Unanswered Tax Questions

Self Directed IRA

Contribution to Roth IRA

I worked and earned $12,000 which I consider to be earned income. However, my W-2 box 1 Wages, tips, etc) shows $3,000 while Box 3 (social security wages) and Box 5 (Medicare) show $12,000. Box 1 was reduces by $8,400 by salary reduction plan (E) tax deferral and $600 for 401(k). How much can i contribute to a Roth IRA?

Credits

Education Credit without form 1098-T

My child graduated college in May 2022 but did not receive form 1098-T from the university. When I called the university we learned this is because the spring 2022 tuition was “billed” in December 2021 and was therefore reported on the 2021 form 1098-T. I doubled checked and this is accurate. However we PAID the tuition in 2022 and got the school to send the billing transcript to confirm amounts were in fact PAID in 2022. So my question is can my daughter take the education credit in 2022 without form 1098-T as she is independent in 2022 and not claimed by parents? Also, the same tuition amounts were not taken by parents in 2021 due to AGI income limits so this would not be double dipping the same tuition in two tax years. Thanks in advance.

Miscellaneous

Do I need to pay taxes on a Nonjudicial Settlement Agreement?

Hi, Hi, I am going through a nonjudicial settlement agreement, and I would like to know if I would have to pay any tax on the amount I receive before signing the agreement.

Miscellaneous

What forms to file for the year 2020

My daughter is a beneficiary of a granters trust and she did not receive any distributions from the trust and she has her own income for 2020. What tax forms she needs to file? I under stand that the reply to my question is free.Thank you

Business Formation

Free tax advice

Small Business

Tax Prep Validation : Form 1125-A

Hello - Thank you for your guidance validating details of a Return for my small retail business. Our CPA recently completed our 2022 Return (Accrual accounting) and Form 1125-A (Cost of Goods Sold) showed a value on line 8 of -$36457. A negative COGS value suggests an issue somewhere. In the end, we found that line 2 of Form 1125-A was completed using the COGS value from our year end P&L Report. Changing line 2 to the value of total expenses paid for goods (not just the sold goods) resolved the negative COGS value and reduced our income liability by $92k. My question is about line 2 on Form 1125-A. Was it an error to complete this line using the already calculated COGS value from our year end P&L Report? I think I know the answer but our CPA is standing his ground and we need a second opinion. Thank you for your prompt reply!

Miscellaneous

State tax owed

I am filing for 2020 and 2021. I did not have unemployment hold taxes for 2020. I did for 2021. I’m getting most of what I paid for 2021 back, but I owe the state for 2020 even with a dependent? Does this sound right?

Deductions and Write-Offs

Deduction.

I bought a truck and I'm leasing it to a company.. How do I give them they write-off?

Personal Taxes

Losses from Pass through partnership on K-1

I am a limited partner of a pass through partnership and received a K-1 with a business income loss of approximately 37,000 in box 1. I am able to deduct this loss in full against ordinary W-2 income? Also, I have a loss, wages and unadjusted basis of assets in box 20 with code Z. How do I determine QBI, if any applies? I appreciate any help you can provide. Thank you.

Personal Taxes

Settlement in Lawsuit

My husband got a small settlement from a lawsuit (not his own, it was another employee at his company who filed against the company), and he got a photocopy of a W2 for it. (The amount on the W2 in the "Wages" box is less than what he won). My question is do we include it in BOTH federal and state tax returns, is there any special box on the forms it must go in, and do we include the photocopy of the W2 in with the return (he only has one copy for the Federal, does he need another one for the state)? Please answer this ASAP and send it to my email or text it. Thanks in advance! Yours truly, Denise Mayosky