Tax Law (Questions About Taxes) - Corporate Law - Business

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About Helen P. O`Planick, EA
(Top Expert on this page)

Expertise
I am a tax professional, with experience in individual taxation. I would prefer not to answer questions about non-resident aliens or corporate taxation. Please do not ask me state related questions, unless the state is Pennsylvania. There are 42 taxing states and 42 TOTALLY different sets of state tax law.

Experience
I have been preparing tax returns almost all my life. I have been in professional practice for 25 years and I am enrolled to practice before the Internal Revenue Service.

Organizations
National Association of Enrolled Agents

Publications
I am a prior Money Magazine Tax Test taker and have been quoted extensively in all media including monthly periodicals and books by tax authorities.

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Questions Answered By Expert Helen P. O`Planick, EA
In Category Tax Law (Questions About Taxes)

Subject	Date Asked

Help With Refund Eligibility	11/20/2009
Q: I gave my accountant my 2005, 2006, and 2007 personal and business tax information to prepare both ... A: You can sue him in a civil suit if you think you were done wrong. But no matter what, you have lost ...
Help With Refund Eligibility	11/20/2009
Q: I gave my accountant my 2005, 2006, and 2007 personal and business tax information to prepare both ... A: You have lost your 2005 refund, the statute of limitations has expired and there is nothing you can ...
Dependent care expenses	11/18/2009
Q: Starting in the new year, my wife will look for a job. At that time, we will have child care ... A: She must have a positive income to claim the child care expenses (while actively looking for work ...
Retail Tax...double tax?	11/5/2009
Q: I am a salon owner and purchase my product for retail including hair color from a distributor. I ... A: You must charge tax to the end user. You need to check with your state's taxing authority and find ...
First Time Home Buyer	11/1/2009
Q: I have a question about the 5405 form for the first time homebuyer credit. I purchased one of my ... A: Sorry, since you bought it from your parents you are not eligible for the first time homebuyer's ...
Short Term Capital Gains on Real Estate	10/23/2009
Q: I purchased a property with the intent of its use as a rental unit. The tenants loved the property ... A: If you sell before you own the property a year or less, your gain is ordinary and taxed at whatever ...
income taxes	10/22/2009
Q: Can a man claim my granddaughter on his taxes who is not her biological father? Is there anything ... A: The man has done nothing illegal if the child's mother is the custodial parent and has allowed him ...
rental loss	10/18/2009
Q: I live in Wisconsin but rented own home in Pennsylvania to my son and his family. They have fallen ... A: Sorry, but no. If you did not receive the rent, you do not claim it. You can still take expenses ...
1040A Lines 12A and 12B	10/13/2009
Q: O'Planick, I had my taxes professionally prepared last year. I do not understand why both my wife's ... A: First question - it appears you have non-taxable income in your pension plans. If so, it will ...
transfer tax in PA	9/22/2009
Q: I'm hoping you can point me in the right direction. I bought my first house in March of 2009. It ... A: Boy Robin, I wish I could help, because I would like the answer to this too. But let me try to see ...
401k	9/19/2009
Q: In trying to rollover my 401k from my previous employer they sent me a distribution form instead of ... A: You have 60 days from the date of the check to get the money into an IRA. Whatever is not put into ...
federal withholding for severance pay	9/18/2009
Q: I recently tendered my resignation and gave 30 days' notice. Since I was in finances, I was paid ... A: The paycheck processor is correct in the way it withheld the taxes. You received a bulk paycheck ...
16 yr old tax rules	9/17/2009
Q: My 16 year old son started working. I had him fill out a W-2. So far he has had about $1,000 in ... A: First of all, you must claim him, he cannot claim himself. Secondly, you filed a W-4 for him, not a ...
Expense deductions while on temp job away from home	9/11/2009
Q: My residence is in Florida but I am currently working on a temporary contract job in Maine. The job ... A: If you are an employee, you can use the GSA rate for everything. If you are there as a ...
Ss#	9/9/2009
Q: I am divorced and my wife wont give me my Son's ss# , i need to claim him on my taxes, Is there a ... A: You must have a signed 8832 for you to claim your son on your return (I'm assuming you are not the ...
Capital Gain	9/8/2009
Q: I bought my house in 2000. The house was my main residence until the fall of 2005, at which time I ... A: Since you did not live in the home for 2 out of 5 years, you cannot exclude the gain. Either you ...
Daycare/Preschool tax	9/6/2009
Q: I am currently employed part time in a private preschool setting as a teacher. The classes only run ... A: Since you are running it in the school, you don't need to worry about home expenses. But ALL the ...
Federal Income Tax Filing	9/3/2009
Q: My boyfriend and I are planning to be married (we live in Ohio) and I recently learned that he has ... A: If he never files, they will be constantly over your head as the statute of limitations never ...
Federal Income Tax Filing	9/2/2009
Q: My boyfriend and I are planning to be married (we live in Ohio) and I recently learned that he has ... A: He is not going to go to jail. HOWEVER, once you file a joint return, IRS can take all of any ...
Problem with IRA contribution	8/29/2009
Q: I am retired and had no earned income for 2008 but my spouse had. Therefore, in the beginning of ... A: You made an illegal contribution as you know. So unless you take it out, you will have to pay taxes ...
Property settlement pre dicorce decree	8/27/2009
Q: I want to transfer a portion of my IRA at Wachovia in PA.to my soon to be ex wife and not have any ... A: The decree MUST say the IRA is to be split. You cannot do so on your own. If you try to do it on ...
PA local tax	8/25/2009
Q: I work for a small business in California. In August I have been doing this work at my home in a PA ... A: Assuming the folks live where you are now, all your income would be taxable to that locality, not ...
Claiming property tax	8/25/2009
Q: I own a house in Pennsylvania, I commute back and forth from Pennsylvania to Virginia. I spend ... A: I have never heard of this, honestly. I would appeal it for sure. I do know someone in the ...
LOCAL TAX	8/22/2009
Q: Back in 2000 which was 9 years ago I lived in Quakertown, PA. I received a bill that I owe 1000 ... A: All the PA localities are different and I don't know the rules for the one you are asking about. ...
Paying Children Income	8/21/2009
Q: Besides my "day" job in which I get paid a normal, traditional salary ($150K range), I also ... A: No, if indeed they are working for you, and if you 1099 them THEY will have to pay self employment ...
withholding tax	8/19/2009
Q: My daughter has been working in a fast food restaurant as a summer job; we noticed that a very ... A: Ellen, withholding is done on a sliding scale and her checks are small (I'm betting she is paid ...
PA local and state taxes while working out of the country	8/18/2009
Q: My husband is a DOD contractor in Iraq. He will be out of the country for more then 330 days so we ... A: PA is 3.07% right now. As for the locals, there are so many (67 taxing agencies in PA) that the ...
Car Accident Settlement taxable?	8/9/2009
Q: My wife was in a fairly severe car accident almost 2 years ago. The other driver was found to be ... A: This is very general info as without seeing the settlement papers and knowing your particular state ...
Series E bonds transfer from owner as gift to beneficiary	8/8/2009
Q: My brother-in-law, Bill Riordan (60 yrs old) has a handicapped friend who he has known for about 15 ... A: Bill could easily teach this "friend" a lesson and just cash the bonds and deep the money. It was ...
Freelance Opportunities	8/6/2009
Q: I am a college student and have a part time job, but recently have been dabbling with the idea of ... A: You are correct in that all income is taxable, no matter what the amount. But you are considered in ...
Buyout of Inheritance by sibling	8/4/2009
Q: There are four children who are named as heirs to the family home. One sibling wishes to retain the ... A: You each own a quarter and you each have a basis, which is the date of death value of the parent who ...
minimum distribution rules from an annuity	8/4/2009
Q: My dad is 81 years old. 5 years ago I became involved in assisting him with his investments. I feel ... A: Your feelings are correct as for the pocket lining. Annuities can be treated as an IRA, but if Dad ...
stock sale gains and taxes	8/2/2009
Q: is there any reason that I should spread these sales out over several years, in terms of their ... A: Even tho the gains are taxed at 15%, they can cause other things to happen, such as phase-outs for ...
interest earned minor income taxes	8/1/2009
Q: My daughter has a court held trust fund which she is about to receive when she turns 18. She has ... A: She should have been paying taxes all along. Federally she owed a minor amount, PA is probably more ...
is a gift earned income	7/31/2009
Q: I worked in a family business owned by my father. I received no W-2 for 2005, 2006, 2007, nor 2008. ... A: Good, take my post with you. Can he create W-2s for those years? No. Only Dad can do that. But ...
is a gift earned income	7/31/2009
Q: I worked in a family business owned by my father. I received no W-2 for 2005, 2006, 2007, nor 2008. ... A: If you are working for money, it is not a gift. Dad is messing with you as you are not getting ...
gifting property	7/30/2009
Q: My mother wants to put her home in my name. It is valued at $280,000, which is the same amount she ... A: Assuming you don't live there - mother must file a gift tax return (form 709). You do not have to ...
Taking taxes out	7/30/2009
Q: My husbands employer just sold his company to his 2 lead guys and as a result they are paying him ... A: Something smells. It appears they are treating your husband as a self employed person. As such, ...
Tax Credit for Homebuyer	7/29/2009
Q: My husband and I are first time homebuyers and we expect to close in a couple of weeks. I am looking ... A: You can file a 1040X and the homeowner's form as soon as you close and get your money SLIGHTLY ...
taxes for a cleaning service	7/29/2009
Q: I'm starting a service business. My family and I have discussed that I need to keep track of my ... A: There is really no way I can answer your question, but if you are paying taxes, you are making ...
1065 final k-1	7/28/2009
Q: I am preparing a 1040 which has a final k-1 from a partnership. Should this also be entered on Sch. ... A: It depends if the person was a general or limited partner, if there are carryover losses or passive ...
Taxes on inherited stock and subsequent sale of said stock	7/27/2009
Q: Stock held jointly - husband passes away - the cost basis on half the shares is based on the date of ... A: There is no average per share basis for stock. You need to know what was paid for each share. ...
CAPITAL GAIN EXEMPTION ON REAL ESTAE	7/25/2009
Q: MY WIFE AND I ARE IN THE 15% TAX BRACKET MOST YEARS. THIS YEAR WE ARE SELLING MY WIFE'S FAMILY ... A: First of all, your post is extremely hard to read. Typing in all caps is considered shouting. ...
my first job	7/24/2009
Q: O`Planick, I was hoping you could answer a question that I have that has been bugging me. For a ... A: Liz, you are 19 years old, stand up for yourself. Go take the job. You will have to put the income ...
per diem	7/18/2009
Q: Greetings! I am a resident of California. Last year, I was hired by a company to do contract ... A: You must itemize in order to deduct perdiem and the job MUST last less then, or be expected to last ...
timing for the three year window on home sales tax liability	7/18/2009
Q: We lived in our home for 20+ years and moved this month, July 2009, and have rented the house we ... A: The test starts the day of closing and ends one day less three years later. HOWEVER, rules have ...
W-4	7/16/2009
Q: I am a student and I have a question. Is it ethical, unethical or illegal to be married and claim ... A: I really don't understand your question, but if you are talking about your W-4, the answer is it ...
1099-C	7/14/2009
Q: I received a letter from the IRS regarding income from a debt cancellation from a debt collector. I ... A: You can get a copy of the 1099C from the IRS (not an exact copy but all the information) and then ...
Home during divorce	7/13/2009
Q: My husband and I are going thru a divorce and he wants to try to keep the house, but does not ... A: If the house is considered your childrens' home, you will be allowed an exclusion. If not and you ...
Gift tax exclusion	7/10/2009
Q: A relative of mine is going to receive a gift from an inlaw of $13,000, which I know is the maximum ... A: If you are given a gift, it is yours. If a string or in your case a rope is attached, both you and ...
Pennsylvania Back Taxes	7/6/2009
Q: I owe Pennsylvania back income taxes. Due to a OIC with the IRS I have been unable to pay ... A: PA usually does not settle back taxes. And you have probably had your run of luck with JK Harris, ...
Obligiations of sub-contract to pay all level of taxes	7/3/2009
Q: My son on summer college break is doing a sub contract job in PA. What forms do we use to pay his ... A: If he did not have a tax liability in 2008, then he can wait until filing time to pay his taxes. If ...
Sale of Rental Property	7/1/2009
Q: I have rented out my primary residence last year for a period of one year ending August 2009. I am ... A: It depends on the fair market value on the day you started renting it out and of course the ...
tax/penalties related to UTMA annuity surrender	6/30/2009
Q: My friend is custodian for his 21-yr old daughter's UTMA plan in an annuity which surrenders this ... A: Please have your friend get better investing advice. An annuity for a child is really really wrong. ...
EA omission	6/23/2009
Q: I had an EA do my taxes for 2007. He forgot to include a 1099 for a withdrawal of 6800 from my ... A: All of us make mistakes. And honest, I'm not covering up for him, but did you check the return? ...
per diem	6/19/2009
Q: I am an engineer for a company in WI. I will be traveling and working for this company in MT for an ... A: Temporary is less than a year and becomes not temporary the second the job is to last a year or ...
Lost estimated tax payment	6/18/2009
Q: I sent off my 2nd quarter federal estimated tax payment via certified mail. It is now more than 3 ... A: First, relax, it has only been 3 days. Worry after a couple of weeks. First, wait to see if your ...
real estate fraud and the tax implications	6/16/2009
Q: I am interning in a low income tax clinic over the summer and have a client with a fraud issue. She ... A: This woman needs to go to either an experienced tax professional or an attorney or both. I know ...
Flexible spending accounts - unemployed spouse	6/15/2009
Q: In 2008, my husband and I were both employed and my FSA plan year started in July. I took the full ... A: You must have earned income to use the flex money, so if he did not make enough, your flex dollars ...
real estate fraud and the tax implications	6/15/2009
Q: I am interning in a low income tax clinic over the summer and have a client with a fraud issue. She ... A: She is going to have to pay the piper. You really don't have a casualty or theft loss, you have a ...
Stock sale to take advantage of short term loss carryforward	6/14/2009
Q: Does the IRS recognize a same day sale and repurhase of a stock, inorder to take advantage of a ... A: As long as you are selling the stock for a gain, you are fine, you are just using up leftover ...
rental to primary residence sale	6/11/2009
Q: I have a home in a different state that I have rented since 2003. Depreciation is currently at ... A: You will pay up to 25% tax on the recapture of depreciation and you will not be able to exclude the ...
Three year refund limit	6/9/2009
Q: I recently received a notice from the IRS that they are not liable for the refund I filed for on my ... A: This law has been on the books as long as I've done taxes, which has been over 40 years. Basically ...
Tuition Reimbursement	6/6/2009
Q: My company reimburses either 75% or 100% of tuition expenses related to my Exec. MBA Program. I pay ... A: Any reimbursement over the tax free limit is taxable income to you. Since it is not mandatory, you ...
Per Diem for Contractor	6/5/2009
Q: I am the controller for an IT company. We are in the process of hiring a new W2 employee who lives ... A: First of all, you must understand that the absolute second this job is set to last more than a year, ...
Federal Income Tax	6/5/2009
Q: My question concerns my tax liability on a settlement I received. To summarize briefly, I was let ... A: These are punitive damages and punitive damages are taxable income. If you do not pay the taxes ...
Family Member not paying taxes	6/3/2009
Q: Brother 1 has not paid taxes in 25+ years and is quite proud of himself. He is now going to be ... A: Just say no and don't take the bully to heart. Let him work it out, don't become an accessory to ...
Double income cut in half	6/3/2009
Q: My sister and her husband owe 35K in taxes. A physician and a pharma exec with a home in PA, he lost ... A: I do a lot of rep work and may be able to help them or at least set them up on a payment plan. The ...
Per diem pay and taxes	6/2/2009
Q: my husband started working for a long-haul truck company as a driver. They said his pay would be ... A: You are going to have minimal expenses such as showers, etc, but the perdiem is FOR his meals. So ...
Dependant / Independant	6/2/2009
Q: I have two sons in college. Next year my oldest (22 years old) will be starting graduate school. ... A: If you are paying more then half his support, you can claim him. If he has no income, he would have ...
Transfer of Assets	5/24/2009
Q: Transfer of Assets We want to transfer assets from our son’s investment account into our account. ... A: Obviously you started as a sham transaction and now you want to make it worse. The money is his ...
Foster Care and taxes	5/23/2009
Q: My husband and I are becoming foster parents this year and I need to know a few things. 1. Is the ... A: The money the state gives you is not taxable. The child must live with you over 6 months in a year ...
local earned income tax	5/21/2009
Q: My hubby is a trucker who residence is in Westmoreland county in Pa. We filed earned income tax ... A: I'm in York Co and here, they will put out a warrant for your arrest if you don't set something up. ...
how to determine property value	5/20/2009
Q: I am currently renting out my old apartment. I understand that in addition to common changes, ... A: You use the lesser of purchase price (plus improvements) or value on the day you converted it to a ...
Tax Withholding	5/20/2009
Q: My girlfriend was reported to have $0 withheld for federal on her w-2. They told her the reason is ... A: While I can understand you are upset, the only regulation is her self-regulation and looking at her ...
injured spouse	5/19/2009
Q: My husband and I were just married in May of 08, my husband owes back child support so we filed ... A: Did you file electronically? If not, then they may have just missed the form. Send them another ...
Tax Withholding	5/19/2009
Q: My girlfriend was reported to have $0 withheld for federal on her w-2. They told her the reason is ... A: Your first post says she went exempt in April or May. Before that, perhaps her wages were not ...
State Taxes	5/16/2009
Q: In 1995 & 1996 i worked in the State of Ohio. i lived in State of Penna. my employer took out state ... A: The statute of limitations to Ohio to refund your money is probably long gone. You can try to ...
REntal property	5/15/2009
Q: I have a primary residence. I also purchased a condo with money I had prior to my second marriage. ... A: You did not answer my question. IS HE PAYING RENT? If so, and if it is fair rental value (what you ...
confused	5/12/2009
Q: i receive death benefits for my two kids (father). We (my husband and I) do fall in the bracket to ... A: If you are talking SS, you SHOULD NOT be claiming it on your return. And if you have been, you need ...
can i re-file	5/12/2009
Q: My parents have been claiming my child for last couple years and I feel that it is not right for ... A: Are you paying your parents rent? Paying for your food, etc? If not, they are supporting you and ...
tax on 2nd mortgage	5/11/2009
Q: I am buying a house from a builder and simultaneously selling it. The Purchaser is signing a first ... A: You owe a lot more then the cash in. If you are buying the house for $200,000 and selling it for ...
taxes incident to divorce	5/8/2009
Q: As per my divorce decree, I was to receive half of my former husband's excess 401K contributions for ... A: The income should have been reported on the 2007 return if he did got the money back before March. ...
No federal tax being withheld from my check?	5/8/2009
Q: My name's Jessie and I am a divorced mom of two. I have been working at my current job now for three ... A: Congress has more money coming into our paychecks then ever before. If your income has not ...
Second Home Questions	5/8/2009
Q: My husband and I have a primary residence. Last October my husband took a job 62 miles one way from ... A: He has no deductions for the rent he is paying, so at least you will be able to write off the ...
Investment taxes	4/26/2009
Q: My wife and I lived in a very rural part of Ohio. Very poor economy and no work. I had broken my ... A: These two are not in Akron, but I know are qualified to help and may be worth an email. Please feel ...
capital gains	4/26/2009
Q: I am the 3rd generation to own a family farm. The price I paid is about 1/5th what it's worth ... A: There is no reinvesting a home anymore, that left in the late 90's. Your gain will be capital and ...
Investment taxes	4/26/2009
Q: My wife and I lived in a very rural part of Ohio. Very poor economy and no work. I had broken my ... A: Hate to tell you, but it what you did with the annuities was prohibited and hopefully you did not ...
jackpot winner	4/26/2009
Q: I won 540,000.00 on a jackpot in a navada casino and was told I would have to pay aprox. 170,000. in ... A: You can give my portion back to me for starters. :) There is really nothing you can do but keep a ...
head of household	4/24/2009
Q: My husband and I were separated from Feb 0f 2008 thru March of this year, & I lived with my elderly ... A: Actually, since he did HOH, you do not have to itemize. Had he done married filing separately, you ...
Philadelphia local tax	4/24/2009
Q: This is the first year I did my husbands taxes since he has been driving a truck. He is an over the ... A: If you live in Philly, you do owe local income tax to Philly. And besides the point that it is more ...
Capitol Gains Tax	4/24/2009
Q: You have lived in your home since 1961 and now must sell because of health. How does this affect ... A: Ed, not in PA :) , maybe in Oregon, but there are still some outs for you. First of all, Mom's ...
penalty on withdrawal from thrift savings plan	4/23/2009
Q: I made an early withdrawal from my 401K in March, 2008. I withdrew $100,000. I know that in ... A: No way is 20% going to be enough for you to not pay taxes, but with the withholding, as long as you ...
Capitol Gains Tax	4/23/2009
Q: You have lived in your home since 1961 and now must sell because of health. How does this affect ... A: I have no idea what Oregon will want, but IRS says that as long as your gain is less then 250,000 ...
tax deductions	4/20/2009
Q: i live in california. i have a couple questions that i hope you can answer. i work full time as a ... A: I can't tell you if an LLC is good for you or not. I can tell you that it really sounds like you ...
My church pays me but no 1099	4/17/2009
Q: I started playing piano for a church at the beginning of last year. I get $400 a month for all 4 ... A: You should receive a W-2 as you are an employee of the church. So there is an issue there. Seeing ...
401k early distribution due to term illness	4/17/2009
Q: I am in the process of filing for a friend that I was/am POA for, who died in Sept. She cashed out ... A: Since she was in SSDI, the 401K distribution is NOT subject to penalty, just normal taxes. ...
NOL	4/17/2009
Q: my husband and I who file jointly have a NOL on our personal taxes this year carried over from the ... A: Right now you are asking to defraud a bank. The IRS says you cannot skip a year with your NOL or ...
dependants and filing taxes	4/14/2009
Q: If a child has lived with you for the greater part of the year but your ex is listed in divorce ... A: First of all, I am not a CPA, I'm an EA and a true tax professional. Secondly, if you read ...
Renting house to son	4/14/2009
Q: We (my wife and I) are planning on renting our house to our son and his family. They are moving back ... A: If this is a not for profit rental, you can only deduct your expenses (in a very specific order) up ...
How to file an extension and report self employment income	4/13/2009
Q: I hope you can help me out with some pressing tax questions. I used to have an LLC and worked for ... A: You need to file your extension and pay what you can by Wednesday. What is not paid, but what is ...
tax from selling a house	4/11/2009
Q: If I build my own house and sell it after 7 years how would taxes be figured on capital gains? Cost ... A: Sweat equity has not tax bearing on anything. If this is your personal residence and you do not ...
Prepaid cell phone - other	4/9/2009
Q: My wife is a real estate agent. As she was doing her studies back in Feb 2008 we bought a prepaid ... A: With cell phones, you must keep a log of all calls, both business and personal, and deduct only ...
tax	4/9/2009
Q: I am somewhat new to this so please bear with my various questions. I am self-employed. This year, ... A: John, your question is way to long for my taxed brain to look at right now. The only thing that ...
TAX	4/8/2009
Q: I just did my tax and I owe the irs 2,700. I can't afford to pay it. What are my options. A: File on time first and send what you can! If you can pay it all within 3-4 months, just keep ...
Parents and Taxes	4/7/2009
Q: I'm 20 years old, I moved out of my parents house in May of '08, lived with my girlfriend for 4 ... A: If your parents supported you over 50%, they are correct. But why are you fighting $400? If you ...
1099-Misc	4/5/2009
Q: We have a local agency called Monadnock Worksource. They find work and home care for handicapped ... A: This is taxable income. I think they are trying to say it is sort of a sheltered workshop income, ...
Please help/IRS question	4/4/2009
Q: We need help! Our home was foreclosed last August (2008) and we received a 1099A from the lender ... A: Until the home is sold and you receive a 1099-C, you really don't have anything to report. When you ...
capital gains	4/3/2009
Q: I have a mutual fund accounts that automatically purchases/reinvests my dividend by buying shares ... A: Your dividends add to your basis. So if your basis is $14K and you sell for $8K, you have a $6K ...
rent/travel business write off	4/2/2009
Q: I am presently a self employed physician working on a part time contract basis as a locum tenens ... A: The answer is no, once the assignment goes a year or is expected to go a year, there is NO deduction ...
dependent minor tax exempt?	3/31/2009
Q: Hey there. I turned 18 years old at the end of 2008, and I believe my estranged mother is claiming ... A: Dependents and minors are NOT exempt to file returns. If your mother supported you over 50%, she ...
Form 1041 Schedule K-1	3/31/2009
Q: For the last 20 years I have received interest only on money that was awarded me as a result of a ... A: They are not breaking the law. As long as they get the K-1 out by the due date of the return or ...
Capital gains	3/30/2009
Q: We had been renting a home for 4 years and in 2008, the owner gifted us the home. She had paid ... A: You have a taxable gain and it is short term. You have to use her basis, which will be what she ...
IRA/Roth IRA	3/26/2009
Q: I am planning to convert my IRA to a Roth IRA. I am within the allowable adjusted gross income. If I ... A: Any funds not rolled into the ROTH, including those to pay the taxes, are NOT eligible for ...
Dependent Income	3/25/2009
Q: When my child receives a W2 from her employer, do I have to file her taxes individually? Can I ... A: If she has taxable income (over $5450 with no investment income) she must file. If she had federal ...
profit from rental property	3/25/2009
Q: We live in Maryland. We sold a rental property (small cottage used only for rental) we own in Maine ... A: Sorry, but no. Had you exchanged the ME property for the TX property, you could have gotten out tax ...
1099	3/24/2009
Q: I am employed but my employer told me that I will get a 1099 at the end of the year. How do I pay my ... A: Your "employer" is screwing you royally. You will have to pay SE taxes and are not covered under ...
Delinquent Tax Debt	3/23/2009
Q: I owe a total of about $67,000 from 3 years '03, '04, '05 - my husband was self employed back then ... A: First of all, it does not sound like the taxes are correct. You can go back and amend them and fix ...
RMD from brokage account	3/22/2009
Q: good morning I made a stock withdrawal from a brokerage IRA and had it placed into a personal ... A: No, the date acquired is the day you took it out of your IRA. I misunderstood your question. You ...
Who Should We Turn To?	3/19/2009
Q: My wife and I find ourselves in the uncomfortable position of not wanting to go back to our old ... A: Ask friends. They may tell you who they go to, but they will definitely tell you who not to go to. ...
Capital Gains vs. Inv. Income Form 4952	3/18/2009
Q: I had an investment property in which I paid interest over a few years, did not rent it out and sold ... A: You needed to make a written election on the original return. Since you did not, you cannot add the ...
2008 tax question (please help)	3/16/2009
Q: Good afternoon Helen, I would like to start by thanking you in advance for doing what you do, ... A: I would sue him in local court. It will not cost a lot of money and the issue would be exposed. ...
2008 tax question (please help)	3/16/2009
Q: Good afternoon Helen, I would like to start by thanking you in advance for doing what you do, ... A: This guy is a cheat and should be shut down by the IRS. He is NOT allowed to wire the money to his ...
IRAs	3/15/2009
Q: I have been taking my RMD each year (8years) from my IRA. I just discovered that I have been paying ... A: No, you need to go back and amend the past years return. You will not get any refund from 2004 and ...
Land Sale	3/14/2009
Q: I am a Pennsylvania resident. Last week, I received about $5500.00 from the sale of some land in ... A: When Dad died, your mother inherited it. And you inherited her portion. So your value is the date ...
Taxes on Survival Income	3/11/2009
Q: As former middle-class Americans, we are middle-aged, and doing whatever we can to survive until we ... A: Anything you sold for more than you paid for it will have taxes due on it. Those items will go on ...
casualty gain	3/11/2009
Q: We had a house fire. My question is on the contents-personal items. We listed 1330 items on our ... A: You do not have to do the casualty form if you are totally reimbursed by your insurance. Basis is ...
22 Year Old Grad-Who Claims Me?	3/10/2009
Q: I am a 22 year old full time grad student who lives and attends school in Pennsylvania. I live with ... A: It is everything and if you give over 50%, you can claim yourself. You have to calculate imputed ...
sale of land	3/9/2009
Q: I am assisting my mother-in-law (in her 80s) with her taxes. My mother and father-in-law "purchased" ... A: Your MILs basis is one half of what his sister paid for the property and one half the date of death ...
Claiming Dependants	3/9/2009
Q: I'am seperated from my wife and am currently ordered to pay $1,733 per month for child support for ... A: You are confusing 2 issues. Taxes and child support. The custodial parent is the one that either ...
Inherited a home	3/8/2009
Q: My mother passed in 2007 and my sister and I inherited her home. It was valued at 280K on her ... A: The utilities are personal and not deductible. Your share of the taxes go on your Sch A unless you ...
Federal Taxing of Inherited Mineral Rights	3/8/2009
Q: My sister and I inherited mineral rights from our mom in 1987. Mineral rights only, we do not own ... A: Sure. This is taxed to you just as it would have been taxed to your mother. You are now the owner ...
IRA question	3/7/2009
Q: I have a question on 401(k)/IRA account to get the tax benefit. We are filing the current return ( ... A: Since she was eligible for the plan at work, she cannot deduct an IRA on her own. She is able to ...
1099-B	3/4/2009
Q: I loaned/invested $5,000 to J. T. Wallenbrock & Citadel Capital on April 2001. I received a ... A: Do you have any idea what percentage of the payout this is? I would come up with a ratio the best ...
divorced parents and dependants	3/3/2009
Q: I am a recentley divorced parent and I have two children....My divorce was finalized July of 2008 ... A: If you are the custodial parent and you did not sign an 8332 allowing him to claim them, YOU claim ...
1099 unfiled	3/3/2009
Q: In 2007 my employer loaned me 3000 for moving expenses and gave me a 1099 for the loan. I then paid ... A: Your employer needs to correct the 1099 to show it was paid back and issue you one for -0- or ...
tax return forgery	2/28/2009
Q: The father of my daughter's child filed 'their' taxes electronically without her knowledge or ... A: He could not have filed a return with her, it would be illegal. (I mean, he could have done it, but ...
Quakertown Earned Income Tax	2/26/2009
Q: I was just notified by Berkheimer that I owe Earned Income Tax for the years 1992 and 1993 that I ... A: If you live in a county/township for any part of a year, you owe the local taxes for that portion. ...
refile 2007 taxes	2/26/2009
Q: My husband took early retirement in 2007. He knew he would work some during the year 2007, but was ... A: You don't need anything to prove anything, just the checks on the repayment. You put the repayments ...
