Tax Filing Tips

Tax Filing Tips

Married couple filing taxes separately when one spouse is in Chapter 13 bankruptcy.

I am currently going through a Chapter 13 bankruptcy. My spouse is not. Should I file our taxes separately instead of jointly since I must report to the trustee any tax refund. I want my spouse's refund to be protected even if mine can be garnished. I am in North Carolina. Thanks.

Tax Filing Tips

Can self-employed with zero income claim deduction?

I just got my California Life insurance license in Dec 2025. I have no income for 2025, thus no 1099 form. I am wondering if I can deduction the expense on pre-license course, exam fee, initial license fee in schedule C. Thank you VERY much

Tax Filing Tips

Implications for Responsible party using SSN for filing with IRS for EIN/TIN

We’ve set up a VA corp wholly owned by our UK parent. One US citizen officer (VP of Growth) could be listed as IRS responsible party to get EIN instantly, or we can file with a foreign director (slower). What are the implications for her if she’s the responsible party now and later removed via 8822-B? Any ongoing exposure/liability? Or if indeed she remains as responsible party and isn't removed? What are the implications if she leaves the business?

Tax Filing Tips

Sales Tax in Florida

I am an independent author and want to sell my books at a local convention. How do I collect and then submit the sales tax?

Tax Filing Tips

Tax Implications of Family Funding for EB-5 Visa

Hi All: I am trying to understand the tax implications around borrowing vs receiving as a gift, half a million dollars from my family (brother). I am exploring options to apply for an EB-5 visa and need $800,000 to do so. I am partially funding it through my savings, and the rest will be covered with help from my family. I want to understand what the most tax-efficient way of doing so is (both for my brother, who will be gifting the money, and me, who will be receiving it). Thank you, Best, Abh

Tax Filing Tips

Filing cash income

If I am being paid cash to work for someone (who says they will not be claiming that on their taxes) how do I file mine? Am I considered self employed and should expect to pay self employment taxes on a 1040? Something else? Do I have to say who paid me, and if so, will that get them in trouble? I'm trying to prepare but also figure out if I've gotten myself in a bad situation or not. Thank you for your help!

CPA Answer:

Without knowing anything about the type of work involved, it’s a little more difficult to give an answer.

First, presumably, you’re working and being paid as an individual and not working through a company. Second, I assume you’re not going to receive a Form W-2 at year-end from the individual who is paying you. If both of those assumptions are correct, then, you would be considered self-employed. I am not getting into the issue of whether you should be properly classified as an employee or as an independent contractor, as that issue has its own intricacies. By nature of the fact that the person paying you says he/she will not claim any write-off on his/her taxes, it sounds like you’re not being treated as an employee (as treating you as an employee would involve its own paperwork). In that case, you would report any money you received (and any corresponding expenses you pay in order to generate that income) on Schedule C on your individual income tax return, subject to income tax. Also, you should expect any money you receive to be subject to self-employment tax, unless your net earnings from self-employment for the year were less than $400. You do not have to say who paid you. I wish you the best in your endeavors!

Answer Provided by: Adam Dickreiter

Five Last Minute Refund Tips

Take the American Opportunity Credit if you have children in undergraduate college.

CPA Answer:

The American Opportunity Credit can save taxpayers as much as $2,500 per student with $1,000 of the credit being a refundable credit above and beyond the money paid.

Answer Provided by: CPAdirectory

Five Last Minute Refund Tips

Check to see if you have worthless stock or loans that are completely uncollectible

CPA Answer:

You can deduct the loss on a worthless security without selling it but only if the stock or loan is completely worthless. If it is truly worthless, you can treat the item on your return as if it were a short term capital asset you sold for $0 on the last day of the tax year. In fact you can take a write-off over and above your gains to the extent of $3,000 this year.

Answer Provided by: CPAdirectory

Five Last Minute Refund Tips

If you itemize, don't forget the non-cash contribution deductions.

CPA Answer:

Be sure to itemize any donations of clothing and household items that you made to charities throughout the year, as non- cash donations over $500 require you to file form 8283 with your return. Non-cash donations up to $500 do not need special documentation with the filing of your return.

Answer Provided by: CPAdirectory