asked
I sold a house in Oregon for $175,000, which was my first home. I sold it on an installment note, receiving a down payment of $28,000 and monthly payments of $1,058, with additional lump sums. The buyer paid off the note in 2020 with payments totaling $81,000. I have been paying federal taxes on the proceeds each year. This year, I am facing a federal tax of $3,705 and a state tax of $2,461. Why am I being taxed so much on a house I sold, especially when I have already paid taxes on it? Can you explain this?
September 7th, 2023
I'm an independent contractor who used my car for business purposes, specifically for delivering packages for Amazon. I'm filling out the vehicle expenses section using Freetaxusa and I'm confused about what 'Property Taxes Paid' and 'Car Loan Interest Paid' refer to. Additionally, I'm unsure if the down payment on my car loan is included in the deductions. Can you clarify these terms and how they apply to my situation?
January 18th, 2023
When will I receive my stimulus check? I am 82 years old, made $24,000 this year, and have no dependents.
September 6th, 2024
I have been a TurboTax client for over 25 years. Recently, the IRS is reviewing my 2018 tax return. My wife drives her car as a salesperson without any mileage compensation. We keep a log, and it says when you enter the mileage on the tax return, they can request the log. I submitted my log, now they want two independent verifications of the mileage. Is it in the tax code that I have to provide this, and do you have any suggestions for handling the situation, especially since my wife frequently drives to eastern Washington, encountering snow and icy road conditions for a good 4 to 5 months out of the year, using different vehicles for her mileage?
March 25th, 2024
I retired as an attorney in 2019. In 2021, I will receive a large referral fee on a case I referred to a California law firm in 2018. I do not believe I should pay self-employment tax on this fee, but will report it as income. Your thoughts on the self-employment tax? I live in Colorado and keep my law license active in California just in case.
July 23rd, 2024
I never received the second Economic Impact Payment (EIP). I am 74 years old, located in Pennsylvania, and have one dependent (my wife). My typical filing status is under $20,000. How can I claim the missing EIP?
October 28th, 2024