Concerning the Innovative Research and Developement Tax Credit

by Jamin'
(Gardena, Ca)

I am on permanent disability and I have invested in a Research and Developement corp for a project I designed. Do I qualify to receive my invested funds back with the extended tax credit for research and developement law.

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Debt Settlement Tax Consequences

by Judy Johnson
(Fort Worth TX)

If credit card debt has been settled and a statement is sent for amt of debt that was forgiven, can tax on that amount be avoided if your liabilities exceed your assets?

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How Does Age Affect Your Incomes Taxes

by Kayla
(Philadelphia, PA)

I am single and 19 years old. My mother helped me e-file my taxes and accidently put my birth year as 1982, instead of the correct 1992. We went back in the website and just fixed my birth year. Now my federal refund is nearly half of what it was going to be before. Why?

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Important Tax Question

My question is a little complex but I really need someone to help me. I got a letter last year from the IRS that I owed back taxes. I have lost the letter. I have no idea when I could have owed taxes. Every year, I get a tax refund. I recall one year that due to my own laziness, I did not file. Also, when I was briefly married, we filed together and it was a very complex filing because she had children from a previous marriage and a lot of other confusion but I should certainly not have had to pay that year as we got money back. To make this even more confusing, I was a Hurricane Katrina victim and was unemployed and may have screwed up some information when I filed that following year. The last two years, that I have filed, I went through our company accountant. She informed me that I could not receive a refund because it was showing up that I owed. There is no reason that I have ever owed. My whole life, I have received a check. There must have been a mix up one of those years. I really want to receive my refund check this year and want to resolve this. I would like a simple way to pull up my account and see where this is coming from in so that I can resolve it. Please email me some advice. trianplatz@yahoo.com

Hello,

Thank you for your inquiry.

The best way to find out how much money you owe and for what would be to get your IRS transcripts. You can do this filing a Power of Attorney with a CPA and they can then pull your transcripts for you. Best of luck!

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Income Tax

I have not filed for 2008 I have a W2 and 1099-g2 for unemployment benefits. Do you prepare taxes I live in NY state. What are your fees?


Thanks,


Andre


Hello Andre,

Thanks so much for your question.

I do prepare taxes and am located in California, but have clients on the East Coast as well.

My fees are by the form and start at $55.00 which includes both Federal and State with one W-2 and FREE e-file.

Please feel free to contact me at (707) 795-1320 or stephanie@bookkeeping-basics.net to make arrangements.

My long distance clients can choose to either send their documents via certified mail or scan tax documents to a PDF encrypted file and attach to email.

Thanks again for your inquiry. I hope to hear from you soon!
:)

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Income Tax Responsiblity For Buying At Auctions

by Rick
(Illinois)

I have been buying products at auctions and will start reselling at a craft booth in a mall and also on ebay. For income tax purposes what do I need to keep track of to turn into the IRS?

Also what writeoffs should I keep track of. I'm sure booth rental is one. What about mileage to and from the booth, auctions, and the post office? Any help will be appreciated, Thanks!

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International Gift Money Taxable?

My family in Australia are planning to send me some cash for a house down payment. I am wondering if this is will be considered taxable in the US (it has already been taxed in Australia), or has any tax consequences for me in the US.

To clarify my family are Australian citizens living in Australia, I am an Australian citizen living working here in California on a green card.

Thanks!

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IRS Has No Record of Getting our Taxes...

by M&M
(MA)

We filed our taxes Feb 20th 2010, we are getting a rather large refund this year due to the fact that we purchased a house last year. Now it is going on 7 weeks & the IRS, tells us that they have no record of ever getting our taxes, we really wanted to get our refund ASAP as we are using the money to do landscaping & a new fence for our house. I called the IRS & was told not to resubmit the taxes until after at least 8 weeks, now that will put us out to after April 20th. Can the IRS penalize us for filing late & is it true that the IRS tries to keep your refunds as long as possible to get the interest on the money? Is there anything else we can do? What if they are lost somewhere? HELP!!

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Paying Taxes

I was enquiring for my boyfriend. He works for a company in Canada (citizen) and they send him over to the United States to work. He has heard from other guys at work there that if he's worked in the States for more than 6 months he has to pay taxes.

