Unanswered Tax Questions

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Miscellaneous

Miscellaneous

Can we give the pastor of our church a monetary gift?

Asked Sunday, March 03, 2024 by Patti W.
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Credits

Can I Claim the Retirement Savers Credit if I was a High School Student

My son graduated High School in May 2023. He was 18 years old. He turned 19 in October 2023. He worked full time from July 2023 through December 2023. He did not attend any post secondary education beyond High School. His AGI was $18,590. He will file independently as a single taxpayer and will not be claimed as a dependent by anyone else. He did not contribute to a retirement account in 2023. He is planning to fund an IRA for 2023 before April 15, 2024. QUESTION 1 - Is he prohibited from claiming the Retirement Savers Credit since he attended High School for 5 months in 2023? QUESTION 2 -If he is not prohibited from claiming the Retirement Savers Credit -Can he contribute to a Roth IRA (as opposed to a Traditional IRA) for 2023 and still be eligible for the Retirement Savers Credit?

Asked Sunday, March 03, 2024 by Joseph W.
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Tax Forms

Form 8962

On form 8962, if one spouse is on Medicare and the other spouse goes through the "Marketplace" is the AGI on form 8962 figured with both incomes or just the income of the spouse going through the Marketplace"?

Asked Saturday, March 02, 2024 by KYLE E.
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Self Directed IRA

Roth IRA contribution

I am paid on a graduate stipend and my income is reported on a 1099-MISC. Can I contribute to a Roth IRA from income reported on a 1099 MISC?

Asked Saturday, March 02, 2024 by Kylie K.
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Personal Taxes

Dependent care benefits

I participate in my company's dependent care FSA, and contributed 5K to it in 2022. My understanding is that this is all pretax dollars to decrease taxable income. I was looking back at my 2022 Tax filing, and on my Form 1040, in section 1e, it states that my "taxable dependent care benefits from form 2441" was 5K. This seemed to be added to my W2 income, and together, from what I gather, is being fully taxed.... It doesn't seem like the contribution to the FSA was removed from taxable income. So was I taxed on this amount and/or did I do something wrong?

Asked Friday, March 01, 2024 by Anthony H.
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Personal Taxes

Applying refunds to next year

I am getting a Massachusetts state tax refund this year. I moved to Texas for my job. Can I apply my state refund to federal taxes next year?

Asked Thursday, February 29, 2024 by Jack D.
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Tax Filing Tips

Selling my secondhand items/collectibles

I am trying to figure out how to calculate, fill out, prepare for next tax year in regards to selling my own items (collectibles/second hand stuff)

Asked Thursday, February 29, 2024 by GIANNA P.
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Nonresident Tax Issues

W8 or W9 for non-resident non-taxable sole prop owned LLC

I am a non-citizen, non-resident sole proprietor of an LLC. My LLC has an EIN, but no employees. I set up the LLC to be able to bill clients in the US for services rendered 100% remotely from overseas (not necessarily my home country). I am pretty confident I am not liable to pay taxes in the US for the income earned through the LLC because I did not have a substantial presence in the US (183 days in the past 3 years), and I do not operate an office or warehouse, sell any products or have any employees or sales agents in the country, so the revenue of the LLC is not "connected" to work done in the US. This month I decided to start billing my US client through my LLC this month and they came back to me with a W9 form. I wonder whether this is the form I should fill, as a US LLC, or rather as a non-taxable non-resident I should ask for a W8. In the second case, does this create some sort of reporting between the IRS and the authorities of my country? I understand this is professional CPA advise I am asking for, so I am totally willing to pay for a full consultation, and for further services.

Asked Tuesday, February 27, 2024 by Higini H.
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Tax Filing Tips

Gross receipts

Should employee credit card tips we take in, but pay out to the employees be added to our gross receipts for the year?

Asked Monday, February 26, 2024 by Rob W.
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Miscellaneous

how to properly use campaign funds

Can a candidate, say, someone running for President, utilize campaign donations to pay for their personal legal fees (legal fees that have nothing to do with the campaign), without personal tax implications? Or, would the funds used be considered as income, and if yes, what level of income tax would apply to this income?

Asked Monday, February 26, 2024 by Matthew F.
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