questions About Taxes): Employee's Withholding Allowance, payroll department, payroll system
payroll department, payroll system, withholding allowance: Jody, Thanks for your question. As far as I know there is no maximum, other than the restriction that you cannot take more allowances than you are entitled to. It is likely that your company s payroll system will not handle more than 9, but that would...

Tax Law (Questions About Taxes): Employer - Employee relationship, employer employee relationship, business relationship
employer employee relationship, business relationship, tax implications: Hi Carl Thanks for the question. I don t see that there is any problem with the arrangement. provided that the two are indeed incorporated entities. There should be a written contract between the two entities outlining the services to be provided,...

Tax Law (Questions About Taxes): Employer gives annual $5000 stipend for my driving. Is it axable ?, adjusted gross income, necessary drive
adjusted gross income, necessary drive, itemized deduction: Driving from home to your first work assignment is not deductible. Driving home from your last work assignment is not deductible. Driving between assignments during the day is deductible. Travel out of town for business purposes is deductible, including...

Tax Law (Questions About Taxes): Employer incorrectly not withholding fed taxes, federal tax withholdings, pay stubs
federal tax withholdings, pay stubs, dependent status: Michael: I would contact the employer and find out why no income tax was withheld. It is your responsibility also to check you weekly pay stub to see if the employer is withholding out your income tax and the correct amount. However in the end you...

Tax Law (Questions About Taxes): My Employer Pay Taxes Or Not?, payroll deductions, check stub
payroll deductions, check stub, texas department of revenue: If you have paystubs that show withholding or a W-2 that shows it, you don t have to worry if your employer remitted the money or not, you will not have a problem. I would call the Texas Department of Revenue and see if the issuance of the paystubs is true...

Tax Law (Questions About Taxes): Employer Reimbursement for Relocation, real estate commissions, expense reimbursements
real estate commissions, expense reimbursements, mileage rate: Hi, Yes, the company is correct. The moving expense reimbursements are taxable. But since he is paying tax on the money, he can deduct his actual moving expenses as though he had paid it out of pocket. It is an adjustment to income rather than an itemized...

Tax Law (Questions About Taxes): Employer Stock, long term capital gain, long term capital gain rate
long term capital gain, long term capital gain rate, employer stock: Allen, Thanks for your question. When you sell, you will be taxed on the gain above the basis. If you held the stocks for more than 12 months, you will be eligible for the preferred long-term capital gain rate. Hope this helps. John Stancil, CP...

Tax Law (Questions About Taxes): Employer Tuition Reimbursement, montgomery gi bill, employer tuition
montgomery gi bill, employer tuition, reimbursment: Michelle, Thanks for your question. And thanks for serving our country. You do not need to report the reimbursement from his company. Benefits from the Montgomery GI Bill are not taxable and do not have to be reported. Hope this helps. John Stancil,...

Tax Law (Questions About Taxes): Employer withholding, income tax return, employer withholding
income tax return, employer withholding, tn co: Mr. Chambliss: Its not they can do that rather its they are required by KY state law. When you work in KY the time you spend in KY tax is paid on wages earned in KY. Some companies have route deliveries that take them back and forth across the state line...

Tax Law (Questions About Taxes): Employment OCONUS, irs publication 54, earned income exclusion
irs publication 54, earned income exclusion, foreign earned income exclusion: David, Thanks for your question. You could read IRS Publications 514 and 54. They are available at www.irs.gov. Here is an article I wrote on the topic. It is not technical, but intended as an overview of the subject. Hopefully, it will help some....

Tax Law (Questions About Taxes): End-of-Year Bonus, tax deductible items, payroll taxes
tax deductible items, payroll taxes, pushing the limits: Before you try and give away 40% or more of the money to the Government, can I ask you why? You didn t say whether or not you were a real corporation or a Sub-S. If you are a sub-S, then this is a non-issue, you get credited with all the tax liability on...

Tax Law (Questions About Taxes): Entertainment Per Diem's, miscellaneous itemized deductions, entertainment clients
miscellaneous itemized deductions, entertainment clients, stancil: Jeff, Thanks for your question. Not at all. Apparently what your employer has adopted is a non-accountable plan in which you are paid a set amount (per diem) per day and do not have to report the expenditures to your employer. If this is the case,...

Tax Law (Questions About Taxes): Entity Taxes, unsecured personal loans, long term capital gains
unsecured personal loans, long term capital gains, c corporations: Hi Vitally thank you for your information Since you are dealing in stocks you should be able to negotiate a margin loan with your broker but take it easy with the loans build up capital do not overextend because you never know when things do not go your...

Tax Law (Questions About Taxes): Equipment donation to church, computer consulting firm, equipment donation
computer consulting firm, equipment donation, s corp: Cathy since the equipment is on the corporation books it should be donated by the corp and reflected on your K1 as to the books say your cost was 1000 and you have depreciated for 500 on the books book the quickbooks entry would be accumulated...

Tax Law (Questions About Taxes): Equipment purchases, section 179 deduction, irs gov
section 179 deduction, irs gov, vibra strike: Dear Alex, You can take the entire or part of the entire amount as depreciation IF you qualify for the section 179 deduction.... You will have to go to www.irs.gov get form 4562 and the instructions to see if you would qualify for this section 179...

Tax Law (Questions About Taxes): Equity on Sale of Home, principal place of residence, home renovations
principal place of residence, home renovations, stancil: Christina, Thanks for your question. Current law allows you to exclude up to $250,000 ($500,000 if married filing joint) of gain from taxation from the sale of your principal residence. To qualify for the exclusion, you must have lived in the house...

Tax Law (Questions About Taxes): ESOP Distribution, cash advance fee, credit card debt
cash advance fee, credit card debt, esop: Hi, While the 10% penalty may be offset by the additional cash flow, you will still be paying 10% of whatever the amount is plus ordinary income tax. Granted that you will be saving 17.9% interest on the credit card debt, but that s still less than the...

Tax Law (Questions About Taxes): ESOP Distribution, term mortgage, taxs
term mortgage, taxs, esop: Jim, Thanks for your question. I presume the ESOP is a part of a qualified retirement plan. There is a provision that allows up to $10,000 to be withdrawn from an IRA to buy a first home, but that does not apply in your situation. The tax hit...

Tax Law (Questions About Taxes): ESOP distribution, 1099-R and 1099-B, capital gains tax, plan benefit
capital gains tax, plan benefit, john thanks: Most likely the value of the stock was included in your W-2 when you received. That would be your purchase price. If this is not the case, your basis is zero and the entire amount is gain. Your 1099-R should have an entry in box 6. The difference in that...

Tax Law (Questions About Taxes): ESOP distributions, federal withholding tax, form 1040 es
federal withholding tax, form 1040 es, stancil: That is correct. The 20% withholding is similar to withholding from your regular pay check. In order to estimate your tax liability you can consult the tax tables found in the instructions to the 1040 or in Publication 17. You could also complete the...

Tax Law (Questions About Taxes): ESOP Payout, early retirement, disability benefits
early retirement, disability benefits, esop: Hi, Since you are disabled you aren t required to pay the 10% penalty for early withdrawal. The 20% withheld may or may not be enough to cover your tax liability. That amount is treated the same as withholding from a paycheck. You calculate your tax...

Tax Law (Questions About Taxes): ESOP rollover, esop, lump sum
esop, lump sum, tax purposes: Hi, You should have received a 1099 for the year you rolled it over (unless the law was different years ago). But assuming it was a qualified rollover there wouldn t have been any taxes due. If you haven t heard from the IRS there probably isn t anything...

Tax Law (Questions About Taxes): Esimated Tax Payments, estimated tax payments, quarterly estimated taxes
estimated tax payments, quarterly estimated taxes, underpayment penalty: Without seeing your tax returns from before and now David,I really cannot answer that unless you had less investment income or more withholding. Those are the only 2 out of air answers I can come up with. The best person to answer that question is your tax...

