Ask A Question
Finance Questions? Ask a Financial Expert for Answers ASAP
Income Tax Questions
Every year across the United States individuals file their income taxes. Some of those individuals who file their income taxes may receive a refund, while others may find instead of a refund there are taxes owed. Tax laws change yearly and often individuals find themselves with income tax questions.
What is income tax?
An income tax is taxes that placed upon a businesses or an individual’s income. There are several different income tax systems that are in place around the world. An income tax system may have an income tax that may be regressive, progressive, or proportional. The income tax of individuals is taxes upon all of the income earned by the individual, while income tax of businesses may be only on the net income. Each tax system may have a different definition when it comes to income. Most income tax system also deductions that lower the amount of income earned. Below are a few income tax questions that have been answered by the Experts.
When does the statute of limitations begin expiring on income taxes owed?
The statute of limitations for income taxes that are owed begins to expire from the date of assessment. The date of assessment is the day that the tax return was filed. So if an individual had not filed a tax return for a certain year, the statute of limitations on the taxes due would not begin until the income tax return was filed. However if an individual were to have to file an amended return, then the date of assessment would change from the date the income tax return was originally filed, to the date the amended income tax return was filed.
If an individual has not filed income tax for several years can the individual file those income tax returns now?
In many cases, if an individual has not filed an income tax for several years, the individual should file an income tax for those years that they have not filed for. Even if the individual did not feel that the individual made enough to report, because if it should have been reported and any income taxes were owed, then those income taxes have accrued penalties. Refunds may be limited to years that are still within the statute of limitations for refunds.
What is the statute of limitations for investigating income tax returns?
For examination the statute of limitations begins on the date of assessment, which is the day that the income tax return was filed, that or April 15th of the year after the income tax return is filed. The statute of limitations for examination is three years, unless the individual had made an agreement for the term to extended; this agreement must be in writing. However it should be noted that if the IRS believes that a misstatement done criminally of either the deductions or income can be opened for 7 years.
Income tax is taxes that are enforced by a tax agency on the income of businesses or individuals. There are several different types of income tax systems across the world, some of which allow tax deductions. If an individual has not filed an income tax for several years, it will be beneficial for them to file an income tax return for each year as there may be taxes that are owed that will have accrued penalties. Any income tax questions can be asked of the Experts.
Recent Income Tax Questions
I want to determine the eligibility Service Loan
I want to determine the eligibility for Public Service Loan Forgiveness. this person has the following circumstances.
1. federally guaranteed loans that were incurred before 2007.
2. works for the city of NY.
3. Has gross income of $75,000
4. Taxable income of $60,000
5. Has one child dependent.
Would I make more money with a contract job at $38 hr. with
Would I make more money with a contract job at $38 hr. with nothing withheld or the same job at $35 hour with withholdings?
I have a question about the tax treatment of a partnership
I have a question about the tax treatment of a partnership and it's effect on a partner who files a personal tax return. Let's assume the partnership makes the following income during the year: 1. Buys shares of IBM stock for $100,000. At year end no shares
have been sold and the FV of the shares are $120,000, representing a $20,000 unrealized gain. 2. Buys shares of GOOGLE stock for $50,000 and later in the year sells the stock for $80,000, representing a $30,000 realized gain 3. Had $200,000 in inventory of
collected wine that was purchased several years ago. Half of the wine was sold during the year for a $5,000 gain and the rest recognized an unrealized gain of $15,000 4. Received $30,000 in consulting services revenue and $5,000 of interest income from loans
Assume the partner is an individual who files a personal tax return. A) For the $20,000 unrealized FV gain in the IBM stock how is that represented on the K-1? Will the individual partner be required to pay taxes on the gains since they are unrealized and
not realized? Also, does the holding period matter for the partnership stock - for example if the stock had been held for longer than a year before being sold would the individual pay the LT capital gains tax rate, or is it all treated as ordinary income regardless
of the holding period? B) For the $30,000 realized gains how would this be presented on the K-1? Will the individual partners be required to pay taxes on the realized gains? As mentioned in A), does the holding period matter for this? C) How are collectibles
like wine represented on the K-1? Does the individual partner pay taxes on the realized gains, unrealized gains, or both? Is there a different tax rate for collectibles like wine? Does the holding period matter? Would items like gold and silver be treated
the same way? D) How would the consulting revenue be represented on the K-1? Is this just taxed as ordinary income? Is this different than trading gains and losses. Would interest income from loans be treated the same way? E) I am trying to get an overall
understanding of how partnership income gets taxed at the individual partner level. For example, realized vs. unrealized gains, trading gains, vs. collectibles, vs. interest income, vs. other revenues, and their respective tax rates F) Do distributions from
the partnership affect taxes paid by the partner? Is the partner's tax only driven by taxable income from the partnership? G) For the individuals return, do the K-1 items get listed out separately, or does it all just roll up to one line representing partnership
View More Finance Questions
1 Financial Professionals are Online Right Now
Ask Your Own Finance Question
Ask Your Question Now
Ask a Finance question
Type Your Finance Question Here...
Financial Professionals are Online Now
In The News
How JustAnswer Works:
Ask an Expert
Get a Professional Answer
Ask Followup Questions
100% Satisfaction Guarantee
Ask a Financial Professional
Get a Professional Answer. 100% Satisfaction Guaranteed.
Financial Professionals are Online Now
Type Your Finance Question Here...
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.
Become a Professional
Terms of Service
Privacy & Security
© 2003-2015 JustAnswer LLC