Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

Federal and California state taxes: Yet another "Do I Need…

Federal and California state taxes...
Federal and California state taxes: Yet another "Do I Need To File" questionMy wife and I receive Social Security benefits totaling a bit more than $35K annually, and in the past we have not needed to file taxes with the IRS or the California Franchise Tax Board. However, in May 2017 we came into a substantial inheritance which included life insurance payouts totaling ~$50K and about $400K in two investment accounts. We had the investment firms cut us checks for the two accounts and reinvested most of the proceeds with our own bank.There are some unrealized capital gains resulting from how the investments have performed since we placed them, but we have not taken any actual dividends nor liquidated any of those assets into bankable, spendable cash. However, the life insurance companies have sent me 1099s reporting negligible interest income (less than $100 total).Do we need to file our taxes for 2017?
Show More
Show Less
Ask Your Own Tax Question
Answered in 1 hour by:
3/18/2018
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,120
Experience: Taxes, Immigration, Labor Relations
Verified

Inheritance is specifically excluded from taxable income.

That is not taxable.

The same is for live insurance paid to you because of the death of the insurance person - not taxable.

But interest is taxable - and seems that is your ONLY income besides social security benefits.

unrealized capital gains are NOT taxable until assets are sold and gains are realized.

So far based on your information - you are NOT required to file.

Filing requirements threshold for married couples in 2017 is $20,800

social security benefits are not taxable in your situation.

Based on all your information - you are NOT required to file for 2017.

Ask Your Own Tax Question
Customer reply replied 4 months ago
Sounds like exactly what I needed to know.I'll indicate my (excellent) rating next time I'm logged into my PC.

If you still have any doubts, need clarification - please be sure to ask.

I am here to help you with all Social Security / Tax related issues.

Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,120
Experience: Taxes, Immigration, Labor Relations
Verified
Lev and 87 other Tax Specialists are ready to help you
Ask your own question now
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Lev Your Own Question
Lev
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,120
33,120 Satisfied Customers
Experience: Taxes, Immigration, Labor Relations

Lev is online now

A new question is answered every 9 seconds

How JustAnswer works:

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

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:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

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!!!!

AlexLos 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.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
Do you answer tax law questions for California? None. We are
We are being billed for late filing fees for an LLC that is out of business by the Franchise Tax Board.… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,433 satisfied customers
My husband and I own an investment property in Penobscot
My husband and I own an investment property in Penobscot County. Newport Maine and It burned in Oct 1 2017.Tenants evacuated. We received an insurance full payout due to extensive damage. What are the… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
I had a critical illness benefit of $50,000 paid to me after
I had a critical illness benefit of $50,000 paid to me after multiple stroke. My insurance was taken out pretax. How much is taxed as ordinary income? … read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
Tax Question: Non-Resident Withholding Tax, Franchise Tax
Tax Question: Non-Resident Withholding Tax, Franchise Tax Board, CA HISTORY: 1. The property is in California 2. The owner resides in outside of California 3. Metro Property Management collects monthl… read more
abci168
abci168
Principal
27 satisfied customers
TJ The depreciated value of the fire damaged house is
Hi Again TJ The depreciated value of the fire damaged house is $150000. The selling price of the damaged house "as is" is $110000. Does this mean that I have a capital loss and can use the $110000 any… read more
Lev
Lev
Tax Advisor
33,120 satisfied customers
Does someone who formed an LLC last year need to file a 568?
Does someone who formed an LLC last year need to file a 568? They are single member and they did nothing for the business/had zero income for the LLC last year.… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,433 satisfied customers
My sister sold her home ( our mother quitclaimed it to her
My sister sold her home ( our mother quitclaimed it to her years ago) and after paying off the mortgage and related costs she realized a profit of nearly 400k.My sister now wants to split the proceeds… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,328 satisfied customers
Am I responsible for a state of California tax installment
Am I responsible for a state of California tax installment agreement my months.husband arranged at 400 for 44 month? There seem to be 20 remaining months. He passed away 9-21-2016. My name is ***** **… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I have a two- part question: I live in california, if that
Hello, i have a two- part question: I live in california, if that matters. 1. I bought a home in 2011 for $200k with a down pymnt of &$50k. We paid down the principle alot over four years. So we only … read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
. my mother died in 2013 and I am STILL trying to figure
hello. my mother died in 2013 and I am STILL trying to figure out her taxes. She was 73 at the time of her death. worked as a city clerk. total income was 34906. she owned no real estate and her only … read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
Hi I am familiar with how you file a federal tax appeal. Can
Hi I am familiar with how you file a federal tax appeal. Can something similar be done for CA state income taxes?… read more
Lev
Lev
Tax Advisor
33,120 satisfied customers
My daughter has lived and worked in London, UK since June of
My daughter has lived and worked in London, UK since June of 2007. She is a US Citizen. She pays federal taxes each year and also pays taxes in the UK. She worked for Houlihan Lokey in their Los angel… read more
Lev
Lev
Tax Advisor
33,120 satisfied customers
We have a question concerning our California residency for
We have a question concerning our California residency for the 2010 tax year. Here is the situation: My husband and I both had lived in Tennessee for over 30 years. After my father passed away, we mov… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
We invested in a California LLC in 2010, and realized a profit
We invested in a California LLC in 2010, and realized a profit of $3,102 that was added to the investment. We have the Schedule K-1 (form 1065) for our tax return, and I've entered that information to… read more
Charles Greiner
Charles Greiner
Owner
Bachelor's Degree
2,436 satisfied customers
A company was registered as a Californian LLC 10 years ago
A company was registered as a Californian LLC 10 years ago with shares owned 100% by a non US resident. The company was never used and did no business. I was told by the attoney at that time that ther… read more
Chad Oberg
Chad Oberg
Director
Bachelor's Degree
172 satisfied customers
My husbands will be involuntarily terminated due to the sale
My husbands will be involuntarily terminated due to the sale of the company he works for. He will be extended an offer for employment with the new company. We need to make some decisions on what to do… read more
Bill
Bill
Master's Degree
2,278 satisfied customers
How long generally does it take for the CFTB to process a timely
How long generally does it take for the CFTB to process a timely filed, paper tax return, by a foreing corporation? We are going on six months now?… read more
Ed Johnson
Ed Johnson
Senior HR Consultant and Business Devlpm
Bachelor's Degree
6,994 satisfied customers
California personal income tax from income made overseas
Hello, Will appreciate your expert opinion on California State personal income tax. Fo a larger part of 2005, from May through the end of the year, I've worked overseas in Russia, where my wife and I … read more
Ed Johnson
Ed Johnson
Senior HR Consultant and Business Devlpm
Bachelor's Degree
6,994 satisfied customers
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.

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.

Show MoreShow Less

Ask Your Question

x