Business expenses	2/24/2009
Q: I have some questions about when business expenses become deductable. If I begin setting up a ... A: The expenses are considered start up expenses and deductible when the business starts. If you had ...
house sale and social security	2/24/2009
Q: 1.) I owned a home in another state jointly with my 2 sisters and my parents. This home was gifted ... A: Let me do the easy one first. Your daughter's SS goes on her return and not yours. If she has no ...
Inherited house and renting to sister	2/23/2009
Q: I have a sister who lived with a person who passed away. I bought the rights of inheritance to the ... A: If you are renting the house out without a profit motive, you can only take your expenses to -0- and ...
Filing Married but Seperate	2/22/2009
Q: Good Afternoon, my parents are hapily married & went to file their tax return. Unfortnately, my Dad ... A: FL is not a community property state. You can find all the "handslaps" in pub 17 at www.irs.gov. ...
Auto reimbursement doesn't cover costs - deduct difference?	2/22/2009
Q: Helen, Thanks for reading my question! I currently receive $450 car allowance + a credit card for ... A: You can deduct your business expenses, either by using the actual expenses or standard mileage rate. ...
Child Dependant with New Changes	2/22/2009
Q: I have a 22 year old daughter who is a full-time student. She will make between $4000-6000 in 2009. ... A: If you are supporting her, she cannot claim herself. You can choice not to claim her, but she will ...
1099R question	2/21/2009
Q: I have a tax client who brought in a 1099R from a life insurance company. Box 1 and 2a amounts ... A: I'm sorry for being rude, but if you are preparing taxes, you need to stop. This is a very basic ...
1099-B,1099-DIV	2/19/2009
Q: my daughter (dependent full-time college student) received 1099-B, box 2 shows stocks, bonds, etc. ... A: The amount of all reinvested dividends add to her basis, both in cost and amount of stock owned. ...
Sale of Mother's Home	2/16/2009
Q: This is in two parts: My two sisters and I sold our mother's home 1 year after she passed away. My ... A: Since you sold the home for less than the date of death value and assuming you did not live in it, ...
mortgage loss as a tax deduction	2/16/2009
Q: I am being audited by the IRS for the following reason. I have a rental property that was being ... A: You cannot deduct rent paid to yourself. You may have a loss due to the mortgage interest, but that ...
married filing separately vs jointly	2/15/2009
Q: I was wondering which is a better choice for me and my husband when it comes to filing our taxes; ... A: You did something very wrong when you did the switch. There is NO WAY that MFS is going to benefit ...
1099 B	2/11/2009
Q: Company i worked for gave us 25 shares of stock as a gift on july 21 of 2008.I sold the stock on ... A: It was not a gift, it was an incentive to keep you there (a bribe if you will) and is totally ...
HOH vs Single	2/8/2009
Q: My ex-husband and I were divorced in Sept 08. He moved out in Sept 08 as well. Therefore, he was ... A: The IRS person is an idiot. There is NOTHING in the tax code that says HOH can be un-opposed. Your ...
EIC claiming	2/7/2009
Q: Every year now I have claimed my son as an exemption and for EIC. I am a single mom, never married ... A: He cannot claim your son, you are the custodial parent. If your return has been rejected, you need ...
RE: 1099-MISC	2/5/2009
Q: We received a 1099-MISC from a pipeline company after they reimbursed us last year for damaging our ... A: First of all, you should not have paid taxes on the easement and you do not owe taxes on this money ...
First Time Home Buyers and Newlyweds for 2008	2/4/2009
Q: I have a couple different questions regarding the filing of our taxes. 1) I first entered my tax ... A: I'm going to make this short and sweet, you are over your head using the box. First of all, you did ...
Life Time Use	2/4/2009
Q: 2002 Parents home transferred to my name. Mother had Life Time Use. In 2007 she passed away. Home ... A: If your mother retained a life estate, your basis is whatever the value of the home was on the day ...
death of spouse	2/3/2009
Q: My husband passed away Nov. 2008. I know that I am eligible to file jointly, but when plugging in ... A: While you can file separately (and if you are in a community property state, stop reading and see a ...
sold home of deceased mother's	2/1/2009
Q: sold a home in 2008 that was we bought for $1 warranty deed from parents. Mother enter nursing home ... A: Unless Mom kept a life estate, your basis is her basis and you will pay tax on the gain. If IRS ...
filing eic on ammendment	2/1/2009
Q: I have two children. I already filed my taxes and got a refund, but I forgot about a 1099 I just ... A: You do not have to use the same preparer. As for getting EIC, I would have no idea, but looking at ...
Fair market value?	2/1/2009
Q: Carole couldn't follow-up with my question (maxed out). Maybe you could help? How do you determine ... A: As long as the assessment was made close to the date of death, yes, it is okay. So your gain is ...
Severance pay taxes	2/1/2009
Q: My job was recently eliminated after working for the company 25 years. I’m entitled to a severance ... A: Severance can be withheld at a higher rate for federal only (flat rate of btwn 25-28%). PA stays the ...
Ex husbands taxes	1/28/2009
Q: in 2005 my ex husband was working as a subcontractor, we were separated and filed a tax return, he ... A: If you filed a married filing joint return, the IRS will keep your refund since you are responsible ...
Auto Deductions	1/25/2009
Q: I work as a w-2 employee as a sales rep. and receive a $450 per month auto allowance. For the past ... A: If you started using the standard mileage rate, you can switch back and forth btwn standard and ...
earnd encome credit	1/25/2009
Q: I'm filing separate from my husband but he owes back taxes federal and they take my money to if i ... A: If you file separately, you will not get EIC. If you did not sign the return that he owes money on ...
Filing Personal Income Tax Statements	1/23/2009
Q: I was wondering if you might know if there is a penalty for not filing your annual personal income ... A: If you are getting a refund, you are correct, they will not come after you. HOWEVER, for example ...
Mileage Reimbursements	1/22/2009
Q: I work as a legal assistant for a lawyer who recently has moved his office from downtown Atlanta to ... A: Driving to his home is commuting and if you are reimbursed for that, it is taxable income to you. ...
Taxes for a married couple who are separated	1/22/2009
Q: I am separated from my husband, and have been since May, 2008. We have three kids and I plan to file ... A: If the children are living with you, you are the custodial parent and you can claim them or allow ...
IRA taxes	1/22/2009
Q: In 2008, when I retired, I received $10,000 from the company I worked for. Nothing was withheld for ... A: You have numerous issues AND problems. The max you can put in an IRA for 2008 is $5,000, unless you ...
Vanguard account	1/20/2009
Q: My mother left me $17.000.00.Half in GNMA and half in Bond index. Today i received a form 1099-b ... A: You have to know your basis and that is what the fund(s) were worth on a date of your mother's ...
claim zero or one	1/19/2009
Q: I am a single male with one daughter that lives with me. I make about 45000 to 50000 a year. I ... A: You can look at pub 15 at www.irs.gov. That is the withholding publication. Start around page 36, ...
Coverdell Early Withdrawal	1/19/2009
Q: I need to withdraw from the children's Coverdell IRAs to refinance my home. I have lost value in ... A: If you are taking all the money out of the fund and if you have a loss from the original ...
Contractor Per-Diem Taxability	1/19/2009
Q: Background: I have a permanent residence in a southwest state. I am working for an east coast ... A: The second the company says Mark, you are staying either perm or over a year is the second your ...
Prize Winnings	1/19/2009
Q: I won a new motorcycle in my son's school raffle this past summer. Its purchase price was ... A: Providing you can prove the fair market value of the bike was $10K, that is what you pay tax on. ...
Claiming a parent	1/18/2009
Q: On Jan 17th '09 I bought this house from my mother. She retired Aug'08. We both live in the same ... A: If Mother's taxable income is less then $3,500 for 2008 (and after that, equal to the personal ...
SS disabilty,divorce	1/16/2009
Q: I am 18 years old I am disabled receiving SS disability. I was divorced in 2008 income $18504, sold ... A: Your wages, perhaps the house sale profit unless you can exclude it and most certainly the 401K ...
1099-ish type question	1/15/2009
Q: I'll try and make all this as to the point as possible. I work in computers and have a regular 9-5 ... A: I do not give any software support, but for tax knowledge, you will file as normal, along with 2 Sch ...
gain on house	1/14/2009
Q: In 1981, my parents bought a house for $61,000. In 1996, when the house was worth $112,000, my ... A: Your basis is one half of $61,000 or $30,500 and one half of $112,000 or $56,000, for a total basis ...
Taxability of Masonite Omniwood Siding Class Action Lawsuit	1/14/2009
Q: I received a 1099-MISC from the claims administrator for compensation that was paid to me under the ... A: As long as you originally did not write off or depreciation the siding (as in a rental home), your ...
1099's	1/12/2009
Q: I have two independent contractors who never submitted W-9's. Now we have to file 1099's, but have ... A: Send them the 1099's anyway, leaving the SSN block blank. The IRS may assess a $50 each fine for ...
Newly Created Single Member LLC	1/12/2009
Q: My wife recently (9/2008) changed her business from a sole proprietorship to an LLC. I typically ... A: Yes, you will need to do 2 Sch Cs, one pre-LLC and one after-LLC. The RCT 101 is really not that ...
ira, medical tax question	1/1/2009
Q: If I was laid off in 11/07 and took money from my 401k for living expenses before I found a job in ... A: Your Cobra payments don't count, so the ONLY amount that will be penalty free will what was used for ...
CLAIMING A DEPENDANT	1/1/2009
Q: I AM A DIVORCED FATHER OF A NOW 16 YR DAUGHTER WHO HAS PAID SUPPORT FOR YRS AND MY DIVORCE DECREE ... A: First of all, turn off the caps lock key. Typing in all caps is considered shouting and very hard ...
FILING MARRIED	12/31/2008
Q: IF A PERSON IS MARRIED BUT HAVE BEEN FILING THEIR RETURNS AS SINGLE FOR OVER SIX YEARS WHAT KIND OF ... A: Please do not use the caps lock key. It is considered cyber shouting and very hard to read. You ...
IRA taxes	12/31/2008
Q: Good Day, Thank you for providing this service. My mother would like to cash out her IRA Mutual Fund ... A: Asssuming Mom is at least 59.5 years of age, she will only owe income tax on the money, no capital ...
72(t) Early IRA Distribution Split	12/30/2008
Q: I have a client and her spouse who share equally in a 72(t) payout from an IRA, which is the primary ... A: I wish I had time to take time to charge you Janis, but with tax season almost here (and a vacation ...
Dependant Status	12/29/2008
Q: I am newly separated from my spouse at the beginning of Nov 08, with two small children and have ... A: He supported them for most of 2008, you gave no support (financially) at all. Don't be vindicative. ...
Section 179 tax deduction on vehicles	12/28/2008
Q: I have been informed that if one purchases (finances) an SUV in year 2008 greater than 6000 lbs ... A: You do not need a business name to take the deduction. Your understanding is correct, just know ...
private house sale	12/27/2008
Q: My sister and I inherited a home from my mother. We decided to keep the home and now want to sell ... A: Whether you seller finance or not, the gain is calculated the same. The basis is date of death value ...
my filing status	12/24/2008
Q: I been married since august. This is my first time filing and my husband second time filing. We are ... A: You have two choices for filing status and that is either married filing jointly or married filing ...
1099C and Bankruptcy	12/21/2008
Q: I need help so bad. We did a deed in lieu on our home in January 2008. We owed $220K on it and I ... A: I'm going to say that since the foreclosure already took place, it cannot be placed into your BK and ...
sale of one acre lot off 25 acre parcel	12/19/2008
Q: I sold an acre building lot in York County, PA this year, 2008. I sold it for over $100,000 after ... A: Mary, I think it would be better to sit and talk about this in person, so we can see each other's ...
sale of one acre lot off 25 acre parcel	12/18/2008
Q: I sold an acre building lot in York County, PA this year, 2008. I sold it for over $100,000 after ... A: Since the costs were for the entire parcel, you must prorate those costs and it would be easiest to ...
personnal taxes	12/18/2008
Q: My boyfriend and I have been living together for two years. I didn't work for the year of 2008. Can ... A: Yes, this is a brand new ruling. Last year he could not have, but this year he can and the new ...
personnal taxes	12/17/2008
Q: My boyfriend and I have been living together for two years. I didn't work for the year of 2008. Can ... A: If your relationship is not against local law, and you have no income, he can claim you as a ...
Tax/Lien questions	12/17/2008
Q: hopfully, provide some enlightenment. Some background which I think is realevant: My wife and I owe ... A: Just keep sending in those payments until the other years are paid off. The overage for the one ...
Tax exemption with minor children if divorced	12/17/2008
Q: This will be the first year my ex-husband and I file after our divorce and we have 2 minor children. ... A: If he is not supporting them, you can claim them both. The custodial parent claims the children and ...
Form 1040-ES; changed jobs mid-year	12/17/2008
Q: I changed jobs in August 2008. From January 2008 to August 15, 2008, my pay was taxed by my ... A: I just wanted to make sure you were not classified wrong. Dig out your 2007 return and look at the ...
Small Business Taxes	12/16/2008
Q: My 13 year old son and my 14 year old son helped me during the year on my side business. I ... A: Assuming you are a sole prop, you should give your boys a W-2 with their earnings. You do not have ...
IRA Rollover	12/15/2008
Q: I rolled over a old traditional IRA to a Roth IRA recently. I hadn't contributed to the traditional ... A: You really have to go back in your records to see what was deductible and what was not. The amount ...
Alimony	12/12/2008
Q: A taxpayer pursuant to a court approved settlement agreement pays his ex-spouse alimony of a certain ... A: No to the current payments. He is making voluntary payments to her not under the decree, so it is ...
1099	12/12/2008
Q: My husband and I moved to COlumbus OH 12-1-2005 from Cleveland OH. At the time we refinanced our ... A: It will be taxable unless you can prove insolvency as the loan is NOT qualified debt for the ...
real estate inheritance	12/10/2008
Q: my wife and her sister are selling their deceased mothers home, which is in my sister-in-laws name, ... A: It looks to me as sister in law owned the home and she is making a gift to your wife. Gifts are ...
Basis	12/10/2008
Q: When my mother passed away, I bought my 2 siblings out for the house. I intended to live there, but ... A: FMV has nothing to do with it. Date of death (or the alternate valuation) starts things. So, say ...
roth conversion with trad ira that has some cost basis	12/10/2008
Q: I have a trad. IRA that has a partial cost basis(back in 90's added some post tax dollars when ... A: The conversion amount is not used to calculate your income for conversion, so you are okay there. ...
72T ending	12/9/2008
Q: I am 55. I have approx $250K in a IRA which was created by merging my IRA and the 401K's from 3 ... A: Craig, you can do whatever you with it once you hit 59.5, and that means leave it alone until you ...
roth conversion with trad ira that has some cost basis	12/9/2008
Q: I have a trad. IRA that has a partial cost basis(back in 90's added some post tax dollars when ... A: You first offset any gains (long from long, short from short then any others you have), then you use ...
Filing Status	12/9/2008
Q: My daughter is wondering if she can file a federal tax return as married separately, or head of ... A: I can't tell you if the support is taxable or not. It depends if it is alimony or child support. ...
w4	12/9/2008
Q: Helen, I make 130k to 150k yr.At the beginning of the year I claim unmarried with no dependants. ... A: I can't tell you how to file your W-4 without seeing your tax return. But I can tell you how to ...
Baby-sitting	12/8/2008
Q: I have paid my sister to baby-sit regularly for me this year. She didn't earn enough to have to ... A: If she was sitting in your home, then yes, she was your employee and you should have been ...
Filing Status	12/7/2008
Q: My husband and I have been married for 4 years and have filed taxes as married filing jointly. I ... A: Tracy, it will be better if hubby files the injured spouse form with your married filing joint tax ...
Filing Status, dependent, and Schedule E Rent Income	12/6/2008
Q: I purchased a two-family home in early 2008. The first floor is occupied by me and my fiancee, ... A: Your girlfriend's mother cannot claim head of household if your boyfriend is claiming her. She is ...
ESOP payment	12/6/2008
Q: I will soon be receiving $85K through and ESOP. I am now a student and would like to use this ... A: If the ESOP is in a retirement plan, you must roll it into an IRA in order to take any out for ...
Taxes	12/5/2008
Q: If i filed my corporation in 2003 but i started business in 2005, do i have to pay taxes for 2003 ... A: You started the corp in 2003, therefore, you should have a return in 2003 and 2004, even if it was a ...
Primary Residence	12/5/2008
Q: I just moved out of my primary residence which is a co-op apartment in Brooklyn, NY in the middle of ... A: All of the rental income is taxable, but you will have expenses also and depreciation. See Schedule ...
Prize winnings	12/5/2008
Q: I won a new car. The manufacturer is going to send me a 1099 for $28745.00. The IRS help line ... A: You do, your first was NOT asking the IRS. :) You can claim what a willing buyer and seller can ...
Aston Township earned income tax	12/5/2008
Q: Aston township has a 1% earned income tax in place. I did not file this tax for my daughter in 2004. ... A: Yes, the fines, etc are owed. It is not their responsibility to tell you that a return needs filed, ...
write offs for s corp	12/4/2008
Q: i just setup a "s corp" and wanted to know where i can learn: 1)tax rules and regulations of s corp ... A: The person that helped you set it up should be the one answering these questions, but you can read ...
Conversion from 401k to Roth IRA	12/4/2008
Q: I rolled over a 401k account to a Traditional IRA this year. The account was partially funded with ... A: When you do the conversion to the ROTH, you must take into account ALL your IRA balances (on form ...
pa capital gains	12/2/2008
Q: I recently sold my home and property,actually had to before i lost it all. My question is do I have ... A: This is a little tricky, since you kept a part of the property. So I need to ask you some ...
roth conversion with trad ira that has some cost basis	11/30/2008
Q: I have a trad. IRA that has a partial cost basis(back in 90's added some post tax dollars when ... A: Yes, you only pay tax on the before tax dollars and appreciation. The aftertax dollars are not ...
capitol gains on Vanguard Health Care	11/20/2008
Q: I am 70 1/2 y/o female with an income of about 15K from work and about 12K from soc sec. I ... A: The fund has paid the gain, so no, there is nothing you can really do. But long term gains are ...
Roth Early withdrawl for Home Purchase	11/15/2008
Q: My fiancee and I are about to make a first time home purchase. To speed up the closing, my ... A: It is much cleaner to come to the closing table with the IRA money or a strong agreement with ...
Roth Early withdrawl for Home Purchase	11/15/2008
Q: My fiancee and I are about to make a first time home purchase. To speed up the closing, my ... A: As long as you spend (out of your pocket) the 10K, then you can pull it out of your ROTH and pay ...
Capital Gains on House Sale	11/13/2008
Q: Five years ago, some friends of mine took in their elderly mother to live with them full time. They ... A: The answer is not going to make me popular, but they have until the end of this month to sell to ...
Dependent Getting Married	11/9/2008
Q: Today I recieved a letter from the IRS stating that my daughter who got married on October 23, 2007 ... A: If your daughter and her husband had enough income to have taxable income, you should not have ...
sign on money from gas lease company	11/8/2008
Q: Several guys bought land and formed a non profit club. After 30 years signed a lease with gas and ... A: It is not just taking the money out. The club would have to report the release of the money to the ...
real estate	11/8/2008
Q: i just sold a property for 215,000 dollars and i was wondering how much do i have to pay in taxes ... A: It depends on your basis (what you paid for the property). If you owned it longer than a year, the ...
short sale and 1099	11/7/2008
Q: I have just sold my secondary home with a short sale. My question is in regard to the 1099 and how ... A: Dana, check out form 982 at www.irs.gov. Tax Attributes are things you get tax reductions for, such ...
CGT on Investment Property with no US income	11/6/2008
Q: My partner and I bought a house about a year ago and now are being relocated oversees. We have been ... A: You can elect to capitalize the interest and taxes to add to the basis. HOWEVER, you then cannot ...
Claiming a rental property	11/6/2008
Q: I own a house which my father lives in (I don't live in the house). I am able to claim him as a ... A: No. In order to claim it as a rental property you must charge him fair market value rent. You get ...
401K WITHDRAWAL EXCEPTIONS	11/5/2008
Q: I WOULD REALLY APPRECIATE SOME ADVISE ON THIS MATTER. ANY HELP WOULD BE GREAT. I AM 38YEARS AND I ... A: Just don't do it. You will pay income tax and a 10% penalty, so that will about blow the money from ...
divorce & claiming children as dependents	11/5/2008
Q: I have a question about who gets to claim my three children on 2008's tax return. I have been ... A: Jennifer, you basically gave the kids away to him. Granted that you can take it back, but it will ...
$7,500 First-time Home Buyer Tax Credit	11/5/2008
Q: I have cosigned for a mortgage for my daughter. I have owned homes. She has never owned a home. ... A: Just by co-signing the mortgage does not put you on the deed. At least it should not. And as ...
copy of tax return	11/4/2008
Q: ......I've misplaced my 2007 tax return and need to access the information on my 1040. Can you make ... A: If you prepared it yourself, then the only place to get a copy is from the IRS. If you had someone ...
Gifts & taxes / exclusion	10/31/2008
Q: My step mother wants to give me an amount of money, currently in investments, that my father left to ... A: Yes, the gifts will reduce her death amount also. So if she gifts you the entire $250,000 this ...
Exemption for Child/Day Care Expenses	10/31/2008
Q: My wife and I currently going through a separation, which will eventually lead to divorce. We are ... A: The parent that has physical custody of the child and has the child in daycare so THAT parent can ...
After School Care	10/31/2008
Q: Is After school care tax deductible? Thank you for your time. A: Yes, if the reasons are for the parent or parents are working (if a 2 parent household - both must ...
2005 Tax Return	10/29/2008
Q: My problem is this...At the end of 2005 I was separated from my ex-spouse and he filed a joint ... A: If your husband signed your return without your knowledge then you are not liable for it. You ...
mortgage interest deduction--income limitation?	10/29/2008
Q: My spouse and I have a $1.2 million mortgage on our home which we bought in June (purchase price ... A: You are probably being phased out due to income limitations, not mortgage interest limits. IRS ...
Marriage and tax filing	10/26/2008
Q: My fiance and I are jrs in college and want to get married without our parents knowing. How does ... A: No, there are no issues there and if you don't work, then they can claim you. If you want a Mom to ...
My 22 yr old student son	10/24/2008
Q: I am the sole support for my son who is and has been a full time student. He has no job, I pay his ... A: He is still your dependent. You will be able to claim him and use either the tuition and fees ...
Taxes on Social Security Disability Income	10/23/2008
Q: I have recently started receiving benefits from Social Security for my medical disability. Since my ... A: I can't pinpoint an answer as the real answer needs all the info from your tax return, but I can ...
Is my deductions decent?	10/22/2008
Q: I am a young 31year old married that just recently got promoted to a senior programmer position with ... A: I don't do those types of calculations because I don't know your entire tax situation, but I can ...
Moving expenses - replacement for broken items	10/22/2008
Q: I was wondering whether one can deduct the replacement cost (or fair market value) of items that ... A: You can use the casualty and theft loss form, 4684, and Schedule A to see if you have a deduction. ...
transferring CD's	10/22/2008
Q: My Mom became ill & had over $100,000 in CD's. I am her POA & in trying to protect her money I ... A: One can gift up to 12K a year and not file a gift tax return. You, as Mom's POA, gifted $100K so a ...
transferring CD's	10/22/2008
Q: My Mom became ill & had over $100,000 in CD's. I am her POA & in trying to protect her money I ... A: Hopefully your POA has the ability to make gifts as that is what you have done. Mom MUST file a ...
owe past IRS taxes, now divorcing	10/22/2008
Q: How should a soon to be divorced person handle the W-4 exemption question? Her and her husband are ... A: If the return was a joint return and taxes are due when the next year's return is filed, the IRS ...
one-time capital gains house sale exemption	10/16/2008
Q: My parents sold their first house in 1992. They bought it for $40K and solid it for $220K in 1992, ... A: Mom is in good shape. Her basis is 85K and half of Dad's is 350K. So that gives her $435K. New ...
one-time capital gains house sale exemption	10/16/2008
Q: My parents sold their first house in 1992. They bought it for $40K and solid it for $220K in 1992, ... A: Since there is no longer a one time exclusion, that is not a problem. HOWEVER, there is a problem ...
Sale of Realestate Property	10/13/2008
Q: My mother has died and left her house to me and four other siblings. I don't think that it is ... A: Since you owned the home before her death, your basis is her basis. So if she paid $30,000 (plus ...
capitol gains	10/10/2008
Q: Is it true that a married couple gets two one time capitol gains exemption, one for each person. ... A: There is no such thing as a one time capital gain exemption. However, you can exclude up to $250K ...
Vacation/Business trip	10/9/2008
Q: my name is Jim and I am going to visit my son in Nicaragua. Ill be staying Dec24, 08 through jan ... A: Sorry, Jim, but I don't see a business purpose at all for your trip. Educator trips have not been ...
Deductions for substitute teachers.	10/7/2008
Q: My wife is a substitute teacher who was requested to fill in for a teacher on maternity leave for ... A: If and only if the school gives your wife a letter that a laptop is required as a condition of her ...
House Taxes	10/6/2008
Q: I brought a property from a sheriffs sale, and I am about to sell the property. I received an offer ... A: You take your sales price less costs of sale from your purchase price plus cost of purchase. That ...
Tax shelter a portion of severance?	10/4/2008
Q: I found out a few days ago, that my job for the past 26 years is being consolidated into our main ... A: You can contribute to an IRA or a ROTH IRA. HOWEVER, for a traditional IRA, you may or may not be ...
First time home purchase...	10/3/2008
Q: I am single and looking to purchase my first home. I am currently considering taking either a ... A: First, note that if you take a loan from your 401K and don't pay it back, you will pay taxes AND ...
Need help with 1099-MSC	10/1/2008
Q: I have been unable to work for quite some time now but I have an old contract for a web site I host ... A: You must file. You need a Sch C and SE along with your 1040. You will owe taxes. If you use ...
Employee or independent contractor?	10/1/2008
Q: I have been working for a company most of this year as an independent contractor, but I believe that ... A: It looks like you should definitely be an employee. File the SS-8 with your return and send one to ...
Transfer of my deceased mother's home	10/1/2008
Q: I am an only child and my mother passed away last year. She owned her own home, which still has a ... A: Dawn, if the return is not filed by October 15, she will not get the rebate. As for the rest, you ...
tax write off	9/29/2008
Q: My 17 year old son owns(custodian account) what cost us $8,000.00 of Wachovia stock. It now is,of ... A: If you sell the stock at a loss (there are a lot of IFS right now), he can reduce capital gains from ...
capital gains	9/29/2008
Q: we are selling hunting property in minnesota. after figuring all the money we have put into it we ... A: It does not matter what you do with the money, you cannot exclude the gain by doing anything, buying ...
IRAs	9/28/2008
Q: is there any way that one is allowed to invest IRA funds in a real estate venture, and is one ... A: IRAs can be used for RE ventures, but you cannot live there, etc. Using the IRA for collateral ...
Dependants	9/27/2008
Q: I hope you can help me. I got legal guardianship of my grand-daughter and her sister on July 31st, ... A: There is no form for this. That form is only between parents. If your grand lived with you for ...
deceased taxpayer with no estate	9/21/2008
Q: before my father passed, a caregiver was employed and ss and unemployment taxes were paid with an ... A: Your POA died upon his death. If the IRS has taxes due, and you do not pay them, they can come ...
service dog	9/20/2008
Q: Have physical disability making it difficult to walk service dog. I know I can deduct maintenance ... A: Yes, HOWEVER, you can only write of the amount that is over what the fence does for the value of ...
savings bonds	9/20/2008
Q: First let me say thank you for volunteering to answer all these questions. I really appreciate you ... A: Jeff, you can't fix it. The interest, if you decide to cash them in, is your daughter's, so it will ...
Back Taxes for PA	9/19/2008
Q: I reside in Pennsylvania and from the time I was 18 - 22, 2002 - 2006 I neglected to file state ... A: Basically, just do them. You can find all the forms at the PA Department of Revenue page. Just ...
Past Taxes	9/19/2008
Q: I recently became aware that my ex-husband did not file my taxes along with his for the last 6 years ... A: If you do not owe, no penalties will be due. If you owe, interest and penalties are calculated on ...
sole propriortor	9/17/2008
Q: clients who are sole proprietors donate their services or goods to charity. I understand that their ... A: Debbie, you are reading it correctly. For the inventory, you must reduce it by personal items taken ...
w2 vs 1099	9/14/2008
Q: I am in orthopaedic sales. The company I work for is changing owners basically. New owner say ... A: Mark, they cannot do this. What you need to do is tell them you are going to call your local ...
PA inheritance tax return	9/12/2008
Q: Good Evening, I inherited my father's house when he died. I was told by the CPA who has done my ... A: The expenses you incurred are added to your basis. The RE taxes are yours if you own the home now. ...
Claiming a dependent after a divorce.	9/11/2008
Q: My ex husband and I were separated in the middle of June, 2007. I have sole custody of three ... A: Since he never adopted them, he is not a parent and has no right to claim them. "The child will be ...
cash settlement	9/11/2008
Q: My lawyer has drafted a divorce settlement with my wife that is for $400K ($200k cash and $200k from ... A: It really does not matter. Once the IRA is hers (you release it to her thru a QDRO), if she cashes ...
Claiming a dependent after a divorce.	9/11/2008
Q: My ex husband and I were separated in the middle of June, 2007. I have sole custody of three ... A: Well, I would say "screw you", but I don't know if you want to be that bold. You WILL not get ...
Please can you help me	9/10/2008
Q: My mother passed away a few years ago, we have a man that does out taxes. He has not submitted our ... A: Your father needs to file his taxes to get the rebate, and they need filed by October 15. Sit down ...
investment property tax	9/9/2008
Q: I bought a house I intended to renovate and sell. However, I am not able to sell the property in ... A: You do not need to depreciate it if you are not planning on renting it. As for your expenses, ...
estate reapairs	9/9/2008
Q: Can I deduct the expenses for the repairs I have been making to my deceased mothers estate(a SINGLE ... A: No. Even if you owned the home, you cannot deduct the repairs to it. Your costs would add to the ...
child tax credit	9/4/2008
Q: IN THE CASE WHERE A CUSTODIAL PARENT HAS NOT WORKED THAT TAX YEAR AND THE NON-CUSTODIAL PARENT HAS. ... A: First of all, please turn off your caps lock. Typing in all caps is considered cybershouting and ...