Tax Law (Questions About Taxes): Esop and taxes, retirement plan, esop
retirement plan, esop, custodian: Hi, If the ESOP is part of a retirement plan and the plan allows, you can roll it over to an IRA. Any rollover amount would not be taxable. Ask your company if a rollover is allowed under the plan. If it is allowed, it would be better if it was transferred...

Tax Law (Questions About Taxes): Establish Primary Residence in NV, roth conversion, nv border
roth conversion, nv border, state income taxes: Beatrice, The move to Nevada is a clever idea, but it won t work out the way you hope. Establishing residency in Nevada on 12/31/07 will not make you a resident of Nevada for the entire year. What will happen is you would be a part year resident of California...

Tax Law (Questions About Taxes): Establishing residency to avoid capitol gains tax upon sale of seasonal out of state home, capitol gains tax, long term capital gains
capitol gains tax, long term capital gains, establishing residency: Hi, To be considered their main home they must live in it as their main home for 2 years during the 5 years preceding the date of sale. That would be where they are registered to vote, where their cars are registered, where they have drivers licenses,...

Tax Law (Questions About Taxes): Establishing residency to avoid capitol gains tax upon sale of seasonal out of state home, capitol gains tax, state tax returns
capitol gains tax, state tax returns, capital gains tax: Lori, First of all, the New York property needs to be their primary residence. How would they establish residency? Register to vote, get a driver s license, file state tax returns to New York as residents, give up their homeowner s exemption of their...

Tax Law (Questions About Taxes): Estate - capital gains tax, upkeep expenses, irs rule
upkeep expenses, irs rule, capital gains tax: Tracey, You will certainly have some capital gains to pay tax on. The upside is capital gains are taxed at a maximum of 15% at the federal level. The downside the capital gains could contribute to your other income being taxed at a higher rate. Your...

Tax Law (Questions About Taxes): Estate/ineritance distributions, cash insurance, federal income tax
cash insurance, federal income tax, fact pattern: 1. The beneficiaries of the Estate are not subject to tax for receipt of inherited property unless there is an estate tax due and the assets were distributed prematurely. The fact pattern you laid out inferred that the Adjusted Gross Estate is less than...

Tax Law (Questions About Taxes): Estate/inheritence, social security number, probate court
social security number, probate court, county recorder: Liz, Generally, you would receive your share of the estate from the attorney s office and the K-1 from the accountant. The estate s accounting is submitted to the probate court and copies could be obtained from the county recorder s office. I can t...

Tax Law (Questions About Taxes): Estate Tax, estate tax laws, stancil
estate tax laws, stancil, loan balance: Michael, Thanks for your question. There are two ways to go on this. If the estate forgives the debt, it is not included in the estate, but the amount of forgiven debt is income to you. Under the second approach, the amount of debt is included in...

Tax Law (Questions About Taxes): Estate Tax, irs rules, t claim
irs rules, t claim, capital improvements: David, Thanks for your question. You can only exclude the gain on the sale of your principal residence once every 2 years. 2. The basis is your cost plus capital improvements. 3. The IRS rules on depreciation state that you must reduce the basis...

Tax Law (Questions About Taxes): Estate Tax, california income tax, income tax return
california income tax, income tax return, stancil: Sandra, Thanks for your question. The Federal penalty for late filing is 5% of the amount due per month, up to a maximum of 25%. The penalty for late payment is .5% per month up to a maximum of 25%. However, the total penalty in any one month cannot...

Tax Law (Questions About Taxes): Estate Tax, income in respect of a decedent, installment basis
income in respect of a decedent, installment basis, parcel of land: Becky: I am sorry to read that your father passed away. If your father reported the full amount of the gain at the time of the sale, then the payments will come to you tax free. However, if the note gets passed along to you via the estate and he was...

Tax Law (Questions About Taxes): Estate Tax, social security check, form 1041
social security check, form 1041, form 1040: Hello, Sorry to hear of this situation. That final check could be reported on final form 1040. The sale of the home is to be reported on form 1041. It is suggested that the return be filed although tax might not be due. If the home was her primary...

Tax Law (Questions About Taxes): Estate Taxes, stocks bonds, income share
stocks bonds, income share, form 1041: Hello, Income of an estate is taxable. For stock sales, the gain is sales price less value at date of passing. The gain is taxed. Also interest and dividends. The executor/executrix is to report estate income on form 1041. Each beneficiary is to receive...

Tax Law (Questions About Taxes): Estate tax, quick deed, estate taxation
quick deed, estate taxation, claim deed: Jo, Thanks for your question. I wish you had gotten some advice prior to doing some of these things. First, If your Mom sells the house, you are a co-owner. Since she has lived in the house for 24 of the past 60 months, she will not owe tax on any...

Tax Law (Questions About Taxes): Estate tax deductible for non-citizens, resident alien, stancil
resident alien, stancil, charitable contributions: Mac, Thanks for your question. Nothing changes because the spouse is a resident alien. All the normal deductions for an estate would apply - debts of the deceased, funeral and administrative expenses, charitable contributions - just to name a few. ...

Tax Law (Questions About Taxes): Estate tax for nonresident alien, nonresident aliens, george soros
nonresident aliens, george soros, resident aliens: Hi Patrick My expertize is not estate law, having said that. I believe that a Trust for each other benefit might at least skip the tax for the first spouse to die, as I said I am not well versed on this matter and of course resident Aliens are even a larger...

Tax Law (Questions About Taxes): Estate tax, reference publications, stancil
reference publications, stancil, taxable income: Lily, Thanks for your question. If any of the proceeds from the estate are taxable, it would be indicated on a K-1 form received from the estate. If there is no taxable income, you would not receive one of these. I am not familiar with NV law on this,...

Tax Law (Questions About Taxes): Estate taxes, income tax return, irs forms
income tax return, irs forms, stancil: The issue of the tax return goes beyond the sale of the house, it is an issue regarding the entire estate. It is the value of the total estate that determines if an estate tax return is filed. If the estate itself has any income, an estate income tax return...

Tax Law (Questions About Taxes): Estate taxes, irs gov, capital gains tax
irs gov, capital gains tax, executor: Hello, Sorry to hear of your loss. First, the inventory is includible in the estate. Farm-price method of valuation which is market price less cost of disposition. Sale of crop and equipment is taxable income. Recapture of depreciation into income...

Tax Law (Questions About Taxes): More onTaxes on retirement funds, traditional pension plans, beneficiary designations
traditional pension plans, beneficiary designations, probate assets: Jane, The issue with the 403(b) account depends on the plan itself. Some 401(k) and 403(b) plans allow non-spouse beneficiaries to take withdrawals over their lifetime, if they keep the assets in the plan. You may want to ask your plan administrator if...

Tax Law (Questions About Taxes): Estate taxes, personal income taxes, income tax return
personal income taxes, income tax return, allowable expenses: Scott, Thanks for your question. I presume you are asking if you can deduct on your personal income taxes any expenditures you incur on behalf of the estate. The answer is no, those expenditures should be reimbursed to you by the estate and used to...

Tax Law (Questions About Taxes): Estimated Federal Tax Return, federal tax return, income tax liability
federal tax return, income tax liability, quarterly estimates: Hi Wayne, You may have to file an estimated quarterly return depending on your total income, tax liability and total withholding. The 4th quarterly estimate for 2004 is due January 15, 2005. The 1st quarterly estimate for 2005 is due April 15, 2005. ...

Tax Law (Questions About Taxes): Estimated federal tax filing, federal tax filing, federal tax return
federal tax filing, federal tax return, www irs gov: Dear Wayne, Based on what you are telling me here, it sounds like you may OWE a little to the IRS when you finally file your 2004 1040 tax return..... However, if you have never has to file the 1040ES vouchers in prior years, you should be okey with not...

