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Recent Withholding questions

Due to the nature of my job I am able to claim around

Due to the nature of my job I am able to claim around $34000+ in deductions year after year. Currently I claim 6 allowances on my W-4 and still get a refund back. At 34k+ in deductions, I can actually increase my allowances to 8 so that I break as close to even as possible at tax time...and I want to do this.However, Ive heard that if you claim 7 or greater allowances on your W-4 that you will catch the attention of the IRS (bc your paying very little in federal taxes throughout the year) and they will tell your employer to drop your allowance to 0. Is this true?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

21,104 satisfied customers
Robin, At the moment I have an issue with a US client who is

Hello Robin,At the moment I have an issue with a US client who is withholding 30% of payments to me.They believe that this is necessary because there is no tax treaty between the U.S. and the U.A.E. and because my W-8BEN-E form is incomplete (Part III). I'm quoting their communication:- "Since we do not have a treaty with UAE, it is our understanding that we need to withhold 30% of your payment."- "...they are recommending we withhold the 30% per the Chapter 3 withholding requirements and file an annual Form 1042 and 1042-S to report the withholding amounts."- "...they are not seeing the Part III completed on the W-8BEN-E that would indicate we would not have to withhold taxes. They confirmed without that section completed we need to withhold the 30%."I have submitted a W-8BEN-E form to them where I left Part III blank on purpose (withholding exemptions).I understand their thinking that they have to withhold since the withholding exemption part is left blank.Do you have any advice what to explain to them? I would like to convince them to release the payment in full and to not file 1042/1042-S forms.(I guess they don't understand that my business is not subject to US tax and withholding in first place since it's not US source income)Best Regards,Benedikt

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Robin D.

Vocational, Technical or Trade School

24,128 satisfied customers
I took a lump-sum from my pension what form do i need, they

i took a lump-sum from my pension what form do i needJA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: they took 20%for taxes will i still own moreJA: Is there anything else important you think the Accountant should know?Customer: total distribution 63years old

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Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

10,400 satisfied customers
I'm selling a house to avoid foreclosure as I secured a loan

I'm selling a house to avoid foreclosure as I secured a loan through a bank (3rd mortgage) and they are pushing for sale. They have agreed to take the income from the sale of $55,000 and let me off the hook for the rest. During Escrow, CA is supposed to withhold tax on the proceeds but if they do, the bank won't get the full $55,000 and the deal will be off, and it will go to foreclosure. SO, on my form 593-c I'm claiming no withholding due to #3 -loss or zero gain, and on the 593-e, I'm putting this $55,000 as another increase to basis to show there is a zero gain. This way no taxes will be withheld. I just want to make sure I won't get taxed on this in the future. It's tricky. If I don't put this amount there, there is a gain on the property, taxes will be withheld, and the bank will foreclose. Does this make sense? Please help! I shouldn't owe any taxes as I'm not going to receive any proceeds from the sale...JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?Customer: That's it. Thank you!

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Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

10,400 satisfied customers
Form W-2 box 14 reads S-Corp Health as $15,000 but it should

Form W-2 box 14 reads S-Corp Health as $15,000 but it should read $14,000. The premium was added to wages twice in the same pay period. I know that the premium amount is added to wages for federal withholding purposes and I am not looking for a refund of the extra premium amount added. But if I correct the wages in box 1 less $1,000, I will have to amend the 941 in the quarter it happened and the 940 and the W-2/W-3...?

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Lev

Retired

Bachelor's Degree Equivalent

24,868 satisfied customers
I will start my job and I wonder how to fill W4 and how it

I will start my job and I wonder how to fill W4 and how it affect how much I will get from Paycheck and I find out how much gross income can you please help me how to calculate my net income ?

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Lev

Retired

Bachelor's Degree Equivalent

24,868 satisfied customers
I really need assistance completing a 593-E form, I don't

I really need assistance completing a 593-E formJA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: I don't understand any of itJA: Is there anything else the Accountant should be aware of?Customer: I just need to understand how to complete the whole thing

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Robin D.

Vocational, Technical or Trade School

24,128 satisfied customers
My husband passed away in May 2016. His 2015 bonus was paid

My husband passed away in May 2016. His 2015 bonus was paid after his death. Do I include that bonus in our final 2016 joint tax return?JA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: What additional information do you need?JA: Is there anything else important you think the Accountant should know?Customer: Both his W2 for the period Jan-May and the 1099 reporting the bonus were addressed to his estate.

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Lev

Retired

Bachelor's Degree Equivalent

24,868 satisfied customers
I'm worried that I may be getting to big of a tax refund. I

I'm worried that I may be getting to big of a tax refund. I ended up owning money the last couple of years--about $2k. I make $145,000 I didn't claim myself. I'm married (got married in August) but we are filing separately. It says I'm getting $5k from my federal tax refund. That seems like a lotJA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?Customer: No, just that.

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Robin D.

Vocational, Technical or Trade School

24,128 satisfied customers
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