E-services	9/4/2008
Q: I was at a seminar last year (2007) and you had told us how to get a history of whom we held power ... A: You cannot do it thru e-services. It is a freedom of information act thing. Go to www.irs.gov > ...
401k rollover	9/3/2008
Q: Helen, I have been running all over the Internet and one company informed me that you can roll over ... A: I misunderstood your question. Of course you can roll your retirement into a business you own and ...
Splitting investment income among joint owners	9/3/2008
Q: I have several investments where my sister and I are joint owners with right of survivorship. I ... A: If you want to do nominee interest, you just put it all on your reurn (Susan) and then take the half ...
Regarding per diem	8/28/2008
Q: We are a staffing company, contracting our TN visa Canadian employee to a client 30 miles from our ... A: The address thing - sure. The perdiem, as long as the job is less than a year (not in reality, but ...
How to deduct passive rental property losses from SE tax.	8/27/2008
Q: "Hello Helen —? I qualify as a real estate professional except for the 751 hr. minimum and I ... A: The ONLY reason to be a RE pro is so that your losses are not limited. That is all. NEVER does a ...
How to deduct passive rental property losses from SE tax.	8/27/2008
Q: "Hello Helen —? I qualify as a real estate professional except for the 751 hr. minimum and I ... A: Charlie, look at a 1040. Sch C is one line, Sch E is another. C and E offset. SE is NOT offset by ...
1099	8/26/2008
Q: My husband has been employed full time by a company 5 years, recently company changed ... A: Your husband has been classified incorrectly and he will not only owe income tax, he will owe 15.3% ...
How to deduct passive rental property losses from SE tax.	8/26/2008
Q: "Hello Helen —? I qualify as a real estate professional except for the 751 hr. minimum and I ... A: You don't reduce your SE income by rental properties. They are totally separate. Your rental ...
Personal use of company vehicle	8/25/2008
Q: I have a company car and need to log my business v. personal miles. How do I determine personal ... A: Your first trip from home to where ever is commuting (personal) and not deductible unless you have a ...
Taxes owed	8/24/2008
Q: I owe about $50K in taxes for tax years of 04-08 I do not have 50K to pay now, and would like to go ... A: I have some names, but I don't know any of them personally, so I would make a couple of phone calls ...
parents deeded house to me and brother	8/24/2008
Q: I purchased the home my parents are living in in Florida since they could not afford it in 1994. At ... A: While it is your home (you own it) so does your brother and your husband. You don't need a tax ...
Unearned income	8/23/2008
Q: As part of a divorce settlement, my husband has given me one of his reitrement accounts. The name on ... A: I have no idea on your state tax, but federally, you will lose whatever your tax bracket is plus ...
Gift tax	8/23/2008
Q: Helen, I want to pay off my adult sons school loans. I realize that I can only give him 10,000.00 ... A: You can gift him 12K a year (which includes all gifts, including birthday, holiday, just because). ...
business expense	8/23/2008
Q: As a minister (pastor) i am claiming milage as a business expense is that ok and what would I need ... A: There is a publication at www.irs.gov specifically for clergy. Just go to www.irs.gov then forms ...
Separate returns	8/23/2008
Q: My grand-daughter (Julie) and her husband separated October 2006, they were not divorced until end ... A: Since she was working and paying on the mortgage, unless the payments came directly from his ...
business expense	8/23/2008
Q: As a minister (pastor) i am claiming milage as a business expense is that ok and what would I need ... A: Going from home to the church and back again is commuting and not deductible. Business miles are ...
Tax Deducations	8/20/2008
Q: I have a son that has Asperger's which is a condition that falls on the Autism Spectrum (high end of ... A: Your costs with your son are deductible, but you may not be able to deduct them. These are ...
capital gains tax	8/20/2008
Q: my name is on the deed and mortgage of a house my parents live in (so all 3 of our names are on the ... A: The mortgage has nothing to do with anything, so you don't have to worry on that aspect. Selling ...
Real Estate Purchase from family member	8/19/2008
Q: My mother-in-law's home was recently burned in a fire. She has no property insurance and no means of ... A: John, I see nothing wrong with your plans. You will have a low basis for the home ($10k plus taxes ...
realestate capital gains	8/19/2008
Q: My wife and I bought 40 acres of land in 1999, in 2004 we put up a log building and are just now ... A: Until the election, the maximum rate for capital gains is 15%. We have no idea what will happen to ...
claiming dependants	8/19/2008
Q: I am starting a new job, I have always been told it is better to claim zero on my taxes when I first ... A: If your spouse is not a working spouse, and you don't have a lot of untaxed income, you are probably ...
Taxes on Inheritance	7/25/2008
Q: Both my parents have passed and in the will it stated that the house was to be sold and the profits ... A: If you did not sell it to a relative or closely related party, and the date of death value was 280K ...
IRA beneficiary question	7/22/2008
Q: would it be better to name my trust or my kids individually as beneficiaries to my IRA, given that ... A: They cannot roll your IRA into theirs. However, they can move it to an IRA that stands alone. ...
Which situation would cause less to be paid in tax?	7/21/2008
Q: I am in need of some pretty good advice... I will try to make as much sense as possible, but please ... A: The kids cannot be given a gift of equity. However, dad will have to file a gift tax return, BUT ...
Clergy Tax Reporting	7/16/2008
Q: I would like information about gift giving and pastoral responsibility in reporting. Is there any ... A: Anyone can give anyone a gift, nothing is taxable (a gift tax return is due if the gift(s) exceed a ...
MFS - amending later	7/16/2008
Q: The new student loan repayment legislation which includes loan forgiveness after 10 years of public ... A: You can amend to MFJ anytime within the 3 year window of amending the returns. HOWEVER, I'm not ...
adoption tax question	7/16/2008
Q: I will be adopting an older child, and the child will be legally placed in my home for adoption in ... A: Unless adopted by the end of the year, you will not be able to claim him for 2008. If he is legally ...
LTCG Carryover	7/14/2008
Q: I had a LT Capital Loss in 2007 of $12,000. I used $3,000 in 2007 and carried over $9,000 to 2008. ... A: You still have to show the carryover on Sch D with your 2008 return, but if you don't need any of ...
Offer/Compromise when disabled	7/13/2008
Q: I became disabled in May 2006, medical mystery, multiple surgeries, and 11 month wait for SSD help ... A: Mary, I feel for you, but you can't expect not to pay taxes even with illnesses, etc. Since you ...
land	7/9/2008
Q: I have just been quick deeded two lots in Bend, Oregon worth about $85,000.00 each. -Do I need to ... A: When you received the gift, you also received the holding period. So if the person that gave them ...
Student exempt situation	7/8/2008
Q: he is working many hours and being taxed. he gets taxed about $80 for a 2 week period. what is the ... A: PA is a flat tax state and if your son is working here, he will pay taxes here. The tax rate is ...
two jobs	7/3/2008
Q: i am currently working on a job. i made like $20k a year sometime less. i was thinking of getting a ... A: You can have withholding at your second job if you want. Use the form W-4. If you do not, you may ...
Sale of rental property	7/3/2008
Q: We are in the process of selling our shore home and will have capitol gain of about $550,000. We ... A: This home does not qualify for any exclusion. Therefore, you will owe tax on the sale (and it can ...
Intercepts	7/2/2008
Q: My husband and I file a joint return every year. my husband pays child support and I do not file the ... A: The FMS tells the IRS what to withhold. FMS told the IRS to take whatever it was that was taken ...
Filling status	7/2/2008
Q: My wife and I are soon to be moving to another state for her new job. She has not been employed for ... A: You are going to be hitting the high 20% tax bracket, so for this year, I would suggest she file her ...
s corp and car expenses	7/1/2008
Q: i have a s corp and currently use my car 80% for business and 20% for personal. i have about $1200 ... A: Your S-corp should have an accountable plan and you should submit an expense report and the S should ...
s corp and car expenses	7/1/2008
Q: i have a s corp and currently use my car 80% for business and 20% for personal. i have about $1200 ... A: You are an employee of your S-Corp. If the S is paying the bills, you have taxable income of the ...
Addition of Owner to House Deed	6/30/2008
Q: I am currently living with my parents and my parents would like to officially add my name to the ... A: You are being given a gift, 1/3 of their basis in the home. And if it is sold and if it is not your ...
capital gains on land sale	6/30/2008
Q: when my husband and I sold our old farmhouse with 7 of 17 acres 10 years ago and bought another ... A: Your basis is whatever you paid for the land when you bought it. It does not matter what you do ...
Early IRA Distribution	6/26/2008
Q: I'm looking into taking an early distribution from my SIMPLE plan for use in purchasing a home. My ... A: Per IRS rules, it must be to "You use the distributions to buy, build, or rebuild a first home." So ...
cost basis on inherited stocks	6/26/2008
Q: My dad recently passed away. He owned 15 different stocks that were held in joint in his name and ... A: Unless you are in a community property state, your basis is one half what he paid for them and one ...
depreciation on investment home	6/25/2008
Q: How do I determine the depreciation basis on an investment home? The home was formerly my main ... A: As long as the house has appreciated in value, yes, you use your original price. As for the ...
insurace fire claim	6/25/2008
Q: Ms O'Planick, I have a farm in texas and we have a little house on the property that we use every ... A: If the loan was on the structure ONLY, then you would be okay. But if you are paying the loan off on ...
Annuity taxes	6/24/2008
Q: Recently my Mother passed away and I was the beneficiary of her annuity. She only had it 2 years, ... A: You have to find out if the money she put in was tax deferred or not. That will tell you if you have ...
S corp expenses	6/20/2008
Q: I have a S corp and only employee. sometimes i have dinner expenses with business prospects. ... A: If you charge $50 in meals to your S-Corp, at tax time, only $25 is deductible, so it does not ...
past year tax return	6/17/2008
Q: I live in NY state. I didn't file my state and federal tax for year 2006 and 2007.My income is same ... A: No one, including the IRS, is going to believe you made the same amount of money 3 years running. ...
alternative min	6/14/2008
Q: I assume if real estate taxes are used on schedule A as a deduction they can't be used later as an ... A: If all the properties are personal use properties, then you have to calculate the AMT or lack ...
401k early withdrawal	6/6/2008
Q: I Have recently resigned from my job of 24 years. I am 45y.o. living in Chicago, Il. currently ... A: This is the best of the best. Good luck! Mr. Robert E. McKenzie, EA, JD,TCP Website: ...
401k early withdrawal	6/6/2008
Q: I Have recently resigned from my job of 24 years. I am 45y.o. living in Chicago, Il. currently ... A: I'm going to start at the back and then semi woose out on you a little. First of all, I do know a ...
401k early withdrawal	6/5/2008
Q: I Have recently resigned from my job of 24 years. I am 45y.o. living in Chicago, Il. currently ... A: Greg, thank you for retyping. If it was a short note, I can usually handle the caps, but I was ...
IRA from divorce	6/5/2008
Q: As part of my settlement, I was entitled to a percentage of one of my husband's IRAs. It was a SEP ... A: Any money that you do not roll over into an IRA is taxable. Money used for education (education ...
tax fraud?	6/3/2008
Q: My ex-husband has acquired my tax returns through his girlfriend. He showed me the form and I saw ... A: The IRS can and will help you. You need to follow the following directions. You may also wish to ...
federal withholding	6/1/2008
Q: I work part time as a contractor (hourly, not benefited) for 5 different employers, but there are 3 ... A: Project your combined income thru the end of the year, and your withholdings and use the 2007 tax ...
Can my husband claim 1 dependent now?	5/27/2008
Q: my husband and I are expecting a baby in Nov. I just quit my job last week to be a full time mom. ... A: He can claim the baby now. I hate to be a downer, but if there is a problem and the little one is ...
Is This Considered Identity Theft or Fraud?	5/23/2008
Q: My aunt listed me as a person living in her household for the year of 2007, when I only lived with ... A: Your aunt is committing fraud. Tell her that you are filing your return correctly, claiming your ...
Home sale delayed due to FHA	5/22/2008
Q: I am in a bad situation. We are selling our house where we have lived for last 6 years. We found the ... A: You should never let anyone move in until they own the home. It is NOT easy to get them out if ...
taxes	5/22/2008
Q: im 24 years old and have a child and am the main provider for my family i was wondering what i ... A: If you are the main provider with a child, won't it help NOT to give the government an interest free ...
Motorhome and Business Question??	5/20/2008
Q: I have a LLC in Texas. The one company under the LLC is a radio control video website and diesel ... A: You have made the RV your home and as such, unless a 100% usage for business, you have no additional ...
Deductions	5/17/2008
Q: A just had a revelation today while I was amending my 2006 and 2007 tax returns. I amended them ... A: Your Sch A deductions (charity) has nothing do to do with your MAGI, so that will not work. Every ...
i owe the irs	5/15/2008
Q: my wife left me in aug of 2006, and moved to texas where she is from. in april of 07 i filed taxes ... A: You are both liable for the taxes due, as the return was filed jointly. You may be an innocent ...
Short and longterm capital gains losses	5/14/2008
Q: O'Planick Is there a time limit for carry over of short and long term capital gains losses? I have ... A: Hopefully you used them in 2001, 2002, etc and did not save them up for 2008. If you did, please ...
Self Employment Questions	5/14/2008
Q: I'm hoping that you can answer a few questions I have. I am currently working for a small ... A: Can you afford NOT to be covered by worker's comp or state unemployment? And can you afford an ...
401k lump sum distribution for retireee	5/13/2008
Q: I am soon retiring to another state where property is very expensive. I have found only one ... A: The payout is taxable no matter when you take it. The 20% is withholding to help you pay those ...
1099misc. income	5/12/2008
Q: yes please,mrs. o'planick, please allow me to explain my situation;which will encase my ... A: Bob, you do need more help then this board can give you. While the money MAY not be taxable (it ...
social security disability lump payment tax liability	5/11/2008
Q: my son has been declared disabled by a law judge at a recent hearing. He has not yet begun to ... A: There is no legal action available or probably necessary. The IRS publication about SS (and I can't ...
Tax withholding	5/10/2008
Q: my wife and I are claiming 10 tax exemptions and are still overpaying by 8-15K each year. We have ... A: If you are not employed, you would have no withholding. Without knowing your return, I would never ...
1099A	5/6/2008
Q: We are currently doing a foreclosure on our house. We live in MN. The mortgage company is stating ... A: If you are insolvent, you will not be paying any tax on the forgiven debt. And there is a new ...
Amended tax returns	5/6/2008
Q: So basically I am just wondering about two things: (1) is it possible for my dad to file an amended ... A: If your father supported you in 2007, you should be on his return so, no, it is not possible for Dad ...
daycare tax question	5/6/2008
Q: Let me give you some backqground before asking my question. Married filing jointly Gross $146000 ... A: First of all, the child tax credit is topped at about $1400, so there is no way you can lose 3K. ...
paper checks	4/29/2008
Q: Not sure if you will be able to help, but I thought I would take a stab. We all know that the ... A: If you got a paper check for your 2007 return, your rebate check will also be paper. Your problem ...
SEP contributions past age 70 1/2	4/28/2008
Q: Helen, I have received conflicting answers about this. My Enrolled Agent tax preparer has a family ... A: Carl, if you have been taking the standard deduction, I doubt you have seen AMT rear that ugly head. ...
semi drivers and food and enttertainment	4/26/2008
Q: working over the road is realy expensive when u make 600 a week and it costs u 200 for food and ... A: You can take the standard per diem or the actual expenses. There is NO new entertainment ...
Childcare expense	4/25/2008
Q: i have a 3 year old daughter and I am the custodial parent. Her father and I have never been ... A: I don't like the daycare thing. I'm not sure that is legal. After all, you are the one working, ...
Amended return for RMD	4/25/2008
Q: If an individual fails to make a required minimum distribution from their retirement plan in a prior ... A: They need to take it out immediately (the second it was seen it was forgotten) add in on the return ...
capitol gain taxes on land	4/25/2008
Q: My mother of 84 is selling 80 acres of land for $200,000.00 - $50,000 per year for 4 years, her ... A: I don't know what rate of interest she is charging for the installment sale (and if she is charging ...
capitol gain taxes on land	4/25/2008
Q: My mother of 84 is selling 80 acres of land for $200,000.00 - $50,000 per year for 4 years, her ... A: There is nothing she can do, except make sure her basis is correct so she is not paying extra taxes. ...
SEP contributions past age 70 1/2	4/24/2008
Q: Helen, I have received conflicting answers about this. My Enrolled Agent tax preparer has a family ... A: First of all, Carl, income does not put you into AMT, expenses do. But you cannot put money into ...
gift tax	4/24/2008
Q: I own my home (my mother transfered deed to me)all paid for.I want to transfer the deed to my son ... A: You must file a gift tax return. You may not have to pay taxes, but the return is required. The ...
gift tax	4/24/2008
Q: I own my home (my mother transfered deed to me)all paid for.I want to transfer the deed to my son ... A: You will have to file a gift tax return. The form is 709. How long do they have to live in it and ...
New Business	4/24/2008
Q: I am an MD who has taken up flying as a hobby. In the process I have acquired an Advanced Ground ... A: You cannot deduct the training as the classes give you a different eduction and profession, not an ...
Double state taxes	4/23/2008
Q: I recently moved to Delaware but I work in West Chester Pa. Why do I get De State Tax and Pa State ... A: There is a screwy law between DE and PA about taxation and you are caught it in. I have a client ...
capital gain and taxes	4/19/2008
Q: I am planning to buy a new higher price home as primary residence, Current house will be renting, If ... A: First of all, your mortgage has NOTHING to do with anything. If you bought the house for 250K and ...
401k cash out	4/18/2008
Q: My husbands company closed a few months back and he is has a 401k worth about $65,000. Now if he was ... A: DO NOT TAKE THE MONEY. Unless your husband is 55 or older, you will pay income taxes AND a 10% ...
capital gain and taxes	4/18/2008
Q: I am planning to buy a new higher price home as primary residence, Current house will be renting, If ... A: You heard wrong. If you sell the home within 3 years of moving out, you can exclude the gain up to ...
Filling status?	4/16/2008
Q: I am married to a teacher in Texas. We filed our 2007 taxes jointly. But since she does not pay any ... A: Not paying in SS taxes will not increase or decrease your refund. And Texas is a community ...
Constructive Receipt Exception?	4/15/2008
Q: I am a sole proprietor independent contractor. I received a check from my client on December 21, ... A: Correct, if the check was not mailed until 12/31, you would have had receipt in 2008. It is not a ...
CC statement as documentation for Meals and Entertainment Business Expense?	4/15/2008
Q: Sorry to do this at the last minute, but I have one more for you if you have a moment! I have a ... A: Sorry, but no. In an audit, you would have to pull each individual receipt up and show what it was. ...
PA state tax question	4/15/2008
Q: I am a PhD student at UPenn on a fellowship, which I was told was not taxable by PA state law, ... A: My daughter got her masters (last year) at UPenn. Nice place. Your bank interest should be on your ...
Two State Tax Liability	4/13/2008
Q: I have a family and home in Massachusetts but will soon start working a full time job in ... A: Unless you are moving here on temporary assignment (expected to last less then a year and the minute ...
filing and extension	4/13/2008
Q: Good Morning Helen. I have a question regarding filing an extension. I do the taxed for our ... A: Okay, so now I know what you were talking about. :) You cannot file an extension, she already ...
Non-Resident State Taxes	4/13/2008
Q: I am in need of advice. I live and work full time in NC for a company based in MD. State taxes ... A: You will file a MD non-resident return and get a full refund IF NC has an agreement with NC. Then ...
installment sale of rental property and subsequent default	4/13/2008
Q: In 2003 my wife sold a duplex on contract for $79,000. We had a basis at that time of $75,000 so we ... A: You do have a loss. What you need to figure out is your new basis and that is difficult with the ...
PA Local Earned Income Tax	4/12/2008
Q: I lived in Philadelphia 10mos and another township for 2. Am I allowed to only report local income ... A: The township you moved to should have instructions on Philly taxes. Basically, what you owe to the ...
Child CLAIMING Parent on federal taxes.	4/11/2008
Q: In 2006 I was separated from my husband for MOST of that year. I was separated from him ALL of 2007. ... A: He cannot forge your signature, that is fraud. He cannot make you file jointly with him either. ...
Casualty Loss Deduction	4/11/2008
Q: Last year a barn on my property was destroyed completely by fire. All of the contents along with 3 ... A: Kinda. Since it is not a business loss, you have to limit the loss by 10% of your AGI and $100, but ...
cost basis of stock options	4/10/2008
Q: company gave me shares of stock,how do i treat this on fed tax return? what do i use for "cost ... A: You do need to file Sch D. I can't tell you how to make your software do it, but I can tell you ...
First Year of Sole Proprietorship Taxes	4/10/2008
Q: Helen, I am helping my parents prepare their joint taxes for 2007. We have been using TurboTax ... A: Travis, do your parents a favor, file an extension for them, and make an appt after April 15 with a ...
Casualty Loss Deduction	4/9/2008
Q: Last year a barn on my property was destroyed completely by fire. All of the contents along with 3 ... A: You have to follow the form, if your basis is less then the FMV at the minute before the fire, then ...
Questions Related to Rental Property	4/7/2008
Q: What are the general benefits to owning a rental property. And specifically If my mortgage is ... A: Your question is very general. The IRS has several good publications on rental properties, you can ...
403b Funds Used For Home Sale/Purchase	4/7/2008
Q: I am 63 years old and have been retired from teaching for 5 years. My wife and I live on our ... A: Lou, you should have gotten advice before you did what you did. The extra money probably caused ...
Proof of filing	4/6/2008
Q: My ex husband recieved a letter (wich he cannot now find) from the IRS addressed to both of us ... A: If you owed money, your cancelled check will work. If you filed electronically, then by giving ...
Sales of S Corporation	4/5/2008
Q: My partner and I recently sold a S corporation. I have 25% of the shares and she has the other 75%. ... A: They cannot keep the same EIN. That is yours and yours alone and you don't want them to keep it ...
ex spouse income taxes	4/5/2008
Q: I was married in 2001-2002 and unemployed. I was divorced in 2004 and filed single with one ... A: You filed a joint a joint return and as such, you are as liable as he is for the taxes. You did ...
401K rollover/conversion	4/4/2008
Q: My daughter worked for a university where she contributed to a 401K. The next year, she received a ... A: Use form 8606 for the conversion from the 401K to the ROTH and yes, that is taxable. I'm not sure ...
CPA mistake	4/1/2008
Q: Late in filing our 02 taxes due to health conditions and billing on disability (received ss). ... A: First of all, if you are getting a refund from 2002, you have lost it due to statute. If you owe ...
reporting sale of stock without a 1099B	3/31/2008
Q: Helen, This past year I decided to take losses on some less than stellar stocks. When I received ... A: I think he is full of you know what, the amounts must be reported. I just did a return with a sale ...
1099-R	3/26/2008
Q: Sorry, Helen, but one more question on another topic: My wife had a 401K with her former employer ... A: You did roll it over, hence all the -0-s. You can just keep the 1099 for your records. 401Ks are ...
excess ira contributions	3/26/2008
Q: In doing my taxes this year, I had to review my previous IRA contributions. I noticed in 1999 I made ... A: You will have an overcontribution for 1999, 2000, 2001, 2002, 2003, etc and will have to file form ...
nonprofit work and 1099	3/25/2008
Q: Helen Please forgive my typing... I'm typing from France because I'm living here for nine months but ... A: You can find all the forms you need at www.irs.gov for the federal and the state websites for the ...
Money lost to a contractor	3/25/2008
Q: In early 2007 we signed a contract with a licensed contractor to do a remodel on our home and paid ... A: Assuming you have taken legal action against him, you can either take the loss on Sch D as a short ...
section 179 deduction	3/25/2008
Q: My wife started a daycare in 2007 in our home. We have purchased a Kubota lawn tractor with mower ... A: First of all, you have to know the business use against the daycare use (and no, it is not all ...
was terminated, employer will not release 401k	3/24/2008
Q: I worked for 11 years for this company. Never missed one day. One day, they came in and fired our ... A: I doubt your ex employer is making out, he or she should not be the trustee of your fund. You need ...
Switching from W2 to 1099	3/23/2008
Q: I'm an IT professional and have just changed positions. My former employer would like me to continue ... A: You get to pay the employer and employee part of the taxes, so that can be a set back, but working ...
Living in CA working in AL	3/22/2008
Q: I own a house in San Diego but I have accepted a new job in Huntsville AL. I will need to rent a ... A: If your job is expected to last a year, you have no costs that are deductible, even if it does not ...
In Home Child Care Business	3/20/2008
Q: My spouse earned about $4500 providing childcare in our home. Next year (2008) the total should be ... A: Sch C. And she can use per diem rates. I would strongly suggest seeing a tax professional this ...
10 year income averaging	3/20/2008
Q: My mother is 81 and needed funds for her husband in a nursing home and sold stocks etc. in 2007. She ... A: I can't say that she was ill advised, I was not there when she needed the money. There is no ...
failure of 401K company to do what was asked	3/20/2008
Q: We borrowed $ out of our 401K to purchase a home and asked the company to pay the penalty taxes when ... A: that helped. I'm sorry but they are right, you are the ultimate responsible person to see that ...
short term capital gains on sale of new home	3/19/2008
Q: Aloha Mrs. Planick, Thank you for taking the time to answer my questions. My husband and I built a ... A: I can't help you with your state taxes, but if you want to fly me out to do so, I won't complain and ...
Married- file joint or seperate?	3/19/2008
Q: I recently got married (on 2/2/2008)both me and my husband have children from previous ... A: You need to look at publication 15 to see how you should have your withholding figured out. I ...
student capital gains	3/17/2008
Q: I am a 20 yr old college student, my parents pay over half of my college and living expenses. I ... A: Unless you know what granddad paid for it, you are correct in that you will have to pay on the ...
Rental Property Eligibility	3/16/2008
Q: I owned a townhome as of Jan '07, trying to rent it. Did so as of July '07.Is the HOA fee ... A: You are deemed to have claimed depreciation allowed or allowable, so Congress says claim it now or ...
are there laws to protect SAHM	3/16/2008
Q: My husband and I are separated due to the military but will be getting divorced soon. He filed as ... A: There is no rule he has to file a joint return. HOWEVER, if he signed your name (or PIN) to a ...
joint tenancy with right of survivorship	3/14/2008
Q: In 1979 my mother and I purchased a home for her. The paper work state joint tenancy with right of ... A: Sorry, but no. You will be taxed on the profits from the sale of YOUR half of the house. Mom's ...
1099 contractor status	3/13/2008
Q: I recently started a job in February in which I am a contractor working from home. I realize that I ... A: At $400 a month, if you got a decent refund, you probably don't have to file quarterly. Only your ...
Adoption Credit	3/12/2008
Q: I have adopted a baby in 2007. Total expenses are about $35000. Our gross income is about $171000. ... A: There is a form for adoption expenses, forgive me but I don't remember the number. Go to ...
Going LLC	3/12/2008
Q: My wife is a self employed hair dresser in Arizona. She pays 50 a month rent in an assisted living ... A: Right now she has 100% liability for anything that happens in the salon. The consumer can sue you ...
Going LLC	3/12/2008
Q: My wife is a self employed hair dresser in Arizona. She pays 50 a month rent in an assisted living ... A: An LLC is not an entity. Your tax guy needs to tell you the underlaying entity he wants her in and ...
Amended tax return	3/11/2008
Q: My husband and I filed our taxes jointly using Turbo Tax, even though we separated in July. He then ... A: The return was filed jointly. So you are as liable as he is for any additional taxes. If you are ...
sales tax deductions for missouri	3/11/2008
Q: We ordered a modular energy efficient home and placed it on a full basement in June 2007. We had ... A: You can only claim sales tax you paid, so you need proof of payment. As for the energy credits, ...
Dependent claim/Head household?	3/11/2008
Q: My mother is 70 years of age, a nursing professional who makes a good salary(100K plus social ... A: I know MS well, I walk 50 miles in 3 days a year to support it. My partner's sister died of ...
under the table pay	3/11/2008
Q: What should I do? Here is my situation. This last year (2007) i did small work under the table. ... A: You are not going to get a lot of pity from me. I would not want my daughter to marry a tax cheat ...
Converting a 2 family into half rental property	3/10/2008
Q: Was wondering if you could help me figure out what my cost basis would be for depreciation purposes? ... A: Your basis would be what you paid for it had it been a true gift. However, since you are now paying ...
Students dependency on tax return	3/10/2008
Q: I am a 19 year-old college student who pays for all of my education as well as my expenses. I lived ... A: You have to do a support test. Did you pay for half your own support? Who paid for the schooling? ...
local taxes paid in pennsylvania	3/10/2008
Q: Am I required to file a city/local tax return for two separate localities that show taxes withheld ... A: You file to the county you live in. For example, I'm in York. A lot of folks have Lancaster taxes ...
follow up to question scholarship and son's taxes	3/9/2008
Q: I sincerely appreciate your help, as we live and work in Japan, and there is no one around to help ... A: Your son is your dependent and the net tuition (tuition less scholarship) is a deduction, either as ...
Home sale-cost basis	3/8/2008
Q: My mother "sold" her house to her four children for a dollar in 1994. We had been advised to do ... A: None of the above. When Mom gave you all her house, she gave you her basis, so it whatever she paid ...
Claimed as a dependent	3/7/2008
Q: i have recently moved out of my ex boyfriends house in which we were both living with his mother. ... A: No, it was not legal. The only thing you can do is file your return correctly (claiming yourself) ...
k-1	3/6/2008
Q: My son was a partner is an LLC for 4 months of last year and was bought out. The current owner of ... A: Regarding the K-1, threaten the partnership that you are going to contact the IRS within a few days ...
filing state tax	3/6/2008
Q: I'm from New Jersey but worked in Florida from October '07 to February '08. Florida doesn't have a ... A: If you are a New Jersey resident, you will be taxed on all your wages to New Jersey, no matter where ...
itemizing work mileage	3/5/2008
Q: How much mileage do i need in order to have it itemized? I am a social worker and currently have ... A: You must itemize (use Sch A) and then your deductible work miles are reduced by 2% of your AGI. ...
excess contribution	3/4/2008
Q: Due to shortfall in income and higher expenses we contributed too much to my wife's SEP-IRA. I also ... A: You can pay the penalty with the 5329 form or you can withdraw the excess. The IRS will catch it if ...
health insurance premiums	3/4/2008
Q: Helen. I am an employee but I pay for my health insurance on my own (1500 for the year)...I ... A: First of all, you must use Sch A to be able to use your medical expenses, so unless you have high ...
capital gains	3/4/2008
Q: Three years ago my husband and I purchased 45 acres of vacant land for approx. $105,000 with the ... A: There is no way to roll over the gains into something else. To calculate your gain, you take your ...
gifts, IRAs, and annuities	3/3/2008
Q: My mother is allowed to have 35000 $ plus a house (which we will sell soon we hope - we have not ... A: Any gifts from Mom in excess of 12K per year must be reported on form 709, by her. However, gift ...