Tax Law (Questions About Taxes): Estimated Tax, royalty checks, lease check
royalty checks, lease check, mineral lease: I cannot tell you if you need to make estimated taxes on the lease payments without knowing everything about your earnings and withholding thus far this year. If you expect to owe more than $1,000 when you file your return in April, you need to make estimated...

Tax Law (Questions About Taxes): Estimated Tax?, federal tax liability, adjusted gross income
federal tax liability, adjusted gross income, academic grants: Joseph, As long as your 2007 Federal income tax withheld is equal to or greater than your 2006 federal tax liability, you would not be required to make estimated tax payments for 2007. This will also prevent you from incurring a penalty from underpayment...

Tax Law (Questions About Taxes): Estimated Tax Payments, estimated tax payments, s corp
estimated tax payments, s corp, stancil: Chris, Thanks for your question. One of the safe harbors for avoiding a penalty for underpayment of your taxes is that you paid in an amount equal to or greater than your tax liability for the previous year. So you are correct. Hope this helps. ...

Tax Law (Questions About Taxes): Estimated Tax Question, www irs gov, adjusted gross income
www irs gov, adjusted gross income, academic grants: If you have paid in (in 2007) as much as your tax liability for 2006 (total tax line on your return) then you will not owe any penalties for 2007. You can use the new tax forms (they are available on www.irs.gov) to see exactly (or close) where you are...

Tax Law (Questions About Taxes): Estimated Taxes, self employment tax, estimated tax payments
self employment tax, estimated tax payments, estimated taxes: The only way to avoid an underpayment of estimated tax penalty is to pay 100% of the proir year tax (110% for high income tax payers) or 90% of the current year tax in the form of estimated tax payments. You should also note that as an independent contractor,...

Tax Law (Questions About Taxes): Estimated Taxes on a cash prize from a competition, www irs gov, income tax purposes
www irs gov, income tax purposes, irs website: Kelly: Yes you should file and pay it now if you owe any tax on the winnings. But, first inorder to know what you owe, you must calaculate your tax liability for the year in total then off set the income liability with the tax already with held from your...

Tax Law (Questions About Taxes): Estimated Taxes when Divorced, estimated tax payments, estimated tax vouchers
estimated tax payments, estimated tax vouchers, paying estimated taxes: Wayne, The fourth quarter payment should be made with separate estimated tax vouchers. Before filing your 2007 tax returns, your ex-wife and you should determine how much of the first three estimated tax payments will be used by each of you. As long as...

Tax Law (Questions About Taxes): Estimated Taxes, personal tax return, sole proprietorship
personal tax return, sole proprietorship, federal goverment: Dear Marietta, THese should NOT be listed on the sole proprietorship books ANYWHERE.... These estimated tax payments are for your personal tax return and should be written from your PERSONAL checking account.... If you use your personal checking account...

Tax Law (Questions About Taxes): Estimated tax payments (2006), form 1040es, estimated tax payments
form 1040es, estimated tax payments, estimated tax payment: Dear Dixie, YES, you will have to itemize for 2006... You need to do the stimated tax worksheet in the instructions for form 1040ES and you can either make a double payment for JUNE 2006 or you can take the amount that you will owe from the worksheet for...

Tax Law (Questions About Taxes): Estimated taxes, self employment income, self employment tax
self employment income, self employment tax, full time job: Hi, If your withholding from your full-time job will cover the additional taxes due you need not make estimated payments. Keep in mind that you will pay self-employment tax (social security and medicare) as well as income tax on your net self-employment...

Tax Law (Questions About Taxes): Ex-husband failing to pay taxes, federal tax lien, due date
federal tax lien, due date, irs: Hi, Since you did not file jointly you have no obligation for his Federal tax lien. Yes, you can file amended returns to claim the children. You must file within 3 years of the due date of the return in order to claim a refund. Regards, Carol...

Tax Law (Questions About Taxes): Ex-spouse retirement pay, disability status, disability income
disability status, disability income, defense finance: Antonia, Thanks for your question. Retirement pay is not considered disability income and being disabled does not affect its taxability. In addition, even if it were considered disability pay, it would still be taxable unless you had paid the premiums...

Tax Law (Questions About Taxes): Ex-wife claimed child support, child support debt, dependency exemption
child support debt, dependency exemption, stancil: Karen, Thanks for your question. If you file a joint return, the refund can be appropriated to satisfy the child support debt. To avoid that, you would have to file married filing separately. You would not be able to take a dependency exemption for...

Tax Law (Questions About Taxes): Exceptions on Capital Gains, expecting twins, single mom
expecting twins, single mom, stancil: Sheri, Thanks for your question. Your husband will be allowed to exclude up to $250,000 of gain on the sale of his portion of the house. Since you have excluded gain in the last 2 years, you cannot do so unless you wait until November to make the sale....

Tax Law (Questions About Taxes): Excess Contribution to ROTH IRA, ira income, roth iras
ira income, roth iras, roth ira: Hello, The earnings are taxable. Yes, you could apply the excess to the following year, if you are within the limit. If the excess was withdrawn by 4/15 you are fine. Otherwise a 6% excise tax per form 5329 may be applicable to the excess amount. ...

Tax Law (Questions About Taxes): Excess Roth IRA contribution, roth ira contribution, excess roth ira contribution
roth ira contribution, excess roth ira contribution, form 5329 instructions: The appreciation is a part of the excess contribution and must be removed and penalized. If you think about it, it is only fair. You cannot benefit from the excess contribution at all and by being allowed to keep the appreciation, you are benefitting. Remember,...

Tax Law (Questions About Taxes): Excess of trsut/estate deductions over income, stancil, administrative fees
stancil, administrative fees, interest income: Michele, Thanks for your question. The loss can carried back 2 years or it may be carried forward. Alternatively, the loss may be distributed to the beneficiaries for inclusion on their individual returns. Hope this helps. John Stancil, CPA ...

Tax Law (Questions About Taxes): Excise Tax, credit card payments, temp job
credit card payments, temp job, excise tax: Hi Thomas, There is no special relief for excise tax but you could apply for a student loan to pay some of your college expenses. Borrowing it from friends or family would make more sense since it is a relatively small amount. You also might consider...

Tax Law (Questions About Taxes): Executor fee taxes, executor fee, executor fees
executor fee, executor fees, bank interest: The fee comes out of the estate and is reported on a 1099. The amount (for tax time) goes on line 21 of the 1040, and is just taxed as normal income (same as bank interest). It is also taxable to your state and local taxing authorities if you have them....

Tax Law (Questions About Taxes): Exempt, federal withholding taxes, irs law
federal withholding taxes, irs law, federal income tax: Dear G, YES, this is also illegal.... If you are married, and have NO children then your options are to claim Married-0, or married-1 or married-2... You can not claim MORE exemptions than you actually have.... Therefore if it is just you and your wife,...

Tax Law (Questions About Taxes): Exemption from 10% Early Withdrawal Penalty, early withdrawal penalty, 401k plan
early withdrawal penalty, 401k plan, irs penalty: Hi, That exception to the penalty doesn t apply to IRAs. There is an exception that applies to both qualified plans and IRAs. If the distribution is part of a scheduled series of subsstantially equal period payments made over the life expectancy of...

Tax Law (Questions About Taxes): Exemption, withholding allowances, stancil
withholding allowances, stancil, time student: Maritza, Thanks for your question. You can file an amended W-2 to reflect as many withholding allowances as you are allowed, but you cannot file the W-4 as exempt just because you are a full-time student. Hope this helps. John Stancil, CPA ...