However, he has never worked over in the States for an entire 6 months at one time. He's always come home, for a week or two then been sent to another job sort of thing.

The company he works for pays for his lodgings at different hotels and any vehicles are rented and payed by for the company.

Any information on this would be great!

Thanks,

N.G.


Hello N.G.,

Thank you for your inquiry.

I believe the provisions of the United States-Canada Income Tax Treaty must be applied.

According the Internal Revenue Service:

Income that residents of Canada receive for personal services performed as employees (dependent personal services) in the United States is exempt from U.S. tax if it is not more than $10,000 for the year. If the income is more than $10,000 for the year, it is exempt only if:

The residents are present in the United States for no more than 183 days in any 12-month period beginning or ending in the tax year, and

The income is not paid by, or on behalf of, a U.S. resident, and is not borne by a permanent establishment in the United States.

These exemptions do not apply to public entertainers (such as theater, motion picture, radio, or television artists, musicians, or athletes) from Canada who derive more than $15,000 in gross receipts, including reimbursed expenses, from their entertainment activities in the United States during the calendar year. However, the exemptions do apply, regardless of this $15,000 limit, to athletes participating in team sports in leagues with regularly scheduled games in both Canada and the United States.

Pay received by a resident of Canada for employment regularly done in more than one country on a ship, aircraft, motor vehicle, or train operated by a Canadian resident is exempt from U.S. tax.


So in summary, if your boyfriend made under $10,000, he does not have to pay any United States tax.

If your boyfriend made over $10,000, and he worked less than 183 days in the year, he does not have to pay any U.S. tax.

However; If he made over $10,000, and he worked over 183 days in the year, he would have to file as a nonresident alien using form 1040NR or 1040NR-EZ. The return is due by April 15th, provided he file on a calendar-year basis.

For more information and to access the online 1040 forms, read Topic 851 - Resident and Non-Resident Aliens at www.irs.gov.

I hope I've helped answer your question. Thanks again for asking!


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Real Estate Tax on Second Home.

by Alan Evans
(Medfield, MA)

If I am half owner of another house in another state am I entitled to a portion of the cost of upkeep of that house, especially real estate taxes?

Hello,

Thank you for your question. According the IRS Pub 17, The following two tests must be met for you to deduct any tax.

1) The tax must be imposed on you.
2) You must pay the tax during your tax year.

The tax must be imposed on you: You can deduct only taxes imposed on you. Generally, you can deduct property taxes only
if you are an owner of the property. If your spouse owns the property and pays the real estate
taxes, the taxes are deductible on your spouse’s separate return or on your joint return.

You must pay the tax during your tax year: If you are a cash basis taxpayer you can deduct only those taxes you actually paid during your tax year. If you pay your taxes by check, the day you mail or deliver the check is the date of payment.

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Regarding Gift and Lability of Tax

by RANJAN BISWAS
(KOLKATA)

Sir, I would like to give Rs.25 lakh to my wife, having PAN, and Rs. 15 lakh to my son, aged 20 yrs having PAN, from my retirement benefit so that tax liability towards interest earning of the same lies on them.
What I have to do ?

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Service Tax

respected sir
pls guide me
is "cotton seeds" agriculture prodouct?
is service tax applicable on job work of crushing oil seeds for a ginning unit(cotton seeds are provided by the unit)

thanking you
regards
manoj rathod

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Shipping To States With No Sales Tax And Have It Forward It To You To Resell On ebay!

by Ali
(New Jersey)

I am in New Jersey and I am buying laptops from HP and reselling them on ebay.
Since I am paying 7% to buy the laptops from hp, I was thinking if I ship them to Delaware (No Sales Tax) and have them shipped back to me in New Jersey (with a fee that is definitely less than the NJ tax) to save some money.
Of course at end of the year I will report any profit that I make doing this.
My question is that is this way of doing business legal or not?

