Unanswered Tax Questions

Small Business

What state should I incorporate a new business in?

I am based in Seattle, WA, but am opening an import/export business, planning to ship an existing product globally out of Guatemala. The product itself will never need to come in to/through the US, but I would like to be able to pay employees from the US and do other banking from the US. I am interested in advice on which US state to incorporate this new business in, given the different tax implications of all the different states. Thanks

Business Formation

Have I set up the correct business structure?

I have recently formed an LLC in Florida. I live in Arizona and she lives in New York. Our business will be providing travel and concierge services to clients across the country (not state specific). All the work will be doing will be conducted from our laptops and we have no physical address (we are remote). My question is in order to comply with florida llc regulations, do we need to register foreign LLC's in the states that we both live in. Or if we open a bank account and receive all invoice payments in florida, does this satisfy the requirements? Further, I am looking for a CPA that can support us with the business moving forward.

Tax Filing Tips

filing after a divorce

I was divorced in 2023 and have no income. We sold a home as part of the divorce. I purchased a home after the divorce. I need to know what it is that I must claim on my 2023 taxes. I do have some investment interest to claim.

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?