Kumar, you have it right. The dividends would split between your wife as a resident and you as a nonresident and each would report to their resident state (to TN for you).
Susan, let me look into my crystal ball. Marijuana is not allowed as a deduction for medical purposes now under any circumstances and won't be until the government changes it's stance. When that will be... stay tuned. It is possible some states may decide to allow it before the federal government does but right now Arizona follows the federal government rules.
You would have to file a tax return in order to get the withholding back.
Susan, the executor fees are definitely a deduction to the estate. Yes, the executor fees paid to you are a compensation for services so they are separate from the inheritance you receive. Basically, the executor fees reduce the estate's taxable income and its principal that is available to distribute; you get paid before the inheritances are handed out.
You may only carry forward a net operating loss. If you don't have a net operating loss for the year you are referring to, you are not allowed to carry the expense deductions forward. To correctly report the expenses you incurred, for the year that they were incurred in, you would file Schedule C, if self-employed, to report the expenses, and the resulting net loss.
Normally, sales tax is outside the regular income of a business. Your case is a bit different, because the tax is withheld form the amount you get from the ticket outlet. You would still report the gross ticket prices as income, and then take a deduction for the sales tax as tax paid so the result will be the net income you received.
If the child lives with you and you qualify for the dependency then you would file your return via mail as you could not efile it. I would recommend attaching documentation to the return that shows proof of relationship between you and the child as well as proof that you and the child shared the same residence.
Hi DVD, Unfortunately there is no exemption for the amount of tuition reduction. The only relief is being able to claim one of the education credits. Refer to IRS Publication 970 if you need more information.
Davey, If the annuity was bought with IRA funds it should be within an IRA account. If that is the case then the full value would be treated as a withdrawal from the IRA and subject to income taxes and the early withdrawal penalty. You would still have the opportunity to rollover some or all of the amount into another IRA account and then you avoid the income taxes and penalty on whatever amount is rolled over.
Davey, BTW the rollover rules are that you have to rollover the amount within 60 days of withdrawing the funds from the original IRA.
For more federal tax information, go to IRS.gov.
William K - there is not a specific form to claim the 0% tax rate. You complete the necessary forms for your return including Schedule D and Form 8949 and you will calculate the tax accordingly.
Thank you Arizona Daily star for letting me participate. If your readers have any more questions I would be happy to answer. Email them to Lin@1stchoicetaxservices.com
Thank you all for joining in our chat. We hope you learned something. Be sure to go to irs.gov if you have more questions.
Thank you to Arizona Daily Star for allowing Southern Arizona Enrolled Agents to participate today.
If anyone would like to contact an Enrolled Agent got to www.aztaxpros.org.
Thank you to Arizona Daily Star and you for your questions, I was happy to answer what questions I could. If you have any other questions, I will be happy to answer them. firstname.lastname@example.org.