Unanswered Tax Questions
CPAs - answer tax questions, and introduce your practice to potential tax clients.
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Do I charge sales tax for a digital product in Arizona
I'm selling a digital course that is housed in a portal. I'm using Stripe to collect my payment. What happens if I don't collect sales tax during the sale? Not sure if I should charge sales tax and if I do, should I have Stripe collect the tax automatically for a fee of 0.5%. I've never sold a product online before and not sure what is involved and what forms need to be completed with which states. Is it complicated and is that the benefit of having Stripe collect the tax automatically?
Asked Tuesday, October 24, 2023 by Sherri J.Sign in to Answer
Form CP2100A - Backup Withholdings Now??
1099 Contractor will receive his residency next month. Company received a CP2100A due to his missing TIN. Should backup withholdings be held immediately if (per his attorney) he will be issued a SSN next month?
Asked Tuesday, October 24, 2023 by Erica T.Sign in to Answer
Car Rental
Hi, the question I have is if I rent a car as a doordash driver, and I use it strickly for dashing, can I write off 100% of what I payed for the rental? And does this mean the tax write off will essentially pay for the car?
Asked Tuesday, October 24, 2023 by Jason B.Sign in to Answer
Forms
Hi, I just started a small business and registered with Santa Clara county for a business tax certificate as well as with the CDTFA for a sellers permit. My small business is a sole prop, part of the year side business and I don't expect to make more than $1000 by the end of the year. Will I need to save up for self employment tax and file quarterly? What about the months I do not make any money? Is it just schedule c and/or do I need another form to itemize expenses? I'm reading a lot of conflicting info online and the small business development center non profit cannot offer tax advice. Any help would be greatly appreciated. Thank you.
Asked Tuesday, October 24, 2023 by ANDREA A.Sign in to Answer
Solar tax credits
I am considering installing solar panels for my home. The contractor said I will get a Federal Residential renewable energy tax credit (30%) and an "Illinois shines" credit of $24,800. Do either of these credits have income limits to receive the full credit?
Asked Tuesday, October 24, 2023 by Trenton H.Sign in to Answer
Washington State. Construction side work.
Washington State here. My husband is a licensed plumber and fixed a couple toilets at my work, for $500. We don't have our own plumbing company. My work asked him to complete a 1099. Since we don't have a plumbing business EIN, obviously his only option is to enter his personal SSN. Which is fine, we don't mind paying taxes on that income at all. My confusion arises because, as I understand, this type of professional service should be charged a 6.5% sales tax in Washington. If we charged it, we have no way of paying that tax to the state because we have no business. Do we just not charge the sales tax? I can't ant imagine the state will be happy with that. Also, we don't have a state income tax, so we never have to file a state return, only federal. Would this transaction require us to file a state return? Seems like enough hassle to just not charge them, but that's not ideal either. TIA for any advice!
Asked Monday, October 23, 2023 by Ashley L.Sign in to Answer
Escrow account excess funds rights to property
My husband and I were given a home and property in 2017. He passed away in 2020 it was never put in our name. I have been living here since 2017. My mother n law passed away 2018.my father n law passed away this year I have been paying the property tax since 2017. I lost the property to a property sale in june 2023. There is a excess funds account held in escrow for the property. What rights do I have for paying the tax buyer and keeping the property. What rights or order do I have for the excess funds held at the tax office ? If u know someone who can help me go about taking care of this please call or email me. And if I cannot access funds or property do I have the right to the taxes I have paid in since 2017
Asked Monday, October 23, 2023 by Sandra B.Sign in to Answer
HDHP No Longer An Option.......
Our current health insurance provider is no longer going to be a option for an HDHP. They have failed to reach an agreement with the primary medical group in and around our town. At best, it might be 6 months before an agreement is reached, if at all. We would need to drive 60+ miles to see a provider in-network. Our current insurance provider is the only one out of our current open enrollment options that offers an HDHP. Is there another alternative (HRA, HMO, etc.) that would meet the deductible qualifications for us to continue to put money into our HSA? Thank You for your time.
Asked Monday, October 23, 2023 by RC M.Sign in to Answer
Owe back taxes
We sold a house in 2021 with a profit of $285,000. Apparently, we didn't file the right forms because we received a letter from the IRS stating that we owe $350,000 in back taxes including $32,000 in interest. Can this be fixed by filing an amendment, or do we need a tax attorney?
Asked Monday, October 23, 2023 by Cynthia D.Sign in to Answer
Dividends From ROTH IRA
If I invest in an ETF that pays a monthly dividend, such as JEPQ, is the monthly dividend considered non-taxable in a ROTH IRA? If I remove the dividend from the ROTH IRA, can I use it as cash without any tax consequences since it originated from the ROTH IRA?
Asked Monday, October 23, 2023 by Chris F.Sign in to Answer