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Tax Law (Questions About Taxes)/Questions Answered by Expert Alexandra Shainskaya, CPA

Subject	Date Asked
W4 form	2/11/2010
Q: I have been online for hours and just trying to figure out how many allowances I should use. When I ... A: The number of allowances you put on your W-4 affects the amount of that will be withheld from your ...
can my fiance claim my kids?	2/10/2010
Q: I am trying to find out if my fiance can claim my 2 kids that are not by him on his taxes. I receive ... A: If your kids lived in the same household as your fiance all year and he provided more than half of ...
if I could claim myself	2/9/2010
Q: My question is can amend my 2006 tax because my parent didn't claim me as a dependent. So, can I ... A: Yes, you can amend your 2006 return up until April 15 of this year (the statute of limitations is 3 ...
Itemized deductions	2/8/2010
Q: On line 5 of Schedule A (Form 1040) do I have to enter State tax that was taken during the year and ... A: You can deduct state tax that you actually pay for the year. That means what was taken out on the ...
1099	2/3/2010
Q: I already filed on Turbo Tax almost 3 weeks ago and just got a 1099 from a new checking we got this ... A: Yes, you must file an amended tax return and include this income (Form 1099X). It's not a big deal ...
Divorce and 1099-c	2/1/2010
Q: We divorced four years ago, but ex began using a supposedly joint credit card 14 months ago without ... A: Unfortunately you may have a tax liability for the discharged debt. There are, however, some very ...
Educational Loans	1/31/2010
Q: Do I have to pay taxes on any educational loans I have received? A: No, education loans are not income to you since you have to pay them back and thus are not taxable. ...
EIC	1/28/2010
Q: I received my w-2 for the timeframe in which I worked. I looked @ the 1040 A booklet for my ... A: Unemployment income counts as income, so you have to include it in your tax return. You should be ...
mileage for 1099	1/27/2010
Q: I'm a vendor merchandiser, and I have traveled about 35,000 miles this year. My company however does ... A: There's no way to tell fool-proof if your support holds up until you get audited and it is tested. ...
Question on claiming my children	1/26/2010
Q: I have 3 children ages 2,6,7. Their mother is trying to tell me that she gets to claim them all ... A: I'm sorry, but this question is for your divorce/family law attorney. You should ask him or her ...
Status	1/25/2010
Q: I filed my federal return online on January 15th 2009, and it was accepted by the IRS on the 17th. ... A: The IRS can always audit your return, and if that is the case you will be advised of that by the ...
Taxes as an independent contractor	1/20/2010
Q: Effective Jan 1, 2010 I became and independent contractor. I am a dog groomer and work in a shop ... A: You will need to pay self-employment tax (which include social security) and federal income tax. ...
Give Sole Proprietorship to Spouse	12/11/2009
Q: "I have been running a small online business for about 5 years that brings in about $20K a year. My ... A: I'm not sure that I understand your questions correctly, but yes you can give unlimited gifts to ...
C Corp - Salary, dividends, IRA's	12/10/2009
Q: I have 2 separate C-Corporations, and I am the only person in the corporations. Each corporation has ... A: The salary that you should take for your work in the Corporations is a market rate salary, or one ...
Business Travel Tax write offs	12/6/2009
Q: I started an LLC earlier this year to keep my taxes in the state of Illinois. I am traveling 100% ... A: While on business travel overnight (outside the limits of your city) you can deduct meals, lodging, ...
IRA Tax Question	12/5/2009
Q: My question is can I contribute to an IRA and receive tax benefits this year? My circumstance is I ... A: For 2009 you might still be considered as covered, since you didn't retire until the middle of the ...
On SSI and working	12/4/2009
Q: I've been working for the last year and have reported my earnings to SS. My check has been cut to ... A: Yes, you are required to pay taxes on all earnings if they are not specifically exempted. For the ...
taxable in come	11/30/2009
Q: because of an injury in my work place, I was awarded social security benefits, disability pension ... A: This is a complicated question and the answers depend on the very specific circumstances that you ...
inherited moneymarket	11/28/2009
Q: Would it be considered taxable income If I want to cash out an inherited moneymarket account? A: If this is an account that has no special tax treatments (e.g. IRA, 401K, and others) then the ...
first time home buyer credit eligiblty	11/25/2009
Q: I'm was disabled in 1995 and collect social security disability, the yearly amount has always been ... A: Yes, the first time homebuyer credit is refundable which means that even if you had little or no tax ...
