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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.

   

You are here:  Experts > Business > Corporate Law > Tax Law (Questions About Taxes)

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

SubjectDate Asked

House Taxes10/6/2008
  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-MSC10/1/2008
  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 home10/1/2008
  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 off9/29/2008
  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 gains9/29/2008
  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 ...
IRAs9/28/2008
  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 ...
Dependants9/27/2008
  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 estate9/21/2008
  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 dog9/20/2008
  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 bonds9/20/2008
  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 PA9/19/2008
  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 Taxes9/19/2008
  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 propriortor9/17/2008
  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 10999/14/2008
  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 return9/12/2008
  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 settlement9/11/2008
  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 me9/10/2008
  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 tax9/9/2008
  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 reapairs9/9/2008
  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 credit9/4/2008
  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-services9/4/2008
  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 rollover9/3/2008
  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 owners9/3/2008
  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 diem8/28/2008
  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 ...
10998/26/2008
  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 vehicle8/25/2008
  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 owed8/24/2008
  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 brother8/24/2008
  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 income8/23/2008
  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 tax8/23/2008
  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 expense8/23/2008
  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 returns8/23/2008
  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 expense8/23/2008
  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 Deducations8/20/2008
  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 tax8/20/2008
  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 member8/19/2008
  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 gains8/19/2008
  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 dependants8/19/2008
  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 Inheritance7/25/2008
  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 question7/22/2008
  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 Reporting7/16/2008
  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 later7/16/2008
  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 question7/16/2008
  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 Carryover7/14/2008
  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 disabled7/13/2008
  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 ...
land7/9/2008
  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 situation7/8/2008
  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 jobs7/3/2008
  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 property7/3/2008
  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 ...
Intercepts7/2/2008
  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 status7/2/2008
  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 expenses7/1/2008
  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 expenses7/1/2008
  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 Deed6/30/2008
  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 sale6/30/2008
  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 Distribution6/26/2008
  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 stocks6/26/2008
  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 home6/25/2008
  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 claim6/25/2008
  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 taxes6/24/2008
  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 expenses6/20/2008
  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 return6/17/2008
  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 min6/14/2008
  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 withdrawal6/6/2008
  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 withdrawal6/6/2008
  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 withdrawal6/5/2008
  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 divorce6/5/2008
  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 withholding6/1/2008
  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 FHA5/22/2008
  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 ...
taxes5/22/2008
  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 ...
Deductions5/17/2008
  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 irs5/15/2008
  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 losses5/14/2008
  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 Questions5/14/2008
  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 retireee5/13/2008
  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. income5/12/2008
  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 liability5/11/2008
  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 withholding5/10/2008
  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 ...
1099A5/6/2008
  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 returns5/6/2008
  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 question5/6/2008
  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 checks4/29/2008
  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 1/24/28/2008
  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 enttertainment4/26/2008
  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 expense4/25/2008
  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 RMD4/25/2008
  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 land4/25/2008
  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 land4/25/2008
  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 1/24/24/2008
  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 tax4/24/2008
  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 tax4/24/2008
  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 Business4/24/2008
  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 taxes4/23/2008
  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 taxes4/19/2008
  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 out4/18/2008
  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 taxes4/18/2008
  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 question4/15/2008
  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 Liability4/13/2008
  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 extension4/13/2008
  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 Taxes4/13/2008
  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 default4/13/2008
  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 Tax4/12/2008
  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 Deduction4/11/2008
  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 options4/10/2008
  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 Taxes4/10/2008
  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 Deduction4/9/2008
  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 Property4/7/2008
  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/Purchase4/7/2008
  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 filing4/6/2008
  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 Corporation4/5/2008
  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 taxes4/5/2008
  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/conversion4/4/2008
  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 mistake4/1/2008
  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 1099B3/31/2008
  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-R3/26/2008
  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 contributions3/26/2008
  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 10993/25/2008
  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 contractor3/25/2008
  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 deduction3/25/2008
  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 401k3/24/2008
  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 10993/23/2008
  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 AL3/22/2008
  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 Business3/20/2008
  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 averaging3/20/2008
  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 asked3/20/2008
  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 home3/19/2008
  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 gains3/17/2008
  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 Eligibility3/16/2008
  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 SAHM3/16/2008