Tax Law (Questions About Taxes): Exemptions on 1040, unemployment checks, unemployment compensation
unemployment checks, unemployment compensation, gross income: Dear Cory, NO........ This only refers to unemployments income that you received and was later determined that you were NOT eligable for it or a portion of it and you were asked to repay it.... It does NOT refer to taxes paid on the unemployment or taxes...

Tax Law (Questions About Taxes): Exemptions, and Claiming Disabled Person, deducting sales tax, state income taxes
deducting sales tax, state income taxes, stancil: Cherrie, Thanks for your question. If you itemize your deductions, you have a choice of deducting sales tax (including the taxes paid on the car) or deducting state income taxes. You can e-file if you itemize your deductions. You can claim your...

Tax Law (Questions About Taxes): Exercised Stock Options vs. assets, long term capital gains, exercise price
long term capital gains, exercise price, stancil: Matthew, Several issues here. First, you have misread the part about the asset being held on 1/1/2001. The FMV is your basis only if you have recognized the gain as of that date which applies in a very limited situation. Since you did not recognize...

Tax Law (Questions About Taxes): Exercising a Stock Option and Witholding, tax prep software, form 2210
tax prep software, form 2210, stancil: Pierpaolo, Thanks for your question. If there is a penalty, most software programs that I know about will calculate it. You can go to Form 2210 and see what, if anything, program has done in regard to penalty calculation. You do not have to pay a...

Tax Law (Questions About Taxes): Expecting refund and got tax bill for $17,000, jennifer thanks, stancil
jennifer thanks, stancil, debt settlements: Jennifer, Thanks for your question. It is obvious that 1099 s were issued one debt settlements. I would immediately contact a CPA who can help you work through this. Most likely, you are going to have to bite the bulled and pay the amount. If you...

Tax Law (Questions About Taxes): Expences and decutions, irs rate, tax return preparer
irs rate, tax return preparer, automobile expenses: Jeremy, Thanks for your question. Obtaining the services of a CPA or other qualified tax return preparer would probably save you more than it would cost. She can deduct mileage at the IRS rate or she can keep track of all her automobile expenses and...

Tax Law (Questions About Taxes): Expense Categories on Schedule C, bookkeeping software, sole proprietorship
bookkeeping software, sole proprietorship, shipping labels: Charges by your credit card company should best be described on the other expenses line. Postage and shipping out should each be described on the other expenses line as well. Office expense generally refers to items used to maintain the bookkeeping...

Tax Law (Questions About Taxes): Expenses and the 1 year rule, temporary living, deon
temporary living, deon, contract work: Hi Deon, That s correct. After a year it is considered permanent but you said you have traveled only 6 weeks in the past 11 months so I assume you will be claiming expenses for 6 weeks rather than 11 months. In that case each trip is a separate event....

Tax Law (Questions About Taxes): Expenses prior to Incorporating, c corp, s corp
c corp, s corp, office furniture: yes add 8000 to paid in capital you will either be able to dewpreciate or if profit exceeds $8000 you may have a sect 79 w/off However I do not understand why are you operating as a C corp which is taxed at a higher rate then an individual and has othe...

Tax Law (Questions About Taxes): All Experts, exempt charitable organization, expert member
exempt charitable organization, expert member, stancil: Don, Thanks for your question. Sorry, but no it is not a deduction. Two reasons. First, you are not allowed a deduction for your time only out-of-pocket expenses. Second, allexperts is not a tax exempt charitable organization. Hope this helps....

Tax Law (Questions About Taxes): Extension to File??, irs law, dear james
irs law, dear james, tax return: Dear James, Filing an extension is NOT filing a tax return... Therefore, your tax return for that year and NOT been actaully filed and you need to do so immediately.... Also, an extension is NOT a FREE PASS... It is the IRS law that if you OWE taxes...

Tax Law (Questions About Taxes): Extra Income, self employment taxes, stancil
self employment taxes, stancil, hi john: Jay, Thanks for your question. The income is fully taxable from the first dollar. She will need to file Schedule C, where shc can deduct any expenses incurred in earning the money. In addition, you will need to file Schedule SE to determine her...

Tax Law (Questions About Taxes): Extra income and deductions, www irs gov, full time job
www irs gov, full time job, graphic design work: Matt, Thanks for your question. Report the income from your activity on Schedule C. On that schedule you can also report your expenses associated with the activity. The computer, printer, and camera may have to be depreciated over a period of time...

Tax Law (Questions About Taxes): Extra income and deductions, form 1040 schedule c, irs gov
form 1040 schedule c, irs gov, full time job: Dear Matt, You will file form 1040 where you will report all of your income... You will however, have to file form 1040-schedule-C and you will also have to file form 4562 to show the depreciation for the computer, printer and camcer.... These can be section...

Tax Law (Questions About Taxes): e-commerce website, offshore merchant accounts, e commerce website
offshore merchant accounts, e commerce website, credit card payments: Hi Mike This is an area that I really have no experience in, you need to contact someone familiar with international taxation. I cannot advise you. as this is beyond my expertise and involves the rendering of a legal opinion which I am prohibited from...

Tax Law (Questions About Taxes): e-filing and it's safety, turbo tax on the web, e filing
turbo tax on the web, e filing, mark thanks: Mark, Thanks for your question. The e-file process is quite safe. If you are doing it yourself through a provider such as Turbo Tax, there is nothing I know to worry about. Obviously, someone can hack into your computer and tamper with your data,...

Tax Law (Questions About Taxes): early 401k withdrawl, time home buyer, first time home buyer
time home buyer, first time home buyer, check answer: No, that would not change anything unless the money was being withdrawn for medical purposes, college tuition, or as a first time home buyer. There are restrictions on the amounts that may be withdrawn under these exceptions. It would only eliminate the...

Tax Law (Questions About Taxes): early distribution, social security disability, early withdrawal penalty
social security disability, early withdrawal penalty, lump sum distribution: Hi Jerry, There is an exception to the early withdrawal penalty for distributions made due to disability. You use Form 5329 to claim the exception. The code for disability is 03. I hope everything goes well for you and your wife. Regards, Carol...

Tax Law (Questions About Taxes): early IRA distribution, ira distribution, retirement nest
ira distribution, retirement nest, roth ira: Hi Thet until you become 59and a half year of age there is a 10 % penalty on the amount withdrawn ao if you take out a$1000 it wil cost you the tax plus $100 enjoy the next 23 years building up your retirement nest and the other pleasures of life!...

Tax Law (Questions About Taxes): early withdrawal from pension, retirement money, 72t
retirement money, 72t, pmts: Since you took the 72T approach, you must continue your withdrawals under the plan until you turn 59.5 years of age. If you take out more than you are allowed, the ENTIRE amount disbursed over the past years will be subject to the 10% penalty. This is...

Tax Law (Questions About Taxes): earned income credit., earned income credit, capital losses
earned income credit, capital losses, interest dividends: Your taxable interest, nontaxable interest and dividends can not be reduced by capital losses. Only capital gains can reduce your capital losses for EIC purposes. If the total of interest/dividends is less than 2450 and your capital losses exceed your...

Tax Law (Questions About Taxes): earned income credit, earned income credit, unemployment checks
earned income credit, unemployment checks, unemployment compensation: Shawna, Thanks for your question. The unemployment compensation he received will count in the computation for determining whether your income is below the limit to receive the EIC. It will also have an impact on the amount of your EIC. Unemployment...

Tax Law (Questions About Taxes): earned income credit, earned income credit, having a baby
earned income credit, having a baby, fiance: Hi, The requirements for claiming the earned income credit do not include providing more than half of the support of the child. The mother meets the requirements. Since you are the father and live with the child, if you provide more than half of his/her...

Tax Law (Questions About Taxes): earned income credit, earned income credit, divorce agreement
earned income credit, divorce agreement, head of household: Dear Leroy, IF she is the custodial parent (the children live in her home and she has custody as the custodial parent), then YES, she claims head of household and claims the EIC for both children.... IF you are NOT the custodial parent, but just claim...

