Can I list my 34-year-old daughter as a dependent if she is my qualifying person when I file as head of household, and she files as head of household with her daughter as her dependent? They both reside in my home all year, and my granddaughter is on my health insurance policy.

October 12th, 2024

We had a banner year in 2017 and a lean year in 2016. I remember years ago you could average three years to lower your tax burden in a windfall year. An online tax program says we owe $26,000 additional taxes for 2018. Gross income was around $250K, all earned while on assignment in another state (MA). Is there a way to average income to lower our tax burden, and what should we do if we can't figure this out before the tax deadline?

January 19th, 2023

We moved my father to a nursing home last year. His only income is annual social security of $14,328 and annual dividends from an insurance policy of $2,939. We sold his house for a profit of $110,000. Based on what I’ve read, he should not have to file a return. Can you confirm that?

August 30th, 2023

I underreported $150,000 in 2016 tax return due to missing the 1099 INT forms from the bank, which I redeemed from a series of 30-year EE bonds. The IRS may add a 20% accuracy-related penalty. What should I do to reduce or avoid this large penalty?

August 4th, 2024

I have a question about my money in a mutual fund account. I am about to withdraw $200,000 to buy a home with cash and am trying to minimize tax consequences. I went to Vanguard's site and elected the 'Specific identification method' to select which fund I sell. The reason is that if I select the fund which made the least money, I will pay less tax. This seems like the best method when selling shares. Is there any downside to this method? Also, I want to ensure that when I choose the 'Specific identification' method, I do not mess up anything when I file taxes next year.

April 17th, 2023