Unanswered Tax Questions

Frequently Asked Questions

If I must file taxes

I’m 70 get social security with a pension do I have to file taxes?

Business Formation

Do we need to register with the VA SCC (foreign qualify), and file VA 502 partnership return?

We have an LLC partnership incorporated in Delaware. It has 2 foreign partners in El Salvador, and 1 partner local to Virginia. Principal address of company is listed as the home of the partner in Virginia, mainly for ease of mailing inside the US. Income is all being generated outside the US (in El Salvador). No sales or employees or income is coming from VA. The income is from US source companies all over the US (CO, OR, CA), but again all sales and production are being done from the offices in El Salvador. All we are doing in the VA office is the accounting. 2022 was the first year that the partnership generated any income.

Investment and Finance

Inherited IRA

Dear folks My wife has an inherited IRA opened last September following her mother’s death in August of 2021. Did she have to take an RMD during 2022? Our accountant seems to think so. She did not. I know she has a ten year term to withdraw everything but when does the 10 year term start-at the time of her mother’s death or from when she begins to take withdrawals? Thank you!

Deductions and Write-Offs

I was in a hurricane

I was in factually declared disaster. I had losses that I was not reimbursed for by insurance. Can I claim them?

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!