How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
A new question is answered every 9 seconds

Ask a Tax Professional

Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: General
Satisfied Customers: 571
Experience:  10 years experience
16356563
Type Your Tax Question Here...
characters left:
2 Tax Professionals are Online Now

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
< Last | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin Kernersville, NC
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther Woodstock, NY
  • Thank you so much for taking your time and knowledge to support my concerns. Not only did you answer my questions, you even took it a step further with replying with more pertinent information I needed to know. Robin Elkton, Maryland
  • He answered my question promptly and gave me accurate, detailed information. If all of your experts are half as good, you have a great thing going here. Diane Dallas, TX
 
 
 

Tax Burden

Having a tax burden can be a huge weight on a person’s shoulders. The penalties can add up to large amounts of money, and even larger headaches. A well informed person would be wise to study the laws diligently and put that knowledge to use before incurring the penalties that tax burdens can incur. However there are times when questions need to be answered and the common man may not know where to turn for those answers. Below are the most commonly asked questions about tax burdens that have been answered by the Experts.

If a person inherited an IRA (Individual Retirement Account) valued at $70,000 which is part of a trust, and the combined income is around $125,000 what would their tax burden be?

taxable income. >

How could a person minimize or even eliminate any tax burden on their family overseas that is trying to help them with a down payment on a house, while also making the tax burden on themselves minimal. Also what is the most a person could receive without declaring? Would they need a contract?

Gifts that a person receives that are under $100k would not be subject to any United States tax; however the family overseas might want to check the gift tax burden in the country of their residence, but they would not owe any U.S. taxes. If the gift is over $100k then a person would have to file an information return and report the gift. But, that person would not owe any tax on it. If the person is receiving it as a loan then they may be required to have formal loan documents with payment and interest terms. Interest that loan could be taxable in the U.S. to the person giving the loan.

What would the tax burden for a college savings plan that was originally $25,000 but by the time we cashed it out it had dropped to $20,496 for a six year old.

Since the account lost money then there are no taxes due. And in most cases even if it had not lost money there would be no taxes on the donations made to a six year old because these accounts are first of all a gift, and they are also after tax money that are not taxable to a minor.

Could a senior citizen gift money to their grandchildren to lessen their tax burden and receive a tax deduction for it?

In most cases gifts to any specific individual may not be deducted. Only gifts to a qualified charitable organization would be deductible.

Would a person need to pay a portion of last year’s tax burden in order to help my next year’s tax burden?

You are required to pay enough tax (either by having your employer withhold it from your pay, or by paying estimated taxes) in the current tax year so that you will not owe a significant amount of tax in the next year when filing your tax return. If you do not pay enough of your tax liability then you could incur a penalty for underpayment of taxes.

Having a tax burden can be a trying time for even the hardiest of individuals. Many questions can come to play when a person is carrying a burden of this nature. Knowing your rights and the tax laws is the key to being prepared for any questions that might arise when dealing with tax burdens. When having questions about tax burden you can contact the many Experts available.

Ask a Tax Professional

Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: General
Satisfied Customers: 571
Experience:  10 years experience
16356563
Type Your Tax Question Here...
characters left:
2 Tax Professionals are Online Now

How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Tax Professionals are online & ready to help you now

Ron
ASE Certified Technician
Satisfied Customers: 21604
23 years with Ford specializing in drivability and electrical and AC. Ford certs and ASE Certs
Dr. Y.
Urologist
Satisfied Customers: 18608
I am fellowship trained specializing in general urology and reconstructive urology.
John
Home Appliance Technician
Satisfied Customers: 13453
Appliance repair business owner for over 43 years.

Recent Tax Burden Questions

  • Got an letter from IRS regarding the late tax filing penalty

    Got an letter from IRS regarding the late tax filing penalty on a S corporation.
    The company has stopped operating due to loss. But no proper shutdown/closure was arranged via final filing etc. The penalty is $195 per month per share holder. Does the
    share holder personally owes IRS the money? What is the appropriate way to handle this?
    If the shareholder of the company is not personally responsible, the company has no asset to pay for any penalty.
  • Dear Lane, Hi! My wife and I bought our first house in

    Dear Lane,
    Hi!
    My wife and I bought our first house in 2008 and took the $7500 First Time-Homebuyers' refundable tax credit. This was the one that you have to pay back over 15 years.
    Of course, I have started the $500 per tax year repayment of this credit and still currently owe $5500.
    However, I am now thinking about getting an electric vehicle (EV). I will not have enough tax liability this year to fully use the $2500 federal tax credit that comes with the purchase of this EV.
    My question is: When doing my taxes, may I make a lump sum payment ($2500) on the repayment of the first time homebuyers credit, and then use the EV credit ($2500) to offset this payment? This would not fully pay off what I owe on the homebuyers credit, but I would only have ($3000) left to pay back.
    This would give me the benefit of fully using the EV tax credit AND paying down what I owe the IRS with regards ***** ***** homebuyers tax credit.
    I ask this because I would hate to buy an EV and have the tax credit go to waste.
    Thanks!
    Ken
  • For Philadelphia 2013 BIRT, do we leave blank or zero in

    For Philadelphia 2013 BIRT, do we leave blank or zero in Mandatory 2014 BIRT Estimated payment if the business terminated in 2013? thanks
< Last | Next >
View More Tax Questions