TAXES DEPENDENT	3/2/2008
Q: Helen Hi, I'm trying to figure out if its worth it to take someone as a deductible. My mom is in ... A: Does she have income (not social security) over $3400? If so, you cannot claim her. If not, do ...
I started a non-profit this yeat	3/2/2008
Q: I started up a non-profit this year. We have gotten 501(c)(3) status from the IRS. I am working on ... A: You are asking for a bit of trouble without having a paper trail. So make sure everything ...
Start-up cost and auto used in two businesses	3/2/2008
Q: Two questions: 1) I have a sole-prop business with about 70k profit for 2007. Then I started another ... A: If your expenses are start up expenses, they must be amortized. If your shingle was out and you ...
Spouse's Debt Offsets Refund	3/1/2008
Q: TaxMy spouse and I are separated (though not legally). I moved to Washington State in June of 2007 ... A: If there was no withholding from your unemployment, you are due no refund from the injured spouse ...
takenadvantageof	2/29/2008
Q: I have a big problem. I have been working for a company 3 years filled out an application, a 1040 ... A: I'm seeing a bigger problem here. It seems to me like you did not claim the extra money they gave ...
how to file my 1099s	2/27/2008
Q: My mom and I inherit my deceased brother house on August of 2006. The property at the time was ... A: You cannot take any loss, it was your residence. Mother, if she did not live in the home can take ...
401k withdrawl	2/26/2008
Q: Heres the question. I want to withdraw my 401k but my company says i can't only under their ... A: Each company can make up their own rules as long as they are within IRS rules and companies don't ...
Accountant tax question	2/25/2008
Q: I am considering hiring an accountant to do my taxes. I have a friend (who is not a business owner) ... A: Personal items are not business items, so if this "accountant" is making personal items business ...
individual taxes	2/24/2008
Q: I have been filing jointly for twenty years. Now my wife and I have been separated for more than ... A: You don't mention children, so the only filing statuses you can use are married filing jointly or ...
After Tax Stock Rollover	2/23/2008
Q: Retired. Rolled over before & after tax dollars & Stock.(Already had ira fund/brokerage and rolled ... A: You cannot just take after tax money out of an IRA. Your second mistake was to put it into an IRA ...
"Unclaimed Income"?	2/23/2008
Q: Here is my situation: my Grandfather passed away and left me a trust fund. After a few years of ... A: It was your trust and you are responsible for the taxes on it no matter where the money ended up. ...
taxes and benefits for LLC member	2/22/2008
Q: One of our LLC members will be our on-site apartment manager. He will receive a salary which we ... A: Since the member is a partner, he gets guaranteed payments, not a paycheck as an employee would. So ...
casualty losses for 2005	2/22/2008
Q: We ourchased a small home (4.5 hours away) to use as a photo art gallery and summer place: a ... A: You may have casualty losses here for sure. There are no business expenses allowed tho, the ...
Amend tax filing?	2/22/2008
Q: I just finished doing my 2007 income tax forms. From this experience, I realized that I should have ... A: For IRS purposes, you must look at the GROSS sale. If that adds dollars to your tax, you must file. ...
1099 Misc.	2/21/2008
Q: I am an independent contractor. I received a 1099 for work I completed before the end of 2007. I ... A: Travel can be included in the income. You need to include your expenses in the body of the Sch C. ...
HELOC interest on rental unit	2/21/2008
Q: I had a rental house on the market all of last year, but was not able to rent it until last month. ... A: Due to tracing rules, you must allocate the interest to where it went, so some is Sch A and some is ...
Loan Defalcation and Unified Tax Credit	2/19/2008
Q: Actually I have 2 short questions: (1) I made a $15,000 loan to a business 3 years ago which they ... A: Once you have taken legal action to get your money back, then it is a short term non-business bad ...
loss carryover from prior year	2/18/2008
Q: I have a significant short-term loss carryover from previous years. In 2005 I started having my ... A: As long as your tax return is true and correct, you should never worry about an audit. If you do ...
tax on sale of home	2/17/2008
Q: My Mother added my brother & I to the title of her fully paid for family home in 1995. She died in ... A: Your basis is Mother's basis, so whatever she paid for the home and paid for improvements, that is ...
loss carryover from 2 yrs ago	2/17/2008
Q: O'Planick, I have a question regarding carrying over capital losses from two years ago. Why two ... A: You still need to file 2006 to make sure your carryover is correct (and that the IRS has it in the ...
charitable giving	2/17/2008
Q: If I give highly appreciated securities to a charity can I claim the stepped up value as a tax ... A: If you give appreciated securities, that is a Sch A deduction and will reduce your taxable income. ...
Sales Tax	2/15/2008
Q: I am in Tennessee. I have kept EVERY receipt for 2007. On all my gas receipts, the tax is included ... A: Gas tax is not sales tax, so you cannot use the gas tax receipts. As for the clothing, there is no ...
1099-Misc	2/15/2008
Q: I am working for a company who makes us work under a DBA and we get a 1099-misc marked in box 7, I ... A: First of all, your employer is treating you wrongly. You are an employee and he is getting out of ...
Contractors fee	2/13/2008
Q: I have a statistical consulting firm. I have hired independent contractor person from turkey (he ... A: I see no reason why you cannot claim the fees paid. How you get your software to do it and ...
per diem	2/13/2008
Q: Can I change from one contractor to another without it counting against my per diem? I am taking a ... A: If you are in the same area, and there longer then a year (or your job is expected to last longer ...
Ponzi scheme	2/13/2008
Q: I am a victim of a ponzi scheme, JT Wallenbrock. I am out 66k. We are told by the receiver that we ... A: When you have gotten back all that you are getting back, then you can write off the balance. There ...
babysitting	2/13/2008
Q: I've read in several articles that if I pay my babysitter less than $1500, then neither one of us ... A: Income over 50 cents is taxable, so your sitter has taxable income. If she is sitting in your home, ...
Ira withdrawal higher education	2/12/2008
Q: I am a non-traditional student. I am now going back to school after having my children. I have a ... A: You must have school expenses that equal the withdrawal. You will pay income tax on the money, but ...
Tax Deductions for Computers???	2/12/2008
Q: I work for a 501(c)3 charitable nonprofit in Elkhart, Indiana. Our organization provides programs ... A: Since you are a 501(c)(3), you can take any donations and the giver will get a write off. Just ...
Re: Dependents	2/11/2008
Q: You have been such great help and support and for this I thank you tremendously. I have another ... A: She better make up her mind - first it is 5-6 months, now it is over 6 months. She will need DATES ...
tax on settlement from class action law suit of company I work for over 12 years	2/8/2008
Q: I am a manager for a major company. there has been a law suit on overtime for the management staff ... A: Since the settlement you are going to receive is to replace wages, it will be taxable and you cannot ...
Delayed tax credits / stock wash	2/8/2008
Q: I have 2 questions. I've heard there are some tax credits, including an education credit, that won't ... A: Returns with the Ed credits cannot be filed until 2/12. Wash sales happen when you sell at a loss ...
Legality vs. w4s?	2/8/2008
Q: When I began my job I filled out the typical w4s and I claimed "0" as a total. It turns out my boss ... A: You are not going to like my answer, but if you looked at your paystubs, you would have seen the ...
Tax responsibilities	2/6/2008
Q: I started a private practice in Jan. 2008. Sole proprietorship. I would like to know what my ... A: Your question is very general. I would strongly suggest looking thru publication 334 at www.irs.gov ...
Do i pay taxes	2/5/2008
Q: I am a full time student and have a part time job do i still have to file for taxes and can my ... A: Being a student does not give you a "no need to file" out. If you made more then $5350 (or $3400 ...
HSA contributions	2/4/2008
Q: 2007 is my first year in an HSA. I made all the contributions to the plan. My w-2 12b lists "W" at ... A: If the employer made it, it is not deductible on the 1040 since it is not in your income. If you ...
Uncollectible Judgment	2/3/2008
Q: We live in Virginia, have sued and won against a builder in New Jersey, and have a judgment against ... A: Yes, this is a deductible loss. There are two schools of thought - one is a theft and the other is ...
Newly retired. Lower Income. Do I file Taxes?	2/3/2008
Q: I liked your profile and expertise. My question is: Now that I am not working (no earned income)and ... A: What you have told me, you have no filing requirements so you don't have to file a federal return. ...
home improvement and mortgage interest	2/3/2008
Q: I HAVE OFTEN HEARD THAT A TAX RETURN IS HIGHER IN YOUR FIRST YEAR OF A MORTGAGE DUE TO INTEREST ... A: First of all, please turn off your cap locks key, it is considered shouting and it is very hard to ...
child tax credit	2/3/2008
Q: In my divorce it states that I can claim my 7 year old daughter on my taxes every other year. My ... A: File your taxes the correct way (claiming your daughter). If you cannot efile them, snail mail ...
mortgage loss ?	2/3/2008
Q: I am in the us military and i had to move out of the country in june 07. i own a house in sc, and i ... A: No, these are not capital losses. If it was available for rent, the mortgage interest (along with ...
Mileage Expense Dispute	2/2/2008
Q: I work as a traveling sales person. A coworker and myself have had a discussion regarding taxes and ... A: If you have an accountable plan - Mr Employer, here is my mileage - pay me back at 48.5 cents per ...
Tax question....	2/2/2008
Q: I am a single guy, and to be honest I am getting violated by Uncle Sam on taxes, since getting this ... A: Joshua, there is really nothing federally you can do. There is an office in home deduction, but I ...
MFS- Itemized Deductions	2/1/2008
Q: Helen, My husband and I are getting getting a divorce. He wants to file MFS. We have our own tax ... A: Kelly, I know your husband pretty well and I feel for both of you. Therefore I cannot really help ...
1099-DIV	2/1/2008
Q: My children have accounts at Pioneer Investments. I am the custodian,their names are followed with ... A: Since it was a stock sale, it must be reported on the children's return - NOT yours. However, they ...
Capital gain tax	1/31/2008
Q: I was wondering if you can offer me any advice regarding the capital gain tax. I'm planning to sell ... A: If you sell your home for more then a profit of $250,000 per qualified taxpayer, there is nothing ...
tax question	1/31/2008
Q: I will try to keep this short. Was married, haven't filed since 1992. Own a home and paying ... A: I would strongly suggest seeing a tax professional (not necessarily a CPA (many CPAs do not do ...
Orphaned nieces	1/30/2008
Q: My twin 17yo nieces were orphaned on June 17, 2007, my husband and I have legal guardianship. They ... A: The executor of the estate is the one required to file a tax return. If you are not the executor, ...
RESPONSE TO YOUR REPLY OF JAN 28	1/29/2008
Q: HELEN, SORRY I AM HAVING TROUBLE COMMUNICATING WITH YOU; 8T SEEMS THE ONLY WAY I CAN RESPOND TO YOUR ... A: Whatever you keep out will be taxable and if you under 59.5 years of age, a 10% penalty will be ...
Rental Property - Secondary residence	1/29/2008
Q: I own a duplex in Margate and my primary residence is in PA. I rent out the bottom unit all year ... A: You actually have 3 properties. Two personal and one business. The business property (the rental) ...
~Is this legal~	1/29/2008
Q: Ok, I have a friend of mine who has children with 4 diffrent women,he is paying child support for ... A: You would be committing tax fraud since you do not provide anything for these children. This guy ...
RESPONSE TO YOUR REPLY OF JAN 28	1/29/2008
Q: HELEN, SORRY I AM HAVING TROUBLE COMMUNICATING WITH YOU; 8T SEEMS THE ONLY WAY I CAN RESPOND TO YOUR ... A: This money should go directly into your retirement account that was worked by the broker. Then it ...
My husband's back child support	1/29/2008
Q: My husband owes 2,201 in back child support. He and I filed taxes joint married for 2007. I did not ... A: AFTERTHOUGHTS - He owes the money, those are his kids he supports. So I have no pity. And what ...
Business use of home	1/27/2008
Q: When deducting a portion of household expenses for business use of home like mortgage interest or ... A: Not really but kinda. If you are an employee, it really does not come into play too much, same ...
claiming a son	1/27/2008
Q: Okay, my boyfriend is a divorced father of one son. During his divorce, his ex-wife, himself, his ... A: First of all, the year of the divorce - when was it final and are you sure they filed jointly? If ...
Marital status	1/27/2008
Q: My son and his wife were seperated for several years, but not divorced. He filed single. Now they ... A: He needs to go back and amend his returns that he filed single on. He was married and must file as ...
Does my child need to file?	1/26/2008
Q: I have a 17 year old son that worked in a bookstore in 2007. We just received his W-2, he earned ... A: Federally, if he had federal withholding, he should file to get a refund. Just remember, he cannot ...
Do I have to file?	1/26/2008
Q: My husband (common law in AL), my son, and I lived together for 7 months last year. He worked and I ... A: Married filing separate will lose you a whole lot more money. File jointly and file ALL your ...
Small non-profit	1/26/2008
Q: This is probably a simple question, but I cannot find the answer anywhere! I am part of a very ... A: If you want to be able to let the people that give to you write off their donations to you, you must ...
texas tax ssi disabled adult	1/25/2008
Q: i recently heard i can be claimed as i am a disables adult who has been living in my brothers house ... A: As long as your income (not counting SSI)is less than $3400 he can claim you. Is it worth it? For ...
commuting costs	1/25/2008
Q: I am a IT contractor for a company. I have an office at headquarters. I am also assigned to work ... A: If you go to your office before you go out to a site, it is deductible business miles. And to ...
dependant's unearned income tax	1/25/2008
Q: A 12 year old boy held in joint custody of divorced parents, where the father has a higher gross ... A: First of all, I believe that the parent can break the CD for taxes due - check with the lawyer. ...
divorce tax question	1/24/2008
Q: I have owned a home that I have rented for the past 8 years. I got married and it only lasted 18 ... A: If you paid half that mortgage with your money (not money he gave you and you are not paying taxes ...
1098-T??	1/23/2008
Q: I have a question about the form you get from the college for tax purposes. I contacted my school to ... A: You answered it my question about tax liability, even tho you think you did not! :) The amount in ...
Tax on Gift to Parents	1/23/2008
Q: My husband and I bought a house for his parents in 2000 for $150,000. We live in Alabama. The ... A: No, you and hubby will have to file a gift tax return (form 709) but that is the only thing that ...
what to report	1/23/2008
Q: The taxes taken out of my check each week are sent in quarterly, and I know I file a return ... A: The church does a 941 and any state forms needed. Year end they also do the W-2s (and W-3) and any ...
estate tax question	1/21/2008
Q: My dad ( who is terminal ) gifted us his house , if I sale it I understand I'd have to pay capital ... A: No. Dad made a very bad tax planning mistake. If he just did this, he should talk to an elder ...
why do i owe taxes if I gave to charity	1/21/2008
Q: Ms. O'Planick, My gross pay was $30,450 (minus money towards retirement $1,827 and Medical FSA ... A: You must itemize in order to deduct your charitable contributions. And $3000 is not enough to ...
Per Diem	1/21/2008
Q: My residence is in Texas.I work for a company and I travel more than 200 days a year(to different ... A: You can take the perdiem and reduce it by the reimbursement, but unless you can itemize (use ...
Cost basis for house sale	1/21/2008
Q: Is there a form of "innocent spouse" rule in determining the cost basis for a home? My ex and I ... A: You cannot use the 1997 price of the home. You need to somehow figure out what the improvements ...
File joint or single	1/20/2008
Q: I recently got married in May of 2007. My wife now owes money to the IRS from 2006 and has been ... A: You really don't want to file separately. The tax rates are higher. You can file jointly, filing ...
Inheritance	1/20/2008
Q: Greetings: I have W-2 income of approx. $20,000. I inherited $75,000 from my father who died in ... A: There are no inheritance taxes until one's estate is over a million. So if Dad left you a million ...
Refinance on an investment property	1/20/2008
Q: I am planning on refinancing my investment property and taking some cash out. Do I have to pay ... A: Your mortgage has nothing to do with your capital gain. So it does not matter what the mortgage ...
social security/disability	1/20/2008
Q: MY EX HUSBAND RECEIVES SOCIAL SECURITY DISABILITY. MY CHILDREN STARTED TO RECEIVE MONTHLY BENEFITS ... A: FYI - posts in all caps are very hard to read and actually considered shouting on the "net". This ...
Claiming non-related people as dependents	1/19/2008
Q: I have a friend who is living with me and receving TANIF. She has a 4-year-old son that came to live ... A: You cannot claim her son at all. If she was living with you all of 2007 as long as living together ...
Things to "write off" on Income Taxes	1/19/2008
Q: I am a Manager of a local furniture/financing store here in Ontario, and I am curious as to what (if ... A: If you are in the US in a city called Ontario - read on. Sorry, there really are no retail tax ...
$12,000 exemption	1/19/2008
Q: My husband and I have four children. We are 74 and 75 years old. We own a home worth about ... A: Follow-up. Elizabeth, I am in York, I'm not sure where you are but I'm thinking Philly area. I can ...
should taxes be filed for deceased aunt	1/18/2008
Q: My Aunt Passed in Dec. Although she has a will, prior to her passing her brother (she's a widow) ... A: If the condo's gain was not more then $250,000, she would not have anything to file on that. Life ...
dependents	1/15/2008
Q: My daughter graduated from high school in 2007. On November 10,07 she got married. She lives with ... A: It depends on their income. If her and her hubby have NO tax liablity on a joint return (their ...
$100K Contribution to Home Purchase	1/15/2008
Q: My widowed mother plans to live with my sister/husband and wants to contribute $100K cash as a down ... A: The easiest way would be for Mom to gift the money to them. She will have to file a form 709 to ...
How to file with a disabled spouse	1/15/2008
Q: I got married in May 2007. My husband and I are trying to figure out how to do our taxes together. ... A: If you file a married filing separate return, automatically 85% of your SSI will be taxable to you. ...
child care credits	1/15/2008
Q: I work at night. My daughter is 13 and I pay a babysitter to care for her while I'm at work. (It's ... A: The day she turned 13 is the day you can no longer claim the child care credit for her unless she is ...
back taxes	1/14/2008
Q: I have a quick question. Do children have to pay their parents back taxes if the parent dies and has ... A: Perhaps. If the child has inherited anything from the parent, the IRS can come back and take that ...
Caring for parents	1/14/2008
Q: My parents are retired due to health reasons. They raided their 401ks decades ago and have no ... A: No, there is no deduction for gifts to family members. However, if their children are supporting ...
dependents	1/14/2008
Q: ..My 2 nieces have been living with me since April.. I have been their sole support..however, their ... A: The only way you will ever know if he claimed them is if you claim them and the IRS rejects the ...
Married, Same State, Different addresses	1/14/2008
Q: My husband and I are still very married, but he lives in one part of the state (his license, etc ... A: You can file jointly or you can file separately (and usually jointly is better). Your only issue, ...
repairs vs home improvements & escrow withdraw penalty	1/13/2008
Q: I went to IRS website and found the explanations of home repairs vs home improvements. From what I ... A: Question one - you add improvements to your basis, so if you have a taxable sale when you sell, you ...
recently married - jointly or separately	1/13/2008
Q: I was married in Sep. 2007, and received SSI (disabled but didn't pay enough into SS to receive ... A: Jointly or separately, you will have to claim the SS income. If you file separately, automatically ...
Minor looking to get taxes back	1/13/2008
Q: I am 16 years old, I work for McDonald's and am looking to get my taxes back. The only problem is, I ... A: Unless you made over $5000+, you should get all your federal withholding back and maybe your state ...
IRA early distribution penalty (2005)	1/12/2008
Q: We recently received a "notice of deficiency" letter from the IRS in regards to a 10% penalty ... A: Did you file form 5329 when you filed the return, using the exception for disabled? If not, you ...
Withholding taxes	1/12/2008
Q: My boss had decided that she does not want to pay an account and wants us to pay our own withholding ... A: In a word - NO! And if she starts not withholding taxes for you, make sure to go to your state ...
Stocks	1/11/2008
Q: I sold some stocks during the last qtr. of 2007. I will owe tax (more than 500.00) on this money. ... A: You can check the requirements for making estimated payments at www.irs.gov and you can find the ...
personal vehicle and company use	1/10/2008
Q: Helen, I am facing a decision at work - do I go with a company vehicle that the company takes care ... A: If you take the monthly allowance, you must use form 2106 to deduct your expenses. If you use the ...
Tax question regarding gambling income	1/10/2008
Q: I recently received a letter from the IRS stating that my gambling income that I reported ($3,500) ... A: Angel, you can file the amended return. And as long as the student lived with you the entire year ...
401K	1/9/2008
Q: My mother in law wants to have some of her husband's assets put into her name as she is worried her ... A: Without a court order (given in case of a divorce), or death, ownership cannot be changed in a ...
Why do I owe??	1/8/2008
Q: I'm calculating my tax refund for 2007 right now. I make $45,000 and claimed 1 for myself. I'm ... A: You have done what in theory is the perfect withholding, you actually have broken even and have had ...
Early Pension distribution & tax free medical expenses	1/6/2008
Q: I just quit my job & received a letter from my former employer offering me a one-time option of a ... A: You don't mention your age, so that makes my answer a little more dusty. If your medical expenses ...
Who to contact re non-response from IRS	1/6/2008
Q: My Social Security benefits are the only income I have. 5 months ago the IRS Levied my SS Retirement ... A: I doubt TIGTA will help, the TAO is your best bet. Nina Olson, head of TAO is a real down home kind ...
Per Diem and taxes	1/6/2008
Q: Helen, I am a contract engineer in South Carolina. I have my permanent residence in South Carolina ... A: The minute you know that your job is going to last a year is the minute your perdiem is taxable and ...
sub contracting	1/6/2008
Q: i hang sheet rock. i was told before i sarted that if i had to pay out taxes the oner would pay ... A: If you are considered a sub, you will pay all your taxes, federal, social security, medicare and ...
invstment property tax	1/5/2008
Q: we own condo which was bought in 1983..it has been rented out since 1985...we paid 80,000 and can ... A: Probably most of the sales price, it depends on what is left of the basis after depreciation has ...
small claims taxable?	1/3/2008
Q: I had sued a company for unauthorized withdrawals on my bank account, for over charging me and for ... A: This should have been included on your return and in turn, reduced by your expenses. The end result ...
Do I file taxes	1/3/2008
Q: I don't know how much information to give you so I'll give you what I think I should. I work at a ... A: If you have federal withholding (and maybe state withholding, it depends on your state) you will ...
SSI Disability	1/3/2008
Q: I am married with no dependants. My husband always file married joint. This is the first year I have ... A: You want to continue filing jointly. If you file separately, automatically 85% of your benefits ...
investment interest deduction	1/2/2008
Q: I have invested in two beachfront (no buildings) properties and took out loans to cover the ... A: Since you did not make the election, you cannot go back and amend the last 3 years, but you can make ...
Working in one state, living in another	12/31/2007
Q: but travel every week of town to work in other states. My company is based in Texas and I am paid ... A: You are an AZ resident, therefore all your income is taxable to AZ. And if you work in states that ...
Car Donation	12/30/2007
Q: My church needed a car for a needy member's family. I donated a 1988 Chevy valued at $1800. I signed ... A: Your church needed to take title of that car. You did lose your donation as you made a gift to an ...
Investment expenses	12/30/2007
Q: I invested a rather significant amount of my money in a specific project in a land development ... A: Not really. You are still limited in your scope as an investor and even if you were on the site and ...
Per Diem "travel Pay"	12/29/2007
Q: I work for a large corp with many plant locations. Some of the year I'm at my Homebase plant in ... A: Travel pay is per diem. If your expenses exceed your travel pay, you may have a deduction. Meals ...
Investment expenses	12/29/2007
Q: I invested a rather significant amount of my money in a specific project in a land development ... A: I used to live in Kingman, let me tell you, that place has grown over the past 20 some years. ...
employer filing taxes illegally	12/28/2007
Q: I have a somewhat complicated problem that would not have happened if I had caught it earlier this ... A: How much do you like your job? If you like it, you may want to ask for more money to cover your ...
Business education expense	12/28/2007
Q: I'm a self-employed piano teacher. I'm taking singing and guitar lessons right now and feel that the ... A: I probably would not have real heartburn with your lessons as you teach music and you also take ...
capital gain?	12/28/2007
Q: I live in TN, and I bought a duplex 15 months ago. I live in one side and rent out the other. Some ... A: First of all, you have two sales, one of a residential property and one of a business property. The ...
Reporting subcontractor income	12/27/2007
Q: I work as a fitness instructor on a subcontractor basis. The woman that owns the franchise that ... A: Erin, first of all, let's go back to last year. If you made a dollar, you needed to claim that ...
investment interest deduction	12/25/2007
Q: I have invested in two beachfront (no buildings) properties and took out loans to cover the ... A: Scotti, I understand waiting for the kids. Mine are 25 and 23 and they come home to sleep. I want ...
investment interest deduction	12/25/2007
Q: I have invested in two beachfront (no buildings) properties and took out loans to cover the ... A: You did not quite understand the tax laws. You can deduct investment interest to the extent of ...
ebay tax laws	12/25/2007
Q: i live in california. For about 10 years i have been buying and selling on ebay. Until last year ... A: Any and all of your sales were taxable. If you are in the business of selling, which it seems like ...
Mother In-Law as a Dependant	12/24/2007
Q: My husband is in the military. His mother recently fell so ill to cancer, that she can no longer ... A: No, you will not be responsible for her debt at all. Just an FYI, and you did not ask, which most ...
lost form1099S and proof of retirement income	12/24/2007
Q: ..I'm in the process of getting a student loan, the lender needs proof of income from my co-signer. ... A: You are not looking for a 1099S, you are looking for a 1099R. If you cannot find it, you can go back ...
Sole proprietor	12/21/2007
Q: am I correct in my understanding that if my sole proprietorship took a net loss of approx $17K this ... A: At least you did remember it. I remember riding in them! :) If you don't take the standard cents ...
Sole proprietor	12/21/2007
Q: am I correct in my understanding that if my sole proprietorship took a net loss of approx $17K this ... A: Your first assumption is correct, your SE loss reduces all other income. It does not matter if ...
filing taxes with a new addition to family	12/21/2007
Q: This year my Fiance is claiming me our daughter (born 8/1/07) and his brother who lives with us...I ... A: Unemployment does count in the $3400. Only one person in a household can be head of household. So ...
Capital gain on sale	12/21/2007
Q: I recently sold my house and am worried about the taxes I may need to pay for the capital gain. The ... A: Your basis is what was paid for the home plus improvements, so your starting point is the $200K. ...
ROTH IRA DISTRIBUTION	12/21/2007
Q: Bcck in 2003 I had to withdraw a portion (10K)of my Roth which is with Fidelity. They couldn't tell ... A: Yes, three years. So right now, 2006, 2005 and 2004 are fixable. And Fidelity was in the wrong if ...
Should my mother have paid a gift tax?	12/20/2007
Q: My mother transferred her home plus an empty lot to me and my siblings several years ago, 2002 I ... A: Yes, Mom should have filed a gift tax return, but no taxes would be due unless she gave away a ...
Tax Question	12/17/2007
Q: I got married in July and moved from NYC to CT. Before I got married, I was living at home and ... A: You have two choices in how to file. Those are married filing jointly or married filing separately. ...
quick claim deed and capital gains	12/16/2007
Q: I have read a few answers on your site and others to avoid quick claim deeds due to the carry over ... A: If they quit claim the home to you and do the proper filing - ie gift tax return, then it is your ...
New Home Owner	12/16/2007
Q: Helen. I have always prepared our tax returns using 1040 form. This June, we bought our first ... A: Rhonda, in my opinion and as a paid tax professional, maybe I should not say it, but everyone, if ...
Personal income tax allowances	12/15/2007
Q: I am an unmarried head of household with two infants. I do not pay for child care, and I work at ... A: The IRS has a calculator on their site that can help you. Go to www.irs.gov; and do a search for ...
My Employer Pay Taxes Or Not?	12/14/2007
Q: I'm not sure it my employer pay the taxes on payroll deductions or not this year. I have only one ... A: If you have paystubs that show withholding or a W-2 that shows it, you don't have to worry if your ...
Capital gains tax with multiple buyers	12/12/2007
Q: My wife and I currently own a home in Virginia and we are looking into purchasing a second home next ... A: No. To take the exclusion you must live in and own the home. So the only one that can take any ...
Tax return	12/12/2007
Q: My husband's ex-wife's accountant told him he could claim two of their children as dependents on our ... A: If the divorce decree does not say which parent can claim the kids, then by default the custodial ...
Volunteer Fire Department Reimbursement	12/12/2007
Q: Helen, every year our township gives each volunteer a reimbursement for travel expenses. They have a ... A: It is okay if they 1099 you, it will work out the same way. The way you should have been doing it ...
How to file state tax	12/12/2007
Q: I am a medical student, who is also in the air force. I receive a stipend fro the AF. I have lived ... A: Since you lived in PA, you will owe taxes to PA. You can take a credit for taxes paid to another ...
tax	12/10/2007
Q: My child is 26 years old and he is in college. I can not claim my child as dependent. He has yearly ... A: Age only matters if he had income of the standard deduction or more. For 2007, that number is ...
tax	12/10/2007
Q: My child is 26 years old and he is in college. I can not claim my child as dependent. He has yearly ... A: If he has no income or less income then the standard deduction, you can still claim him as your ...
Filing separately	12/7/2007
Q: My husband is on SSI-so he really doesn't have to file as his income is too low, but I'm thinking of ... A: If you live together for one day of the year and you file separately, AUTOMATICALLY 85% of his SSI ...
401k and disability	12/6/2007
Q: My wife is 55 years old and is disabled. She collects social security benefits and disability ... A: Yes, you can. Just know that depending on your income, withdrawals from her retirement plans could ...