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Tax Amendment?

by Kenny
(orange park florida usa)

If you are on a limited income and collect social security and are at the limit in your years earnings before having to pay back before you make to much, then find out from your local radio station that the $1,000.00 in gas gift cards you won in their drawing you have to pay taxes on! will that effect your years earning total to put you over and owe taxes on the gift cards and have to pay back social security for making to much?.....and i already got my refund back before i got their letter in the mail about taxes on the gift cards....help please

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Tax Credit

Me And My Ex-girlfriend have a child but we dont live together and have seperate addresses and she is claiming him as well as head of houehold. my question is would i also be able to just file head of household if he only lives with me with me 3 days a week. we have not lived together at all sice he was born

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Tax Credit

Me And My Ex-girlfriend have a child but we dont live together and have seperate addresses and she is claiming him as well as head of houehold. my question is would i also be able to just file head of household if he only lives with me with me 3 days a week. we have not lived together at all sice he was born. plus he carries my last name if that makes any diifference.

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Tax Error

Our taxes have been completed and they were accepted by the IRS and we received our refund. Now a close friend of ours told us we should have waited because we will receive a form from my husband’s military TSP account (Thrift saving plan, sort of like a 401k) stating that we withdrew about 16,000.00 from it.
Basically we will be taxed and penalized. How do we go about fixing this?

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Tax Implication Of Claim Waived

by Anup Chatterjee
(Kolkata)

What will be the tax implication in the hands of a creditor if a debtor has waived his claim?

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Tax Liability

I am disabled and i transfered $20000 in stocks to a church how will thaty affect my taxes? I have $40000 in social security between me and my wife and $10000 in pension.

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Tax Liability

I have spoken with a Real Estate broker and Attorney in regards to conducting a “Quit Claim Deed” on a house that my Mother owns outright and is giving it to me. We are not sure on the tax liability.

What options do I have? The options what I know of are gifting the house. The original purchase price $12,000, and appraised at a value of $ 162,000. Gifting would be under the $13,000 authorized gifting limits. I do not plan on ever selling the house so I would not have to worry about capital gain tax. I could buy the house with 100% owner financing but then she would then have to report that as income and have to pay tax on it.

My Mother wants to get this transferred as soon as possible. The house is in need of repairs and upgrades and I plan on getting an equity loan to do that. Thanks for your advice

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Tax Liability in UK

by ChrisW
(Moscow, Russia)

Recently I bought an apartment in Bulgaria with money I received on my UK personal account from a life insurance I had paid-in all my life for, (from the Prudential) in the value of Euro 65,000. Am I liable for UK tax? I didn't pay any at the time. I am coming up to my 65 birthday and I am resident in Russia and HMRC know this.

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Tax Liability On Retirement Accounts

My wife and I are both 62 years old. We want to pay down our home mortgage by using money from IRA's. We intend to send 15% to Federal and 5% to State, and use the rest to pay down our mortgage.If the money we withdraw raises our annual income from $110,000, to $200,000, will this put us in a higher tax bracket where we will also have to pay additional taxes?

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Tax Liability on Separated Couple

by a j smith
(canada)

my spouse and i split up, she always got the deductions for the kids, etc. My business had to pay taxes can i not have her repay me 50% of the tax i paid ?
Can i get 50% of her tax refund?
thnask

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Tax Loss Carryback

by Dennis Surovcik
(Dallastown, PA USA)

I own an S corp which will have an operating loss in 2010. Can this loss be carried back to offset a operating profit I achieved in 2009 and 2008 from a sole propritorship business I operated?

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Taxes on Qualified Dividends.

I have about $3000 in qualified dividends and $2000 in long term capital gains. Using the worksheet in the IRS tax booklet, none of this is taxable. Is this right?

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US Income Tax on Canadia Finders Fees Paid in Stock

Deceased spouse earned some Canadian exploration finders fees paid in stock? Do I have to pay income tax NOW?

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Witholding Taxes From Social Security Checks

by Fred Szostak
(Carver,Ma.)

My wife and I file our taxes both federal and state jointly. She has extra taken out so we get a larger lump sum refund check. Last year I became disabled and collect SSDI payments. I have not had any taxes withheld from my payments, we still received a decent refund. Should I or do I need to withhold anything from my SSDI payments? Don't want to get on IRS bad side.

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