Unanswered Tax Questions
CPAs - answer tax questions, and introduce your practice to potential tax clients.
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Why does TurboTax say I am not eligible for the Lifetime Learning Credit?
Hi! I am a graduate student filing my tax return through TurboTax. After uploading my 1098-T and answering all the education questions, it said I was not eligible for any education credits. However, according to the IRS eligibility requirements, I should be eligible for the Lifetime Learning Credit? Do you know what reasons would make me not eligible for it?
Asked Monday, April 03, 2023 by Katherine T.Sign in to Answer
Estimating taxes
I am 1099. I am employed by a firm and serve their client. Do I have to pay estimated taxes? Is there a way I can minimize that payment at first, and/or throughout the year?
Asked Monday, April 03, 2023 by ERic A.Sign in to Answer
Dependents
I am claiming my gf and her 2 kids as dependents this year as the gf went back to school and both kids qualify for me to do so. We also have a newborn who is forcing me to claim HOH as well. The question I have is, do I have to claim the kids as other or can I claim them as step children? There's a $1500 difference per kid of what we'd get back but as the gf had no income last year being she's back in school, she doesn't have anything to file this year. Thanks.
Asked Monday, April 03, 2023 by Jake J.Sign in to Answer
Converting Primary Residence to Rental and Buying New Primary Residence
How do I create an LLC for renting out my house? How do I formally and legally declare my current primary residence as a rental property after buying a new primary residence?
Asked Monday, April 03, 2023 by Laurhyn G.Sign in to Answer
du i have to file 2022 taxes
age 79 social security $26,185.20 distribution $8,314.60 interest $28.21. do i have to file taxes federal or nys
Asked Monday, April 03, 2023 by walt c.Sign in to Answer
How to handle the sale of stock in 401K after retiring for best tax savings
Trying to get tax advice. I recently retired from AT&T. I kept my 401K account and haven't rolled it into anything else yet. I have some Warner Brothers Discovery stock in that 401K that I received in April 2022 when AT&T spun off Warner Brothers. They gave us WBD shares but the value of our AT&T shares dropped at the same time. And the WBD shares are worth less than the basis. We are being forced to move the WBD stock to another investment in the 401K by April 10th. Is there a way to just sell the WBD shares (and take the cash) and pay little to no taxes since it's technically a loss? Since not yet 59 1/2, guessing there would still be the 10% penalty. Would Net Unrealized Appreciation do anything to help in this situation? As far as taxes go, am I better off cashing out the WBD shares or better off moving the money from the WBD stock into another investment in the 401K and not pulling the money out at this time? Or is there another option I'm not aware of that would be better tax wise. Prompt advice is much appreciated, thank you.
Asked Monday, April 03, 2023 by J M.Sign in to Answer
Future annual salary growth percantage calculation
Dear Sir/Madam, I would like to find out, what percentage of growth can be used to calculate a future wage increase for my employee for the next 25 years. I would like to take annual average inflation and annual average salary growth into consideration. I would like to multiply his current annual salary with that growth percentage and keep multiplying it for the next 25 years and later add the years up.. If you could please write down reasoning behind your calculation of the percentage rate, that would be very helpful. Many thanks
Asked Sunday, April 02, 2023 by Tamas B.Sign in to Answer
Dividend Payments, Business Expenses
Hello, quick question: In 2021 I started a graphic design business with a partner, and we were paid out in dividend payments for a total of 9355. How do I file this, and also file for business expenses at the same time? a T777 requires a T4 so I'm confused.
Asked Sunday, April 02, 2023 by Justony R.Sign in to Answer
Scholarships for future years
My daughter is a first year college student. This year's tuition is covered by the state. She recieved a local $500 scholarship and we anticipated applying that to her 3rd year (when the state stops paying). Is the scholoarship still tax free since we plan to pay for tution in a future year or do we have to claim it as income now this year since it was recieved this year?
Asked Sunday, April 02, 2023 by Travis H.Sign in to Answer
Is the profit (long term capital gain) from a sale of a house part of the AGI ?
Is the profit (long term capital gain) from a sale of a house part of the AGI when determining how much medical premiums/costs can be deducted? Under our just our normal income, we get to deduct a fair amount of medical expenses. But we sold our house of 12 years for a good profit last year (which we'll pay long term capital gains on), which we are wondering if it gets added to the total AGI that the 7.5% applies to (which will make us ineligible from having any medical expense deductions)?
Asked Sunday, April 02, 2023 by Tom D.Sign in to Answer