I received a Letter 12C from the IRS and had a premium tax credit of almost $400 each month. I estimated my income at around $21K but claimed $55,000. What should I do? Will I owe money if I send in the form? Additionally, my adjusted gross income for 2018 was $50,969, and I received a premium tax credit of $4,596 based on an income of $21,000. What will happen when they reconcile this discrepancy?

December 23rd, 2023

My daughter filed her taxes and forgot to indicate that she is a dependent on someone else's claim. She is 17 and this was her first time filing. How can I amend her return and my own to correctly claim her as a dependent?

November 20th, 2024

I am using TurboTax to file my federal and state tax forms. I live in Ohio but work in Kentucky. TurboTax is showing that I owe Kentucky $879.00 in state tax, but I thought I wouldn't owe them anything due to reciprocal agreements between the two states. What am I doing wrong?

March 6th, 2024

I am exploring converting my residential rental property to an LLC. The property is a 3-unit building in Los Angeles County, California, where I live in one unit and share ownership with my brother. We have a mortgage with Chase bank and there is equity in the property. I have been advised that moving the property to an LLC could help with liability and earthquake insurance. My questions are: 1) Is there a tax cost to moving the property to an LLC, and would it differ if the LLC is in my name alone versus both my brother's and mine? 2) What happens to the existing mortgage if we move the property to an LLC, and would we need to get a new mortgage? 3) What are the key advantages of moving the property to an LLC, and is it worth the effort considering the changes in California's earthquake insurance coverage? 4) If we move the property to an LLC, would we be able to refinance and get a new mortgage interest rate as an LLC?

May 19th, 2024

I was enrolled in graduate school for fall 2011 and spring 2012 semesters. My school charged me the tuition fee for spring 2012 in December 2011 and reported it on my 2011 1098-T form. However, the loans I took out to pay for the tuition were in January 2012. Can I claim those loans taken out in 2012 for my spring 2012 semester towards 'tuition & fees deduction' on my 2012 taxes, even though the tuition amount was reported on my 2011 1098-T form?

June 3rd, 2024