I have a Form 1116 question regarding US taxes for a family living in Australia with a family income of $90k, $25k in income taxes, and $10k in passive income from bank interest. The 1040 line 44 tax is $15k, limiting the claim to $13.5k (9/10ths) and leaving excess foreign general category taxes of $11.5k. The passive category income is $10k with no direct foreign taxes on the interest until the end of year tax return. This results in having to pay the US $1.5k even though more was paid to the foreign country. Doesn't this mean some of the 'income tax' levied during the year on wages was in fact passive tax on the interest, and where is the credit for that?

November 10th, 2024

My Mom is 89 years old and receives Social Security with no other income. She just sold part of her original homestead property for $100,000. What tax implications will she have?

October 26th, 2024

If my girlfriend claimed our newborn son when she applied for Medicaid, am I, as the child's father, able to claim him on my taxes?

January 8th, 2024

I am a single parent. My 40-year-old daughter and my two grandchildren, aged 12 and 4, have been living with me for 2 years. Their father provides very little child support but will be claiming them as dependents. Can I claim any part of their room and board expenses without being able to claim them as my dependents?

August 3rd, 2024

Can a parent still claim a child as a dependent on their tax return if the child claimed an education credit on their personal return?

August 23rd, 2023