Unanswered Tax Questions

Investment and Finance

De minimis tax rule for Treasury Bonds bought at discount

Hello, I know De Minimis rule applies for Municipal Bonds but does it also apply to Treasuries or Corporate Bonds that are bought at a discount below De Minimis? For example, 6 year 3.25% coupon treasury bought at 95.5, which is below 98.5 de minimis price. Would there be a capital gain tax on the appreciation from 95.5 to 100 at maturity or if sold prior? Thank you. Tim

Tax Filing Tips

I am a new business with no sales and no salary expense . I am also a non US resident. What are my tax requirements ?

Miscellaneous

Miscellaneous

Can we give the pastor of our church a monetary gift?

Credits

Can I Claim the Retirement Savers Credit if I was a High School Student

My son graduated High School in May 2023. He was 18 years old. He turned 19 in October 2023. He worked full time from July 2023 through December 2023. He did not attend any post secondary education beyond High School. His AGI was $18,590. He will file independently as a single taxpayer and will not be claimed as a dependent by anyone else. He did not contribute to a retirement account in 2023. He is planning to fund an IRA for 2023 before April 15, 2024. QUESTION 1 - Is he prohibited from claiming the Retirement Savers Credit since he attended High School for 5 months in 2023? QUESTION 2 -If he is not prohibited from claiming the Retirement Savers Credit -Can he contribute to a Roth IRA (as opposed to a Traditional IRA) for 2023 and still be eligible for the Retirement Savers Credit?

Tax Forms

Form 8962

On form 8962, if one spouse is on Medicare and the other spouse goes through the "Marketplace" is the AGI on form 8962 figured with both incomes or just the income of the spouse going through the Marketplace"?

Self Directed IRA

Roth IRA contribution

I am paid on a graduate stipend and my income is reported on a 1099-MISC. Can I contribute to a Roth IRA from income reported on a 1099 MISC?

Personal Taxes

Dependent care benefits

I participate in my company's dependent care FSA, and contributed 5K to it in 2022. My understanding is that this is all pretax dollars to decrease taxable income. I was looking back at my 2022 Tax filing, and on my Form 1040, in section 1e, it states that my "taxable dependent care benefits from form 2441" was 5K. This seemed to be added to my W2 income, and together, from what I gather, is being fully taxed.... It doesn't seem like the contribution to the FSA was removed from taxable income. So was I taxed on this amount and/or did I do something wrong?

Personal Taxes

Applying refunds to next year

I am getting a Massachusetts state tax refund this year. I moved to Texas for my job. Can I apply my state refund to federal taxes next year?

Tax Filing Tips

Selling my secondhand items/collectibles

I am trying to figure out how to calculate, fill out, prepare for next tax year in regards to selling my own items (collectibles/second hand stuff)

Nonresident Tax Issues

W8 or W9 for non-resident non-taxable sole prop owned LLC

I am a non-citizen, non-resident sole proprietor of an LLC. My LLC has an EIN, but no employees. I set up the LLC to be able to bill clients in the US for services rendered 100% remotely from overseas (not necessarily my home country). I am pretty confident I am not liable to pay taxes in the US for the income earned through the LLC because I did not have a substantial presence in the US (183 days in the past 3 years), and I do not operate an office or warehouse, sell any products or have any employees or sales agents in the country, so the revenue of the LLC is not "connected" to work done in the US. This month I decided to start billing my US client through my LLC this month and they came back to me with a W9 form. I wonder whether this is the form I should fill, as a US LLC, or rather as a non-taxable non-resident I should ask for a W8. In the second case, does this create some sort of reporting between the IRS and the authorities of my country? I understand this is professional CPA advise I am asking for, so I am totally willing to pay for a full consultation, and for further services.