Tax Law (Questions About Taxes): earned income tax credit, irs publication 17, earned income tax
irs publication 17, earned income tax, earned income tax credit: Lee, Thanks for your question. The earned income credit can result in several hundred, or thousands of dollars, so it is definitely worth it. There are a number of criteria to qualify. These are listed in the EIC chapter of IRS Publication 17, or...

Tax Law (Questions About Taxes): easements, city of jacksonville, road improvement
city of jacksonville, road improvement, culvert: You can reduce the basis of your property by this amount. Just put the amount of the 1099 in both the buy and sell column of Sch D and wash the amount out. And remember to reduce your basis by the $3,000 when you sell your property. Helen, EA in P...

Tax Law (Questions About Taxes): ebay tax laws, irs work, selling on ebay
irs work, selling on ebay, personal belongings: Any and all of your sales were taxable. If you are in the business of selling, which it seems like you were, you should have been filing a Sch C and SE with your tax return. The limit to report a sale is under 50 cents in total sales per year. I would...

Tax Law (Questions About Taxes): education expenses, graduate expenses, lifetime learning credit
graduate expenses, lifetime learning credit, turbo tax: Hi Harrison, No that doesn t sound right. There are only 2 education deductions she could use. One is the Lifetime Learning Credit and the amount for that is 20% of her tuition up to $10,000. But 20% of $4,100 is $820. The other is the Tuition and...

Tax Law (Questions About Taxes): education related deductions, student loan funds, lifetime learning credit
student loan funds, lifetime learning credit, post secondary education: Hi Janice, There is a tuition and fees deduction which is an adjustment to income so you don t have to itemize to take advantage of it. Also there are two education credits, Hope and Lifetime Learning. For any of these only tuition and fees are considered,...

Tax Law (Questions About Taxes): effect of large purchases on taxes, mike thanks, stancil
mike thanks, stancil, home mortgage: Mike, Thanks for your question. Purchase of a house or car do not have any direct effect on your tax refund, as those are not deductible items. Only the interest paid on the home mortgage and taxes on both would be deductible. Hope this helps. ...

Tax Law (Questions About Taxes): eldercare, time caretaker, social security and medicare
time caretaker, social security and medicare, household employee: Kim, If you go with the gifting option, you would have no taxable income. Your parents would not incur any employment related taxes and they would not get a medical deduction for the caregiving. Going with the W-2 option, you would have taxable income....

Tax Law (Questions About Taxes): elderly mother, food stamps, elderly mother
food stamps, elderly mother, line telephone: Shelia: You must figure how much of the space in your house your mother uses and what that percentages is of the house in total space. Probably her only space is her bed room. That percentage will be for water, electricity, gas, groceries, moorage, insurance...

Tax Law (Questions About Taxes): eminent domain, involuntary conversion, local school district
involuntary conversion, local school district, joe thanks: Joe, No problem. The condemned land is a residential lot intended for your home. You are buying a replacement lot - maybe it just happens to have a house on it already. This would be considered within the realm of replacement property. The sale...

Tax Law (Questions About Taxes): Am I an employee or contract laborer?, seasonal job, pool company
seasonal job, pool company, contract labor: Dustin: The real question is Do you have your own business? Of coarse you do not! You work for the company that provides you with your tools, provide you with your customers, provides you with training, and provides you with supplies. You are the...

Tax Law (Questions About Taxes): employee deductions for w-2 wages, health insurance costs, employee business expenses
health insurance costs, employee business expenses, gross wages: I did not mean to mislead you, the health insurance is not an employee business expense, so it is subject to the 7.5% limitation. Health insurance is deductible if paid by the employee. As I said earlier, commuting expenses and meals are not deductible...

Tax Law (Questions About Taxes): employee expenses on W-2 wages, free lancers, employee expenses
free lancers, employee expenses, bennies: Medical expenses, such as insurance, are subject to a floor of 7.5%, employee expenses have a 2% of AGI floor. As for benefits, it is up to the individual company to allow the bennies they want. There is no employer obligation to offer any sort of benefits,...

Tax Law (Questions About Taxes): employee/independent contractor, employee massage, massage therapists
employee massage, massage therapists, massage therapist: Reecca: The labor laws of Hawaii maybe such that they may not be able to terminate you for that reason. You should consult the Department of Labor of your state. And yes, should the IRS or the state department of labor were to audit their records I believe...

Tax Law (Questions About Taxes): employee reimbursements, employee reimbursements, mileage basis
employee reimbursements, mileage basis, ministry travel: Ev, Thanks for your question. If you are reimbursing him for ministry travel on a mileage basis it does not have to be reported on his W-2. As far as what mileage is reimbursable, that is a policy decision on the part of the church. Hope this...

Tax Law (Questions About Taxes): employee student interns and paying stipends, teaching physical education, student interns
teaching physical education, student interns, payroll program: Hi Bob you seem to be a marvelous dad!! The payments would not be considered stipends however if the work is casual and the interns earn less than $600 a year then your daughter can pay them in cash without a lott of paperwork however if the work gets more...

Tax Law (Questions About Taxes): employee taxes, 1099?, landscape maintenance, compensation payment
landscape maintenance, compensation payment, maintenance business: These folks are using your tools, working under your name, you are naming the hours, etc, so they are your employees. They cannot be subcontractors. You need to sit down with your tax advisor and find out exactly what you need to do to set up your business...

Tax Law (Questions About Taxes): employee vs. independent contractor, additional web resources, independant contractor
additional web resources, independant contractor, proffit: Nicole: That situation is a no brainer. When someone wants to hire you and for you to work for them. That makes you their employee. You maybe a professional but you are still working for THEM in THEIR business. You will be working performing service...

Tax Law (Questions About Taxes): employee, childcare expenses, suta
childcare expenses, suta, business license: Ms. Sanderson: Yes she would be considered an employee. Since its at your home it would be considered domestic for suta and futa. Check with your state agency on suta. Sorry about the delay but I have just gotten DSL and having problems accessing my...

Tax Law (Questions About Taxes): employees, paying taxes, quarterly reports
paying taxes, quarterly reports, workman: If you are their employer, you will have to pay their taxes. You will need an EIN (see form W-4) and need to do quarterly reports. I m going to assume you will need workers comp also. This is a state issue. I would suggest sitting down with a tax...

Tax Law (Questions About Taxes): employer-employee relationship, employer employee relationship, general carpentry
employer employee relationship, general carpentry, independent contract: Mr. Kotb: Its kind of difficuilt to be in business for yourself and also have a boss. That being said, I think you need to complain to you state labor department that you are being treated as an independent contract and that you reall are an employee. ...

Tax Law (Questions About Taxes): employer filing taxes illegally, real estate broker, self employment taxes
real estate broker, self employment taxes, filing taxes: How much do you like your job? If you like it, you may want to ask for more money to cover your taxes. If you really don t care about it, go to your state s employment office and talk to someone there. Give them all the info and they will make sure that...

Tax Law (Questions About Taxes): employer not paying in payroll taxes., irs website, w4 forms
irs website, w4 forms, payroll taxes: File your taxes with your paystubs. The W-4 means nothing. There is a form on the IRS website called a substitute W-2 (I don t remember the number). Use that and please follow thru. You will not be in trouble, the employer will be. And hopefully you...

Tax Law (Questions About Taxes): My employer did not withhold State taxes correctly, state tax return, penalty abatement
state tax return, penalty abatement, pay stubs: Sorry Erin I agree with your employer Ugh! you got the money! Think of it as a loan from the state if you use a credit card the state rate is much lower than the other lenders. good luck you won t be able to negotiate with the state on the interest...

