Penny S. asked
If a person wins a large sum of money, does the IRS take the tax out immediately or do they wait until April or do they make arrangements for payments monthly? This is a hypothetical question. I am in a contest where the winner will win a great deal of money to be paid out weekly for their lifetime and then their beneficiary will continue when the original person passes on. I have not won, but I am hopeful like a million other people. I am just curious.
April 18th, 2023
Michael G. answered
Prize winnings, such as those described, typically fall into the category of gambling winnings. The ...
April 18th, 2023
Create an account to view answers and interact with the community!
How will my tax return look if I have an income of $23,000 from salary, $3,150 from unemployment, $26,660 from disability pension, $18,062 from Social Security, $14,500 in disbursements, and deductions including $4,458 in federal tax, $461 in Medicare, $285 in SDI, $1,192 in state taxes, $1,969 in Social Security, $329 in dental, $1,247 in Kaiser, $7,361 in 401K, and $1,309 in a loan? Additionally, I bought a home this year and paid $9,100 in mortgage interest and $4,200 in property taxes. Can I get an additional $10,000 this year from my IRA? I have one dependent, my father who passed away in January, and I am married filing jointly.
May 18th, 2024
The IRS says I owe them $7,000 for capital gains on my 2013 taxes even though the gains were reinvested and I never received any funds. Do I owe this money?
September 27th, 2024
I invested $40,000 in a property management company PLLC in VA and signed an operating agreement. I do not work for the company and just invested for profit. What entity type of PLLC is advantageous for tax purposes, and is the return of my principal investment taxable?
December 31st, 2023
I have a client based in AZ with a product manufactured in CA, sold through internet sales. They need advice on sales tax and income tax filing requirements. Should they charge sales tax to customers in AZ and CA, and do they need to file an income tax return in CA?
June 30th, 2024
In 2014, I had a dropshipping business on eBay where I earned $63,249 in revenue but only $8,000 in profit. I received a 1099-K from PayPal and a letter from the IRS requesting me to pay $24,973 in income tax based on the reported revenue. How can I prove to the IRS that I only earned $8,000 in profit and that the rest was business expenses?
December 27th, 2024
