I withdrew $2K each month during 2017 and a couple of other withdrawals for a total of $35K from my IRA. My tax person says I will be fined $500 by the IRS for not paying tax on each withdrawal at the time. Is this true, and how does the underpayment penalty work?
August 21st, 2023
I have a 45,000 credit from Form 8846 for the current year and no tax due. I have deducted that amount from the payroll taxes on the tax return. It should be shown on the books as a reduction of P/R taxes. What is the debit? Is it a deferred tax asset?
July 17th, 2023
If there has been minimal improvements done to the house but it has been maintained meticulously, is it beneficial to me to allow the concession?
January 12th, 2024
As a small business owner with 2 full-time employees, I am trying to reduce my tax liability for 2017. Is there any retirement plan that can help my tax burden without requiring contributions for my eligible employees?
February 22nd, 2024
We are working on resolving an IRS issue concerning a couple of 1099c's for my son. We need to confirm if we should file a 1040X for the relevant tax year and attach a form 982. Additionally, we need to know if we need to enclose any type of letter and how we will know if the IRS accepts the amended return.
May 21st, 2023
Can I use TurboTax to compute federal income tax and FICA tax for a hypothetical taxpayer for her 2018 tax year, considering the changes under the 2017 tax reform act, such as the elimination of personal deductions and an increased standard deduction of $24,000?
March 4th, 2024
I was informed that if I file for tax year 2005 prior to filing for tax year 2004, the IRS would hold my return until I file for 2004. The problem with 2004 is that a child was claimed by the other parent in disregard of a court order limiting filing for dependent to every other year. In 2005, I filed electronically and it was rejected due to the dependent issue and was informed that I have to paper file. The difference is close to $2K. What should I do? Allow this person to continue claiming the child every year, or submit and let the chips fall as they may?
December 4th, 2024
What constitutes self-employed income when measuring against income limits for early retirement social security? Is it (a) net profit as defined on Form 1040 Schedule C line 31, or (b) that amount minus adjustments like 1/2 of FICA taxes and self-employed health insurance as shown in the adjusted gross income section of Form 1040?
October 25th, 2023
What town has the lowest property taxes in New York State, and where does the town of Lyonsdale rank in property taxes?
May 7th, 2023
If my wife and I both give our son $12,000 each, do we or our son have to claim it to the IRS? If so, what form do we use, and does he pay taxes on the gift?
February 17th, 2024