My dependent	12/6/2007
Q: the mother and I are not married but we are together and live in separate houses and the baby lives ... A: The custodial parent (in this case the baby's mom) is the parent that claims the child. If your ...
W-2 employee	12/5/2007
Q: if you are said to be a W-2 employee how much tax will be deducted from the salary? and what are ... A: Federal, medicare, social security, state and local taxes should be withheld. If your insurance is ...
Section 72(t) rules for a SEP IRA	12/5/2007
Q: I funded a SEP IRA from 1990 to 1997 when I was an independent consultant. I am curious if Section ... A: Yes, but the kick is - you must do it for 5 years or until you hit age 59.5, whichever is longer. ...
Estimated Tax Question	12/5/2007
Q: Our adjusted gross income in 2006 was around $35,000, and this year would have been the same, except ... A: If you have paid in (in 2007) as much as your tax liability for 2006 (total tax line on your return) ...
Corporate Apartment and Per Diem	12/4/2007
Q: My company sent me on an assignment 580 mi. from home 11 months ago. The arrangement was the company ... A: They are correct, since your job is lasting over a year, the room and board are now part of your ...
income less than $32,000.00	12/4/2007
Q: My wife and I are retired, my annual pension is $4280.00 my wife receives no pension.we get a ... A: John, I just wanted to make sure you were taking out, I see more and more folks forgetting to take ...
hows get it?	12/4/2007
Q: last year I claim my children in my taxes, but this year my ex father dad wants to claim and he ... A: He can only file the kids if you allow him to do so. What you need to do is file as soon as filing ...
IRA and Roth IRA conversion	12/3/2007
Q: I was laid off in 2006 and took my 401K and rolled it into a IRA at my investment firm. My account ... A: If this was all tax deferred money from your 401K, and you had no non-deductible IRAs, the entire ...
income less than $32,000.00	12/3/2007
Q: My wife and I are retired, my annual pension is $4280.00 my wife receives no pension.we get a ... A: John, yes, you can. To decide if any of your SS benefits are taxable, take your pension and one ...
IRA transfer at time of divorce	12/3/2007
Q: I'm trying to transfer post tax and pre tax dollars as part of a divorce from a Wachovia account, to ... A: He can't separate them. The only way to get the entire 30K out as the post tax money is to take out ...
IRA transfer at time of divorce	12/3/2007
Q: I'm trying to transfer post tax and pre tax dollars as part of a divorce from a Wachovia account, to ... A: No. Since you have before and after tax dollars in the account, you must take out or transfer the ...
Executor fee taxes	12/3/2007
Q: i saw a response on a question on executor fees. Executor fee I understand would be taxed as income, ... A: The fee comes out of the estate and is reported on a 1099. The amount (for tax time) goes on line ...
alimony taxation	12/2/2007
Q: In my divorce, my lawyer negotiated with the ex's lawyer and they wrote up in our divorce agreement ... A: If the decree states that the alimony is not taxable to you and not deductible by him, then the CPA ...
perdium	12/1/2007
Q: the company i work for adds up your trip miles get your total gross subtracts your weeks perdium ... A: Let's use numbers. Your pay is $100, your perdiem is $25. So your total check is $125, then they ...
capital gains	11/30/2007
Q: After my father passed away three years ago, my mother had a second home that they owned put in mine ... A: You and your brother own the home and you and your brother will pay the taxes. Your basis is Mom's ...
Capital gains vs. Normal Income	11/29/2007
Q: Starting this year on a part-time basis, my wife began purchasing foreclosures, rehabing them, then ... A: It appears that this is a business, not a casual buying and selling, so your wife would use Sch C ...
Claiming a dependent with a dependent.	11/28/2007
Q: My stepdaughter is 17 and had a baby on Oct. 2nd of this year. Her mother has full custody of her, ... A: The custodial parent has the right to claim the child so that looks like her mom. The custodial ...
selling 2 homes and purchased 1 home	11/27/2007
Q: In 2004 we purchased a home for $295,000 with the intention of selling 2 smaller homes and putting ... A: If each of you meet the time and ownership tests, you can exclude up to $250K of the gain on each ...
Tax Consequences of Marriage	11/27/2007
Q: I am going to be getting married in October 2008. I was looking at my W-4 on file with my employer, ... A: At 200K, you could see a tax increase for sure. At that point, you are probably topped out for a ...
Tax Consequences of Marriage	11/27/2007
Q: I am going to be getting married in October 2008. I was looking at my W-4 on file with my employer, ... A: Even if you would get married on 12/31 a minute before midnight, you will be considered married for ...
can married file head of household?	11/27/2007
Q: I am married, but my husband was out of the house for more than 6 months of this year and will be ... A: As long as you are not in a community property state, you can file as head of household. If you are ...
Cashing out my 401K	11/27/2007
Q: I am going through a divorce and need buy my half of the house. I plan to do a refinance and ... A: You should get a check for $40K as 20% is mandatory for tax withholding. The 10% penalty as well ...
exemptions	11/27/2007
Q: In May of 2007, my 28 year old son suffered server brain trauma (with god's grace he has since ... A: I'm glad he has recovered! There really is nothing as a partial dependent, it is all or nothing. ...
Marry by 12/31/07 or after 1/1/08?	11/27/2007
Q: My fiance' and I want to get married. I'm a civil servant working in D.C. and she is a teacher and ... A: If your ex wife bought you out, the sale is incident to divorce and you do not have any gains to ...
running more than one type of business with one tax id	11/27/2007
Q: I have a small child care business that has only become profitable in the last quarter of the year. ... A: I understand the running on tired thing, and I plan on using it! :) You cannot do what you want. ...
Witholding allowances	11/26/2007
Q: I keep reading about adjusting the witholding allowances so that you don't withold too much during ... A: You should try at least S-1 and that will get you a lot closer. If you want to see the difference ...
Marry by 12/31/07 or after 1/1/08?	11/26/2007
Q: My fiance' and I want to get married. I'm a civil servant working in D.C. and she is a teacher and ... A: Bill, I don't see a lot of things you can do differently. Regarding the sale of the home - was this ...
tax write-offs	11/26/2007
Q: I work for a retail store in which we wear their product in order to promote sales. It is not ... A: Sorry, but no. These are ordinary street clothes and not deductible. Had you been working at ...
tax credit question	11/25/2007
Q: i'm a 27 year old single mother of an 8 month old baby. i'm also a recent grad. i have not worked ... A: If your income is going to be under $3,350 at the end of the year, it will probably be better for ...
claiming son	11/25/2007
Q: My son was a senior in 07--started a job in sept.--turned 19 in june.--he will probably make 2500 ... A: As long as he was a student for 5 months in 2007, you can still claim him. For 2008, you will not ...
Filing exempt	11/24/2007
Q: I am a full time student and work part time. Can I file exempt? If so is there a "good" time to do ... A: If you did not have a tax liability the previous year and do not expect to have a tax liability in ...
lump sum taxes	11/21/2007
Q: I recently recieved a lump sum payout by my dissability company. The law firm took out just about ... A: The overpayment may reduce your taxable income, it depends on the amount of it and how you file to ...
In home child care	11/21/2007
Q: 2007 has been my first year to be a full-time non-licensed in home child care provider. The end of ... A: Tammy, anything that is ordinary and necessary for your business is an eligible write off. I ...
Filing status	11/20/2007
Q: I file my taxes as single and lately I have a lot of taxes to pay and I do not make much money. I ... A: If you are married by 12/31, your filing status is Married Filing Jointly. If your state allows ...
HEAD OF HOUSEHOLD	11/20/2007
Q: MY HUSBAND AND I HAVE BEEN SEPARATED FOR 7 MOS DUE TO HIM BEING INCARCERATED. I HAVE POWER OF ... A: If you have a dependent child living with you, you may be able to file head of household. If not, ...
Taxes	11/20/2007
Q: I was recently married (October 07). I make significantly more money than my husband and have ... A: You cannot file as single. You are married and in Texas, you live in a community property state so ...
Tax implications of taking a roommate in a co-op apartment I own	11/19/2007
Q: My girlfriend is moving into my co-op apartment in Westchester County, NY. I am not renting to her ... A: Itis just not what you want to do. First is intent. You are not intending to have a renter, you ...
Condo in Pasadena	11/19/2007
Q: I have owned a very nice condo (good location in historic building) since May 2004. I initially ... A: I'm assuming you are discussing the mortgage interest credit and that credit is given to the person ...
Summer Internship Rent Deduction?	11/19/2007
Q: Hey, I worked a summer internship in Manhattan this summer. Since I had a primary home (my ... A: You have no deductions for rent, travel or anything else. And you will file to all states, PA, IL ...
Qualifying Child rule: temporary absences	11/17/2007
Q: Next fall, my daughter would like to get an apartment while she continues as a full time student ... A: As a Mom that was in the same exact situation, her apartment is temporary and she is still ...
employee expenses on W-2 wages	11/15/2007
Q: My daughter is a W-2 full-time employee at a major corporation. Howerever she was told that she is ... A: Medical expenses, such as insurance, are subject to a floor of 7.5%, employee expenses have a 2% of ...
employee expenses on W-2 wages	11/15/2007
Q: My daughter is a W-2 full-time employee at a major corporation. Howerever she was told that she is ... A: As long as she is getting a W-2, none of the expenses you list are deductible to her, unless ...
Married Seprate	11/11/2007
Q: Over the past 8 years my boyfriend has claimed exempt and not filed taxes. I however file my returns ... A: You are not responsible for the taxes he has not paid before you filed a joint return. But the IRS ...
Per Diem	11/10/2007
Q: My husband and I currently reside and own a home in South Carolina. He just took a job with a ... A: The second they tell him it is to go for a year, whether it does or not, it is not a temporary ...
Tax on Savings Bonds	11/7/2007
Q: Helen: I am the executor for my Mom's estate. When I filed her final 1040, I elected to pay the ... A: They can just attach a statement saying $xx of interest on bond 123456 was paid by SSN 123-45-6789. ...
head of household	11/7/2007
Q: I am divorced--have been for ten yrs.--have raised my son in my home for ten yrs.--he turned 19 in ... A: Since he is now 19 and no longer in school, if he makes $3,300 or more, you cannot claim him NOR can ...
individual soc sec tax payments	11/6/2007
Q: My husband, by definition is NOT self employed or a subcontractor. He earns an annual salary, does ... A: Your husband must file an SS-8 for a determination from the IRS. Then for years prior to 2007, he ...
mortgage interest	10/29/2007
Q: we built a second house on my parents property (in California)and because the property is in their ... A: There are court cases that say you can claim the interest since you are the ones paying it. I don't ...
Early Withdrawal Penalty Exemption	10/26/2007
Q: I am 56 years old. I was laid off by my employer last year when I was 55. I had a 401K at the ... A: No. You have to wait until you are 59.5 to take out of the IRA OR do a 72T disbursement, which is ...
taxable moneys'	10/25/2007
Q: I have a question that I'm unsure as to where to find the answer so I hope you are the right person. ... A: Well, if brother in law is NOT on a temporary assignment, he will have no write off on his taxes. I ...
primary residence exemption capital gains	10/24/2007
Q: My husband and I are getting ready to sell our primary residence. We fulfill all of the requirements ... A: Linda, you have a couple of issues and you probably will like MOST of the answers. First of all, ...
Tax Deduction for Day Care	10/24/2007
Q: My son is going to be 13 this year. He has Fragile X which is a mental development problem. How can ... A: If your son is not able to be alone per a medical condition, you would still be able to claim child ...
tax	10/23/2007
Q: H&R Block prepared my taxes last year. How can I find out what my tax bracket was. I'm married and ... A: I'm going to say you are in the 15% bracket for federal and you probably have about 15K to go to hit ...
IRA withdrawal	10/22/2007
Q: My husband and I have each put post tax money into IRAs. What do I have to do in order to withdraw ... A: The ONLY way you can file one 8606 form is to take ALL your monies out of ALL your IRAs this year ...
IRA withdrawal	10/22/2007
Q: My husband and I have each put post tax money into IRAs. What do I have to do in order to withdraw ... A: Sorry, but you cannot just pull out the taxed portion. You must pull out a ratio of taxed and ...
Capital loss on rental property?	10/22/2007
Q: I bought my house in 1999 and lived in it until this year. I am now buying a new house and will be ... A: Probably not. Since it is not a true rental property, but a sale of a personal property, you still ...
sale of land previously received as gift	10/21/2007
Q: Eight years ago, a relative gave me a piece of land. However, my husband came back from war disabled ... A: Unless you know what the relative paid for the land, your basis is zero. If the relative is still ...
accounting for designers	10/12/2007
Q: I am a recent graduate with my Masters in architecture degree and am beginning employment as an ... A: Anything that is ordinary, necessary and in the case of an employee, required by the employer may be ...
taxation on sale of investment property	10/12/2007
Q: I am selling an investment property i have owned for 9 months. What are all the deductions from the ... A: You won't have capital gains tax, you have ordinary income, which means there is no cap on the taxes ...
W4 Allowances	10/9/2007
Q: I currently have 9 allowances on my W4 Form and using a Quicken and past tax returns, I determine ... A: While there is no max, if you owe over $1,000, you can face penalties for underwitholding. Please be ...
tax penalties	10/8/2007
Q: I was just married in May of this year. I recently found out that my husband claim a dependent on ... A: If you did not file with him, it will not affect you. As for the penalties, it depends what he will ...
loss carryover?	10/8/2007
Q: If our income this year is maybe $7000 less than the standard deduction plus our two personal ... A: Well, first of all, we all have the duty to pay our taxes when they are due. So each time one of ...
How to report 1099-A from vacation timeshare	10/7/2007
Q: I am filling out my 2004 IRS return after they sent me a summary sheet showing my "income", which ... A: If you were insolvent, you do not have any income on the repo. If you were not insolvent, you do ...
tax exemptions & home repairs	10/6/2007
Q: My mom is selling her house. She is going to have a profit of over $250,000. She bought the house ... A: There is no set amount that is allowed, it is basically what she spent. If her husband was an owner ...
Tax Deductions	10/5/2007
Q: I had a question about what work related items I can claim as deductions. My taxable income for 2007 ... A: Haircuts were never a deduction, no matter what you do. If you are self employed, any expenses ...
Outside Services	10/5/2007
Q: I have a client who has about 205,000 in outside services but he did not acquire w-9's or issue ... A: Well, when audited (and the audits are huge in this area right now) he will be questioned as to why ...
when should we get married to avoid tax bill?	10/4/2007
Q: My fiance and I are both Massachusetts residents. His W-2 will be about $105k, mine about $99k. ... A: There is no real answer. The best thing I can tell you is do a pretend return and you can use 2006 ...
owe tax money to the IRS when they owe me	10/4/2007
Q: My husband did not file taxes for two years before we were married, we filed last year jointly as a ... A: Your husband needs to file the tax returns he did not file. You may not owe as much as the notices ...
taxes to be payed on sale of home	10/2/2007
Q: I am the youngest of 4 kids. I have a disability. I lived with my mother until she died. all kids ... A: For your quarter of the gain, as long as it is less then a profit of $250,000; you will pay nothing. ...
1099	10/2/2007
Q: My brother and I just purchased a vacation home in PA and we reside in NY (It's actually in ... A: Hopefully if the land was over 12K, you also plan on filing a gift tax return as one will be ...
16 yr. old with job how do I file?	10/2/2007
Q: I'm married and have a 16 yr.old with a part time job. Does he file taxes himself or do I have to ... A: If he has to file, he puts his income on his own return. He does not claim himself, you will still ...
401K taxation on withdrawals	10/1/2007
Q: Could you please tell me the best way to use some of the 401K money to pay down my home mortgage? ... A: There really is no best way. Any money taken out of your 401K (unless you have previously taxed ...
Home Sale Tax Exclusion for Widow	9/29/2007
Q: I plan to sell my home after having been widowed two-and-a-half years ago. We bought the property ... A: Penny, I'm going to start you off, but I want you to talk to a local tax professional also, as ...
Foreign income tax	9/28/2007
Q: I have searched all over the internet trying to find an answer to a very important question ... A: It does not matter if you did not bring the money in the US, or if you burned it or whatever, you ...
Foreign income tax	9/28/2007
Q: I have searched all over the internet trying to find an answer to a very important question ... A: I'm going to assume you are a US citizen. If you are not, I really can't help and I would suggest ...
Capital gains taxes	9/28/2007
Q: I recently sold our Florida condo that we owned for 28 years.The price was approximately $60,000 ... A: So, she is still putting up with you after all these years! :) All the improvements and ...
exempt	9/27/2007
Q: What are the requirements on filing exempt on your taxes. A girl I work with does this for six ... A: You can file exempt ONLY if you did not have a tax liability for the previous year and do not expect ...
Taxes on per diem, tax home	9/26/2007
Q: Government emplyee on TDY for almost a year. I've been requested to remain another year. I don't ... A: You have to look at intent. If you intend to go back to your site at any time within at least (to ...
Taxes on per diem, tax home	9/26/2007
Q: Government emplyee on TDY for almost a year. I've been requested to remain another year. I don't ... A: The minute you say Yes, I'll stay is the minute you have changed your tax home and your per diem ...
Unallocated Alimony/child support Payments	9/25/2007
Q: I'm confuse. I been divorced for 2 years my residence is on the State of Connecticut, pather of ... A: Marcos, it is good that you support your children. However, your H&R Block preparer was correct. ...
Tax Deduction	9/24/2007
Q: My spouse salary is 130K. I am not working. We dont have any kids. How much deduction max. can he ... A: The W-4 has a worksheet on it. If you follow the lines, it will tell you the maximum hubby can ...
Tax Deduction	9/24/2007
Q: My spouse salary is 130K. I am not working. We dont have any kids. How much deduction max. can he ... A: If you follow the worksheet on the W-4, you should get a pretty good idea of the number of ...
Should I file Tax exempt	9/23/2007
Q: I graduated college in May and have since been working at an internship for the Montgomery County MD ... A: Alicia, if you did not file your federal W-4 at single and one, you want to do one now. See ...
Should I file Tax exempt	9/23/2007
Q: I graduated college in May and have since been working at an internship for the Montgomery County MD ... A: Alicia, will your parents be claiming you on their 2007 tax return? They are able to do so. If ...
Residence of California, Working in Michigan	9/21/2007
Q: Here are my questions: Questions 1: I have California residency (house and CA drivers license, etc.) ... A: If you have been in MI over a year, MI is your tax home. Thus, none of your deductions for flying ...
Non deductible IRA withdrawal	9/20/2007
Q: This year, 4.5 months ago, I withdrew only the capital amount I had in the Traditional IRA ... A: Sorry but no. It has been over the 60 days that the amount could have been rolled back in. When ...
Amanded Tax Return Question!	9/20/2007
Q: My name is Arshak. And I would appreciate if you could help me with my question. I recently filed ... A: If the state you lived in is a common law state, you are now married. If you do not, you need to ...
CD TAXES	9/17/2007
Q: I AM CONTEMPLATING OPENING A CD WITH A GOOD INTEREST RATE.MY QUESTION IS HOW WILL THE INTEREST ... A: Interest income is taxed as ordinary income, so whatever your tax bracket is is the percentage of ...
Tax Lien reported on Credit Report	9/4/2007
Q: I have 2 tax liens on my credit report, they are both released. But here is the story, the tax ... A: If the liens are released, just add a statement to your credit report that the liens have been ...
Investment Property Sale	9/4/2007
Q: We purchased an investment property in 2001 for $74,000. We did a cash-out refinance on it in 2006 ... A: Depreciation is recaptured at a top tax rate of 25%. Improvements should be on your depreciation ...
write offs	9/4/2007
Q: I was curious if receipts are required for write offs? I currently have not been saving my receipts ... A: Credit card bills, etc normally only say you spent $xx at XYZ. It does not tell you what was ...
Investment Property Sale	9/3/2007
Q: We purchased an investment property in 2001 for $74,000. We did a cash-out refinance on it in 2006 ... A: You don't mention if this is a rental or not. If not, the answer is easier. If it is, you need to ...
Child Claim	9/2/2007
Q: My boyfriend and I are expecting a child. My first, and his second. My baby is due in October. He ... A: The child you are having together - you are correct that he cannot claim him/her since your parents ...
taxes: deduction possibility for educational expenses of children	9/1/2007
Q: my daughter is taking dual enrollment classes for college credit while still in high school- can i ... A: Sorry, Dad, but the answer is no to both. First of all, books are not deductible, only tuition, so ...
Timing of Sale of Investment Property	8/30/2007
Q: We recently finished our vacation home, with the intention to rent out to vacationers. This house is ... A: If you have owned the home for a year or less, the gains on the sale are treated as ordinary income. ...
tax on jewlery	8/30/2007
Q: My friend has been notified that she won 10,000 worth of jewelry from a reputable TV station. She ... A: All she needs to do is prove is how much the jewelry is really worth, either thru appraisal or ...
Capital gains tax on land sale	8/28/2007
Q: We are planning to sell some of our agricultural property adjacent to our primary residence to one ... A: You need to find out what your cost basis is. Try county records, real estate agents that ...
Stock write-offs	8/28/2007
Q: I was one of many who lost some money on the tech stocks. I guess I have a limit of $3K/year that I ... A: Bob, you are limited to 3K in losses over gains yearly. Short term gains and losses are netted, ...
Taxation of gambling winnings	8/25/2007
Q: The wife of my disabled best friend is struggling with the burden of a tax bill connected to his ... A: Has he filed a tax return? If not, that should clear everything up (or most of it). If he has ...
Can my fiance claim my son on his taxes?	8/24/2007
Q: My fiance and I bought a condo together in May 2007. We both work full time, but he makes quite a ... A: Since you are the natural mother, you are the one to claim your son. And you will file as head of ...
Primary Residence	8/24/2007
Q: I am changing jobs to a location that is close to a property that I wish to be my primary residence. ... A: Primary residence is one where your mail goes, where your car is registered at, where you vote from, ...
Prize winning for self employment taxes?	8/23/2007
Q: I won a free trip for 4 from American Express during a "rewards points" promotion in 2005. According ... A: No, you should not be paying SE tax, but AMEX may have issued an incorrect 1099. Try calling the ...
when/ Min Dist	8/23/2007
Q: I see a difference with my plan person. 70 years old on 8-14-07. I see being 70-1/2 in year 08 and ... A: You must take distributions in the year you turn 70.5 or the following year. If you do not take it ...
Can't believe I just noticed	8/22/2007
Q: I have been working for a corporate restaruant as a server for a little over a year now a majority ... A: SS and medicare is not optional, you pay it on every penny you make as long as you work. If your ...
Can't believe I just noticed	8/22/2007
Q: I have been working for a corporate restaruant as a server for a little over a year now a majority ... A: I think what you are talking about is allocated tips. It is impossible for me to see exactly what ...
Claiming a Newborn baby	8/22/2007
Q: We recently had a son born August 16, 2007. We both work but my income is higher. Will we be able to ... A: Congrats on the baby. As long as your child was born before midnight on 12/31 of the tax year, that ...
Sale of real estate tax	8/21/2007
Q: My grandfather deeded me property in the U.S. Virgin Islands. This was done via a deed of gift. He ... A: Your basis is what your grandfather paid for the property and if you do not have that information, ...
Taxation on Short Sale of a CA Home	8/20/2007
Q: My family's CA home is currently being foreclosed on. We have the opportunity to conduct a "short ... A: If you are insolvent (and that has nothing to do with your income - it means you are totally upside ...
Musical Instrument	8/20/2007
Q: I am self-employed and if I donate 6k worth of musical instruments to our church youth band. Can I ... A: Yes, on Sch A as an itemized deduction and then to the extent of the price you pay for them, no ...
Musical Instrument	8/20/2007
Q: I am self-employed and if I donate 6k worth of musical instruments to our church youth band. Can I ... A: I'm going to assume you wrote the instruments off of your tax return, so your basis is probably -0-. ...
Sale of house capital gain	8/19/2007
Q: What is the IRS definition of unexpected event? I dated a lady for 2 years 2000-2002. We broke up ... A: The wedding was unexpected in 2004, not in 2007. And since the daughter remained there, that pretty ...
Annuities & 1040EST	8/19/2007
Q: I recently completed some medicaid planning. In this process I had to surrender a simple annuity ... A: Your surrender charges should be taken care of with the tax reporting of your annuity and should not ...
Pre 1987 after tax contributions	8/18/2007
Q: I am in the process of rolling over a Savings Plan from an former employer. The account was started ... A: The tax free portion, and only the tax free portion (not any appreciation) is allowed to be taken ...
Tax on Land Sale	8/18/2007
Q: My husband and his first wife were given a piece of land in 1995. My husband's first wife died in ... A: VA is not a community property state. Your husband's basis calculated as follows - what the land ...
exempt on my taxes	8/15/2007
Q: I am confused about how I have been filing my tax status. My mother claims me, and since I had my ... A: If you filed exempt, you should not have had federal withholding so you would not have had to file a ...
exempt on my taxes	8/15/2007
Q: I am confused about how I have been filing my tax status. My mother claims me, and since I had my ... A: Okay, that helps. First of all, you are correct, Mom is not a tax person. Your friends are doing ...
401K tax and penalty	8/15/2007
Q: I understand that at 591/2 one can cash out a 401K. Since the market is so unstable I am ... A: Actually, if you are 55 and separated from service, you can draw your 401K without penalty. ...
Malpractice Insurance	8/15/2007
Q: Is there any other way to deduct, besides on Form 2106, a physician's malpractice insurance premium ... A: Since the insurance had nothing to do with the Sch C income, the person that prepared those returns ...
Sale of land gifted from grandfather	8/14/2007
Q: Several years ago my grandfather gifted me land over a period of time. The end result is that I ... A: You need to know what granddad paid for the property plus improvements. That is your basis. And if ...
Dependent care spending account	8/2/2007
Q: My question relates to flexible spending accounts for dependent care. I had saved some money in my ... A: FSAs have a use it or lose it problem and it seems you are right in the middle of it. The ...
claiming mortgage interest	7/31/2007
Q: I am refinancing my mortgage to build an addition for my daughter and husband they will be paying ... A: No. If they are not liable for the mortgage, they cannot claim it. If you are not paying it (or ...
Inheritance money	7/31/2007
Q: I was wondering if money from an inheritance is considered income and does it have to be reported as ... A: Retirement funds are almost always income to the heirs, savings bonds also. Savings accounts, stock, ...
Mileage reimbursement at work	7/20/2007
Q: I'm not sure if you are the proper person to ask this question to, but I am having a heck of time ... A: First of all, please know that as long as the mileage reimbursement does not exceed federal amounts ...
inherited house	7/19/2007
Q: Do to an inheritance I now jointly own a Santa Barbara, California house with my two brothers, one ... A: I can't tell you if it is better to sell it or rent it. Those are personal decisions. Your basis is ...
Tax Basis, inherited real estate	7/19/2007
Q: My brother and I inherited real estate in Texas, consisting of acreage and a house. The county ... A: Tax basis means nothing. The value of the home to you is the appraised value on the day the person ...
Sale of Condo	7/15/2007
Q: I bought a condo in March 2006 and sold in November 2006 at a 20,000 loss. I held the property as an ... A: Selling expenses yes. Loan fees, no. Maint. fees as 2% of your AGI. Interest and taxes, only if ...
waiving 10% Fed. Tax Penalty	7/14/2007
Q: My question is rather complicated; I'll try to present it as accurately as possible. I am a 46-yr ... A: Lacy, if you can get a doctor to state you are disabled (for a period of at least a year), I would ...
Netting real estate gains against stock losses	7/14/2007
Q: I have a large real estate gain on a house that I owned and lived in for many years. I also have ... A: You may have some recapture of depreciation, I can't pull the date out of the air, but it is May 7, ...
Tax year for "qualified education expenses"	7/13/2007
Q: My son's college entered his Spring 2007 charges into his account 11/16/2006. We withdrew funds ... A: They are deductible in the year paid, so 2007. As for the additional IRA withdrawal, it looks like ...
Which state do I pay state taxes to on the sale of investment property	7/11/2007
Q: My husband and I recently sold an investment property located in the state of VA. I know we must ... A: Both states will tax the sale. You will be able to take a credit on your NC return for the VA taxes ...
separated not divorced	7/11/2007
Q: I am separated from my wife but not divorced. We have a child together. I am paying child support. ... A: Your filing status is married filing separately with no dependents. If you cannot obtain your ...
Capital Gains	7/11/2007
Q: I bought a condo in May of 2006 based on my own income. At that time, my partner was unemployed so ... A: You may have a problem in that you were the only one working when you bought it. If you both were ...
short sale/1099	7/9/2007
Q: We have 2 investment properties which we are unable to afford any longer. They will be going into ... A: The taxes are not dischargable in BK for 2 years AFTER the return is filed. So sorry, but no such ...
Capital Gains taxes	7/9/2007
Q: We own a house in Virginia and have lived there for 1 year. We just bought the house next door to ... A: Let's start at the end and work up. If you sell before a year and a day, your gain is ordinary and ...
Esimated Tax Payments	7/8/2007
Q: Helen Before I retired, my income consisted of a monthly salary, from which Federal and State ... A: Without seeing your tax returns from before and now David,I really cannot answer that unless you had ...
Sep IRA	7/7/2007
Q: I am a part time college student and wish to withdraw funds from my Sep IRA for expenses including: ... A: You don't, at least not for 99% of the items you mentioned. Except for tuition, all other ...
Esimated Tax Payments	7/7/2007
Q: Helen Before I retired, my income consisted of a monthly salary, from which Federal and State ... A: Taxes are to be paid ratably over the year as the income is earned. You can either increase your ...
Owe back taxes, 1099-M	7/6/2007
Q: I was an EMPLOYEE and misclassified as an Independent contractor, the Department of Labor classified ... A: Here is a list of EAs (Tax Professionals) in your city. I don't know any of them so I can't ...
Owe back taxes, 1099-M	7/6/2007
Q: I was an EMPLOYEE and misclassified as an Independent contractor, the Department of Labor classified ... A: You are not going to jail, but you have to stop running and do what you need to do and that is file ...
IRA Contributions and Taxable Income	7/6/2007
Q: I am a college student working a summer internship. I have two questions. First, IRA contributions ... A: Much better. Correct, you would only be taxed on $3K and there would be no tax due, federally. ...
IRA Contributions and Taxable Income	7/6/2007
Q: I am a college student working a summer internship. I have two questions. First, IRA contributions ... A: If you are an intern making that kind of money, I'm afraid to ask what your major is! :) If you ...
