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Recent Tax Rebate questions
I have been receiving SSDI benefits since late 2005. I was
I have been receiving SSDI benefits since late 2005. I was 51 years old when a determination of full disability was made, two years after I first applied for benefits. I turned 59 1/2 years old in March 2014, but have had to draw on my retirement annuity since 2006 to supplement my SSDI.I a penalty for early withdrawal was deducted by the firm managing the retirement fund. That penalty was initially 10% of each withdrawal. I also paid federal and state income taxes on the withdrawals. I often received back most of those taxes paid because of my low adjusted income and associated tax rate.As my age approached 59 1/2 the penalty paid to the fund management firm was reduced by 1% with each passing year. Again, I withheld amounts for Federal and State taxes on each withdrawal, though after the initial years I withheld a smaller % since most of it was coming back to me as a refund. I used tax software (typically TurboTax or TaxCut) to determine my taxes, always indicating that I was disabled and receiving SSDI as my primary income.In 2011 I moved from Minnesota to Wisconsin but the tax implications were minimal other than a loss of certain tax credits that had been available in Minnesota. (Homestead Property tax rebate/refund due to significantly lower income limits in Wisconsin.)In 2012 I purchased a home and withdrew a larger than typical amount from my retirement account to apply toward the down payment on the purchase. I also applied some funds from my IRA toward necessary repairs and energy-saving improvements. Again, I used TurboTax to prepare my tax return, and after applying various credits for energy saving improvements, and deductions for mortgage, property taxes and real-estate transaction fees from the purchase of the house. I paid several hundred dollars in federal and state taxes due.Now in 2016 I have received a letter from the State of Wisconsin Dept of Revenue saying that I owe a 10% federal tax penalty (and an additional 1/3 of the Federal amount for state tax penalties) on the early withdrawals from my IRA in 2012. This surprised me because I hadn't had to pay any additional penalties in previous years (to my knowledge) and I had paid the 2% penalty deducted at time of withdrawal by the fund management firm. I assumed that this was due to my disabled status.I am receiving conflicting information as to whether my disability status eliminates the tax penalty on early withdrawals. The fund management firm tells me that I may have to do so, though they aren't privy to the specifics of my tax return. If so, I don't understand why this liability only arose in my 2012 tax year. I also made a larger lump some withdrawal in 2008 to purchase a used vehicle, and no additional tax penalty was assessed (though I did pay a 6% early withdrawal penalty was deducted from the withdrawal by the fund management firm.)I was/am still confused about this early withdrawal penalty deducted by the fund management firm. I assumed this was related to any federal/state tax obligations, particularly since the tax preparation software didn't indicate any taxes due as an additional tax penalty.Recap: Key Questions1) Does my (full) disability status eliminate my liability for the additional tax penalty on early withdrawals?2) Am I likely to be liable for similar taxes in prior and subsequent tax years until I turned 59 1/2?The amount that I owe for the early withdrawal tax penalty, the late payment penalty and the associated interest is roughly 3x the amount of my total tax liability in any other year since my disability eligibility was determined. How many other "shoes" are likely to drop?
Bachelor's Degree Equivalent
I understand there is a tax rebate tax .
I understand there is a tax rebate for sales tax for 2015. Where do I claim the tax rebate?On what line? I bought a new vehicle and paid a lot of taxes in 2015.
Vocational, Technical or Trade School
We put solar in & I know about the 30% Federal tax rebate
we put solar in & I know about the 30% Federal tax rebate but on our State tax it listed a special credit worksheet & it had a credit for solar energy & asked for an amount & on the form it lists a code that says 180. Our we allowed to take that credit also on top of the 30% from the Federal rebate
Can someone explain my tax liability? I'm considering
Can someone explain my tax liability? I'm considering purchasing an electric vehicle before the end of the year, encouraged by the $7,500 federal tax rebate, and $6,000 state tax rebate for electric vehicle purchases.I understand that the state rebate is refundable, meaning I would get a check regardless of my end-of-year taxes owed (as long as the state taxes are less than $6,000). But I believe the federal tax credit is NOT refundable - so am I correct in thinking that unless I owe at least $7,500 in federal taxes when I file my tax return that I won't get that tax rebate? I have more than $7,500 in federal withholding taxes taken out of my paychecks every month, so does that mean that I already have more than $7,500 in federal tax liability?
Vocational, Technical or Trade School
On my 2013 Federal 1120S there is a K-1 with a negative
on my 2013 Federal 1120S there is a K-1 with a negative figure on the top line. For some reason, yet unknown to me it was not put on my tax return. However, on my 1120S on the shareholders basis statement it show a loss carryover to this year for the same amount . Does this have nothing to do with what was or should have been reported on my Schedule E in 2013.
JD, MBA, CFP, CRPS
I am renovating a listed building in Venice, Italy. I amView more tax questions
I am renovating a listed building in Venice, Italy. I am currently resident in the UK. I have an Italian fiscal reference (i.e. codice fiscal) and a UTR from HMRC. The flat was bought 2 months ago. I intend to stat the renovation in mid-October. Can Ibenefit from any italian tax rebate on my the italian tax income? The income originating in Italy would be from the short term holiday rent. If, I am eligible to tax rebate in Italy, what must I do to benefit from it?
Financial / Legal Advisor