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

Withdrawal from rollover IRA

Asked Wednesday, May 27, 2026 by Kate

How much am I qualified to take out from my rollover IRA as a first time homebuyer in Massachusetts to help with closing costs and what do I need to do from a tax perspective in order to accomplish this?

Quick Answer:

Under IRS rules, you can withdraw up to **$10,000** (lifetime limit) from your IRA for a first-time home purchase without paying the 10% early withdrawal penalty, even if you are under age 59½. If you...

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

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...

Personal Taxes

Capital gains for forfeited security deposit

Asked Tuesday, March 24, 2026 by Bharadwaj

I listed a home for sale in California where I lived for the last 3 years. First buyer paid earnest deposit of 3% and decided to back out from the contract by forfeiting the security deposit. I received 100% of the deposit. Within a week, i got another offer and ended up selling the home. My total gain (home sale gain+ forfeited deposit) is less than $500k from this transaction. Can the forfeited deposit be considered as capital gain or should it be considered as an ordinary income?

Quick Answer:

The forfeited earnest money deposit, in this scenario, is considered additional proceeds from the sale of your home. Since the property was ultimately sold, the deposit is not treated as ordinary inco...

Personal Taxes

Clarification on California-Source Income for Nonresident Filing

Asked Monday, March 16, 2026 by Akram

side the U.S. all 2025, no work in CA, filing as CA nonresident. Received W-2 sick/vacation/holiday wages, W-2 short-term disability from NY insurer with CA employer-paid premiums, and online bank interest. Taxable by CA?

Quick Answer:

For a California nonresident, income is generally taxable by California only if it is sourced to California. * **W-2 sick/vacation/holiday wages:** Since you performed no work

Personal Taxes

HOH eligibility

Asked Friday, February 27, 2026 by Chengchou

I believe I qualify for Head of Household (HOH). Here is why I meet the criteria: Considered Unmarried: My spouse is a nonresident alien (NRA), and I am not choosing to treat her as a resident alien for tax purposes. According to the section "Nonresident alien spouse" in Publication 501, I am "considered unmarried" for HOH purposes. Qualifying Child: I have a daughter born in September 2025 abroad. Although she is an NRA and has never been to the U.S. (not met the dependent requirements,she has

Quick Answer:

You are correct that if your spouse was a nonresident alien and you do not elect to treat them as a resident, you can be considered unmarried for Head of Household purposes. However, for your daughte...