Unanswered Tax Questions
CPAs - answer tax questions, and introduce your practice to potential tax clients.
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IRA Distribution
I rolled over an amount from my traditional IRA to my Roth IRA. I know that I pat taxes on the rollover amount and I know what tax bracket it puts me in for 2023 income. Can I pay the tax or partial tax now on the distribution amount? Or do I wait until Spring 2024 when I typically file my taxes?
Asked Monday, November 13, 2023 by Robert R.Sign in to Answer
Can I file as head of household?
My 16 year old daughter lives with me 4 days a week and 3 with her mother. I have always let her mother claim her, but I pay for her insurance and all medical and dental bills and anything else she needs. Can I file as head of household if I don't actually claim her on my taxes?
Asked Monday, November 13, 2023 by John J.Sign in to Answer
Etsy Shop
Hi, i live in KY and have opened an Etsy shop selling digital designs (PNG files) and there are no physical products. I am looking at getting a business license (likely single member LLC) but am curious about tax write offs. My husband purchased me a new laptop to use for the business as my credit limit was not high enough to afford the laptop. Would i be able to write off the expense of the laptop even though he purchased it? Or do i need to look at a different business model?
Asked Monday, November 13, 2023 by Kendall D.Sign in to Answer
Overpaid sales tax on new car
I paid taxes on my new car but I paid too much. It was 34k car with 11k trade in and I was taxed at 34k and not 23k. How do I get the difference?
Asked Saturday, November 11, 2023 by Jarvis L.Sign in to Answer
IRS Worksheet for Determining Support [for Dependent]
Here is the scenario. A single retired parent collecting social security benefits ($21k/yr) lives in Greater San Diego in a middle-class house with a young teenage son (son's total income $12k in social security benefits). Using the IRS 'Worksheet for Determining Support', calculations show the parent pays slightly more than 50% of the child's support ($12k child income/support, $12.5K parent support = total combined support $24.5K), thereby qualifying the son to be a "dependent". But since the numbers are very close, I suppose some amounts could possibly be disputed and the dependent status not accepted. So I just want to know if my numbers seem to be "in the ballpark" or if they might seem to the IRS to be off the mark and could possibly trigger an audit. I have seen articles online saying that the average cost of raising a child in Southern California is about $30k/yr so it looks like I'm in range, but I just want to be sure. Also, note that parent will file as 'Single' instead of 'HOH' since the filing status support criteria are somewhat stricter than the dependent status criteria. Preliminary 2023 tax return won't contain tax credits, won't have to pay any taxes, and won't be getting any refund. Thx, Brian
Asked Saturday, November 11, 2023 by Brian W.Sign in to Answer
My employer is taken taxes out of my paycheck for my spouse who is not an employee
My job requires a spouse or domestic partner to open up a well portal account if they are going to be on our insurance so that they can do the biometrics. With them opening up their own separate accounts, they have the same access on their accounts as we do on ours. On of the choices that they have as we do is to complete some self verified activities each quarter and if they meet the goal they can earn $100 amazon gift card up to three times a year just as the employees can. My job makes us pay taxes on our gift cards that we receive each quarter if we meet the goal. We have learned that if our spouses or domestic partner completes the activity on their account they also receive the gift cards, however because my employer has no way of taxing them because they are not employees of theirs, they tax the employees paycheck without our permission for that spouse or domestic partner. We just gained knowledge of these and I am wondering if that is legal?
Asked Friday, November 10, 2023 by Lakeisha S.Sign in to Answer
How to best pay federal tax on taxable mutual fund capital gain distribution
I have a taxable mutual fund that has been having large end of year capital gain distributions. How do I best pay federal tax on these so as to not incur a penalty? Only recently started social security and have no other place to increase tax withholding. Estimated tax is difficult since distributions can vary wildly.
Asked Friday, November 10, 2023 by James F.Sign in to Answer
If I am remote worker for a California business, when do I need to file a state tax return?
I recently became hired as a freelancer (1099) to do copywriting for a company based in California. I live in Louisiana and anticipate making less than $10k per year with this freelance position. Would I still be require to file a state tax return with California?
Asked Friday, November 10, 2023 by Demi G.Sign in to Answer
How long to reside in home to avoid capital gains
We have resided in our home for 18 months do we pay capital gains if we previously used it as a rental home for 17 years prior to that if we sell our home or will it be prorated and only pay ΒΌ capital gains instead of none with the 2 of 5 year residence rule
Asked Friday, November 10, 2023 by Maryjane H.Sign in to Answer
Early withdrawal penalty question, Roth IRA
I had to withdraw funds from my IRA to live on during this year. I am 41, getting divorced and suddenly stopped receiving support from my estranged partner this year. I will earn around 44,000 this year. I withdrew 20,000 early, at which time 10% was taken for taxes. How can I find out my tax burden for the early withdrawal?
Asked Friday, November 10, 2023 by Eva B.Sign in to Answer