User Submitted Tax Questions

Business Formation

New Mexico LLC - Transfer on Death Clause

Hello: My wife and I are non-US persons. We are foreigners and we reside in Mexico. We want to form a New Mexico LLC. The LLC would open a US stock brokerage account to hold assets invested in the stock market. Can a New Mexico LLC Operating Agreement contain a Transfer on Death clause in order to avoid probate? For example; If New Mexico LLC has one member and that person dies can the governance and economic rights of the deceased person be automatically transferred to a non member thus avoiding probate? OR if a New Mexico LLC has two members and one member dies can the governance and economic rights of the deceased person be automatically transferred to the surviving member? Is the law the same for US persons and non-US persons? Thanks.

Tax Filing Tips

Incorrect W2 and also sent incorrect 1099 forms from employer

Personal Taxes

Dependents

Am 55 with a 17 yr and 20yr old living at home . For withholding should I claim 1 or 0? And when I file do I claim 3 or 2

Personal Taxes

Notice CP2000 amount

I received notice that I did not report a 1099-c, which I never received. The card was jointly held with my ex husband. It appears the debt was cancelled in 2021. Am I responsible for reporting the full amount as Income?

Personal Taxes

Head of household status

My parents live with me in the house I rent in my name. I pay the utility bills, phone bills, and other living expenses. My parents currently do not have valid Visa and cannot work in United States. I want to know if I can be qualified as head of household in this situation. Also to prove that I do qualify as head of household, what are the documentation that I need?

Personal Taxes

Work in NJ, live in NYC

Hello, I work in New Jersey but live in New York. My employer takes out taxes for New Jersey but not for New York. I had a federal gross income of around 58,000 but turbo tax tells me I owe 713 dollars to New Jersey and 2,300 ny state taxes. I withheld a little less money for a couple of months. Does this make sense to you? I am just wondering why my New York taxes are so high when the taxable income was around $49,000.

Retirement

1099-R

I receive a monthly pension. There is no designation code on my 1099-R (none last year either). Is this correct? If so, why can’t I complete my taxes?

Bookkeeping & Write-up

S Corp with husband expenses

My husband and i own a business filed as an s corp. he and i are The only owners with him at 49 percent and me at 51 percent. How do we transfer business income to use as personal use? How is that documented? What’s the best way to document this? For example, we took out 1000 dollars to repay a family member for an initial start up cost- since this isn’t a formal loan, it is not tax deductible, but can it still be a business expense?

Tax Forms

W-4P

My wife and I are both retiring and have a question on IRS W-4P. Say my pension is $60,000 and my wife's is $50,000. On my wife's W-4P, would she report my pension of $60,000 in Step 2, b, i and iii? On my W-4P, would I also report my wife's pension of $50,000 in Step 2, b, i and iii? Thanks!

Miscellaneous

What does one do when one can't find a Basis amount for figuring capital gains?

I inherited my house in 2002. I sold my house in 2022. I can't find the Fair Market Value of the property for 2002, or even it's assessed value for property taxes. What do/may I use as a Basis for figuring my capital gains?? I can't get any advice from the IRS.