Filing taxes in Indiana and in a pending divorce.	11/19/2009
Q: My question is: My soon to be ex husband and I are having to file income taxes jointly due to the ... A: This is something you have to discuss with your divorce attorney. Usually your attorney will ...
Business Start up	11/17/2009
Q: I just started my new business with Mary Kay. I am very new to this and unsure how to keep record of ... A: In order to keep track of your income and expenses it would probably be easiest to buy an accounting ...
Non-Resident Tax Question - NC	9/9/2009
Q: I am a permanent resident of Florida. Beginning in March, I have been consulting this year in North ... A: You should file a tax return in each state where you've worked during the year even if you are not a ...
claiming my daughter and unemployed	9/8/2009
Q: I'm currently unemployed and i have a 3 month old daughter, i will like to claim her in my next ... A: I'm sorry, but I cannot advise you as to whether you should obtain employment or not. As to who ...
LLC Refund question	9/3/2009
Q: I am a 50% member of a 2 member LLC. Our first year in business we took a loss (for argument sake ... A: I'm not sure I understand your question completely. You have already filed a return without taking ...
LLC	9/1/2009
Q: What is the requirement to write off a company dinner or meeting? A: Generally, expenses for meals and entertainment where business is discussed are 50% deductible. For ...
Bonus Forfeited	7/24/2009
Q: I am getting a bonus at work but one of the stipulations is that if I leave the company in the next ... A: In theory, your company is supposed to file an amended return with the IRS and you should receive a ...
social security and taxes	7/23/2009
Q: My parents are on social security but do not make enought to have to file income taxes anymore. ... A: The answer depends on your parents' specific circumstances. Just because they are not required to ...
Innocent Spouse	7/18/2009
Q: My husband and I have a small business that made no money. He has a child from a previous marriage ... A: I'm sorry, but I'm not sure exactly what your question is. Can you please clarify what you mean by ...
Amended tax returns	7/17/2009
Q: My ex-husband was self-employed and did not pay quarterly taxes. As a result, our individual tax ... A: You should contact your divorce attorney to see what your divorce agreement says about unpaid taxes, ...
referrals	7/16/2009
Q: Good morning, I have an LLC. I do remodels and pretty much anything around the house. The majority ... A: Any person or non-corporate entity to whom you pay more than $600 should receive a form 1099. ...
LLC Formation and Amending Tax Returns	7/15/2009
Q: A friend told me that I can amend 2008's tax return once I create my LLC this year...is this ... A: I don't see how an LLC would help you avoid self-employment tax, that's something you have to pay on ...
Self-employed or small business	6/28/2009
Q: Recently I have become a contractor of a company and am wondering about the tax ... A: I think your question is actually whether to stay a Sole Proprietor or to organize an entity (LLC, ...
Rent to be claimed as tax deductions	6/27/2009
Q: I heard that they are trying to allow the rent to be claim as a tax deduction . i don't know if that ... A: Rent is not deductible on your federal tax returns. It could be that your state is considering ...
frequent flyer miles	6/16/2009
Q: As an independent contractor (ie, I receive 1099's), I have been told that my travel to and from ... A: There is controversy about taking deductions for business travel when frequent flyer miles are used. ...
Side work	6/15/2009
Q: I work in marketing but i have a background in construction. I did side work and only charged $3500. ... A: If you had income of at least $400 this year as an independent contractor you must file Schedule C ...
Claiming Office expenses on Taxes	5/5/2009
Q: I am attempting to work for a company that employes people to work from home, however I am unable to ... A: Generally speaking, they are treated as Unreimbursed Employee Expenses subject to the 2% floor as ...
Claiming Office expenses on Taxes	5/2/2009
Q: I am attempting to work for a company that employes people to work from home, however I am unable to ... A: This would be a Miscellaneous Itemized Deduction in the category of Unreimbursed Employee Expense. ...
working throughout us	5/1/2009
Q: I worked for a company out of Memphis. I got paid out of CA property. I traveled to several ... A: You are in fact required to file a tax return in every state where you work. You don't have to pay ...
filing status	4/30/2009
Q: I live in CA and in the process of divorcing, not finalized yet. We began living apart since March ... A: You can use either Married Filing Jointly or Married Filing Separately status in your case. Which ...
Dissolving partnership/taxes	4/26/2009
Q: I dissolved a partnership half way through the year. My partner kept the business and agreed to ... A: The answer to this question is different for each individual business. You should check your ...