Tax Law (Questions About Taxes): employer not withholding according to my needs, tax irs, tax debt
tax irs, tax debt, lump sum: Joy: I know that it is frustrating when someone does not carry thru with our request. From a tax/IRS issue you paid what tax you owed for the tax year some of which you paid in a lump sum at the end of the year. If you are talking in the area of suing...

Tax Law (Questions About Taxes): empowerment zone credit, irs purposes, ez credit
irs purposes, ez credit, stancil: David, Thanks for your question. You can file amended returns for the past 3 years. At this point, you can amend returns for 2004, 2005, and 2006. Form 8844 lists the general areas that are eligible for the EZ credit. The form for each year would indicate...

Tax Law (Questions About Taxes): end of year marraige, occasional exceptions, head of household
occasional exceptions, head of household, judy judy: Judy, Thanks for your question. Your filing status is determined by your marital status on December 31. So even if you get married on December 31, your filing status is married. Since you were withheld as single with 2 dependents and your fiance...

Tax Law (Questions About Taxes): energy tax credits, energy tax credits, energy efficient lightbulbs
energy tax credits, energy efficient lightbulbs, google search: Hi Sue, I don t know of a website but you could try a google search and see what comes up. Also www.irs.gov might have some info. I read a description of the credit in tax updates (unfortunately I left it at work) and I know lightbulbs weren t included....

Tax Law (Questions About Taxes): not enough taxes being taken out of my check, stancil, line 6
stancil, line 6, dependents: Chandra, Thanks for your question. You can fill out a new W-4 form, indicating single and zero, then on line 6 of the W-4, you can instruct your employer to withhold a specific additional dollar amount per pay period. Hope this helps. John Stancil,...

Tax Law (Questions About Taxes): What entity would a options trader need?, capital investment firm, personal tax rates
capital investment firm, personal tax rates, state tax rate: I ll try and provide you the foundation of answers in this e-mail, just not in the order that you asked them. You are absolutely right, that investing as an individual will always result in paying far more taxes than doing it as a properly structured business....

Tax Law (Questions About Taxes): equity payment to ex, divorce settlement, dividing by 2
divorce settlement, dividing by 2, time counts: Pam, Thanks for your question. First, if you lived in the house before the divorce that time counts toware your 24 months. If you have to pay taxes on the gain, your basis is determined by taking the original cost and dividing by 2. Add to that the...

Tax Law (Questions About Taxes): esop distributions, colon cancer, unrealized appreciation
colon cancer, unrealized appreciation, esop: Larry, Thanks for your question. I can t tell you if it is a one time thing or not. Most likely, since you are no longer employed there you must divest yourself of the stock in the ESOP. If you cash out, two things will happen. First, you will...

Tax Law (Questions About Taxes): esop payout help, qualifing, unrealized appreciation
qualifing, unrealized appreciation, stancil: Mary, Thanks for your question. Giving the proceeds to anyone, even a spouse will not avoid any income taxes. Unfortunately, if he receives the payout, the gain is taxable income and there is nothing to avoid that. If he receives the securities, he...

Tax Law (Questions About Taxes): estate, long term capital gain, homestead exemption
long term capital gain, homestead exemption, annual exclusion: cp, Thanks for your question. If they give the home to Dad, the transfer will constitute a gift to him. Since the amount of the gift exceeds the annual exclusion of $12,000 each daughter will have to file a gift tax return, Form 709. However, there...

Tax Law (Questions About Taxes): estate account, form 1041, income tax return, individual tax return
income tax return, individual tax return, form 1041: Andrew, When an individual dies, there are potentially three tax returns which need to be filed. First is a final individual tax return. This tax return will include all income and deductions from the beginning of a tax year until date of death. Second,...

Tax Law (Questions About Taxes): estate, gift tax, tax consequences, gift tax return
tax consequences, gift tax return, lifetime: Hi, You would have no tax consequences if she gives you the equity in the house. But she would be required to file a gift tax return because the amount given exceeds $12,000 per individual ($12,000 to you and $12,000 to your husband). If she is married...

Tax Law (Questions About Taxes): estate income tax, state inheritance taxes, income tax return
state inheritance taxes, income tax return, income tax return form: Jon, Generally state inheritance taxes are not deductible on the 1041. There is one exception. The tax that was due on Income in Respect to a Decedent (IRD). The IRD tax is an income tax that is assessed in addition to any federal estate (death) taxes...

Tax Law (Questions About Taxes): estate tax, inheritance tax, hiland
inheritance tax, hiland, stancil: Mickey, Thanks for your question. You are on the right track, but a little confused on a couple of points. First, estates of $2,000,000 or less are not subject to the estate tax. You are correct on this. However, there is a difference in an estate...

Tax Law (Questions About Taxes): estate tax, personal tax returns, money market fund
personal tax returns, money market fund, probate judge: Les, The property was held in the estate for ten years! Are you sure? It seems to me the probate judge wouldn t want to keep this on his/her docket for that length of time. What were provisions in the decedent s will for the disposition of assets to...

Tax Law (Questions About Taxes): estate tax, capitol gain, capital transaction
capitol gain, capital transaction, stock gains: Pete very bad idea even if it worked one would not have a valid capital transaction as the family attribute rules would not recognize the loss But worse yet since the seller has not received the property from the estate the sale would result in a $100,000...

Tax Law (Questions About Taxes): estate tax, capital improvements, stancil
capital improvements, stancil, teenage daughters: Patricia, Thanks for your question. You would pay tax, at capital gain rates, on the profit. This is determined by subtracting your basis from the proceeds of the sale. Your basis is the fair market value as of the date of death plus the cost of...

Tax Law (Questions About Taxes): estate tax, stancil, cost basis
stancil, cost basis, capital gain: Marilyn, Thanks for your question. Your will would specify who is to receive your property upon death. However, if you wish to avoid estate taxes, you would have to transfer title to her now. In both cases, you should see an attorney. It is probably...

Tax Law (Questions About Taxes): estate tax, injury suit, form 1041
injury suit, form 1041, exact amounts: Your father s estate will have to file a final 1040 for 2006. Additionally, since the estate is the beneficiary of that amount, it will have to report the income on form 1041 in 2007. The income will be reported on a k-1 to each beneficiary based on how...

Tax Law (Questions About Taxes): estate tax, tax law changes, year end
tax law changes, year end, calendar year: Sharon, Yes, you will need to file a 1041 for the estate. The IRS hasn t finalized the 2007 forms yet. That usually doesn t happen until late in the year, just in case Congress decides to make tax law changes. You can wait for the 2007 forms to be...

Tax Law (Questions About Taxes): estate tax, state department of revenue, ss number
state department of revenue, ss number, inheritance tax: Mitzi, Thanks for your question. There is no income tax on an inheritance. Any estate taxes are paid by the estate. Depending on the state in which you live, however, there may be an inheritance tax due. Check with your state department of revenue....

Tax Law (Questions About Taxes): estate tax, beneficiary designation, odd papers
beneficiary designation, odd papers, ira accounts: Scott, It s safe to say brother #2 and the attorney are doing a poor job of effectively communicating to you and brother #3. There is one problem I can identify right away. If your father passed away in 2000, there is no reason for estate to still be...

Tax Law (Questions About Taxes): estate tax, money market account, stancil
money market account, stancil, executor: Les, Thanks for your question. A 1041 should be filed. However, you can elect on the form to distribute all the income to the beneficiaries and pay taxes on it on the children s returns. Most likely this would result in a lower tax liability than having...

Tax Law (Questions About Taxes): estate tax/capital gains, death of father, inlaws
death of father, inlaws, mother in law: Could be quite a bit. Depending on the state the inlaws lived in will give your husband his basis. If it was NOT a community property state, his basis is half of half of the cost of purchasing the home, half the improvements up to the date of death of your...

