Unanswered Tax Questions

Credits

Living in US but working remotely for Canadian company

I live in the U.S. and work remotely for a Canadian company that deducts federal, income tax, etc., at the source in Canada. Do I need to file taxes in the U.S. and if so, can I claim any credit for tax already paid? Form 2555 says I must reside abroad in order to claim credit but obviously I cannot pay income tax twice on the same income. What other form is there for me to use?

Small Business

If I start a business, as a sole proprietor, how do I file taxes if I start in the middle of the year? Do I file for the quarters that I missed that year?

Tax Forms

Form 1120, small C Corp - how to roll over bank account instead of profit

I have a very small one-person owner C Corp and preparing to file 1120 for the first time (I have filed for an extension). I am doing it myself. A small bank balance of $1300 on Dec 31st 2022. I understand there is a way to list this not as taxable profit but rather keep it on the books as 'working capital' (not sure the correct phrase) into the next year. Please explain how to do this? Thank you.

Personal Taxes

Do I send in supporting info to IRS?

I use TurboTax CD version and I file electronically. I have one 1099-R with information for Box A, B, D, E. Box A has 4 wash sales. Instructions say to do a summary for all sales, minus the 4 wash sales and then enter the 4 wash sales individually. I also did summaries for Box B, D, and E. Instructions then say if you do this, you don't have to supply any other documentation (sales transaction information) when you file electronically for Box A and Box D. Do I have to supply sales transaction information for Box B and Box E? Doesn't the IRS receive a copy of my 1099-R from my brokerage company?

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.