Join the 9 million people who found a smarter way to get Expert help

Recent Income Tax questions

ACA question - If an individual is receiving alimony but the

ACA question - If an individual is receiving alimony but the alimony is not taxable to the person receiving it, does it have to be included when calculating what your income is to figure out what your premium should be.thank youJeannette

Read more

Robin D.

Vocational, Technical or Trade School

20,924 satisfied customers
My mother-in-law died in April and we are settling her

My mother-in-law died in April and we are settling her estate. Beneficiaries are her son (executor) and her daughter (my wife), and 4 grandchildren (one by her son, and 3 by her daughter). The son and daughter each get a third of the estate, and the third third is divided equally amongst the grandchildren. The estate is roughly $1,000,000, all in cash and securities.A significant amount of deferred income (about $20,000) will be unlocked by cashing in HH bonds that in the past were obtained in exchange for EE bonds in order to defer tax.The estate itself has a tax rate above 40% for investment income. My thought is to disproportionately distribute the investment income via K-1 to the beneficiary with the lowest tax rate (a non-dependent grandchild in the 15% tax bracket) along with cash to pay the tax. The net cash payment to this beneficiary would be offset by paying out less from the corpus of the estate, so that, in total, all beneficiaries get their prescribed proportion of the entire value of the estate. In this way, income tax is minimized on behalf of all the beneficiaries and everyone thus receives a bit more.The question is: does treating income payments to beneficiaries in this disproportionate way, though offset through corpus payouts, violate any estate tax law?

Read more

Mark Taylor

Certified Public Accountant

Masters

880 satisfied customers
I am an instructor in the alternative health & wellness

I am an instructor in the alternative health & wellness industry. People have started giving donations to help support the spread of the modality that I teach. This is not money for me as an income, but rather it will be used to offer scholarships for students, and pay for expenses aspt the many volunteer events we hold (which have expenses without income).How should I handle this money in my paperwork/tax reports?

Read more

Dr. Fiona Chen

President

Ph.D.

250 satisfied customers
My Mom is turning 90 years old. She needs to cash out a

my Mom is turning 90 years old. She needs to cash out a annuity policy that has about $67,000 in it. Her social security and pension income are less than $25,000 per year. Somewhere in the low 20's at best. How much Fed and State Tax should she ask them to take out. She lives in NJ. Need an estimated rate for her to use when completing the cash out...JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?Customer: no. I just want her to fairly reasonable with the tax so that she does not owe much afterward.

Read more

Dr. Fiona Chen

President

Ph.D.

250 satisfied customers
I am a dual citizen of Canada and US - living in Canada

I am a dual citizen of Canada and US - living in Canada since birth - hold a US passport, but have never filed taxes. I have never made much money as a self employed musician, rarely paying tax (I file - up to 2012 so far) in Canada.JA: Because laws vary from state to state, could you tell me what state is this in?Customer: I would like to clear things up regarding US status.JA: Have you talked to a lawyer yet?Customer: noJA: Anything else you think the lawyer should know?Customer: I may move to US for work. I am expecting an inheritance.JA: Because employment law varies from place to place, can you tell me what state this is in?Customer: Alaska

Read more

What happens to an American if they submitted their income

What happens to an American if they submitted their income tax return to the IRS, but didn't sign? The IRS returned the forms, requesting a signature. What happens if the person never sends it back? There was nothing owing.

Read more

Barbara

Enrolled Agent, Paralegal

4,992 satisfied customers
I'm married and I am self-employed. My wife makes around

Hi, I'm married and I am self-employed. My wife makes around $17k per year. No kids. We pay a mortgage of around $525 per month.I'm looking at buying a new car, but I want to make sure it's in my budget, so I'm trying to determine two things...1. My self-employment tax2. My federal income tax rate.I'd like to ballpark how much I need to be paying EACH month roughly to cover both #1 and #2 above.I'd guess I make around $2400 a month after business expenses.Is there a way to determine this?I find it very hard to understand and to figure out how to figure them separately.Thank youDayne

Read more

Mark Taylor

Certified Public Accountant

Masters

880 satisfied customers
I have a tax question. I'm a real estate agent. I have

I have a tax question. I'm a real estate agent. I have clients that are renting a house in Greenwood.Their former landlord wanted to sell so he is subsidizing the rent for the Greenwood home.He want to send a lump sum into an escrow account for the landlords in Greenwood.Would the landlords in Greenwood be taxed when the money comes into the escrow account or when themoney is paid the them each month or 1 year at a time for the rent?thanks,

Read more

Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,234 satisfied customers
I'm interested in purchasing a home here in Nevada and

Hello,I'm interested in purchasing a home here in Nevada and trying to figure out the best way to spend money for a $100,000 mortgage downpayment plus $14,000 closing costs($114,000 total) from the following:1) $18,000 Bank checking2) $127,000 IRA3) $56,000 Mutual Fund (this pays about $250/monthly income)My annual income is about $42,000 ($1166/month -social security, $250/month -Mutual fund dividends, $2033/month -life annuity). Also, I will start receiving a $105/month pension in 2017.I would like to keep my income unchanged.Currently in 25% tax bracket, single, no dependents/debt, 64 years old, pay $0 state income tax in Nevada.Thanks

Read more

Mark Taylor

Certified Public Accountant

Masters

880 satisfied customers
View more tax questions
In The News