Tax Law (Questions About Taxes): estate tax return involving an IRA, ira payout, ira income
ira payout, ira income, ira account: Teresa, Did your mother-in-law designate your husband and his sister as beneficiaries of the IRA account? If so, the trustee of the IRA would have distributed the proceeds directly to them. The trustee would have issued 1099-R forms to report the distributions...

Tax Law (Questions About Taxes): estate tax returns, stancil, sorry to hear about your loss
stancil, sorry to hear about your loss, beneficiary: Bruce, Thanks for your question. Sorry to hear about your loss. The return will need to be filed by the administrator of the estate and any refund will go to the estate or to the beneficiary of her estate. Hope this helps. John Stancil, CP...

Tax Law (Questions About Taxes): estate tax, taxable money, taxable gifts
taxable money, taxable gifts, stancil: Christine, Thanks for your question. If that was the extent of his estate, there is nothing to do as far as taxes are concerned. There is a lifetime exemption of $1,500,000 (or more, depending on when he died) for gifts and estates combined. If his...

Tax Law (Questions About Taxes): estate taxes, local taxing authority, escrow account
local taxing authority, escrow account, sudden jump: Hi, It could mean that your property taxes and/or insurance have increased. Your local taxing authority can tell you what your taxes will be. They normally send out notices each year but yours may have been sent to your mortgage holder since they pay...

Tax Law (Questions About Taxes): estate taxes, federal estate tax, hi john
federal estate tax, hi john, state taxes: Hi John, If her total estate is $600,000 including the property she gave away before she died, then there is no Federal Estate Tax. There could be some state taxes to pay, depending on the state. An experienced attorney in your area would be the best...

Tax Law (Questions About Taxes): estate, time home buyer, first time home buyer
time home buyer, first time home buyer, amy thanks: Amy, Thanks for your question. Refinancing does not affect the deductibility of your interest payments. You are allowed to take as an itemized deduction the interest you pay on the mortgage for your personal residence. When you refinance and pay points,...

Tax Law (Questions About Taxes): estimated tax, estimated tax forms, self employment taxes
estimated tax forms, self employment taxes, 1099 misc: Dear Sandy, First of all your son must file form 1040 and also form 1040-schedule-C and 1040-schedule-SE inorder to show this 1099-MISC income and pay the self-employment taxes he will owe. Next, YES, he MUST file an estimated tax forms (1040ES) for 2005,...

Tax Law (Questions About Taxes): estimated taxes, federal tax preparation, state tax return
federal tax preparation, state tax return, pa state tax return: Dear Greg, YES, all estimated payments for state taxes are deductable just like your pay check withholding taxes on the federal 1040-schedule-A.... I do not know anything about the PA state Tax return so you will have to check with the instructions for...

Tax Law (Questions About Taxes): estimated taxes when living and working in different states, quarterly estimated taxes, nyc ubt
quarterly estimated taxes, nyc ubt, tax 0: Haley from your answer at least for the present ,in my opinion you are doing business in New York City so I do not understand why you would be paying MA estimated taxes on income earned in NYC ( you would be better off paying NYS and NYC ) by the way are...

Tax Law (Questions About Taxes): estimated taxes, irs gov, turo tax
irs gov, turo tax, estimated tax payments: Dear Carol, Turbotax only does what it is programed to do when income is high and/or taxes are owed.... This is why the program printed off the 1040ES payments for your to make.... Now, what you have to do is determine if in 2006 you are going to owe...

Tax Law (Questions About Taxes): estimated unpaid taxes of ex husband, taxpayer advocate service, social security number
taxpayer advocate service, social security number, unpaid taxes: Hi, You would be responsible for taxes due on any joint return you and he filed. You should check with the IRS to be certain just what year s taxes they are collecting. Of course any balance due on a previous year would still be accruing interest so if...

Tax Law (Questions About Taxes): estimated withholding, home health agency, quarterly estimates
home health agency, quarterly estimates, form 1040 es: Kathy, Thanks for your quesiton. Normally, you are required to make estimated payments on the 15th of April, June, September, and January. You can determine the amount of your estimated payment by completing the worksheet that accompanies form 1040-ES....

Tax Law (Questions About Taxes): estimated withholdings, www irs gov, standard deduction
www irs gov, standard deduction, ball park figure: There is no ballpark withholding amount. If you are happy with your bottom line on your tax refund, then you are withholding correctly. Your employer withholds what YOU tell him to withholf via your W-4 form. As to if you should itemize, if you exceed...

Tax Law (Questions About Taxes): ex in arrears - can he still get child credit?, divorce agreement, divorce decree
divorce agreement, divorce decree, stancil: Carol, Thanks for your question. Generally, the terms of the divorce agreement will be followed by the IRS. If that agreement is does not make his paying child support a condition of taking the exemption, he will be allowed the exemption. This is a...

Tax Law (Questions About Taxes): My ex-husband and i share..., ss number, share custody
ss number, share custody, stancil: DL, Thanks for your question. If you claim her also, you and your ex husband will get a leter from the IRS, informing you that your daughter s SS number has been claimed as a dependent on two tax returns. You will be instructed to file an amended return...

Tax Law (Questions About Taxes): ex husband wants to claim child, irs publication 501, divorce law
irs publication 501, divorce law, noncustodial parent: Hi Sarah. I m not an expert in divorce law, but it looks to me like the answer here is in your favor. The following is taken from IRS Publication 501: ----- In most cases, because of the residency test, a child of divorced or separated parents is the...

Tax Law (Questions About Taxes): My ex lied on taxes re: children, irs office, rejection notice
irs office, rejection notice, divorce custody: Dear Shan, You will be receiving a letter from the IRS in a few weeks.... If you do not want to wait that long, then I suggest that you find the closest IRS office to you in your state and pay them a visit... Before you pay them a visit, you need to get...

Tax Law (Questions About Taxes): ex trying to claim kids, lawyer section, form 8332
lawyer section, form 8332, days in a year: Dear Stephanie, You do not mention here if you are the custodial parent (you have the children living in your home and you claim them as dependents on your tax return)..... If this is the case, your ex can NOT claim them as dependents unless you give him...

Tax Law (Questions About Taxes): exchange student, incidental expenses, exchange student
incidental expenses, exchange student, charitable contribution: Michaek, You can claim a charitable contribution up to $50 per school month for housing an exchange student grades K-12, if sponsored by a qualified organization. There aren t any deductions for the mileage to and from the airport. The $50 (as small as...

Tax Law (Questions About Taxes): excluding gain on sale of inherited home, form 1041, decendent
form 1041, decendent, stancil: JR, Thanks for your question. You must file a 1041, because the estate had income. However, the estate would not have to pay tax if the income was distributed to the beneficiaries. The 1041 would show the distribution to each beneficiary. Each beneficiary...

Tax Law (Questions About Taxes): exempt, tax liability, taxable income
tax liability, taxable income, previous year: You can file exempt ONLY if you did not have a tax liability for the previous year and do not expect to have a tax liability for the current year, so if you had taxable income for 2006 or expect to have taxable income for 2007, you would be committing fraud...

Tax Law (Questions About Taxes): who is exempt from captial gain, stancil, capital gain
stancil, capital gain, cpa: Debra, Thanks for your question. No one is exempt from being taxed at capital gain rates if they have taxable gains. There are several provisions in the law that exempt certain transactions from taxation, however. Those are too lengthy to detail...

Tax Law (Questions About Taxes): exempt on my taxes, check answer, tax lawyer
check answer, tax lawyer, student answer: If you filed exempt, you should not have had federal withholding so you would not have had to file a tax return. However, if you did have withholding, you can only file for 2004,2005 and 2006. As for next year, since you are out of school, if your income...

Tax Law (Questions About Taxes): exempt, interest free loan, owing money
interest free loan, owing money, months of the year: I certainly agree with a strategy that allows for the smallest refund possible. It does not make sense to give the IRS an interest free loan every year. I do not think being exempt part of the year is the best way to achieve that. Instead, you should claim...