  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 survivorship3/14/2008
  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 status3/13/2008
  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 Credit3/12/2008
  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 LLC3/12/2008
  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 LLC3/12/2008
  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 return3/11/2008
  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 missouri3/11/2008
  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 pay3/11/2008
  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 property3/10/2008
  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 return3/10/2008
  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 pennsylvania3/10/2008
  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 taxes3/9/2008
  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 basis3/8/2008
  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 dependent3/7/2008
  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-13/6/2008
  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 tax3/6/2008
  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 mileage3/5/2008
  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 contribution3/4/2008
  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 premiums3/4/2008
  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 gains3/4/2008
  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 annuities3/3/2008
  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 DEPENDENT3/2/2008
  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 yeat3/2/2008
  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 businesses3/2/2008
  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 Refund3/1/2008
  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 ...
takenadvantageof2/29/2008
  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 1099s2/27/2008
  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 withdrawl2/26/2008
  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 question2/25/2008
  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 taxes2/24/2008
  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 Rollover2/23/2008
  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 member2/22/2008
  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 20052/22/2008
  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 unit2/21/2008
  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 Credit2/19/2008
  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 year2/18/2008
  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 home2/17/2008
  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 ago2/17/2008
  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 giving2/17/2008
  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 Tax2/15/2008
  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-Misc2/15/2008
  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 fee2/13/2008
  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 diem2/13/2008
  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 scheme2/13/2008
  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 ...
babysitting2/13/2008
  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 education2/12/2008
  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: Dependents2/11/2008
  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 years2/8/2008
  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 wash2/8/2008
  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 responsibilities2/6/2008
  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 taxes2/5/2008
  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 contributions2/4/2008
  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 Judgment2/3/2008
  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 interest2/3/2008
  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 credit2/3/2008
  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 Dispute2/2/2008
  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 Deductions2/1/2008
  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-DIV2/1/2008
  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 tax1/31/2008
  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 question1/31/2008
  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 nieces1/30/2008
  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 281/29/2008
  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 residence1/29/2008
  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 281/29/2008
  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 support1/29/2008
  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 home1/27/2008
  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 son1/27/2008
  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 status1/27/2008
  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-profit1/26/2008
  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 adult1/25/2008
  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 costs1/25/2008
  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 tax1/25/2008
  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 question1/24/2008
  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 Parents1/23/2008
  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 report1/23/2008
  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 question1/21/2008
  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 charity1/21/2008
  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 Diem1/21/2008
  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 sale1/21/2008
  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 single1/20/2008
  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 ...
Inheritance1/20/2008
  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 property1/20/2008
  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/disability1/20/2008
  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 dependents1/19/2008
  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 Taxes1/19/2008
  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 exemption1/19/2008
  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 aunt1/18/2008
  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 ...
dependents1/15/2008
  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 Purchase1/15/2008
  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 spouse1/15/2008
  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 credits1/15/2008
  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 taxes1/14/2008
  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 parents1/14/2008
  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 ...
dependents1/14/2008
  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 addresses1/14/2008
  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 penalty1/13/2008
  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 separately1/13/2008
  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 back1/13/2008
  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 taxes1/12/2008
  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 ...
Stocks1/11/2008
  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 use1/10/2008
  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 income1/10/2008
  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 ...
401K1/9/2008
  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 expenses1/6/2008
  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 IRS1/6/2008
  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 taxes1/6/2008
  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 contracting1/6/2008
  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 tax1/5/2008
  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 taxes1/3/2008
  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 Disability1/3/2008
  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 deduction1/2/2008
  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 another12/31/2007
  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 Donation12/30/2007
  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 expenses12/30/2007
  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 expenses12/29/2007
  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 illegally12/28/2007
  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 expense12/28/2007
  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 income12/27/2007
  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 deduction12/25/2007
  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 deduction12/25/2007
  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 laws12/25/2007
  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 Dependant12/24/2007
  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 income12/24/2007
  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 proprietor12/21/2007
  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 proprietor12/21/2007
  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 family12/21/2007
  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 sale12/21/2007
  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 DISTRIBUTION12/21/2007
  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 Question12/17/2007
  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 gains12/16/2007
  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 gi