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I am being offered a buyout from my medical insurance,

Good morning. I am being offered a buyout from my medical insurance, Aetna. I'm on Long Term Disability and SSDI. The offer is for $25,000.00. My research says because I make monthly premium payments on medical I wouldn't be taxed. Is this true.

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Mark Taylor

Certified Public Accountant

Masters

1,250 satisfied customers
First, we have used Turbo Tax to do our income tax returns

First, we have used Turbo Tax to do our income tax returns for last two years. For tax year 2015, we owed $6000 in taxes, which we paid when we filed our return electronically. But Turbo Tax said our estimated taxes due would be $1850 per quarter, instead of $1500.(which is $6000 divided by 4). I thought the estimated taxes were calculated on the amount due at the time of filing the return, which was $6000. Is this true?I am paying the $1500 amount, instead of the $1850, but not on the schedule exactly laid out by Turbo Tax, but by Jan 2016, the total amount (which will be $6000) of the estimated tax will be paid. Anyway, if I have not paid the estimated taxes exactly on time, will we get penalized when we file our 2016 tax return? If so, how much?

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emc011075

Tax advisor and Enrolled Agent

Bachelor's Degree

4,214 satisfied customers
Needs to prove he pays SE tax to be eligible for a Medicaid

John needs to prove he pays SE tax to be eligible for a Medicaid program that permits you to work or be self employed. The agency checks for the payment electronically with IRS. But John & Mary file taxes jointly and Mary is primary taxpayer as John will be filing his Schedule C for the first time for this tax year. How will the state Medicaid agency be able to verify that John is paying in his Quarterly SE tax when it sounds like it will be under Mary's name and SSN when checked electronically?

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emc011075

Tax advisor and Enrolled Agent

Bachelor's Degree

4,214 satisfied customers
I am filing our 2015 taxes after filing an extension. we are

hi, i am filing our 2015 taxes after filing an extension. we are self employed and we didn't bring in that much money last year, after moving twice and not working as much. we didn't make any estimated payments, and sold our house and made 124000. but it is saying we are getting a refund from federal? that doesn't sound right to me?JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?Customer: we made about 58000. and paid insurance premiums of about 7500$. and had moving expenses of about 3000$. and have 2 children. and had material deductions(construction company) of 14000

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Robin D.

Vocational, Technical or Trade School

21,204 satisfied customers
I am a shareholder of a C-corp. We loaned money to an LLC

I am a shareholder of a C-corp. We loaned money to an LLC for trading purposes and the LLC will disburse in January 2017 (the principal and interest). The C-Corp is a fiscal year filer with 2 estimated taxes due prior to January 2017. The C-Corp does not have the funds to pay the estimated taxes on the projected interest made on the loan.How does the C-corp avoid penalties and interest on the 2 estimated taxes prior to January 2017. The C-Corp needs to the proceeds from the loan/interest to pay the estimated taxes.Do we use IRS Form 2220 and which option?Thank you - Mel

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Dr. Fiona Chen

President

Ph.D.

556 satisfied customers
Does a17 acre fenced horses and barns, is it a farm? Does

Does a17 acre fenced horses and barns, is it a farm?JA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: Does the above mmeet the define a farm for the irs?JA: Is there anything else important you think the Accountant should know?Customer: gardens on property

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,732 satisfied customers
Question for Lane, JD PLEASE HOLD FOR HIM This is the 3rd

Question for Lane, JD PLEASE HOLD FOR HIMThis is the 3rd time I have posted this question for you, so if it is actually being taken down for some reason, let me know. I figure a computer gliche.I have a client or potential client (I say potential as I may refuse job) who has a somewhat unusual situaton. I just did an 1120S for his corp and can file when he sends me x\signed 8879 s, but I am holding off.He has a scene with a home sale. Here is story. He purchased 50% of a home in california in 2001 with a partner. He hasa contract giving him 50% of house. But his partner's name is ***** ***** on deed or mortgage. Then in 2006, a loan was taken out on house. And with this the partner took his money and my client got a new contract saying he owned house. But no deed was done and mortgage and deed were still in partner's name.My client lived in house as his residence from 2001 to 2014. Then in 2014 the house was sold to my client in a short sale.Now, my clients name is ***** ***** The original home price was 185 K, my client paid 140 k in renovagtons--he says. The house short sold in 2014 for 235 k. And in 2015 client sold home for about 330k.I do not know if any 1099 C or S was done in 2014 and 15 on house sale.My client feels that he had owned the house, without a deed, for 9 years and lived in the house for 14. No one else lived in house.Client feels homeowners exclusion applies to him. He had no other residence and passed the ownership test and the lived in test.One tax pro told me that without a deed or record of his property tax payments., he cannot pass the ownership test. And so he owes tax on his 2015 sale. Now he can produce a contract showing he owned the land, and probably can show he paid the property tax (although not charged in his name). I have not seen anything defining ownership for such a seen.What do you think? Does my client have a legit arguement?I have no desire to get into a quagmire here, and can walk away. I could file the corporate and tell him to do his own personal return. Or I could even have him do corporate and collect no fee.But I do not know if is illegal to buy a house by a contract and not file deed.And one view is he had owned the house for 9 years and lived in it for 15, so of course he is eligible.What do you suggest?Best,Dave

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,732 satisfied customers
I am a widow and my husband had a pension, i did not know

I am a widow and my husband had a pension, i did not know about until they notified me, long story short i received a lump sum plus a small monthly payment.My question do I file an estimated income tax for the amount received ? or do I count it as income on next years taxes.Thank youHelen

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,732 satisfied customers
My brother and I are members of a NY State LLC that is

My brother and I are members of a NY State LLC that is registered as an S Corp with the IRS. The LLC owned a rental property which we sold before the end of 2015. The property sale triggered a capital gain that was passed through to my brother and my personal taxes (we didn't do the 1031 exchange). When we established the LLC, we agreed that the entity would reimburse us if we end up paying significant tax bill arising from such a sale.My question is as follows: can we treat such tax payment on behalf of the entity as member's loan to the entity? The objective is to establish a note payable to the members for the amount we spent on taxes on behalf of the business. When the entity pays us back the note, will these payments be treated as income to us? Are we going to be taxed on that? Or will it be considered as a repayment of a loan where the principal is non taxable and the interest may be taxable?Thank you for your help!

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Dr. Fiona Chen

President

Ph.D.

556 satisfied customers
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