Gifting	7/5/2007
Q: My wife and I want to gift $12,000 to my sister-in-law because she is having financial difficulties. ... A: The IRS may look at this as a sham transaction, since the plans are she repays you. Just be careful ...
tax liability for emminent domain payment	7/4/2007
Q: The state of Connecticut has condemned a portion of my property fronting a U.S. highway to permit ... A: Agressive tax preparation would reduce your basis in the property by the money received. Please ...
TAX	7/3/2007
Q: If someone makes about 200,000.00 in one year in day trading and makes about 40,000.00 that year in ... A: Day trading gains are short term so, the net profit would be subject to whatever tax bracket they ...
what i can claim to help increase my refund	7/3/2007
Q: I am 21 years old and I work one job where I make around 23,000 before taxes a year. With each check ... A: The repairs on your auto as well as the gas, the credit card, the meds, etc - none of these are ...
what i can claim to help increase my refund	7/3/2007
Q: I am 21 years old and I work one job where I make around 23,000 before taxes a year. With each check ... A: It looks like Mom may be your dependent, which may help your refund. But remember, all the money ...
What do I claim?	7/2/2007
Q: While my husband and I were living in an apartment, I claimed 0 and he claimed 1. I make around 40K ... A: We love when you out of staters move in and try to figure out our taxes. :) First of all, I'm ...
What do I claim?	7/2/2007
Q: While my husband and I were living in an apartment, I claimed 0 and he claimed 1. I make around 40K ... A: I like that!). You have a lot of misinformation and I have a couple of questions for you so let's ...
personal residense	7/2/2007
Q: Greetings Helen: We purchased a home in Phx. in 1997 as we[wife-me] were spending Winters there, ... A: This is the perfect example of how tax planning could have saved you a lot of money. Had you asked ...
Capital Gain taxes on residence	6/30/2007
Q: I wish to buy a different home with my equity in my present home and sell the present home later. ... A: If you sell your present home within 3 years after moving out, you can exclude the gain up to ...
Dependency	6/26/2007
Q: i would like to know what exactly is a dependant because i think the definition is broad. For ... A: If you are supporting yourself over 50%, you may claim yourself. HOWEVER, depending on your income, ...
northwest airlines series C stock	6/25/2007
Q: In the mid 1990's, I received from Northwest Airlines 100 shares of Series C stock in lieu of ... A: Since this was in your 401K, you will not have a gain or a loss, it is all ordinary income. And ...
Issue about dependent	6/23/2007
Q: Circumstances: -I have 100% legal and physical custody, as of 2006, of minor child with complete NCP ... A: You can make a million dollars if you want. YOU are the custodial parent and you make the rules. If ...
Issue about dependent	6/23/2007
Q: Circumstances: -I have 100% legal and physical custody, as of 2006, of minor child with complete NCP ... A: You are the custodial parent and you have every right to allow your mother to claim your child. Her ...
taxes and weddings	6/23/2007
Q: My parents are giving me money to pay for a wedding and are wondering if they can send me a check ... A: Gifts over $12K per person per year require the giver to file a gift tax return. However, if Dad ...
Another child credit question	6/22/2007
Q: My husband and his ex have "joint custody" with her house being the primary residence. They have 2 ... A: Her mother may be the one that can claim the kids. HOWEVER, since it looks like Mom is the ...
Refiling 2005 taxes	6/20/2007
Q: My husband and I married in April of 2005 however we filed our taxes separately because he needed an ... A: As long as you were married as of one minute before midnight on 12/31/05, you are considered married ...
Turning Cap gains to earned income in SMLLC	6/20/2007
Q: I have a single member LLC that is an entity for trading equities. That is my full time job. I ... A: I've given you my answer. Trading is NOT a trade or business and you cannot make earned income ...
Per Diem	6/19/2007
Q: My husband was working locally but the company he works for has taken on a projest that has him ... A: Per diem is only for days worked if that is how the employer has set it up. There is no federal law ...
capital gains basis	6/19/2007
Q: I need to sell my house. I have not lived in it for more than 2 yrs. because of health problems. I ... A: If you cannot reconstruct the basis in the home, then your basis is what you can prove, which is ...
Home sale capital gain exclusion	6/17/2007
Q: I own two homes. One in Michigan and one in Arizona. I use the Michigan home for voting,income ... A: No. While it does meet the usage requirements, it does NOT meet the principal residence test. Your ...
taxes on 'custodial account'	6/13/2007
Q: My son, now 7y/o, had a trust set up by his grandparents and receives gift money from them on an ... A: It is probably best if your son become a taxpayer. You pay on every dollar if you put the money on ...
Business tax	6/9/2007
Q: Good evening, I just got my real estate license and will be doing it on the side while maintaining ... A: Cell phones are what is called listed property. This means in order to deduct it, you must keep a ...
Business tax	6/9/2007
Q: Good evening, I just got my real estate license and will be doing it on the side while maintaining ... A: Your deductions are limited to what is necessary and ordinary for your business, AFTER you are ...
Qualified educational expenses	6/8/2007
Q: There are different qualified expenses for the different deductions and credits, some of which are ... A: Sorry Dad, but there are no commuting or travel expenses allowed your daughter. Just her tuition is ...
Capital Gains	6/5/2007
Q: O'Planick, I am selling a home I have owned approximately 3 years. Purchase price: $380K current ... A: As long as you did not have any business use of your home or rent it out, you will owe no taxes on ...
Tax Refund	6/2/2007
Q: I’ll try to be brief and direct. I have a civil penalty (500K) that has been marked as ... A: The IRS can collect taxes for at least ten years after the tax was assessed and if you did something ...
Prior Years Taxes	5/29/2007
Q: I would like to know how can I file a full tax return for 2005 and 2006 and also state for 2004. A: It's easy, get the tax forms and just do it. If you do not feel you can do it, see a local tax ...
Pastor's Exemption	5/17/2007
Q: We recently hired a new pastor at our church. He has presented me a copy of his Form 4361 which he ... A: Since he does not pay SS, you have nothing to match so the only thing on your 941 will be federal ...
Selling Minor's Mutual Funds	5/16/2007
Q: My 17 year old has a money market fund account (it's set up under my name, Cust, her name, UTMA FL) ... A: do everyone a favor and ask him NOT to give tax advice anymore. If this is a true money market ...
Investment property depreciation	5/15/2007
Q: If I'm selling an investment property but was not eligible for depreciation deductions because of my ... A: Not quite. First of all, you will use up all your losses on the return no matter what your income, ...
employee taxes, 1099?	5/15/2007
Q: I have started a small landscape maintenance business. I will occasionally (perhaps often) need to ... A: These folks are using your tools, working under your name, you are naming the hours, etc, so they ...
Tution For School Deductions	5/14/2007
Q: I am attending a local university and have 40K plus in the last two years in student loans. All of ... A: Your parent(s) probably should be claiming you as they are probably supporting you. The student ...
Taxes on land	5/14/2007
Q: About 5 years ago I purchased some land to build a home. Since then I have come to the conclusion I ... A: The tax on the gain is 15%, so if your gain is $100,000, you will pay $15,000 taxes on that portion. ...
IRS Refusal to lift lien to refi. to pay IRS tax debti	5/12/2007
Q: What has been done to my family and I is wrong, every Attorney, Senator, and Congressman, that knows ... A: Daniel, while I feel for you, you should have contacted professional help FIRST, not after this ...
house on 9 acres, selling 7	5/4/2007
Q: I would like to sell 7 acres of my property and keep the house and 2 acres...Can I take the $250,000 ... A: If you don't feel VERY strongly that you are going to sell the home, DO NOT take an exclusion for ...
estate tax/capital gains	5/2/2007
Q: After my father-in-law's death in May 2005, my mother-in-law signed a deed conveying her house to my ... A: Could be quite a bit. Depending on the state the inlaws lived in will give your husband his basis. ...
babysitting and taxes	5/1/2007
Q: I am considering baby-sitting full time in my home for three to four children. My question is, how ... A: Nicci, you would be considered self employed and file Sch C, SE and 8829 with your tax return. Your ...
Traditional IRA	4/25/2007
Q: My intended 2005 Tradition IRA contribution (made in January 2006) was, I recently found out, ... A: You have a mess. You need to correct your 2005 return to show no contribution and you will pay ...
adoption credit	4/23/2007
Q: I'm wondering if we can take an adoption credit on our 2006 tax return. We paid a total of $4600 in ... A: If the baby is not born, there is really no way you can take the credit. You can try to snail ...
Rental Property	4/22/2007
Q: Greetings. I have read Publication 527, but I still do not understand the depreciation rules for ... A: If 50% is rented out and 50% is yours, then you depreciate 50% of the entire building (not land ...
Costs of Acquiring a Rental Property	4/17/2007
Q: I acquired a rental property in 2006. As a part of due diligence before acquiring a property, I ... A: If that was the ONLY reason to travel to the site and you were not on vacation or visiting ...
Sold 2 homes in 24 months	4/16/2007
Q: My wife and me owned a home as our primary residence from 2001 to 2003. My wife lived in the house ... A: The two year rule is just that. You cannot sell a home and exclude less than every two years. The ...
Rental Property, Improvements and Capital Gain	4/15/2007
Q: O'Planick, My question is two-fold including a hypothetcial. We have a 3 unit building where we ... A: First of all, you cannot sell and buy, you must exchange within the time frames allowed. The minute ...
renting below FMV	4/14/2007
Q: I own a 3 unit home. I live in one unit and rent the other two. For part of last year, I rented a ... A: For the below market unit, your deductions are limited to bring you to zero and not below. However, ...
mileage vs. gas receipts	4/14/2007
Q: Can you tell me why I cannot claim both mileage AND gas receipts? I am a self employed contractor, ... A: Because you can't double dip. The standard mileage rate has gas, repairs, depreciation all built ...
Rental Property, Improvements and Capital Gain	4/13/2007
Q: O'Planick, My question is two-fold including a hypothetcial. We have a 3 unit building where we ... A: Easy one first. The renovation is depreciated alone as a separate item on your depreciation ...
Severance Pay & Maximum Refund	4/11/2007
Q: "Hi. I'm a single, working mother of 2 children. In 2006, a company paid me severance pay and I ... A: Serverence pay is taxable income. We all work hard for our money and you got lucky to get some ...
Amended taxes	4/7/2007
Q: I recently have been notified by the IRS that I neglected to claim income on a stock sale from the ... A: Yes, she was wrong and yes, you have the right reason and the right plan forward. You have til next ...
Severance Pay & Maximum Refund	4/3/2007
Q: "Hi. I'm a single, working mother of 2 children. In 2006, a company paid me severance pay and I ... A: Severance pay is pay you get for not working. And yes, it is earned income and probably withheld at ...
issuance W-2s	4/2/2007
Q: One of my two employers for 2006 sent me W-2s without my Social Security number on them. (There are ... A: You can use form 4835 (I think that is the number, it is for a substitute W-2 form) and send it with ...
Claiming a dependent for 6 months	4/2/2007
Q: I recieved custody of my son this year and in the court pettion, it was clearly defined that I would ... A: You cannot claim a half a child, but if your decree says you get to claim the child, you get to ...
Married with spouse having income from two states	4/1/2007
Q: My Wife and I got married in June'2006. Before our marriage my wife had been working in California ... A: Your return would be a full year return, hers would be 2 part year returns. Can software handle it? ...
Alternative Minimum Taxes and selling home	3/30/2007
Q: I'm confused about the Alternative Minimum Taxes and the regular federal taxes. Do you have to pay ... A: AMT shows up when you have too many deductions, not too much income. Also, you do not pay normal ...
federal tax	3/30/2007
Q: My stepson is on disability with a brain injury. He has been this way since 1990. He work in a ... A: The reporting of his income is correct. The tax return is not. Whomever did the return messed it ...
taxes on home improvements	3/30/2007
Q: My husband and I are selling our house in Mississippi and moving to Iowa. We have not been in this ... A: First, why are you moving? And what is the amount of your gain? And how long have you been in this ...
tax exemptions	3/30/2007
Q: I am a SC resident. I had been a stay-home mom until August 2006, when I went back to work. My ... A: While I cannot tell you if the W-4 is correct, I can definitely tell you that your theory is ...
federal tax	3/29/2007
Q: My stepson is on disability with a brain injury. He has been this way since 1990. He work in a ... A: It is that way because he is now paying his SS and medicare taxes. Should he pay that? Here is ...
tax fraud/forgery	3/29/2007
Q: My wife and I have been separated since Sept. 2006. She lives in Indiana and I moved to Louisiana. ... A: HRB did not tell you your W-2 was used, they said your SSN was used to file a return and that may or ...
Rental Prop. Capital Gains	3/28/2007
Q: O'Planick, My wife and I have owned and lived in a home with an attached rental unit for the last ... A: It can be adjusted using form 3115, but you will pay taxes now on what was deducted then. If I ...
Home mortgage and real estate tax deduction	3/27/2007
Q: If you do not have USA earned income from salaries etc. and if the money you make is earned by ... A: As a US citizen, you are taxed on your income worldwide. If you meet the exclusion (330 days out of ...
receiving gift tax	3/25/2007
Q: hypothetically speaking: I am married with 3 kids, and have four rich married aunts. Can they and ... A: Sure they can, but remember, the money they send the kids BELONGS to the kids, you cannot touch it ...
State Tax refund	3/24/2007
Q: I have a confusing situation involving a state tax refund. Basically, I made estimated payments ... A: Andy, you received a tax benefit in 2005 when you paid less tax by taking your state tax deduction. ...
home sale	3/24/2007
Q: I sold my rental property and made $100,000 from the sale. Since I have never lived there, I may ... A: You are correct in that you cannot exclude the sale. And it will be taxed at both ordinary and ...
2006 Ex claimed My Child and My Taxes	3/23/2007
Q: My husband and I separated on November 19 2006, My 18 year old son lived with both of us until ... A: There is no way you supported your son on $1400 for a year, your husband supported him. You ...
Confused .	3/23/2007
Q: I just started working for the first time last year . So this year would be my first for doing my ... A: I would strongly suggest you find a VITA or TCE tax preparation site and have them do your taxes. ...
2006 Ex claimed My Child and My Taxes	3/23/2007
Q: My husband and I separated on November 19 2006, My 18 year old son lived with both of us until ... A: Your husband supported the boy and he has the right to claim him. But he should not have filed a ...
401k withdrawal	3/21/2007
Q: I took out a $9000 loan from my civilian Thrift Savings Plan (TSP)last year to help pay for my ... A: You will never recapture the income you will lose if you cash the money out. But if you do option ...
capital gains on land sales	3/20/2007
Q: My husband is selling vacant land that he inherited a quarter interest in back in 1995 of his ... A: Okay, let's take this slow. First of all, his starting basis is the date of death basis. Lawyer ...
Capital gains	3/20/2007
Q: My mother has passed away, and I am the only heir to her estate. I am currently in the process of ... A: No, when you sell it, IF there are gains, you will pay on those gains HOWEVER, if you inherited the ...
tax on monies received as benificiary	3/19/2007
Q: My mother-in-law passed away in Feb 2006. We have received several 1099's on pre tax dollars and ... A: There are no "special" deductions against this income, other than your ordinary ones. And there may ...
child tax credit	3/18/2007
Q: I quit working in March of '06 due to complications in my pregnancy. I have been told that when I ... A: The reason you are not getting an entire child tax credit is because you earned under $11,000. My ...
Child Claims	3/14/2007
Q: I have two children ages 2 and 1 they have lived with their mother and i since birth, never have put ... A: What you can do is mail in your return claiming both children. The IRS will send you mail asking ...
Taxes	3/13/2007
Q: I am 17 years old and I worked for a local grocery last year for the months of January-May and ... A: I really doubt you have 50% or more of support to a baby on $4K of income. If Mom and Step Dad ...
1099-Misc	3/13/2007
Q: I received a 1099-Misc and a W-2 from my current employer. I believe the 1099-Misc was sent to me ... A: You MUST use the 1040 and if these folks are your employers, they have sent you the wrong forms and ...
DEPENDENT DEDUCTION	3/13/2007
Q: MY EX-HUSBAND (HE LIVES OUT OF STATE)LAST YEAR CLAIMED MY TWO YOUNGER CHILDREN, ONE SENIOR IN HIGH ... A: First of all, please know that typing in all caps is very hard to read and considered ...
401(k) to IRA rollover with after-tax portion	3/8/2007
Q: I am rolling over 401(k) from my former employer to IRA. Fund is in cash and stock certificate. It ... A: You can cash the after tax check and do what you want with it, tax free. If you roll it into an ...
reporting of home sale income	3/8/2007
Q: I recently took over my disabled mothers farm and sold it for her. She bought the house for 113,000 ... A: Hopefully, no professional told you to do this. If so, you should sue them. Since YOU did not ...
w-4 forms	3/6/2007
Q: me and some of my fellow employees recently filed for exemption on our w-4 forms. when we recieved ... A: Normally, they cannot wait, but if a bunch of you did it, they may smell a rat and are waiting to ...
tax liability on sold inherited house	3/4/2007
Q: My mom passed in 1986.We(3 sibblings) inherited the house. We sold it in 2006.How is the house sale ... A: Your basis is the date of death value on Mom's death. Depending on how you used the house in the ...
IRA withdrawal for 1st time Homebuyer	3/4/2007
Q: I am buyer a home for the 1st time and I was told to put $4000 into a traditional IRA to get a tax ... A: Unless you think your taxable income is going to be REALLY a lot lower then it is in 2006, I would ...
claim single or HOH	3/3/2007
Q: Common law is recognized in the state of TX. Can we file together as married? Or could/should we ... A: You ask a legal question, I can't answer it. You need to know the requirements of common law ...
claim single or HOH	3/2/2007
Q: I am currently living with my fiance in a home I bought in Kyle, TX in May 2006. I pay the mortgage ... A: You cannot be head of household. He does not qualify you for that. If he lived with you the entire ...
1099	2/28/2007
Q: I entered into an auto loan before I was of legal age. Due to my age and circumstances I was not ... A: You blew a loan. It does not matter your age. And you may have taxable income. Even if you did ...
Limited Liability Company	2/24/2007
Q: I have been fooling around a little with making money on the Internet for about a year or two. I'm ... A: LLCs are state issued animals and I cannot tell you if it will work for you or not. Please see ...
capital gains tax	2/23/2007
Q: My mother recently died and her property was sold. There was a will but my sister had her name on ... A: Since sister's name was on the deed, she owns that portion of the home. I'm going to assume it was ...
capitol gains on sale of house	2/22/2007
Q: My mother passed away in Oct. She had transferred title of her home to me 7 years ago. My mother ... A: If Mother retained a life estate when she gifted you the home, and her gain was under $250,000, you ...
Mileage Deductions	2/17/2007
Q: When the K-1 gets filed is it gone with my personal taxes because I'm paid hourly or is it something ... A: Hopefully you are working with a tax professional. The partnership files a 1065 and gives you a ...
Miscellaneous Income 1099-MISC	2/16/2007
Q: I am a little worried about filing my taxes this year. I was contracted by the United States Army ... A: If you were not in the US 30 days in the year, you may have the foreign income exclusion. However, ...
tax question	2/13/2007
Q: my father is a commercial fisherman and he recieved a 1099, i have heard that fisherman get special ... A: Fisherman do not have special tax breaks, but they do get some ease on tax deadlines for payment. ...
Non Taxable Income	2/11/2007
Q: live in Georgia. I am a retired teacher that retired on disability.(I WORE MYSELF OUT IN THE ... A: I can't tell if your return is correct or not. If you are SS disability, there is a good chance it ...
W4 choices	2/8/2007
Q: My annual income for 2006 was approx. $70,000 and wil increase very slightly this year. On my ... A: Grace, it looks like you have a lot of wiggle room. And you have the smarts to calculate what I'm ...
W4 choices	2/8/2007
Q: Ms. O'Planick, I currently have the highest amount taken from my paycheck for taxes. I chose ... A: Grace, without knowing a lot about you, I can imagine that you can take at least one exemption. A ...
Gift	2/7/2007
Q: My mother (father is no longer living) would like to give to myself and my wife $24,000 to pay off ... A: As long as Mom gives each of you 12K or less, there is no reporting. However, if she gives you a ...
Parent Claiming	2/6/2007
Q: I am 20 yrs old and not a student... Is she doing something illegal or something?Hi Helen, Is it ... A: If you are 20 and not a student, your parents cannot claim you. Is she doing something wrong? I ...
Husbands taxes	2/6/2007
Q: My husband and I got married last year and I signed a pre-nup agreement. Before I've always filed ... A: Please have him see a tax professional (EA or CPA that does taxes - not all CPAs do taxes) and ...
Educator Expenses	2/3/2007
Q: Helen! I'm a teacher in Virginia, and for the past couple of years, the federal 1040 form had a ... A: It is still there, but it is was put in after the tax forms were printed. It goes on some line in ...
Filing Status	2/3/2007
Q: My question is this: If my ex wife and I both share custody of our son, what should our filling ... A: The parent with OVER 50% of time with your son is the custodial parent. That parent is head of ...
tax return/independent contractor	2/2/2007
Q: I work from home doing typing for somebody (an individual who gives me checks out of his personal ... A: First of all, you do not have mileage expenses with the attorney as you are working at his home. ...
Tax and Bonds	2/2/2007
Q: I inherited $6000 in savings Bonds when my father passed away last year. I did cash them in. Will I ... A: Since you inherited the bonds, you will pay tax on the entire amount of interest the bond made. ...
Personal Income tax for separated couple	2/1/2007
Q: My wife and I separated on May 13. With three children, what options do we have for filing? Do we ... A: You may file married filing jointly or married filing separately. If you did not spend a night ...
Excess Roth IRA contribution	1/31/2007
Q: I may be mistaken, but from my reading of the form 5329 instructions, it does not say that one needs ... A: The appreciation is a part of the excess contribution and must be removed and penalized. If you ...
1099 r form	1/30/2007
Q: The fact that I have a 1099-r form for cashing out my 401k going to hurt my tax return?? The 1099r ... A: It could easily screw up your return. The $7500 is taxable income and you have a penalty due of ...
capital gains tax	1/28/2007
Q: my wife and her siblings were given her parents house, it was signed over to them 15 years ago. the ... A: What it was worth on the day of the gift has nothing to do with nothing. The basis to the siblings ...
filing status and dependents	1/28/2007
Q: My husband and I were married last week, we have 3 dependent children together and I have a daughter ... A: Last year, his filing status was head of household for the children you have together. He can also ...
itemizing	1/27/2007
Q: The phone is not required but it is used to call for pick ups, directions, and also taking to his ... A: Since it is not required, you can only take the amount over the basic plan as a deduction. Same as ...
taxes on Prize winnings	1/27/2007
Q: I recently won a 40" flat panel TV worth $2779.00.My question is do I file a 1099 or does the place ... A: Congrats! The company you won the TV from will send you a 1099-MISC. If you won it in 2006, it is ...
charity deductions	1/25/2007
Q: My question is pertaining to deductions to charity. My husband and I file a joint return. I do not ... A: Kristin, Mom heard very wrong. You got something for your money and that was clothing for the ...
deceases parent taxes returns	1/25/2007
Q: I'm writing on behalf of a co-worker, who is only 19 and recently lost her mother. This past week ... A: That poor child. If there was an executor, she needs to give them the W-2 so they can file the ...
Child Day Care Expenses	1/24/2007
Q: I am divorced. I pay 100% of all day care for both children, plus $500.00 in child support to my ex. ... A: Who has custody of the children? That is the ONLY parent that can claim child care. And since it ...
Graduate School Application	1/24/2007
Q: In 2006 I applied to both Dental School and Pharmacy School. Applying to each with application ... A: Sorry Brendan, these are personal expenses and not deductible. BTW - hubby is a pharmacist and ...
IRA contributions	1/22/2007
Q: As I understand it,an individual has until April 15,2007 to contribute to their IRA, and still be ... A: Dave, I can see what you are asking and you are doing it the LONG way. Go ahead and claim your IRA ...
tax question	1/15/2007
Q: My wife and I were married on Dec. 30 2006. She recieves disability and was a part time student ... A: Your best bet is married filing jointly. Your only other choice is married filing separate. You ...
IRA DISTRIBUTION	1/5/2007
Q: I have taken full distribution in 2006 of my IRA, about $220k, and will use it to pay for a new home ... A: First of all, how old are you and have you owned a home for any time in the past 2 years? If you ...
Health Care Deduction/Painfully Slow Insurance Co.	1/5/2007
Q: I have been seeing a physician routinely since July that does not bill insurance. The patient pays ... A: Bill, you can take what was paid out of pocket in 2006, HOWEVER, when the insurance company pays ...
Questions	1/4/2007
Q: Ok, thanks for your help. One last question though...when I have filed my taxes in the past being ... A: You could easily owe, it will depend how much your spouse has had withheld. The only real way to ...
Questions	1/4/2007
Q: I have recently prepared my taxes on line myself for the past couple of years. Now I am not sure ... A: Your filing choices are married filing jointly or married filing separately. And normally married ...
sale of gift	1/4/2007
Q: In 1978 (+ maybe 2 yrs.) My husband was give a % of some farm land by his parents. The other % was ... A: Your husband's basis (or cost)in the land is exactly the same as his parents basis is. So if they ...
Should I take taxes out of my paycheck as I go?	1/2/2007
Q: I em eployeed at a small company. I have figured it out and if I kept all the taxes that I would pay ... A: I can't tell you about Utah, but the IRS says that if you don't pay your taxes ratably over the ...
selling mutual funds	1/2/2007
Q: I'm married with no children. Together my wife and I make around 50k a year. We have around 100k in ... A: First of all, the quickest way to lose a friend is to have them invest for you. Just a very large ...
how to make it work/	1/1/2007
Q: i am planing to buy houses ,maybe one at a time,fix it up and sell it,what is % i have to pay ,if it ... A: The first few (three) are going to be Schedule D transactions, taxed at ordinary income if held a ...
Filing status	12/30/2006
Q: Married filing jointly, if there is a problem with my ex's taxes (like she was overpaid last year by ... A: What happened to her taxes if you were not on the return is her problem. HOWEVER, if you file ...
Allimony & Taxes	12/30/2006
Q: Ok hopefully last question! It states in the order that I have in my hand: "ORDERED that the ... A: We do know that it is alimony, but it really needs to state if it is taxable alimony to her. If ...
To itemize or not	12/30/2006
Q: This is the first year that I have not been listed as a dependant on my parents return and I was ... A: Take a look at Schedule A and the instructions at www.irs.gov in the forms and publications area. ...
Filing status	12/30/2006
Q: Ok here is my question. I am looking at my status and I am filing for a divorce. I got married on ... A: You have 2 choices, married filing jointly or married filing separately. Usually, unless you live ...
dependents	12/28/2006
Q: My wife and I recently separated. She has agreed to let me claim her and her three children (all ... A: I'm confused as to claiming your wife first of all. Normally, a spouse is never a dependent. If ...
Childcare Provider Question	12/28/2006
Q: I am a licensed childcare provider and was wondering if there was any paperwork that I needed to ... A: You should give them a statement - on that it should have your name, address, social security number ...
Tax amount on withdrawal from Life Insurance	12/27/2006
Q: We are considering taking 15K from one of our life insurance polices without having to pay it back. ... A: I'm going to guess your taxable amount is probably not going to be that great. But to make a quick ...
tax on an insurance settlement	12/27/2006
Q: My husband and I received an insurance settlement for the wrongful death of my 16yr old son in a car ... A: My thoughts are with you as you go thru this. It must be very hard. I doubt the settlement is ...
Vehicle Cost Tax Deduction	12/27/2006
Q: I do not have a legal business entity per se, but own and run a lot of websites for which I recently ... A: Your only deductions are the cost of the wrap and the ad fees. You do not get to deduct the price ...
Gifting	12/27/2006
Q: We have heard (in passing) from a profession that our mother can gift her estate to her four ... A: You need to talk to an elderlawyer and now. Yes, she can gift (up to 12K a year per person without ...
tax on a class action settlement	12/27/2006
Q: I recently received two checks from a security class action settlement (WorldCom). One check is for ... A: The IRS settlement check needs to go back into your IRA ASAP. Make sure your custodian does not ...
Personal Allowances	12/26/2006
Q: I have recently been gathering information to prepare myself for 2006 tax filing. I noticed that my ... A: State wise, I can't help you, all states are different. Federally, as long as you don't have a lot ...
401K Early Withdrawl Exceptions - 1st time home buyer	12/26/2006
Q: I am getting some mixed answers on this topic. Can you help to clarify? I want to take about $13K ... A: First of all, unless this is an IRA, there is no out on the penalty. You cannot take the money out ...
1099	12/24/2006
Q: My husband went to work for a friend in January and he does not deduct social security or federal ... A: Social Security is mandatory, whomever said it was not has no idea what they are talking about ...
When to take the tax break?	12/20/2006
Q: I am planning to buy the Toyoya Prius 07, which, I am told would give me a tax break of upto $1500. ... A: You will love the Prius, I'm driving an 06 and get 50 MPH. Stella (her name) is great! You have to ...
Gift tax	12/19/2006
Q: My brother wants to give me ~ $10,000. But we are not sure what the maximum he is allowed to give me ... A: Phil, you will never pay tax on the gift, no matter what amount. However, your brother will have to ...
real estate investment	12/19/2006
Q: I am really not concerned about the liability, I just want to be able to save on taxes. I live in ... A: An LLC is not going to save you any tax dollars. Both the partnership or S corp are flow thru ...
real estate investment	12/18/2006
Q: Helen, I am sorry if you may have answered this question before. My brother and I intend to start ... A: Why do you want to do an LLC? The only protection it gives you is minimal liablity coverage, and a ...
gift of IRA stck	12/17/2006
Q: If the stock gifted has a large long term loss, will the recipient get my basis in the stock? A: First of all, you cannot gift IRA stock. You cannot gift an IRA either. You either pull it out or ...
File Tax	12/13/2006
Q: I was wondering, me and my daughter mom is separated. I pay the mom 300 a month for child support, ... A: You need to look at your separation agreement to see who can claim this young lady. And if that ...
