Unanswered Tax Questions

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Tax Filing Tips

Selling goods on the side

I makes my own aprons. Recently I have had so many requests to buy some. Now I am not trying to start a business. Was thinking I could just do on the side. if I did sell is the profit something I can list 4 additional income on EOY taxes. I absolutely do not want to start a "business" just something I enjoy 2 pass time

Asked Thursday, June 01, 2023 by Sabrina S.
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Credits

1098T

If I got a 1098T form after I already filed my tax return, and got my refund, should I file an amended return? if so, how will that effect my return?

Asked Thursday, June 01, 2023 by David R.
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Personal Taxes

avoid capital gains

mom is selling lots from a piece of property she's owned for 50+ years. Can she gift the profits to children to avoid capital gains? Assuming less than 16k per child

Asked Thursday, June 01, 2023 by jen d.
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Tax Forms

On IRS FORM 1310 not sure what boxes to check. Statement of person, claiming refund due a deceased tax payer.. I called IRS and I was on the phone for three hours talk to four people who could not help me with this.

On the form 1310 it’s asking Part 1 to check the box that applies to you. My question is Box B? They want me to check it if I was a court appointed or certified personal representative and it wants me to attach a court certificate showing my appointment. The problem is my mother is the one that’s deceased. She had a revocable trust and a pour over will in the state of Florida. If you have a revocable trust you don’t have to go to court so im not court appointed and I did talk to my attorney and she said that’s correct I was not appointed by the court, but I’m also the sole beneficiary of the trust, and the successor trustee. On her pour over Will I am sole beneficiary of the will, and her personal representative and executor of her estate. I am the only one named on the trust. Should I check Box B and send a copy of the Revocable Trust? Also note on 1310 form part two number three at the very very bottom, before signature it says, or other evidence that you are entitled under state law to receive the refund . Wouldn’t other evidence be the Trust? Also the instructions on form 1310. It states Personal representative - a copy of the descendants will cannot be accepted as evidence that you are the personal representative so I can’t send a copy of her Will they don’t accept it. Should I just forget about Part 1 Box B and check Part 1 Box C ? A person that’s not a surviving spouse or court-appointed but a person of the decedents estate. Please advise Thank you!

Asked Thursday, June 01, 2023 by Laura K.
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Deductions and Write-Offs

WHY NO FEDERAL TAX TAKEN OUT OF PAYCHECK

Married, filing jointly. I put 3 dependents on the 2023 W4 and NO taxes were taken out of my paycheck. My spouse's yearly, salaried pay is 6 figures (less than 140k, but more than 130k). My yearly is 5 figures, UNDER 50k (more than 40k), hourly job position. I filled out another 2023 W4 in the past few days and changed to 0 for dependents in hopes taxes will be taken out of my paycheck. WHY are NO federal taxes being taken out when I had 3 dependents, married filing jointly? Federal taxes were taken out when I had the old style W4 listed as married filing jointly with 1 dependent. The payroll dept at my job had us fill out the 2023 W4 this May because they switched payroll systems from Green Employee to ADP. Prior to 2023, the last time I completed a W4 was in 2018. With the most recent tax code & W4 changes, WHY are NO federal taxes being taken out when I had 3 dependents, married filing jointly?

Asked Wednesday, May 31, 2023 by M M.
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Retirement

Home Loan Down Payment Help

Can I take money out of my retirement accounts to help with a down payment without getting hit with any penalties?

Asked Wednesday, May 31, 2023 by Richard N.
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Deductions and Write-Offs

QB Training

I know the software is deductible. How about classes? Or certification?

Asked Wednesday, May 31, 2023 by Ken C.
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Deductions and Write-Offs

I took money off my credit card using my paypal. Its not income, but is counted as income on my 1099 from paypal. How to reconcile this?

This was the easiest way to get cash from the credit card without charging a fee (some vendors and contractors only take cash). How do i reconcile it? Its not income, its a loan from the credit card. Is there an expense category to offset this? Any help is appreciated.

Asked Wednesday, May 31, 2023 by lilly a.
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Miscellaneous

TOD account tax treatment after death question

I'm asking for my friend and I'm just curious my my own knowledge. And the state is Ohio and no minors involved. And only child, no spouse. So my friend's mom passed in 2020. Shenanigans happened and probate wasn't opened until Mar 2022. In 2021, he found out about a TOD investment account and was told he was the sole beneficiary. He tried to get it liquidated and the bank screwed up giving the correct directions for the claim form, causing the account to not be liquidated until May 2022. Also, in Oct 2021 his moms house was foreclosed and there was an excess causing probate. The court named his uncle the fiduciary (part of attempt by uncle and grandma to lie to the court to get the full proceed as there was family drama and they tried to tell probate he was dead until he found out and appeared. Topic for another time). So the account was liquidated finally (about 50k) and he got a consolidated 1099 in this year (I believe it was DIV and B from what he told me) and the 1099 listed the name as the estate of "his moms name" and lists her SSN. Since probate started before the liquidaton, there was an estate FEIN set up. So my question is how does that work on the taxes? Does it becomes the estate's responsibility that the fiduciary has to make sure of or is it on the beneficiary? And don't worry he's going to a tax expert soon, at my urging since I'm no tax expert

Asked Wednesday, May 31, 2023 by Johnny W.
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Business Formation

Entity Filing

What is the best entity to file in Florida with the best tax benefits for a husband and wife starting up a new business.

Asked Tuesday, May 30, 2023 by Rhona W.
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