Personal Taxes

IRS HAS QUESTIONS RE: 2025 TAX RETURN

Asked Monday, June 29, 2026 by Carmen

IRS wants to verify my identity and obtain proof of my having filed a tax return for 2025.

Quick Answer:

Since the tax year 2025 has not yet concluded, the IRS is not currently processing 2025 individual income tax returns. Those returns are generally filed in early 2026. If you received a letter (such...

Personal Taxes

IRA RMD

Asked Friday, June 26, 2026 by Don

I have an IRA and I purchased an annuity with part of the money. I understand that the payments from the annuity can be used as part of my required RMD. How do I document this when I file tax return.

Quick Answer:

When you receive distributions from an annuity held within an IRA, the insurance company will issue a **Form 1099-R**. This form reports the total distribution in Box 1 and the taxable amount in Box 2...

Personal Taxes

Taxes amount

Asked Monday, June 15, 2026 by A S M SARWAR

Will my personal income tax be combined with my business tax? I am in New York and run a business in Alabama. How much tax do I need to pay for my business? Will it be connected to my personal income tax? What will the calculation for my business tax be if it is not included?

Quick Answer:

Whether your business and personal taxes are combined depends on your business structure (Entity Type). **Pass-Through Entities (Sole Proprietorship, LLC, S-Corp, Partnership):** Your business income...

Personal Taxes

Crowdfunding management need to know how it gets taxed

Asked Sunday, June 07, 2026 by Erica

I maintain some crowdfunding campaigns where I keep none of the profits and there are no gifts or services sent out to any donors. I need to know how it will get taxed. I have a gross income around $13,000 and a net income at around $12,000. Can I use it as a charitable write off? How much should I set aside for taxes?

Quick Answer:

Whether these funds are taxable depends on the legal structure of the campaign and your role. **Taxability of Income:** If you are collecting money for a specific individual (like a medical fund or a...

Personal Taxes

FiCA tax exemption for domestic services

Asked Sunday, May 31, 2026 by Mary

Is a step parent exempt from paying FICA taxes for performing domestic services for their adult step daughter that lives in the home?

Quick Answer:

Generally, no. Under IRS Publication 926, domestic services performed by a parent for their child are exempt from FICA (Social Security and Medicare) taxes only if certain conditions are met regarding...

Personal Taxes

Inheritance tax question

Asked Tuesday, April 14, 2026 by Stephanie

I need to know what to complete for an inheritance I received. (It was land split with family members) and sold in 2025. I received a 1099-S and am filing on my own but do not know where to go to add this information in my taxes.

Quick Answer:

For the sale of inherited land reported on Form 1099-S, you will need to report this transaction on your tax return. First, establish your cost basis for the inherited land. For inherited property, t...

Personal Taxes

Itemized deduction for partial rental

Asked Sunday, April 12, 2026 by Syed Shahriar

I have a 5 bedroom home and want to rent out 3 bedroom, but i won't live in the other 2 rooms, just keep them vacant and rent a different place. I live in california and my mortgage is around 850k. I am wondering how will by itemized deduction will look like in that case. I earn 400k per year.

Quick Answer:

Since you will not reside in your 5-bedroom home and will rent out 3 bedrooms while keeping the remaining 2 vacant, the entire property is generally treated as a rental property for tax purposes. Thi...

Personal Taxes

LLC to offset W2

Asked Sunday, April 12, 2026 by Syed Shahriar

Hi i earn 400k per year married filing jointly, i have a primary home which i am renting out. i live in california. My cpa recently told me something about creating a mutliperson llc , so that i can offset my w2 income. My home price is 1 million with around 850k loan at 4.125% interest rate with 12k yearly property tax. Can you suggest what he was talking about

Quick Answer:

It sounds like your advisor is discussing a strategy that hinges on qualifying as a **Real Estate Professional (REP)** for tax purposes. Here's a breakdown: 1. **Real Estate Professional

Personal Taxes

Owed IRS tax refund/Never has happend

Asked Friday, March 27, 2026 by PAUL

This year my wife and i had to PAY the IRS. I had almost $6500 of tax withheld. She had barely anything at about $750. What does she need to fill out on her W2 so this will stop,and we will get a refund. I also have another side job and that job took $0 out for withheld taxes? Thank you.

Quick Answer:

The reason you owed tax is that not enough was withheld from your combined income throughout the year. To aim for a refund, you need to increase your total withholding. For your wife, she needs to su...