User Submitted Tax Questions

Read Questions Asked by Users and the Answers Provided by CPAs.

View All Tax Questions

Personal Taxes

City income tax

I am still working full time and took a diversification payment from our ESOP. I know I have to pay federal and Ohio state tax but do I have to pay city tax for this 1099R? Thank You

Asked onTuesday, March 07, 2023 by Ron
CPAs - Sign in to Answer

Self Directed IRA

Should I convert Traditional IRA to Roth?

If traditional IRA contributions are non-deductible due to income exceeding the limit, and I also exceed the income limit for contributing directly to Roth IRA, should I backdoor convert my traditional IRA to a Roth IRA ahead of filing 2022 taxes? Are there any tax consequences for doing backdoor converting if I already bought ETFs in the Traditional IRA?

Asked onTuesday, March 07, 2023 by Joshua
CPAs - Sign in to Answer

Terminology

My W-2 has income for 2 states when I worked in one

My employer gave me a W-2 with a NY income of $37,000 and a NJ income of $13,000. Last year, the same employer only showed income for NY. According to payroll, NJ is a reciprocal state which is why there's a NJ income too. I don't understand what this means. Can you explain why there's income for both states that is equaling to $50,000 when my income was in the $37,000 range?

Asked onTuesday, March 07, 2023 by Samantha
CPAs - Sign in to Answer

Payments and Penalties

Can one S-corp pay another S-corp if you own both?

I own 50% of one S-corp that is a booking agency for DJs. I own 100% of another S-corp that is for my personal DJ business. Can the S-corp booking agency pay my own S-corp for DJ gigs that I have to cover? Would prefer to pay as a contractor rather than salary payments or owner distributions.

Asked onTuesday, March 07, 2023 by Josh
CPAs - Sign in to Answer

Small Business

starting a small business

Dear Madam or Sir, I'm about to open a private tattoo studio in my main residence (a free extra room that my landlord approved to be used commercially for this purpose). I have two questions regarding current Quebec laws ( I live in Montreal). 1. What tax advantages would it have for me to directly register as a sole proprietorship, even though I'm just starting out? 2. How exactly am I deducting my start-up costs from 2022, a year I haven't made income yet from this new endeavor? I'm looking forward to hearing back from you. Kind regards. Zora Lenz

Asked onTuesday, March 07, 2023 by Zora
CPAs - Sign in to Answer

Frequently Asked Questions

What shold i be filing under

Divorced, kids now grown. I need to know what box to check at work for my form. My options don't seem to fit my situation. I would assume single but that option says 'single or married with more incomes'. There are no other incomes...just me/mine

Asked onMonday, March 06, 2023 by Rhonda
CPAs - Sign in to Answer

Tax Filing Tips

Reporting a Futures Trading loss on my 2022 income taxes

I had a $15,000 loss last year trading Futures Contracts inside my Roth IRA brokerage account. Can I report that loss on my 2022 tax return? If not, had I had the loss in a regular brokerage account would I have been able to report that on my 2022 tax return? THANKS!

Asked onMonday, March 06, 2023 by tom
CPAs - Sign in to Answer

Business Formation

Rent and Sales Tax

My husband and I currently have a Limited Liability Corp that is the owner of an office/ warehouse unit. We occupy the space and run our Window and Door company out of the space. Our Window and Door company is a separate S corp entity. Does the Window Company have to pay rent and sales tax to the Limited Liability Corp even-though we are the owners of both??

Asked onMonday, March 06, 2023 by Viviana
CPAs - Sign in to Answer

Miscellaneous

Beneficiary of an IRA.

Hello Lets say my brother dies, he has me as sole beneficiary of his workplace IRA. I want to split this IRA with my sister. How can this be done without me being hit with big taxes. Would like to make 2 inherited IRAS, one for both of us. Seems like the IRA carrier has a problem with us doing this. What IRS law would we be breaking? ty Ken

Asked onMonday, March 06, 2023 by Ken
CPAs - Sign in to Answer

Nonresident Tax Issues

How I file the tax 2022 as I'm holding H1B visa a whole year and having a wife as F1 visa holder on some period of time

I have a question about tax filing for 2022 for H1B and H4. I currently hold H1B status from 10/1/2021 until the present. Last year, my wife earned income while she held F1 status from 02/01/2022 until 02/01/2022, and she changed her status to H4 after that time. I would like to know: 1.) Should I file my taxes for 2022 separately or jointly with my wife, as I am considered a U.S. person? (We're going to use turbotax to file this) 2.) Should my wife file her taxes for 2022 as a non-U.S. person? (We're going to use sprintax to file this) I am asking these questions to learn how to maximize our tax refund while staying within the bounds of the law.

Asked onMonday, March 06, 2023 by Narongkrit
CPAs - Sign in to Answer