You may ask questions at any time, but you will not be able to see them until the chat begins at 11 a.m. Tuesday. To avoid confusion, we will make the questions live once the answer is available so it is clear which answer goes with which question.
Welcome to our tax chat. We have many people to answer your questions.
Did you check if you qualify for any of the exceptions? There are a few of those. As for the offer in compromise, you can do that at any time.
If you pay the fees out side of your IRA then you can direct. If the IRA fund pays the fee then you cannot.
Assuming you lived with your spouse and since you are married at the last day of the year, you will file as married filing jointly.
Anna, You should go ahead and still file on time. The IRS can work out a payment agreement for both years. One can always file on time even if they owe tax. Once you have been formaly billed, you should contact the IRS about a payment plan.
To be certain, your business activity on the Schedule C ended in 2013? If yes, you'll indicate on the Schedule C filed in 2013 that it is the last year. No separate filing, as far as income tax compliance is required.
Unfortunately, the credits and deduction for education are only available for your 23 year old if he/she is not your dependent. The credit goes to whoever can claim the personal exemption, regardless of who paid it, you or her/him. If your 23 year old claims their own exemption, then he/she would be able to claim the education credit even for the amounts you paid.
Jim, You are not allowed to deduct the cost of your own time as wages when working on your rental properties. You should however keep track of the time you spend attending to your rentals so that you can show you are materially participating in the activity.
When you receive a form 1099-MISC for work done you have to either report it on a Schedule C if you are self-employed or at the very minimum on line 21 of form 1040 and also complete Schedule SE. In either situation you are responsible for self-employment taxes.
Jeffhartman, this question unfortunately requires more information. You may have received this stock with zero basis or not. Assuming this may be the type of transaction covered under IRC 1258, there is a formula to follow. In this case, you may be best served by a tax professional to make sure you get it right.
The tax preparation costs vary widely. The problem with Turbo Tax is 'It is only as good as the person's knowledge on the other side of the keyboard. That CPA's quote is around the norm.
It is important to first understand who is entitled to take the loss from the farm. If your neice is legally entitled to take the loss, she should report it on her federal form 1040. For federal taxes, Form 1040 and Schedule F, it doesn't matter if there was a farm loss. Always report the true, correct farm income or (loss) for each year. Generally, and understand that I don't have experience with the State of Iowa taxes, most, if not all of the 50 States, want taxpayers to correctly and accurately report income or (losses) from farming. Most likely, the State of Iowa would require recipients of a farming loss to report the loss. It would not matter if there was no money received by your neice.
Mise: you will not be subject to the 6% excise tax if the excess plus the income earned on it is withdrawn by the due date of the tax return, including extensions. The excess amount withdrawn is not included in gross income provided no deduction was claimed for it.
I apologize, a few answers are coming in before the questions are posted.
Generally speaking, proceeds from an insurance policy you pay for are not taxable. If you receive the proceeds in installment payments, any interest on this would be taxable and should be included in income for the year received.
Dear M: You need to use the years software of the return that you amending. The form required is a 1040X.
Steve, yes you do need an ITIN to file the tax return and file a joint return. She should apply for it right away. However, if she didn't have any income you may be able to file a return as married filing separate and still claim her exemption. You can also go back and amend the return once she gets her ITIN and file it as a married joint return.
When you inherited the vacation home, it would have come to you with a "stepped up" basis, the fair market value at the time of death. Your potential tax liability would be based on the gain over that value. So, if you sold it for more than that inherited value, you would have a taxable capital gain ... or a tax-sheltering loss if it sold for less.
The spousal exclusion prevents property transferred between spouses from being taxed at that time, so you don't have to worry about taxes until the time you sell lthe property.
Kyle: I believe you are referring to nonqualified stock options and they are reported as compensation on your W-2. The 1099-B is also issued but your basis is the amount included in your compensation.
Since you took the minimum distribution for 2013 in 2014 you will have to include it in the 2014 tax return, so next year.
Yes he can contribute to a Roth the full $5000.
Sheila, your question is being researched