Hi Alex, No cash gifts are not income.
Sheila, unfortunately there isn't really a free service that we know of that handles back years tax return filing. There is the VITA program that helps taxpayers file their current year tax returns but I believe they can't do back year returns. My advice would be to download the forms from IRS.gov and try to fill them in depending on how complicated the returns are. Some tax experts will also do some work pro bono or for a reduced fee but you will have to call around to see who is willing to do that.
Assuming they file a joint tax return for the 2013 year, then you would not be eligible to claim an exemption for either.
Emily, unfortunately yes! As per the code, failure to make the required distributions is subject to an excise tax, reported on form 5329, equal to 50% of the minimum amount that should have been distributed over the amount actually distributed. I hope this helps.
Sam, Some or all of the interest on the student loan may be deductible depending on your income. The limitations begin at $60,000 for single and head of household and the deduction is completely phased out at $75,000. The limitation for married filing joint begins at $125,000 and is completely phased out at $155,000.
Sam: a return is required to be filed if unearned income is greater than $1,000 or earned income greater than $6,100. if he or she does have earned income less than the requirement amount, they still might want to file a return if they had federal or state taxes withheld.
You may be able to claim your mother as a dependent. You must have paid a majority of the financial cost for her support, and she could not have taxable income over $3,900. As a parent, her living in another state wouldn't keep you from claiming her as a dependent.
Dear JEM, Foster children can be claimed as a dependent if they are in your home for at least 183 days in the year. The reimbursement that you receive from the state is not taxable.
Ann Brown, Trusts can be set up to do many things and yes there is the possibility of doing a trust as you described. The important thing will be to make sure the trust is set up correctly and I strongly suggest you have a lawyer set it up to make sure it is all correct.
annbrown54: an IRA (traditional IRA) is deductible on your tax return and grows tax deferred. It will be taxable when you withdraw it. a ROTH IRA is not deductible on your tax return and grows tax free so it will not be taxable when it's withdrawn.
Dear Cathy M,
School uniforms whether private or public are not a tax deduction.
Kathy Allen, you can deduct 80 percent of your computer using a prescribed depreciation rate, or, depending on the size of your business and whether it's profitable, you may elect to expense the entire 80 percent in one year under Sec 179.
Cable TV generally falls under the "general use" limits of personal items, such as clothing, and would not be deductible. If you are a cable company executive, you might have a case.
The maximum that can be contributed to a 401(k), if under the age of 50, is $17,500. An additional $5,500 can be contributed if you are over 50 as of the end of the tax year. The maximum plus the catch-up is allowed, after age 55 as you specified.
Yes, she can claim a deduction for the mileage she drove for the deliveries if she wasn't reimbursed (or reimbursed at the full 56.5 cent rate). She would need to have a record of the miles she drove -- date, number of miles, where she went (address). She could keep that in a mileage log, a calendar or some other means that captures the needed information. The log doesn't go to the IRS, but needs to be in her files in case the IRS ever questioned the deduction.
Cathy M, you can take your internet service as a deduction at 90% business ues.
Yes, the IRS can file a tax return for you as allowed by the tax code. You can contact the IRS to find out about your account - including items such as a tax return filed for you. Call 1-800-829-1040, Monday thru Friday, 7 a.m. to 7 p.m., local time. I would guess you might have received a letter or two from the IRS regarding this.
To Susan's question about executor pay: Yes, the executor pay would be taxable income. Enter it as other income on Line 21 of your 1040 form.
To Ann Brown:
A vacation home can be anywhere in the United States of America. It matters greatly how many vacation homes a taxpayer has. If a taxpayer has just one vacation home, it is basically treated as a second residence. If the second home is not a rental, the mortgage interest would be fully deductible, subject to limitations. If there is a third home, the mortgage interest would not be deductible. Property taxes on second, third, fourth homes, etc. are always deductible. Your issue is quite simple if your vacation home is not a rental for part of the year.
Susan, the $35K is not taxable. It is an inheritance and completely free money. The taxable aspect (loss) of the sale was handled by the estate.
Hi Gabe, After you know your return has been accepted and processed by the IRS you need to file a 1040X which is an amended form to correct your mistake.
Sheila, once he has filed the returns the next step is to wait for the IRS to process the returns. After that is depends on whether he owes money for those years or is getting refunds. If he is getting refunds, all he has to do is wait for them to arrive, though he can only get refunds for the last three years tax returns. Any refund due for a return filed more than three years after the return was due he will not receive. If he owes money he should either pay the amounts or pay what he can and set up a payment plan for the rest. If his financial situation is bad enough, IRS may put him in what is called "uncollectable status" where he won't be bothered for the money for a certain period of time but it would still accrue interest and penalty on any unpaid amounts. If some returns show a refund but others amounts due, the IRS will use any refunds due, subject to the three year rule, to pay any amounts shown as due. That will either reduce or eliminate the amounts due. If any tax is still due, he will need to make arrangements to pay it.
Go on line to IRS.gov, pull up the Publication 17, Tax Guide for Individuals, 2013, and reference page one, the "What's New" area. This will answer your question for individual tax items.