Tax Law (Questions About Taxes): exemption, maximum tax rate, federal withholding
maximum tax rate, federal withholding, periods: Bill, This is not an easy question to answer with out knowing your salary, whether or not you participate in 401(k) plan, the number of pay periods you have in a year, etc. Here is an example that might help. Dependent allowances allow you to deduct...

Tax Law (Questions About Taxes): exemption certificate, tax exemption certificate, family memeber
tax exemption certificate, family memeber, contact number: You should ask the bank to give you the contact number of the issuing agent if you do not have the lawyer or executor s contact information. Usually this can be sent by fax to your bank with a followup mailing which will contain the required original signatures...

Tax Law (Questions About Taxes): exemption certificate, tax exemption certificate, family memeber
tax exemption certificate, family memeber, witholding tax: I am not aware of what a fund tax exemption is it sound like something in England In the USA inheritances are tax free but the current income is taxable you can avoid the witholding tax by filing a W9 form which states you are a taxpayer and will pay...

Tax Law (Questions About Taxes): exemption for spouse, security disability benefits, social security disability benefits
security disability benefits, social security disability benefits, social security disability: Hi Terry, A married person filing separately can claim their spouse as an exemption but be prepared to show that she provides more than half of your support in case the IRS questions it. You would not need to file a return since your only income is SSD....

Tax Law (Questions About Taxes): exemptions, brain trauma, medical deductions
brain trauma, medical deductions, several thousand dollars: I m glad he has recovered! There really is nothing as a partial dependent, it is all or nothing. If his income was over $3,350 for 2007, you cannot claim him. HOWEVER, you can claim the medical expenses you paid on Sch A, subject to 7.5% of your AGI. ...

Tax Law (Questions About Taxes): exemptions/child tax credit, high school education, child tax credit
high school education, child tax credit, followup questions: Dear Gina, (A) would have to be UNDER age 17 inorder to be qualified dependent for child tax credit .... Since she is not, she does not qualify for you for the child tax credit... If you can PROVE that you pay more than 50% of A and B support (and you...

Tax Law (Questions About Taxes): US expat, living in japan, dear mary
living in japan, dear mary, legal question: Dear Mary, EVERY U.S.A. citizen is required to file a tax return whether you are in or out of the country, whether you have income in or out of the country.... It is NOT too late to file BOTH your 2004 and 2005 tax return and I would suggest that you...

Tax Law (Questions About Taxes): what to expect and plan, head of household, federal income tax
head of household, federal income tax, exact amounts: Your standard deduction for Head of Household is 7150. If your total itemized deductions(Schedule A) are more than that, you will benefit from it s use. You can use Schedule A OR standard deduction, but not both. Your mortgage interest, points paid, real...

Tax Law (Questions About Taxes): expected tax on sale of real estate property, pa taxes, kind exchange
pa taxes, kind exchange, york pa: You cannot roll the profit from the rental property into a personal home. You may be able to do a like kind exchange, which can be tricky. If you decide this route, I have some referrals I can make in the Pgh area. Your tax will be based on sales price...

Tax Law (Questions About Taxes): expense write off, vacant lot, stancil
vacant lot, stancil, rental house: The amount of the appraisal is not relevant except in allocating basis to the vacant lot and the house. When you sell the house (or the vacant lot), your gain is determined by subtracting your cost basis in the house from the proceeds of the sale. In subdividing...

Tax Law (Questions About Taxes): expenses/deductions, child care provider, form 8829
child care provider, form 8829, itemized deductions: Dear Stephanie, YES, you can file form 8829 if you so choose..... However, any AMOUNTS that you claim on form 8829 must be deducted from the total you would have put on the 1040-scedule-A and only the remaining balances can be taken on the schedule-A ...

Tax Law (Questions About Taxes): expenses and distrubution in llc, sole proprietor, personal expense
sole proprietor, personal expense, liability protection: If you are the sole owner of the LLC s then it doesn t matter. The IRS has decided that an LLC is a disregarded entity . That means for tax purposes, the LLC does not exist. You must file those businesses as Schedule C businesses. As a Schedule C business...

Tax Law (Questions About Taxes): expenses on Schedule C, self employment income, www irs gov
self employment income, www irs gov, adjusted gross income: IRS states that you must keep adequate records of income and any related expense and show these numbers on your tax return. Many people include as deductions items which are basically personal expense, but are sometimes used in the business just because...

Tax Law (Questions About Taxes): expenses, lawncare products, hunting trips
lawncare products, hunting trips, packing boxes: Kris, Thanks for your question. You can deduct moving expenses when you move. House hunting trips are NEVER deductible since the law changed several years ago. Fees for the new cell phones are not deductible except to the extent the cell phone is...

Tax Law (Questions About Taxes): It's more about "YOUR" experiences with the IRS than taxes..., 1040ez, tax tables
1040ez, tax tables, summer jobs: Dear Pat, When you checked her COPY of the return that she sent to the IRS, I HOPE she checked the box that says someone else can claim you as a dependent ... I think on the 1040EZ it is box 5a.... If she checked the other box and claimed herself and...

Tax Law (Questions About Taxes): extension for estate trust return, 1041 form, form 8736
1041 form, form 8736, fiduciary returns: Susan, Thanks for your question. You should file Form 4768 to get an extension on the estate return. Tax Cut for Business is an inexpensive program that includdes S Corps, C Corps, Partnerships, Non Profits, and Fiduciary returns. However, the...

Tax Law (Questions About Taxes): extension, form 4868, stancil
form 4868, stancil, due date: Mike, If she will be unable to sign the return by April 15, your choices are to file an extension or file electronically. An automatic 4-month extension can be obtained by filing Form 4868. It must be filed by the due date of the return. Hope this...

Tax Law (Questions About Taxes): exxon class action award 2nd question, lawyers fees, business expense
lawyers fees, business expense, stancil: Chris, If you cannot deduct the attorney fees as a business expense, you would be liable for taxes on the entire amount. In regard to the second part of your question. The short answer would be, no. Not being in the business does not preculde you...

Tax Law (Questions About Taxes): F.E.I.D, vs Tax Exemption #, stancil, profit corporation
stancil, profit corporation, tax exemption: Mike, Not necessarily. If you are talking about a state exemption number for sales tax purposes, it would be a different number. The Federal TIN does not indicate that it is tax exempt, it is merely an ID number. Hope this helps. John Stancil,...

Tax Law (Questions About Taxes): Family Limited Partnership, personal tax return, family limited partnership
personal tax return, family limited partnership, state tax return: The State of registration has very little to do with filing taxes. It is the State in which you operate the business that has a right to tax and regulate you. The FLP would file a state tax return in Kansas. Kansas rules may require a withholding of money...

Tax Law (Questions About Taxes): Farm or Agriculture losses, farming operation, casualty loss
farming operation, casualty loss, crop losses: I am not familiar with the tax aspects of farming but if this is not considered a casualty loss. Then you will need to file your operations on schedule F of the 1040 you should be able to deduct your loss including depreciation of the equipment if you were...

Tax Law (Questions About Taxes): Farm equipment depreciation, equipment depreciation, stancil
equipment depreciation, stancil, cost basis: Dennis, Thanks for your question. You inherited the equipment at its fair market value as of the date of death. You would depreciate it based on that value, starting anew with your ownership of the property. Hope this helps. John Stancil, CPA...

Tax Law (Questions About Taxes): Farm income and capital gains, home office expenses, capital gains taxes
home office expenses, capital gains taxes, capital gains tax: You will have determined the percentage(area) of your residence which will be your home office portion when you began using that deduction. Usually square footage was listed on Form 8829 when you took the depreciation deduction and allocation of total residence...