Hannah W. asked
I am employed by a Christian university as a Dean of the school of nursing. The university has historically classified all employees as ministers and received IRS approval for this practice in the 1980s. All students were required to earn a double major in bible and their major of choice. I have been classified as a minister and receive a housing allowance as part of my income for tax purposes. With the change in 2017 where the bible major will become optional, am I still eligible to receive the ministerial exemption if I am not ordained by the Christian church, but rather designated as a minister by the university?
September 21st, 2023
Matthew B. answered
The eligibility for the ministerial exemption and the exclusion from income tax on housing allowance...
September 21st, 2023
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I'm 59 1/2 years old and on Social Security disability benefits ($22k untaxed) and Social Security deceased spousal benefits. Due to a pending financial issue, I'm considering withdrawing a sizeable lump sum ($20k+/-) from my IRA. Taking out a loan isn't feasible. Will the tax hit be too great if I use the money to reduce monthly expenses?
May 7th, 2023
Do all people who apply for ObamaCare or through the health insurance marketplace make less than $30,000 a year before taxes? Or can people who make more than that also get help with health insurance costs?
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Suppose an Uber driver changes location temporarily during the year. For example, he drives Uber in his tax home in Tampa, but in the summer his traffic crashes as all the winter tourists have gone home. He decides to spend the summer Ubering in LA and drives to LA. Can he deduct 57.5 cents per mile for the expense of driving to LA, plus lodging expense enroute? He spends two months in LA, driving Uber. Can he still deduct 57.5 cents per mile for business miles in LA? Also, as he is away from his tax home, can he count his hotel expense as a legitimate business expense? How about the per diem for Meals and incidental expenses? Can he count this as well? How much is the per diem in LA? After summer, he returns to his tax home in Tampa. Is there anything that blocks him taking all these expenses?
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I am settling with my employer in lieu of an ADEA lawsuit. The settlement for just over $100K will be split 1/3 2/3 with 1/3 being cut on a separate check for my attorney. My income will be around $180,000 this year (filing jointly with my husband who will earn about $50K). I have already paid my FICA this year. Should I push to get the check prior to year end, and can I report my attorney fee as an above the line income reduction - or will it be limited to an itemized deduction subject to 2% of my AGI? Does it matter if in the agreement the amount is listed as a negotiated settlement versus severance? And is miscellaneous income on a 1099 taxed at a higher rate?
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I need help in modeling my investment drawdown and taxes for the next 25 years. I don't live in the USA and can't get my accountants and investment advisors' attention. Drawing $1.6m without paying tax is my goal. I have $1.7m total in the USA, including $300,000 in an IRA, $400,000 in annuities, and $1,000,000 in regular investments. My current income and tax plan for this year is $65,000 total with $1,700 in tax. I plan to reinvest $30,000 into a Roth IRA and gift $14,000/year to my child. What is the best strategy to minimize my tax liability while drawing down my investments?
October 30th, 2023
