Ask A Question
Have Tax Questions? Ask a Tax Expert for Answers ASAP
Personal Tax Questions
In the United States people are required to pay personal
, and these individuals filing may even receive a personal
return from their state or the federal government. There are many questions that can come up when a person is filing their personal taxes. Below are questions that have been asked of the Experts in regard to personal taxes.
If a person owns an incorporated business and the business owes withholding taxes, can the IRS take the individual’s personal tax return?
If the business owes back
it is possible that the IRS may put a tax
on the business or the corporation. If the IRS puts a tax lien on the business, the individual’s personal tax return will not be taken, but the individual may be held responsible for paying the back withholding taxes. If the IRS put the tax lien upon the individual and not the business, then the individual’s personal tax return will be taken by the IRS.
If an individual has been filing taxes jointly, how will opening a business affect the individual’s personal taxes?
If an individual continues to file jointly and the business has a loss then the individual will have an increase in their income tax
. Consequently if the individual has filed jointly and the business makes a profit, then the individual’s tax refund will be decreased. Also the individual will have to pay state and federal normal income tax rates, in addition to the 15.3% tax on self-employment. The individual has the liberty to prepare their personal taxes for federal and state and see which
, individual or jointly, has the least the tax liability for the individual.
If an individual finds that they missed a 1098 when they filed their personal tax return, if they file a corrected return, will an audit be triggered?
If an individual finds that they have missed a 1098, they can file an
, and the act of simply filing a will not trigger an audit from the IRS. When an individual needs to file the amended return, they need to utilize form 1040X, which is the form for correcting a return that has already been filed. Since the IRS also has received the information from the 1098 that the individual used to correct the return, the chances on an audit on the grounds of missing a 1098 form are not good, especially since it is a
that the individual is legally about to receive.
If an individual receives a large sum of money as a gift, will they have to pay taxes on it?
In most cases if an individual receives a gift, they do not have to pay
federal gift taxes
, and will not have to pay personal income tax on the gift either. The tax responsibility for the gift lies with the giver of the gift. There is annual
exclusion; this is the highest amount that a
is able to give yearly to any beneficiary without the requirement of their one million dollar lifetime gift exemption amount. If the gift giver is able to limit the amount of gifts yearly to within the annual exclusion amount, the that individual will not have to file a gift tax return as there will be no gift taxes due.
If a person owns a business that owes back withholding taxes the IRS may put a tax lien on the business or on the individual themselves. If it is placed upon the individual, then the individual’s person tax return may be taken by the IRS. If an individual finds that they have missed a 1098 when filing their income taxes, they are able to file an amended return, and this does not necessarily trigger an audit of the individual’s personal taxes.
Filing taxes and facing the tax season is often confusing and stressful, however there are places to turn for help. If individual’s find themselves with questions regarding their personal taxes they are always able to ask an Expert.
Recent Personal Tax Questions
I want to do business as a photographer (sell artwork) and
I want to do business as a photographer (sell artwork) and operate as a Sole Proprietorship.
Do I need to file any documents for that - or can I just get started and simply hand in the right tax forms at the end of the year?
I am in North Carolina, and my small business is a chapter
I am in North Carolina, and my small business is a chapter S corporation. I pay myself as the owner via a dividend, and file a schedule K1 for my taxes each year.
I am getting ready to retire (and will collect social security each month), and I want my wife to take over as president (she is below retirement age), and also, take over my small salary as she assumes those duties. Legally, what do I have to do to: 1) Change the ownership of the corporation to her (I think now I am president and she is vice president, but I would reverse that and assume a non paying position as she is now), and, 2) do I need to file or do anything for tax purposes that would allow her to take my salary now and file the K1 form instead of her?
And if these things are possible, what are the proper steps to assure I don't mess up the corporation in any way, or my ability to collect my social security (and have to pay tax on it). I will not be working any more, just my wife. thanks. *****
Tax Experts I want to change single member LLC to a
Tax Experts I want to change single member LLC to a S-Corporation for tax purposes. I would like to do it retroactively from 01/01/2014. 2014 tax return has not been filed. Can I do it? If yes, do we need reasonable cause letter along with election forms?
Please explain in details.
View More Tax Questions
Experts are Online Right Now
Ask Your Own Tax Question
Ask Your Question Now
Ask a Tax question
Type Your Tax Question Here...
Tax 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 Tax Professional
Get a Professional Answer. 100% Satisfaction Guaranteed.
Tax Professionals are Online Now
Type Your Tax 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