Filing Status	12/12/2006
Q: I filed for divorce in Oct of this year. I have physical custody of our daughter, He makes more ... A: Unless your divorce is final by 12/31, or if you moved out of the house before 7/1/06, your filing ...
primary residence capital gain exemption	12/7/2006
Q: Here's our situation. My wife and I built a lake home seven years ago 250 miles from where we lived ... A: Unless you voted where your lake home was, had all your mail forwarded there, had the address of ...
capital gains selling 2 homes in one year	12/7/2006
Q: I was wondering if you could help me figure out what my capital gains bill will be on the sale of 2 ... A: I do not do calculations pro bono. However, you will not pay any tax on your primary residence. ...
required minimum distrubtion	12/6/2006
Q: I became 70 last August. When must I start taking my RMD from my IRAs. What is the minimum I am ... A: The IRS has a publication that will help you. Your RMD is based on the value of your IRA. If your ...
selling vs. tax write-off	12/5/2006
Q: I have a collection of comics, quite a few in fact. I am trying to figure out if I should sell the ... A: You really have to run the numbers. But let's say you are in the 15% tax bracket. You give $1,000 ...
Itemizing for an Idiot	12/5/2006
Q: This is probably a no-brainer for some but I am clueless when it comes to itemizing deductions. If ... A: You cannot count the medical expenses that were paid out of your FSA. Car tags - depends on your ...
Tax write offs and such	12/3/2006
Q: Last year i accidently claimed 01 on my tax forms and owed like 15 this year in march i changed to ... A: There is no way I can tell you what the difference will be in your tax return. There is simply not ...
Claiming a step child	12/3/2006
Q: My daughter and husband separated in September of 2005, they have one daughter together and she has ... A: He supported both girls for over the year and his step child is considered a family member so yes, ...
401k W-4	12/1/2006
Q: I am a college senior studying accounting. I will not go into Tax, but i am now looking at tax ... A: Federally, each exemption you claim on a W-4 is worth about $2500, so if you are putting away $3300, ...
Merging & Taxes	11/30/2006
Q: My husband and I started a home-based photography business about 6 months ago. We are considering ... A: It looks like you are starting a partnership and must file as such. See form 1065 at www.irs.gov ...
past due taxes	11/30/2006
Q: "My 45 yr old son has chronic neuro Lymes disease for 4 years, unable to work because of fatigue, ... A: Loretta, the IRS will not talk to you unless he gives you power of attorney. But yes, someone needs ...
Hous purchase	11/29/2006
Q: I just bought a house in Oct 06. I will make the first payment in Dec 06. Can you tell me what ... A: not a lot I'm afraid. You can take your points, real estate taxes paid in 2006 (including any you ...
Claiming partners child on on income tax return.	11/27/2006
Q: I am in a situation whereby I have lived with my partner since March 2006. But at the same time I ... A: Sorry, but you cannot claim anyone but yourself. The rule that fits your situation best is that ...
early withdrawal from pension	11/27/2006
Q: I left my job at 52 and put my retirement money in 72T plans. $100,000 in Hartford Annuity in Feb ... A: Since you took the 72T approach, you must continue your withdrawals under the plan until you turn ...
Prize Money Taxes	11/27/2006
Q: I recently won a contest on a website, and won $1,000. I was required to fill out a W-9 and fax it ... A: This is income to you. It will go on line 21 of the form 1040 and is also taxable to your state if ...
house sale	11/25/2006
Q: I have been using the house as a vacation home, and otherwise it is not used. How do we determine ... A: If there was an estate, the value of the house should have been put in the estate return. If not, ...
owner occupancy and capital gains	11/23/2006
Q: My son and I are buying a house together--that is, we'll both be on the title, but only he will be ... A: Owning and residing are the two criteria for exclusion, HOWEVER, since you are buying it together, ...
"Tax Home" and Deductible Expenses	11/23/2006
Q: I own a home in NC, where I live with my family. I have taken a six-month contract through a ... A: As long as you are expected to be in Detroit for less than a year, your expenses are deductible. The ...
shares od untraded stock	11/15/2006
Q: i have quite a dilemma; I have shares of a stock that has not been traded for several years. I would ... A: You should be able to talk Fidelity into selling them for you for a dollar, then and only then can ...
Sale of house after divorce	11/13/2006
Q: My estranged wife and I jointly own two houses, the most recent of which was acquired in 1999. My ... A: As long as your mail was going to your former rental property, you can exclude the gain as your ...
Charitable donations.	11/13/2006
Q: I am donating about 15 large bags of very nice clothing, purses and shoes to a local battered ... A: If they are all in good or better condition, you self value them to a thrift shop or garage sale ...
back pay for disability	11/12/2006
Q: Question it like we claim 85% of her income as money earned plus what I earn and then we file taxes, ... A: Keith, you still itemize, it just has no direct affect on her SSDI. If you follow the tax form, ...
back pay for disability	11/12/2006
Q: Yes my wife got her back pay of around 25,000 and also got about 14,000 for are one child at To ... A: Her disability payments (not the child's) will be taxed at 85%. Assuming your income is about the ...
Lowest taxes	11/10/2006
Q: My dilemna is how to minimize the taxes. Social Security is taxable afte a cetain limit. then the ... A: Yes, the year the bonds no longer pay interest, they are taxable whether she keeps them or not. I ...
Capital Gains on a Rental property	11/9/2006
Q: Please clarify your last comment. Wouldn't all Mortgage interest payments associated with this ... A: Not really. If it is not an active rental, it is just investment property and as such, the interest ...
Capital Gains on a Rental property	11/9/2006
Q: I have owned a rental property for three years. I have been trying to sell it since April 2006. It ... A: If the property is actively advertised for rent, then yes. If you have taken it off of the rental ...
Dependent	11/8/2006
Q: My daughter is 21. She had a baby in June of this year. Since January our daughter has lived with ... A: Going backwards, child support is not taxable to your daughter, your granddaughter or you. It is a ...
Investment property sale	11/7/2006
Q: I lived in this residence for about 1 year, after which i rented it out for 2 years before i sold ... A: Since you do not meet the requirements to exclude, you will owe both capital gains and ordinary ...
Quick Claim Deed and Capital Gains Tax	11/7/2006
Q: ..do you then know what the tax rate would be for Illinois? Also, he is also buying a commercial ... A: Federally, his income tax is 15%, I don't know IL's rate. As for the like kind exchange, there are ...
Quick Claim Deed and Capital Gains Tax	11/6/2006
Q: My wife and I are selling the condo that we live in. The condo has been in my wife's sted-dad's ... A: Sorry, but your FIL is going to owe taxes on the sale and there is no way you can exclude it. The ...
Lowering the Self-Employement Tax Liability	11/4/2006
Q: 1. How do I lower the self-employment tax to zero? I thought a large deduction would lower my net ... A: Qualified and legal expenses that are connected to the SE tax are the only things that lower the ...
Tax on hourly wage	11/2/2006
Q: I just started a temporary job @ $12.00 an hour. Can you help me figure out how much they will take ... A: Federally, you can go to www.irs.gov and look at pub 15 for your federal withholding. For SS, the ...
EIC	11/2/2006
Q: last year i claimed fiances daughter and was expecting large refund, was denied, not on birth ... A: Starting in 2005, you can only claim your biological children, not children of any one else. The ...
W-4	10/31/2006
Q: My husband claimed married with 6 deductions on his W-4 even though it's just the two of us. ... A: Have you owed money? Or do you get a refund yearly? Sounds like there has been past problems ...
Selling a home	10/30/2006
Q: My mother-in-law passed away leaving my husband and his two sisters a home. All of their names are ... A: Let's make some assumptions here, toss in your own numbers. Date of death value of the home was ...
capital gain question	10/30/2006
Q: My wife and I live in Florida but we own a home in NC that has been periodically rented out on short ... A: Jay, since it was part personal use property, you cannot exchange it for anything else. So it does ...
Per Diem for contractors	10/26/2006
Q: I'm sorry, I think I made the question overly complicated. If I'm interpreting your response ... A: I have a Toni at home so it must be your name, I can handle it. :) The first 6 months, your ...
capital gains tax	10/25/2006
Q: I purchased a house in 1997 for $112,000 where I resided with my children until March 2003 when I ... A: Yep, no matter what you do with the money, you will owe tax dollars. It has not been your residence ...
Per Diem for contractors	10/24/2006
Q: I actually have 3 closely related questions, but first some background information: I am an IT ... A: Toney. The bad news is when your contract was extended for the additional 6 months is that all your ...
Filing taxes	10/23/2006
Q: I'm not legally married, but I live with mypartner for teh last 4 years and we file taxes as single. ... A: If you get married a minute before midnight on 12/31, you are considered married the entire year. ...
Tax write off question	10/23/2006
Q: We have a lot of things that we are getting rid of and we are considering donating everything and ... A: If you can itemize (use Sch A) then for every $100 worth of deductions over the standard deduction ...
Tax Deductions	10/21/2006
Q: I work full time as a Sous Chef. I also work part-time as webmaster for the same employer. My ... A: Yes, IF (and it is a big if) you log every minute of use on the PC, from webhosting to playing poker ...
Tax on proceeds from a land sale	10/16/2006
Q: My father is selling property inherited from my grandfather. Is there a way he can avoid paying ... A: Gains equal taxes due, that is a fact of life. Dad's basis is the date of death value of your ...
Filing Back taxes	10/13/2006
Q: I'm an American citizen who's been living in Israel for the past seven years. I think the last time ... A: This is pretty easy. :) At least to me. :) First of all, you can call the IRS and ask what was ...
Taxes on disibility	10/11/2006
Q: The following is my scenerio and my questions; I have just been approved for long term disibility ... A: June, your disability will not have SS and Medicare taxes taken out, only federal taxes and probably ...
sale of rental property	10/10/2006
Q: So the amount of tax has to do with the amount of gain? What if the gain is more than $400,000. I've ... A: Toni, plain language? hehe Seriously there are numerous sites. www.fairmark.com and ...
Tax return required or not required	10/9/2006
Q: I have an 18 year old daughter that just start her first job in September and her gross pay is about ... A: If she has any federal withholding, she will want to file to get her money back. She cannot claim ...
Tax on 2nd home - multiple owners	10/8/2006
Q: About 5 years ago, my father and I bought a vacation home together - 50% owners each. The title of ... A: Dan, you have problems. Unless you paid 100% of the interest and taxes, you must amend your returns ...
Quarterly Estimated Tax Payments	10/7/2006
Q: I'm sorry but I don't understand your answer. The meaning of the words "withheld rateably" are is ... A: Sorry Charles, sometimes I just talk tax and think I should be understood, my fault and a bad habit. ...
401k distribution limit	10/7/2006
Q: I am 66 and retired. Can I withdraw all of it or is there a limit to how much I can withdraw from ... A: Jim, I can only answer federally, I don't know CA law. You can take out as much as you want. ...
Capiital Gain on sale of gifted vacant land	10/5/2006
Q: I understand the tax liability on selling gifted vacant land is 15% of the difference between what ... A: Question one - the taxes are calculated on the net sales price less basis. So you can reduce the ...
Injured Spouse	10/5/2006
Q: My husband and I files married jointly this year for 2005. He owes child support so they took all of ... A: Call the IRS again. If you do not get any resolution, call the Taxpayer Advocate in your area (you ...
reporting babysitting income	10/5/2006
Q: You told me that I would need a form 8829, but I actually did not do the childcare at my house, I ... A: Big change in the answer Mary. You are not self employed, you are an employee of the person whose ...
"self employed"	10/5/2006
Q: Am labeled as being self employed because I am an exotic entertainer at a club? If so what is ... A: Dana, you probably are considered self employed. Your expenses are limited to anything that is not ...
Rent claimed on Federal Income Taxes?	10/5/2006
Q: I purchased a single family, 2-bedroom home 12 months ago. I had a friend move in the second bedroom ... A: Jeff, you are a landlord and you have a tenant. It does not matter that he has paid you with a ...
401(k)	10/4/2006
Q: I have a question about the tax consequences of a 401(k). My friend left his one job and didn't ... A: He will get a 1099-R showing the early distribution. Normally only 20% is withheld, so the 40% ...
dependents	10/3/2006
Q: I am wondering if my children and I have lived with my boyfriend for the entire year and he has paid ... A: There have been changes in this area in the past year. I will refer you to pub 17 at www.irs.gov, ...
worthless securities	10/2/2006
Q: I hold about 22k shares of XYBRQ. They have filed for bankruptcy under Chp 11, and class action ... A: As long as they are still listed (and if they go off your radar, check pinksheets.com) they are not ...
sold land that was gifted to us	10/1/2006
Q: Helen, Thanks for the answer. One more question.....She owned the land for many years[back in the ... A: Federally, 15% is your max tax rate. What worries me is that it sounds like she may be committing ...
sold land that was gifted to us	10/1/2006
Q: My husband and I and his sister inlaw and husband just jointly sold 2 lots that where gifted to us ... A: You will owe taxes on this money. How much did your MIL pay for this land? That is your basis. ...
Inheritance	9/29/2006
Q: My wifes' father passed away last month. His estate was in California and is below the $2,000,000 ... A: You need to find an estate tax professional that is familiar with CA rules. Just because his estate ...
deducting moving expenses	9/29/2006
Q: Sorry, here is the text: From Publication 521 - Main Contents, regarding deducting moving expenses: ... A: Sorry, Jason, nice try, but it is not going to work. In order to deduct moving expenses, you must ...
Taxes for deceased parent	9/29/2006
Q: How can I get that started ? A: You need to contact local officials, be it a lawyer, a tax professional or someone at the register ...
New Job, Wondering What to Keep track of for tax purposes	9/28/2006
Q: I recently joined the working world as an attorney. I was wondering what possible deductions I can ... A: Your mileage from the office out and back is deductible. Your phone - only the business portion and ...
Tapping IRA funds without paying a withdrawal fee	9/27/2006
Q: Helen, I had to move my family (loss of job) and currently we have 3 outstanding loans as follows: ... A: You can "roll" money out of your IRA for 60 days (NO MORE and EVERY day counts), but if it is not ...
Capitol Gains?	9/22/2006
Q: Could you please tell me where and how to report this money on my 2006 tax form? Sure hope I can ... A: First of all, you cannot file the short form, this transaction will be recorded on Sch D as a long ...
Tax Preparation	9/21/2006
Q: See, i'm a magazine student and I'm working on an article on tax preparation, "Should you do your ... A: If I get a byline in the article, I'll give you so much info, your article will write itself. The ...
Selling my home	9/21/2006
Q: Yes I lost my job and I'm ill. Sorry if I was rude I'm just confused. ThanksI can't afford this ... A: Now we are getting somewhere! :) Since there are unforeseen circumstances, you can prorate the ...
Tax Preparation	9/20/2006
Q: are you familiar at all with online tax programs like Turbo Tax? A: No, sorry. However, all preparation software is is a tool. If you cannot do a tax return with a ...
Real Estate Taxes	9/20/2006
Q: I live in NH and am selling my house as a result of divorce. My husband and I owned the house of a ... A: Remember, it is not what you walk away with, as your mortgage, etc has nothing to do with anything. ...
Real Estate Taxes	9/20/2006
Q: I live in NH and am selling my house as a result of divorce. My husband and I owned the house of a ... A: Since you are selling due to divorce, you have "unforeseen circumstances" and are allowed a prorated ...
estimated withholdings	9/18/2006
Q: I am single w no dependents. My gross income is approx 55,000/yr. I hold contracts on two houses, ... A: There is no ballpark withholding amount. If you are happy with your bottom line on your tax refund, ...
Real Estate Taxes	9/18/2006
Q: ------------------------- Followup To The lots were a part of the yard. In eairler years they ... A: Okay that is good. Now, more questions. How much is Mom selling EVERYTHING for (including the ...
Tax on Child Support	9/15/2006
Q: I am trying to determine what the IRS taxes as far as child support. For sake of simple math, if I ... A: Child support is not deductible by you or taxable to her. In your example, your taxable income is ...
529 plans	9/11/2006
Q: My daughter started college this fall. I have been taking funds out of her 529 plan to pay for ... A: You will get a form from her trustee. As long as you used it for qualified expenses (and her ...
selling stock or gifting it	9/7/2006
Q: I bought Wal_mart stock long ago and have made about $55,000 on it. Since it has been dropping in ... A: Gifting it to the kids is a good idea, but you have a few things to remember. Number one and ...
Child Credit	9/7/2006
Q: I am expecting my first child Dec. 10, 2006. Will I be able to claim him on my 2006 tax return as my ... A: Diana, even if he holds out and is born a minute before midnight on 12/31, you can claim him for ...
tax on insurance	9/6/2006
Q: My wife is a German citizen and resident alien in the US. She will be receiving a payout from a ... A: This is handled the same way as if it was a US policy. If she gets more out of the policy then she ...
Adoption Tax Credit	9/6/2006
Q: I'm sorry but I do not fully understand your answer. Can you explain it differently by using ... A: Let's say you have $10,000 in qualified adoption credit (you cannot claim the subsidy for the ...
Adoption Tax Credit	9/6/2006
Q: We have adopted 5 children in 2006. We know about the adoption tax credit available for adopting ... A: The adoption credit will NOT cancel his early distribution penalty. The AC is a non-refundable ...
Capital Gains on sale of house	9/5/2006
Q: Helen. We have rented either one or two bedrooms of our house most of the time we have lived here, ... A: Not really. While you can exclude the entire gain, you MUST pay taxes (up to 25%) on the ...
Claiming dependant	9/4/2006
Q: Since my mother's illness, I have moved her in to my house to care for her since March. Am I able to ... A: It depends. If her income (NOT counting Social security) is under $3300 for 2006, and you pay over ...
Dependents	9/2/2006
Q: I make $800 per week. For the past two years I claimed my step-children as dependents filing ... A: Eddie, you do not get partial exemptions. It is all or nothing. You would get to claim the child ...
employees	9/2/2006
Q: I live in Tennessee and I recently accepted a custodial position where I will be hiring a staff to ... A: If you are their employer, you will have to pay their taxes. You will need an EIN (see form W-4) ...
real estate cost bases	9/1/2006
Q: How do I determine the cost basis of a home my mother and father bought for $23,000 in 1959. My ... A: If the home is NOT in a community property state, your calculation is 1/2 the purchase price ...
claiming kids on taxes after divorce	8/31/2006
Q: Were married 20 years, 6 kids (ages 17,15,13,11,11,7). We have joint custoday except for one 11 year ... A: You are the custodial parent and only YOU can give up the right to not claim the kids. He cannot ...
401k and educational expenses	8/31/2006
Q: I quit my job in 2002 to return to graduate school. I stopped contributing to my employer's 401k ... A: You got bad advice Mike. A 401K is a 401K is a 401K. And they cannot be used for educational ...
IL capital gains tax	8/27/2006
Q: Helen I have owned my condo for 1 yr and 5 months. We are puting it on the market as we are ... A: Sorry, there is no way to exclude the taxes on this. You have not lived in it for 2 years; nor does ...
Medical expenses and head of household	8/25/2006
Q: My mother lives with me and I provide the majority of the income for our household bills, ie ... A: Your household bills, except for mortgage interest and property taxes, are not deductible. If Mom ...
Taxes	8/20/2006
Q: My girlfriend & her husband have not filed taxes in 12 years. He is pretty much just a carpenter, ... A: No, SOME CPAs do taxes, others either do not or have not business doing them. Enrolled Agents all ...
Mortgage Interest as a tax deduction	8/18/2006
Q: Helen, I was wanting to purchase a second home with my mother in the FL area and we'd both like to ... A: If you are both liable for the mortgage and both make payments, you each may deduct the prorated ...
Taxes after marriage	8/17/2006
Q: I was recently married (August 4th) and I am wondering how this affects my tax liability. Do I need ... A: Jack, congrats on the marriage! You have two choices to file - married filing joint or married ...
Deductions for Work Expenses - Tools; new house	8/13/2006
Q: This year my boyfriend and I both purchased a home and paid off his tool bill for work. First ... A: Julia, I'll take the house question first. You get to write off the portion of the interest and ...
Taxes on mutual fund gift	8/11/2006
Q: I would like to transfer $10,000 worth of shares in a non-retirement mutual fund into my domestic ... A: No, you do not have to pay any taxes and neither does she until she sells it. HOWEVER, her basis ...
Retirement Contributions	8/10/2006
Q: Good Afternoon, I have switched jobs during the 2006 tax year and I was eligible for the 401k at my ... A: Since you were covered for a day in 2006, you can always contribute to an IRA (and the whole amount, ...
Capital Gains on Home sale, with change of employer	8/10/2006
Q: I sold my home after having occupied it for 22 months, not meeting the occupancy exemption. I sold ... A: Jasen, you are the first to have this question! Well, probably not, but one of the few. I'm going ...
Capital Gain on sale of homes	8/9/2006
Q: My wife and I married at the end of Mar of this year [2006] and will be selling both of our homes ... A: You each get a $250,000 exclusion on each of your homes. But you cannot carry the unused portion ...
Tax bracket for Senior Citizen	8/9/2006
Q: I'm asking a question for my mother. She is currently getting $19800.00 a year from Social Security ... A: Patricia, I can't tell you what tax bracket Mom will be in, but I can give you some insight. And ...
Sale of residence	8/9/2006
Q: I bought and sold several homes when the tax laws allowed the exemption from capital gains if you ... A: Well, by reading this answer - I get a week's stay at the beach house! :) You can use the $500,000 ...
contract labor	8/8/2006
Q: I would like to make clear that I no longer work with this company. But, he told me he will pay me ... A: Tea, this is NOT legal. You were his employee. If you decide to go as a subcontractor (1099-misc) ...
IRA Withdrawal as a beneficiary	8/7/2006
Q: The credit union calls it a beneficiary IRA, They gave three options: Lump Sum distribution, ... A: If you are using the 5 year rule, your daughter can take out 1/5 a year, no more or no less. Doing ...
IRA Withdrawal as a beneficiary	8/7/2006
Q: My mother passed away at age 63 and left my daughter as her beneficary to her IRA. She would like ... A: First of all, that IRA should have been paid out to your daughter, it could not be rolled over. So ...
annuity benificiary- minor	8/5/2006
Q: My 8 year old daughter was named one of seventeen beneficiaries of an annuity from her recently ... A: Tina, a portion of the money is going to be taxed at your bracket, and the rest at hers. There is ...
tax write offs regarding medical bills	8/3/2006
Q: I am divorced and recieved health coverage through my ex husbands company for three years. It was a ... A: Federally, you must itemize (use Sch A) and if your medical expenses you paid in a tax year are more ...
Schedule H	8/2/2006
Q: I do not have a trade or business in the house. Based on your confirmation, I should not have to ... A: If you do not file a W-2 for her, she would be considered self employed and would have to pay SS and ...
Back Taxes	8/2/2006
Q: My boyfriend just informed me that he has not filed his taxes in about 8 years. He is a contractor ... A: Jennifer, I really can't tell you what will happen regarding an audit. I've seen 10 years worth of ...
TAX LAW	8/2/2006
Q: THE DIVORCE WAS IN 2005 BUT THE TAXES ARE FROM 2001 & 2003. THIS YEAR THE IRS MADE CONTACT WITH HER ... A: She filed a joint return and she is as liable as he is. She should get a transcript of the account ...
Schedule H	8/2/2006
Q: I plan on paying my mom for babysitting our newborn because both my wife and I work. However, I am ... A: Ray, I'm changing my answer, so if you got the first one, ignore it. Unless you have a trade or ...
Gift of equity, tax question.	8/1/2006
Q: Back in 2003 we bought my mom's house for 285,000 and she gifted us 115,000 which we used as a down ... A: Since you never lived in the home, you will have tax due no matter what. As for the gifting back ...
TAX LAW	8/1/2006
Q: HOW CAN MY WIFE GET HELP IN GETTING HER EX-HUSBAND TO PAY HIS SHARE OF BACK FEDERAL TAXES. THE IRS ... A: What happened after the divorce? The taxes became due or the IRS started asking for them? If she ...
Social Security Benefits	8/1/2006
Q: On my payment stubs for the last 2+ years it shows that my employer has been deducting social ... A: As long as there has been SS withholding on your W-2, you are going to be fine. You will get credit ...
IRA early withdrawal exception	8/1/2006
Q: Your response was very helpful and incredibly fast. I checked my return for 2004 on Turbotax and I ... A: John, you cannot just take out the $3,000. You MUST use form 8606 and prorate the non deductible ...
IRA early withdrawal exception	7/31/2006
Q: I’m in a situation where I can’t find any answers and thought you might be able to help: Three ... A: John, first of all, ONLY if your income was too high, could you not deduct that IRA. Saying that, ...
Taxes and family	7/28/2006
Q: I am 19 years old and living at home with my mother in Minnsota. I've had 4 jobs in the past 4 ... A: Matt, re your taxes - look at your W-2 form in the federal box. That is the only amount you will ...
rental houses	7/27/2006
Q: Here is my situation. I have a freind who is willing to pay all closing costs, taxes, and mortgage ... A: If he is paying the mortgage, etc, YOU cannot claim it. Even tho the loans are in YOUR name, YOU ...
capital gains & losses	7/18/2006
Q: My domestic partner became psychologically disabled in 2001 (he's been on social security disability ... A: Since he is already in audit, you want to make sure your numbers are good. If he knew how he bought ...
Income property	7/10/2006
Q: I am told that if i sell a rental property and don't do a 1031 exchange, I will be taxed on my ... A: Your downpayment has NOTHING to do with anything. You take what you sell it for (less closing ...
Need to understand 401K withdraw, disability and SS Taxes	7/9/2006
Q: My husband had brain surgery for a tumor(cancer) last Nov. He is totally disabled now and can not ... A: Robin, you have a very involved post and it is too involved for this forum. Your best bet is to ...
Dependent Working Summer Job	7/7/2006
Q: My 17 year old son is going to be a senior in high school he is working a summer job and has about ... A: Yes, until he is 19, you can claim him no matter what. After 19 - he has to be a full time student. ...
inheritance of property	7/6/2006
Q: My mother recently died and herthe deed to heer home was transferred to me upon her death. Her ... A: Your basis is her date of death value. If you sell for less than that, you may have a loss. If you ...
Capitol Gains or Income Tax??	6/30/2006
Q: I am a general contractor and Im thinking of building a few spec homes in my area. These homes would ... A: Jim, this looks a lot at intent. If this is going to be an ongoing portion of your business, then ...
Sale of Home Tax	6/26/2006
Q: She couldnt afford the up keep of the house on her income. She is now renting. What are good ... A: That might be enough, if her income changed after she purchased the home. If so, she can prorate ...
inheritance tax from a friend	6/21/2006
Q: what if that person was in nigeria?--55%?whyif you recieved 12 million dollars from a person who ... A: Now I'm worried, about you. I think you are being scammed and you need to get out of it right now ...
Home sell	6/21/2006
Q: Helen: I have the following question (It is hard for me to figure it out) We bought the property ... A: Sure, your basis is not going to change just because you got married. I'm going to assume a ...
Sale of rental property	6/15/2006
Q: We have a rental property that we've been unable to rent for 6 months now. Fed up, we are now ... A: There is no exclusion for not being able to rent a place. If you sell a rental and you have profit, ...
Schedule C question	6/14/2006
Q: I am a small time entrepreneur and have several small businesses running - each is a sole ... A: 3 businesses = 3 Schedule Cs Especially since they are not all alike. For example, I have a tax ...
house sale	6/12/2006
Q: This has me really bugged. here goes. we live in fla and want to sell our home to our daughter. am ... A: If you sell your home to your daughter at a close to fair market value, and you have lived in it for ...
Donations and tax deductions	6/9/2006
Q: O'Planick I am a sculptor, and recently another sculptor told me that his tax accountant told him ... A: Anyone can donate cash, items, etc up to 50% of their income and deduct it, and any more than 50% is ...
IRA Annuity Beneficiary	6/8/2006
Q: I am the beneficiary on 2 of my father's Qualified Annuity/IRA accounts. My father passed away ... A: You cannot roll these IRAs into your name and probably not to another account, as your father must ...
Writing Off Personal Expenses For Career Development	6/7/2006
Q: O'Planick, Thank you for taking the time to answer my question. I think it's probably a pretty ... A: Not as simple as you may think Matt. If you are required to take CPE, then yes, it is a deduction. ...
loss on the sale of rental property	6/6/2006
Q: My wife and I are selling a condo we have rented and owned for over one year. We are anticipating a ... A: I don't understand your question. If you are saying after the sale you will owe your lender $10K, ...
Tax write-off for Volunteer time at Nursing Home	6/2/2006
Q: My 87 year old Mom is in declining health and in a Nursing Home for the past three years in Michigan ... A: Your only compensation is a good feeling about helping your mother. Sorry to say but that is your ...
Unallocated Alimony/child support Payments	6/1/2006
Q: Helen, I know for a fact that there is a difference between "allocated" and "Unallocated" ... A: Child support is never deductible. If your divorce decree or other written instrument or agreement ...
Write off a leased car for my business.	6/1/2006
Q: I have a small business (inc) in FL. I want to get a new car and lease it to my business (basically ... A: Mike, it is not a yes or no answer. There are many factors that have to be considered. However, I ...
Unallocated Alimony/child support Payments	5/31/2006
Q: I was officially divorced on 3/16/04. My divorce stated that I was to pay Unallocated Child support ... A: First of all, allocated or not, you were informed incorrectly. Child support is paid first, never ...
self employmentt	5/28/2006
Q: I am a self employed consultant and have a relationship with a firm whereby they provide me with a ... A: I'm not sure I understand your question, but if your 1099 is equal to the amount of money you ...
401(k) withdrawal, part II	5/14/2006
Q: I am surprised that you stated that I stand to pay 50% of my withdrawal in taxes, holy smokes, that ... A: Brian, up to 50% can easily be lost if the money throws you into a higher bracket and especially if ...
401(k) withdrawals and taxes	5/14/2006
Q: This is myI have a 401(k) from a past employer and I do NOT want to rollover the balance. I want to ... A: If you were older than 55 when you left that employer, federally you will just pay tax on it. If ...
Capital Gains Question	5/7/2006
Q: " My elderly Father recently came to live with me because of dementia. He has a condo in Cocoa, ... A: Nick, if you sell the home, you owe capital gains, no matter what you do with the proceeds. And ...
capitol gains	4/25/2006
Q: I have 2 questions, Two years ago I sold my house and moved in with my dad who has alzhimers. I ... A: You are not in IRS hell, however, if the GROSS sales price of your stock sales in 2004 are more than ...
capital gain	4/22/2006
Q: I am about to put my house on market. I have lived in this for 1 year 9 months. Now, I am moving to ... A: Sorry, no email responses. Free advice is at least worth the time to go and get it. If your new ...
Education Deduction	4/21/2006
Q: If my parents paid for graduate school last year, but did not claim me as a dependent, can I claim ... A: You can claim your grad school expenses. Gift tax really has nothing to do with anything here ...