Mortgage Interest	4/25/2009
Q: Me and my friend co-borrow a mortgage. We both live in the same house but the mortgage is in my ... A: Since both you and your friend live in the home as your primary residence and are both personally ...
1099 and taxes	3/25/2009
Q: I was told by our tax guy that I should file for a federal ein # and open a S corp. He told me that ... A: Your accountant was probably talking about the fact that you can pay yourself a salary and only pay ...
Residential Rental Tax Deductions	3/1/2009
Q: Alexandra, Reference: Residential Rental Expense Deductions for 2008 Federal Income Tax. ... A: Your first assumption is correct: you would carry the passing loss forward to following years. The ...
taxes	2/27/2009
Q: Where can I get accurate info about the tax deduction for new car buyers under the stimulus bill? ... A: The most accurate information can be found on the IRS website at www.irs.com. For stimulus as it ...
Small Business taxes and minors	2/24/2009
Q: I am starting a small business. It will only operate for 4 weeks a year. I will be paying minors ... A: Which tax treatment is more beneficial depends on each minor's circumstances. Generally when you ...
how many years to keep	2/22/2009
Q: I am in the middle of shredding papers and want to know how many years of back taxes I need to keep. ... A: The tax code is pretty complicated and there are several deadlines that the IRS has. The statute of ...
per diem on taxes	2/20/2009
Q: My husband works out of state quite a lot during the year. He recieves $50 a day to live on, plus ... A: You can deduct the expenses on Schedule A as Unreimbused Employee Expenses, but you can only deduct ...
social security	2/19/2009
Q: my parents both in their 70's only received social security with no additional income, they also ... A: Yes, your parents still have to file a tax return, and the form that they should receive from the ...
RENTAL PROPERTY	2/16/2009
Q: If I buy a rental home and 10 years from now, start living in it, do I need to pay capital gains ... A: In order to exclude a portion of the gain on sale of a primary home you have to meet the ownership ...
Mileage	2/15/2009
Q: If my company temporarily sent me to another office location within our group three days a week to ... A: If you reasonably expect this assignment to last less than 1 year, then yes you can. You would ...
I reimbursement considered "other compensation"?	2/14/2009
Q: I am working as an editorial assistant and am apparently considered an independent contractor (no ... A: You have two options: 1. Report the reimbursed amount as income on Schedule C and also as an ...
Independent Health Care	2/12/2009
Q: I used to contract and paid for my own health care for most of 2008. Towards the end of the year I ... A: Since you were self-employed for the first part of 2008, you can deduct those medical expenses in ...
Signing Bonus Taxation, not on w-2 nor 1099	2/10/2009
Q: I received a signing bonus in Feb 08 for my job which started in June 08. The bonus was paid to me ... A: This can be a tricky situation. Your signing bonus is in fact part of your wages, so you ...
Independent Contractor vs. Employee	2/8/2009
Q: I am working for a family as a nanny 12-16 hours a week. I am not sure what to do about my taxes. ... A: Since you are an employee who worked in their home, you should receive a W-2 from your employers and ...
Bad Debt	2/7/2009
Q: My husband is a commissioned salesman. He had to repay $5500.00 for an account that did not pay ... A: If your husband reasonably thought at the time that he received the income that he had an ...
house payment & other bills	2/5/2009
Q: my boyfriend owns the house we live in but i pay half of the mortgage payment by putting the money ... A: I'm sorry to say that your payments are not tax deductibe. The rules say that unless you're a ...
W2 forms	2/3/2009
Q: Every year my employer dosn't give us our w2's until sometime in March. Is their any way I can ... A: Your employer is required to send out your W2 by January 31 and you should receive it no later than ...
rental property sales	2/3/2009
Q: My husband myself and daughter owned a two BR house. We rented one room for 4 years. She lived ... A: There are two questions that come to my mind when I read your inquiry: 1. Were you and your husband ...

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Alexandra Shainskaya, CPA

Top Expert on this page

Expertise

Can answer questions relating to individual and small business tax returns and tax planning.

Experience

I am the founder and President of Tax & Business Advisory Services LLC, a boutique accounting firm that specializes in tax planning and preparation for individuals and small businesses.

Education/Credentials
New York University Stern School of Business, 2005 Accounting and Finance

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