Dependent filing	4/21/2006
Q: Planick, I'm 28 year old computer analyst who makes 37,500 a year. When I went to file my son on my ... A: Next year, file as soon as you can. For this year, snail mail your correct return (claiming your ...
Tax Consequences for me During Sale of Ex-Wife's Home?	4/16/2006
Q: Helen, My Grandmother's name! Thanks for taking my question. My ex-wife and I are still friendly. ... A: Michael, this sounds fishy. It sounds like she is trying to launder money thru you and I'm not ...
is this illegal?	4/14/2006
Q: I work for a small business. I asked my boss for a W-2 and he said that he didn't have it. Well to ... A: You need to call the IRS immediately. The number is 1/800-829-1040. Hopefully you have all your ...
Can legal fees be deducted?	4/13/2006
Q: I'm curious if you can deduct legal fees incured during a year if they are related to your home / ... A: Terre, taxes are income producing or reducing, so that is the reason for the deduction. If you ...
filing extension	4/12/2006
Q: My wife inherited some money, but the IRS is investigating the tactics that the estate's lawyers ... A: Tough one. If you have the money now, you could pay it now and then apply to get it back. HOWEVER, ...
rental question	4/12/2006
Q: i have one rental property...my question is: the total rent I received for 05 was $8100... I used ... A: If this is the first year of being a landlord, I STRONGLY suggest seeing a tax professional to get ...
Medical Expenses	4/11/2006
Q: I had tax question. My mom suffers from severe form of degenerative arthritis. Her doctors ... A: First hurdle is getting the doc to write a prescription for the pool. Once that is done, you have ...
Investment Property	4/9/2006
Q: In 2005, I purchased two investement properties both of which are financed (normal mortgages). ... A: The property taxes are deductible on Sch A. The interest is, as INVESTMENT expense, limited by your ...
tax advantage in home owning	4/8/2006
Q: I am now retired and still paying on a mortage. i have enough money to pay off my mortage. My ... A: First of all, you cannot deduct the investment income from your return, that is taxable income to ...
My husband passed away last...	4/8/2006
Q: My husband passed away last year, and told me once that when we sell the house we can write off all ... A: Tonja, the answer is maybe. But I have some questions for you first. What state do you live in and ...
property	4/6/2006
Q: My parents gave me a peice of property. I had it for about 3 years. I just sold it and cleared ... A: Your cost basis is whatever your parents paid for the property and you know what you sold it for. ...
To: Helen Oâ€™Planick Please...	4/1/2006
Q: To: Helen Oâ€™Planick Please clarify for me the scope of the Katrina Emergency Tax Relief Act. I ... A: Frank, all I can say is go to www.irs.gov and right there on the homepage there is a link to the ...
Taxes on Roth IRAs	3/19/2006
Q: Why did my accountant take taxes out of a Roth IRA that I cashed in to put into another fund. ... A: Ron, if you closed out ALL your ROTH IRAs and there was a loss, your tax return has been done ...
Tax	3/17/2006
Q: My wife and I are both over sixty five, we are both retired and our only income is from social ... A: Jim, I don't practice in CO, but I would suggest contacting the IRS and get a verification of ...
sale of stock - personal income taxes	3/16/2006
Q: My mother had some stock she received from her mother many years ago. The company was purchased by a ... A: If she cannot come up with a basis (and that would be her mother's basis) then the IRS is more than ...
sale of property - tax	3/8/2006
Q: !! Own two homes. Purchased one in 2001 for 215K, lived in it until March 2004. It has been a ... A: Gary, there is no rollover provision allowed. So if you sell your current home before the 2 years ...
Capital Gains	3/5/2006
Q: I would like to know if I can "share" the capital gains exclusion by putting my partner on the deed ... A: The only way to add someone onto the home is to do it now and then live in it for another 2 years. ...
HELP: FILING STATUS/DEPENDENTS/EIC	3/3/2006
Q: I NEED SOME ADVICE BASED ON MY HOUSEHOLD TAX SITUATION. IN 2005 MY SISTER AND HER 2 TEEN CHILDREN ... A: Rob, first of all, a little bit of internet kindness. Posts in all caps are very hard to read and ...
Garnishing wages	3/2/2006
Q: A friend of ours was way behind on filing and paying his federal income tax. He is trying to get ... A: The IRS cannot garnish his entire wages. And child support cannot either. His payroll department ...
business losses	2/28/2006
Q: I remember reading once (but cannot find the info now) that there is a limit to the number of years ... A: Any business ran at a loss for 3 out of 5 years, the IRS can come and look at and possible ...
Itemized Deduction	2/18/2006
Q: I am married filing joint return and itemizing deductions as well. - I have a medical insurance ... A: If your premium is paid with after tax dollars, it is a medical expense. If paid with before tax ...
tax on inheritance	2/13/2006
Q: My sister died in 2005 and had named me as beneficiary on an IRA. When I received the settlement, I ... A: Short of having the trustee reissue the 1099 (and good luck with that) you are responsible for all ...
"Prize" winnings?	2/11/2006
Q: I won some TV/stereo equipment from American Express during a "rewards points" promotion in 2005. ... A: You just need to have proof that the real value is lower then the 1099, then you put on line 21 - ...
Income tax	2/11/2006
Q: I have been renting a home from my son for the last 3 years. I now must retire (almost 65). My son ... A: Your basis is your son's basis (what he paid LESS depreciation). If there is a profit, it is 100% ...
Federal Tax	2/10/2006
Q: This may seem like a dumb question. I am 56 years old and semi-retired on disability. I receive ... A: Dan, there is a very good chance you do NOT owe money, but I can tell you why you only had $5 ...
capital gains tax	2/8/2006
Q: I am very new to investing in the stock market and have been doing some reading about taxes. If I ... A: Jeff, I'm going to send you two places, one is www.irs.gov and the other is www.fairmark.com. ...
Tax allowances	2/8/2006
Q: I have quick questions regarding the number of allowances I have set up on my w4. I have one job ... A: Ronan (nice name, btw), I really can't tell you if you are doing things correctly without seeing ...
1099-Misc & Elderly/Disabled Credit?	2/7/2006
Q: My husband received a 1099-Misc form it was listed as Box 7 non employee compensation sum $581.25, I ... A: Since the job was a one and done thing, just list it as other income on line 21 of the 1040. ...
1099-misc?????????	2/4/2006
Q: yes i was a renter. the city purchased the property and evicted me. they paid each resident ... A: Now I can help. :) I don't know if the money you got is taxable or not. That would require ...
1099-misc?????????	2/2/2006
Q: i received a 1099-misc form from my city because i was forced to move under the eminent domain ... A: Sam, what did you sell? Your home? I think you are going to have to amend your return, but I ...
I was divorced this past May....	1/29/2006
Q: I was divorced this past May. My ex-husband is collecting Social Security disability and has been ... A: If your ex is not normal retirement age, his pension may be able to be treated as wages. I would ...
Dependants	1/23/2006
Q: I have 2 questions: 1. My wife had zero income for the year, can I claim her as a dependant ... A: Tyris, your wife is NEVER your dependent. You will file jointly, even tho she had no income. And ...
college	1/22/2006
Q: my dad is opening a business in a couple of months and would like to hire me as his business ... A: I would caution you to continue working for him a few years after graduation. Also, if the business ...
will i get money back?	1/17/2006
Q: I pay child support and i owe some as well. I want to know that if i claim my two children will i ... A: There is no way of telling you if you will get money back or not or if you should claim your kids or ...
car donation	1/16/2006
Q: I donated my car to a charity last June. I received a form on their letterhead which acknowledges ... A: As long as the value of the car (and what you are claiming) is $500 or less, you are okay. If the ...
Dependent laws in divorce	1/15/2006
Q: I really hope you can help me; I can't seem to find my answer anywhere and I don't really think the ... A: Shelly, the only way those kids would NOT make her head of household is if they are working and ...
W-4 Tax Withholding	1/11/2006
Q: This is an easy question, I claim more exemptions on my W4 form than I really have, I'm single, but ... A: Mike, you are doing nothing wrong. However, the more allowances you claim on your W-4, the less ...
tax on a lump sum gift	1/10/2006
Q: Helen, I heard about the 2006 annual exclusion of $12,000...why is this not applicable? Also, my ... A: You did not mention that your mother was not a citizen. Knowing this, any taxes she would pay you ...
Divorce Situation	1/8/2006
Q: My husband and I file jointly. He pays regular child support to his ex-wife who does not work. He ... A: Molly, it does not matter if she works or not. I'm not sure who has the 8332. If she signed it ...
federal and International	1/8/2006
Q: Do you, by any chance, know the Federal and/or International Laws regarding personal collection of ... A: If you are a US citizen, you are taxed on your income worldwide and for the US citizen, it is ...
Additional income and deductions	1/3/2006
Q: I have a full-time job, but I am also doing freelance graphic design work on the side. I will need ... A: Matt, you will use Sch C and probably SE for your freelance income. Start with those two forms and ...
18 yr Student	1/3/2006
Q: Even if she kicked me out and I don't live at home? --------I am an 18yr college student who would ... A: Then you have to look at support. But normally, a minor cannot claim themselves. If she did not ...
How long to keep tax records	12/30/2005
Q: I live in CA. I'd like to know how long I need to keep tax filing records and back up data for a ... A: There is no set amount of time. I suggest forever, others suggest 7 years as a minimum. At the ...
Rent you own residence	12/30/2005
Q: We have a second home, would like to sell the 1st. What is the tax liability if we were to rent the ... A: You can only exclude a sale every two years, so if you want to exclude house one and two, you need ...
Withholdings	12/29/2005
Q: I am trying to re-do the taxes/withholdings for 2006 and need some help. We regularly give tithing ... A: There is a way to do the calculations, I don't know if you will get your desired end result but.... ...
Dependents	12/29/2005
Q: My 16 year old daughter had a son in august of this year and is receiving help from WIC and Medi-cal ... A: Christine, my heart goes out to you, as a Mom. I know this has to be bittersweet for you. I would ...
newly divorced with children	12/19/2005
Q: My divorce was final last month. We have 2 children-13 and 14. Both boys live with me and visit ... A: If you allow your ex to claim a child that is totally up to you unless the divorce decree states ...
Cable TV Writeoff	12/15/2005
Q: I work for a Radio Station, and in the course of my workday activities I am occasionally asked to ... A: Unless you keep a log of every hour watching or listening and log your business hours, you are going ...
donations	12/15/2005
Q: Can you write off for donations without itemizing and what is the percentage that you get back with ... A: You must itemize to claim charitable contributions. Your savings - whatever your tax bracket is ...
thanks...i have a twin sister...	12/12/2005
Q: ..i have a twin sister named Jamilah. Anyway, so this will be my last question. Now i just filled ... A: As long as there is money due on the return, anyone that signed it is liable for it. So even tho ...
Hi- I currently owe the IRS...	12/12/2005
Q: I currently owe the IRS $2000.00 for taxes that was done in 2003. My question is if my husband and ... A: Kamilah (what a lovely name), he is as responsible as you are for those taxes. And I don't like his ...
tax on sale of home	12/5/2005
Q: I owned and lived in a home for 26 months. I then purchased another home as primary and rented the ... A: Gary, since you lived in the home two out of the last 5 years, you are in good shape. You will have ...
capital gain	11/28/2005
Q: In general when selling a lot (owned 20 years), say for 100,000, would there be less income taxes ... A: Lou, it depends on what Congress does with tax laws in the next 5 years. Capital gains could go up ...
Tax Question	11/15/2005
Q: I am trying to calculate how much stock I would have to sell each year to collect $30,200 per year ... A: Long term capital gains are taxable at 15% for federal. I have no idea what CA's tax rate is. ...
collections	11/1/2005
Q: I am a 100% disabled veteran now. I was diagnosed with a life threatening illness in 98, and ... A: The lien will not be released until the statute of limitations is up. The OIC extended the statute, ...
Capital gain Tax on Profit of Selling resedential House	11/1/2005
Q: Sir, I live in oregon. Would you pl. let me have:::: 1)What would be State and Federal Tax on ... A: If you have lived in your home for any 2 out of the past 5 years and had no business use, you can ...
corrected 1099	10/28/2005
Q: I worked for a company in 1998 that is no longer in business. I never received their ... A: You need to get a copy of the transcript to show SSA that the money was taxable to you, not your ...
back taxes	10/11/2005
Q: I am engaged to be married to a man who in the past with his ex -wife did not file tax returns for ... A: You are NOT liable for any of his back taxes, however if you file jointly without using the injured ...
Capital Gains - Stock Sale	10/8/2005
Q: I have a question about a stock that I received as a gift in 1998, and am selling in 2005. The stock ... A: Sorry, Pat, your basis is NOT the value of the stock on the date of the gift. It is exactly what ...
tax preparer career	9/10/2005
Q: Would appreciate any advice on how to start a career as a tax preparer? A: The first thing to do is see if you like doing it. Call your local IRS office and ask for training ...
child tax credit	9/8/2005
Q: I have 3 step daughters that receive social security benefits from their deceased dad. I have one ... A: My question back to you is what did your daughters do with the money? Or what did you do with it? ...
selling real estate investment	9/5/2005
Q: I bought a rental property in April, 2002, price 82,000 including land, approx. $10,000. Sold it ... A: Since it was a rental property since 2002, you MUST claim the depreciation allowed by law for 2002 ...
Tax liens	8/30/2005
Q: Helen, Thank You !! For your fast reply !! In answer to your question about where we live. We live ... A: Karen, contact Bob Lind of Camelback Tax Service. 602-841-5414 I don't know if Bob does offers, ...
Tax liens	8/30/2005
Q: We have been paying the IRS regularly on installment agreements. However, we made the mistake of not ... A: Karen, take that mail you are getting and burn it. Don't even let it in the house. They are mostly ...
Ebay selling	8/28/2005
Q: Just a quick question for you. I have some sports collectibles that I will be selling on Ebay soon. ... A: Since you are selling the entire collection, I would still go ahead and use Sch D. Collectibles are ...
Writing off a bad personal loan	8/27/2005
Q: I was given a repayment schedule on money loaned and then the person that I lent the money to ... A: Yes, you can, but there are some IFs. IF you have a written note and IF you have gone thru legal ...
Ebay selling	8/25/2005
Q: Just a quick question for you. I have some sports collectibles that I will be selling on Ebay soon. ... A: Pat, you do have taxable income for sure. If this is a one and only time thing (you are not going ...
home repairs and condo fee deduction	8/23/2005
Q: My wife and I want to sell our condo apartment to our son (who lives in another state) and rent from ... A: Yes, he can write off the condo fees, but he must depreciate the repairs over 27.5 years. If his ...
deductions for work-related moving expense	8/16/2005
Q: I am presently an itinerent scholar moving from temporary position to temporary position. I ... A: If your assignments are expected to last less then a year and do last less than a year, your ...
gift tax exclusion	8/8/2005
Q: I understand that, currently, a gift valued at about $11,000 (this may have been increased) can be ... A: First of all, you have the right amount. Once a gift of present interest exceeds $11,000, a gift ...
Home Exemption?	7/28/2005
Q: When I got married almost two years ago and we moved into my wife's condo, my accountant told me I'd ... A: Find thee a new accountant. He is for the most part wrong. Since you have been using it for ...
How much taxes should be deducted per pay period	7/19/2005
Q: Don't know if I am in the right place, but here goes. I recently started working for a company from ... A: It is impossible to answer that question without your tax return in front of me and knowing a lot ...
401 (k) contribution	7/15/2005
Q: I would like to know what is the optimal percentage of my income I should contribute to my 401(k). ... A: Erika, there is no real number and it all varies by taxpayer. All I can tell you is if your ...
Student/Low income taxation	7/10/2005
Q: I currently have a job paying 5.50/hr and I make about $1670 a year (I know, it's sad). The ... A: While one is never exempt from taxes, federally, you would owe no taxes on your income (if this is ...
Tax on mutual fund upon shareholders death	7/7/2005
Q: I have had some money in Copley Fund for a number of years. This is a unique mutual fund in that it ... A: First of all, if you are not paying taxes on those gains, they CANNOT be adding to your basis. Tax ...
Gift of Stock	6/29/2005
Q: My father has decided to present my wife and me with a gift of some company stock he received when ... A: A gift tax return is due (Mom and Dad have to do it). No tax will be owed, but since the gift is ...
DEDUCTIONS AND TAXES	6/28/2005
Q: 1)MY FATHER PASSED AWAY RECENTLY, AND I HAVE BEEN HELPING OUT MY MOTHER WITH MANY TRANSACTIONS, ... A: I don't quite understand your first question. If you are asking if you have a tax write off for ...
Capital Gains Primary Home	6/20/2005
Q: Helen, My wife and I found our two bedroom townhouse cramped and we needed more space. I'm very ... A: Sorry, Kris, the time to ask was BEFORE you sold. You will owe federal tax in the amount of 15% on ...
capital gains in wv	6/12/2005
Q: If the max rate is 15%.how can i figure the exact amount.i payed $6,000.my parents payed $3,000 for ... A: Now I don't know if you inherited or not. If you inherited the land - use the value on the date of ...
Which Professional to see	6/12/2005
Q: Helen, I'm looking to find a professional to help me with my taxes and perhaps provide some ... A: You are going to want a CFP (certified financial planner) who is also an EA or tax-knowledge CPA ...
capital gains in wv	6/11/2005
Q: i inhereited a small peace of land.and bought a trailor for 6'000.and moved it on the land.i lived ... A: Yes, you owe capital gains at the max rate of 15%. You need your inherited land value plus price of ...
expected tax on sale of real estate property	6/10/2005
Q: We own our own home but also own rental property that we are selling for $33150. There is no ... A: You cannot roll the profit from the rental property into a personal home. You may be able to do a ...
Tax payment for year 2005	6/7/2005
Q: I am retired and do have my taxes taken out every month from my retirement check. I have just sold ... A: Mike, if you sold the stock in June, your $6000 is due in the September payment, so you can make ...
Capital Gain & Lost	6/2/2005
Q: In the year 2002 I had a stock lost of $5,000 and I claimed the $3,000 lost on my 2002 Federal Tax. ... A: If your income was under the filing requirements (without the loss) it did not wipe it out. You ...
Capital Gain & Lose	6/1/2005
Q: In the year 2002 I had a stock lost of $5,000 and I claimed the $3,000 lost on my 2002 Federal Tax. ... A: While, if you filed in 2003, you should have shown it, you do not lose it. There is a worksheet in ...
taxes on investment property	5/25/2005
Q: You are always so helpful! We have ANOTHER question for the EXPERT! We have been in touch with an ... A: Joan and Gary, You might want to check with the Better Business Bureau too, but those type of ...
Investment vacation property deductions	5/24/2005
Q: Helen: I am considering purchasing a vacation home and renting out for income. I do not have a lot ... A: Gary, you can use it the lesser of 14 days or 10% of the rented time in order to keep it a rental ...
assessment fees on property	5/23/2005
Q: We have another question for you... The property that we are building on has assessment fees for ... A: that world famous Cabana Boy!). It really does not matter as assessments are not deductible, they ...
Wrong end of Bankruptcy filings	5/18/2005
Q: I have two basic questions: 1 If I received a judgement from state court for $60k and then the debt ... A: The first one is easy, you got a judgement, you can take the loss, on Sch D and yes, subject to a ...
tax deductions/dependents	5/12/2005
Q: for the last 3 years i have been the sole supporter(paying rent,utillites food,medical ect.)for my ... A: You cannot be head of household, your daughter does not live with you. If her income is under ...
Employee vs. Contractor for Store Credit	4/27/2005
Q: I am arranging with a store to catalog their inventory for $x.xx per item, work to be done on the ... A: No matter how you get paid, it is still income. Whether you receive a 1099 or a W-2 - that would be ...
Independent Contractor tax payments	4/21/2005
Q: Please help me to win (hopefully) or lose a bet. I have a friend that recently began a new career as ... A: Well, this may or may not be a bet breaker - but.... The answer is it depends. If she has other ...
schedule d	4/15/2005
Q: i have a few questions regarding my capitol gains and losses. i own stock in Giftrust, mutual fund, ... A: Your basis starts at $100 and is added to each time you put money in it or the dividends reinvest. ...
Depreciation	4/13/2005
Q: I was told I did not need the deduction in the years skipped because I did not not make very much ... A: You were told very wrong. Now you have to calculate all the depreciation that was missed with a ...
i have self employment , &...	4/5/2005
Q: i have self employment , & a employee for a company. i have back taxes owed to the irs i also claim ... A: My answer to you is find a tax professional you can work with. That way you know you are getting ...
Income Tax Form 1040	4/4/2005
Q: Followup To Question - My 1099-DIV forms show the same amount in boxes 1A Ordinary Dividends & 1B ... A: Tom, if you follow every line and every instruction you will see you are not paying the taxes twice. ...
gambling winnings and losses	4/2/2005
Q: I hit several big jackpots this year here in Las Vegas where we live, so I contacted every casino I ... A: ANY winnings are taxable, even the 2 bucks you get for a couple of cherries. Your gains go on line ...
gambling taxes	4/1/2005
Q: I have 3 W2 forms from a casino. One for 4000 that I paid taxes on. One for 4000 I did not pay taxes ... A: You claim ALL your winnings (not just the 1099ed amounts) on line 21 of the 1040 and you claim all ...
Income tax fees	3/31/2005
Q: I just recently had my income taxes done by a professional preparer. The fee was $300 for Fed. 1040 ... A: Dick, more importantly, do you think it was fair? In my area, you were overcharged (in my office, ...
State tax requirements	3/30/2005
Q: I live in PA but own a rental property in DE. I just bought the property in 2004. Where do I report ... A: Ah, West Chester huh? Know anyone wanting to hire a very professional young lady graduating from ...
planning on seeling a piece of land	3/30/2005
Q: I am new to your site and I find it very interesting and informative! I see a lot of answers that ... A: It's true. If you wait a year and a day after buying it, it is a long term gain and only taxed at ...
Online classes	3/30/2005
Q: for which i get a in-line summary receipt of paid tution? Can I use these for my taxes? My online ... A: My first reaction is what a campus... but I would want to be there, not on line. ;) If this an ...
capital gains on home sale	3/27/2005
Q: I bought a house fours ago when i was single. I got married a year after the purchase and my wife ... A: Adding her to the deed now is only going to make you keep that house another 2 years. I think you ...
state income tax refund and wash sales	3/24/2005
Q: I have 2 questions regarding my 2004 federal tax return. #1.) My ex-wife and I received a $690 state ... A: I would divide the state refund. As for the wash sales, you need to account for each one as they ...
Consultation taxes	3/20/2005
Q: I just recently took a job as an educational consultant for a non-profit organization in ... A: Being non profit and not taking taxes DO NOT go together. If you are an employee, they MUST ...
Government EE Bonds	3/13/2005
Q: We purchased bonds for our children's education with the understanding that we wouldn't have to pay ... A: Without seeing the return, this is a shot in the dark. If the bonds were in YOUR name only, and ...
Sale of Rental Property	3/12/2005
Q: I bought a property in 1979 and I sold it last year. I am using form 4797. I have depreciated the ... A: You have to follow the lines of the form. Your depreciation will end up taxable, the finding from ...
withholdings	3/12/2005
Q: I am a divorced male and made about $90,000 last year, but with my deferred 401k contribution, it ... A: First of all, I concur what your advisor said. Stop giving IRS such a large loan. There is an easy ...
IRA-Required Distribution	3/10/2005
Q: ------------------------- Followup To In 2004 she did take out enough to cover both years. What ... A: Since she took enough in 04 to cover both - file 2003 with a statement saying that yes, she was ...
Adjusted Basis	3/4/2005
Q: O'Planick, I have two possibly related tax questions: 1. I sold a vacation home this year, in ... A: Good morning. On question one - this related "stuff" was deductible in the year of the repairs and ...
Minimize impact of early distribution of 401K.	3/4/2005
Q: In late 2003 my wife almost died. She survived, but now has colon cancer so future is unknown. I ... A: John, I feel for you. I agree with you that you and your wife should do what you want to, but if ...
sale of finace's home	3/1/2005
Q: My girlfriend and I are due to be maried this June. She is selling her home to move into mine. ... A: Congrats on the wedding. Since she is selling in 2005, the sale is reportable on your 2005 return. ...
employer not paying in payroll taxes.	2/26/2005
Q: my employer took taxes out on the 4 of us. he never paid any in. we have been dealing with him ... A: File your taxes with your paystubs. The W-4 means nothing. There is a form on the IRS website ...
Mortgage Interest Deduction	2/23/2005
Q: If I consolidate 2 or 3 rental property mortgages into one loan, can I still deduct the total ... A: Sure. How? - the word is proration. If property 1 was owed $40K and property 2 owed $25K and ...
DEPENDANT CHILD, MORTGAGE & TOOL EXPENSE QUESTIONS	2/12/2005
Q: I am trying to do mine and my boyfriends taxes and I am having the worst time. First off, I will be ... A: First of all, a good amount of support does NOT count. It must be over 50% of the support of the ...
Deductions	2/9/2005
Q: I am a professional chef in the hosptality industry. I am 22 years old. I was wondering what ... A: Louis, please send two months worth of meals... I don't have time to cook during tax season. ...
Second Home Residency	2/8/2005
Q: How many days/weeks/months per year is one required to live in a second home for it to qualify as ... A: I don't post on any public BB except AOL where I am the Tax Expert and then I don't do the postings, ...
IRA Basis?	2/8/2005
Q: I'm using TurboTax and its asking me for my IRA basis. Here is my situation. I worked for Bank of ... A: You do not have a basis in the IRA as you put in no after tax money. And only the first $10,000 is ...
Married filing separately	2/6/2005
Q: I want to determine what our tax liability will be if we file “married filing separately”. I am not ... A: Tom, I'm going to tell you right now that if you have rental property, and you file separately, you ...
tax	2/2/2005
Q: -How does letting the statute run or die work?In addition to a compromise and settlement, I had ... A: Die is you dying...but then the IRS can come after your estate. Statute is normally 10 years after ...
Elder needing IRA money after missing RMD payments	1/28/2005
Q: Yes, the RMD penalties are unspeakable and only really apply to pre-Roth IRA's, which is all she's ... A: No, you can't backdate income.... She needs to take out the 3 years worth of RMD and in 2005, when ...
Dependent or Independent?	1/27/2005
Q: I'm a 2nd Year college student with a part time government job (as a independent contractor), my mom ... A: ) Mom will probably fair better if she claims you as a dependent, but do it both ways and see. ...
School Loans/Dependents	1/26/2005
Q: Before I married my husband he owed a school loan, it is now in default. He has been laid off for ... A: Unless you live in Ohio, MFS is really hurting you. What you need to do is file jointly, but add ...
filing taxes	1/25/2005
Q: I purchased a house with my father. I paid all costs (downpayment, closing costs). I pay the ... A: Whomever is responsible for the mortgage (and it looks like your dad is) is the one that can deduct ...
Forgiveness of debt	1/22/2005
Q: I have several bad credit card debts which I have been in the process of paying off. I have been ... A: Can you have them retract the 1099C? Check with a lawyer on that. Is it income? Yes, you have ...
How do I File?	1/21/2005
Q: My Fiance and I moved in together in Febuary of 2004.The state I reside in is Florida. Florida is ... A: He will give you a 1099 and to be honest, that is a tad shady, you should have been an employee. ...
claiming a child	1/21/2005
Q: I am a divorced mother of a 4 year old with primary custody. There is a schedule worked out with ... A: While he can, it would not be legal unless you give him permission. However, if he files first, ...
Taxes	1/16/2005
Q: I've recently started in commercial real estate and just received my first commission check, ... A: Congrats on your first sale! You will file Sch C and SE with your tax return (those are found at ...
taxes	1/12/2005
Q: Helen, Regarding the amount of taxes I would pay, Is it worth it to build two homes as an ... A: Joe, there is no way I can help you make that decision. However, no one ever pays 100% in taxes, so ...
Willfully not filing of federal income taxes	1/7/2005
Q: What are the penalties/punishments for neglecting to file your taxes? This individual owes me ... A: The sad part is that if he is due a refund, he has no obligation to file and you don't get your ...
Gains on sale of land	1/4/2005
Q: I have two pieces of land that I am selling soon in Florida. I have had the land for twenty years ... A: Unless you exchange them with a qualified exchange, there is nothing to do to defer the gain. If ...
buying a home with parent	12/27/2004
Q: i would appreciate any info you can give me on the subject of buying a home and being partners with ... A: As long as she is a joint owner, what she pays in mortgage interest and taxes are deductible by her, ...
Dual use of SSN #	12/11/2004
Q: A few years back, the IRS told me that a SSN number I used had beeen used twice, with pentalies, and ... A: It really depends what tax year you are talking about. If not 2003, 2002 or 2001; nothing can be ...
Nanny Taxes	11/27/2004
Q: I hold 2 part time jobs as a nanny, for 2 seperate families. They both pay me tax free, but with ... A: If you are working in their homes, THEY are your employers and must withhold SS taxes and medicare ...
t	11/20/2004
Q: I have a coop in NYC. I have lived there for <2yrs and it has been my primary residence. If I sold ... A: If you are selling just to sell, you will pay capital gains, no matter what you do with the money. ...
tax write offs for refinancing	11/14/2004
Q: This will be my second time refinanicng in the same year for the same house. Can I write off the ... A: The ONLY thing you can write off is your points, none of the other costs count. So you can write ...
child tax deduction	11/12/2004
Q: The decree did state he can take the deduction. We had an agreement (not in the decree) that if he ... A: Sorry, but the divorce decree holds all the water he needs it to hold. If you can get it modified ...
tax write offs for refinancing	11/11/2004
Q: I'd like to know if I can write off part of the closing costs when doing refinancing. They are ... A: First of all,I'm assuming this is your principle residence and not a rental property. If my ...
mileage deduction	11/2/2004
Q: Helen, I know the mileage deduction is 36.5 cents, but my question is the actual deduction. Do I ... A: You don't tell me if you are self employed or an employee. If you are an employee, you must itemize ...
How long to keep records?	11/2/2004
Q: I'm cleaning my files & wondered how long records such as utility bills, credit card bills should be ... A: If the bills you are collecting have nothing to do with taxes, pitch them after a year or so. If ...
Capitol Gains	10/16/2004
Q: My brother and I purchased a 3 Family home in 1987. We each lived in a unit and rented the third ... A: Basically, you are looking at your sales price less your purchase price (which is reduced by the ...
A total of seventeen days... ------------------------- ...	9/17/2004
Q: A total of seventeen