Unanswered Tax Questions
CPAs - answer tax questions, and introduce your practice to potential tax clients.
How does it work?
2023 Tax withholding
Hi, my spose and I (filing jointly) have made ~82,000/year and ~87,000/year, respectively. We have paid ~15,000 in taxes (maximum of taxes during 2023 according to our W4), and yet we have tax due of ~7,500. This income is from our W2 and we don't have other sources of income or anything else. It says that we should have paid ~22,000 in taxes in 2023. I guess my main question is how does the tax withholding gets calculated? I was looking at pg.4 on the W-4 form, and looks like we're within the estimated tax withholding range, hence not sure where is the 22,000 getting calculated from? Any insight on this would be very helpful, especially how does the tax withholding gets calculated yearly so we don't have to pay this much at the end on top of what we pay during the year. Thank you in advance. Best, Klausa
Asked Tuesday, March 12, 2024 by Klausa B.Sign in to Answer
Submitting a return
I am a 78-year-old retired American living in the Philippines. I am married to a Filipina. My total retirement pension and social security is about $22,000. I have no dependents. My question is; do I have to submit a tax return?
Asked Tuesday, March 12, 2024 by David L.Sign in to Answer
IRA rollover/Solar credits
I have a traditional IRA that was started in the mid-1980s. Shortly after I started it there was a change in the tax laws, eliminating any deductions from it. Consequently, I never used any deductions and never made any more contributions to it other than the initial minimum deposit required to open it, which I think was $2,000. The latest account holder is Sofi.com since September, 2019. They are reporting a $27,281.22 gain since that date. There are no documents available from eTrade, the previous holder, and I have no tax records going back to the 1980s. It’s value is now a little over $103,699. I’d like to rollover into my already-established Roth IRA. Since there were no contributions or deductions ever claimed for the Trad IRA, are the gains taxable at I rollover? If taxes ARE required, are they based on the $27,281.22 gain reported by Sofi or $101,000, the apparent gain since the 1980s? We also have a $14,000-plus solar credit we thought we could use to offset any taxes on the rollover. We’re moving overseas this summer and will be converting our residence to a rental. We’ve been told by tax pros once we rent our house, we can no longer use the tax credit, so we have to use it before summer or lose it. Would I have to file quarterly estimated tax payments to pay (via the solar credit) any taxes due from the rollover to avoid underpayment penalties?
Asked Monday, March 11, 2024 by Stephen W.Sign in to Answer
Capital Gains Tax (CGT)
Good morning, I have miscalculated my Capital Gains Tax (CGT) and applied the' more than 12 months holding' not the 'up to 12 months holding'. As such, my tax bill will become 2x what i had provisioned for. Come tax time when i submit my tax return i was curious what the consequences will be? is there a way to pay half (the amount i had provisioned for) then go on a payment plan? Thanks Ed
Asked Monday, March 11, 2024 by Ed P.Sign in to Answer
aca payback after receiving inheritance
1. married filed joint 2022, I’m 65 spouse is 68. 2. spouse receives SSI of 26,000.00/yr. I do not receive any payments from SSI or pension. 3. I used ACA for January-April 2023 then turned 65 in April and enrolled into Medicare 4. Inheritance received in June 2023 in the amount of 49,000.00. 2023 AGI est is 86,000.00 5 That causes a repayment of $2440.00 from ACA. Is there a way to show a schedule that says since inheritance was rec’d after enrollment into Medicare – the credit that was applied in the first 4 months should not have been removed?
Asked Monday, March 11, 2024 by Jeff I.Sign in to Answer
Taxes related to 2023 - foreign-owned corporation
Hello, I would like to know if you provide services to assist with tax declaration related to 2023. My LLC is considered a foreign-owned corporation because I am not a US citizen. If I understand well, I need to file a 5472 + 1120 Proforma (Foreign ownership of a US company) - is that correct? I will be kindly waiting for your reply. Thanks.
Asked Sunday, March 10, 2024 by Juliana R.Sign in to Answer
Tax forms for Foreign Owner
Hi there, I was reside in the states until last year under a work visa and from 2021, I have established an LLC with a US citizen. Since 2023, I officially moved out and back to my country, Indonesia. For this upcoming tax year, what forms do I need to file now that I move out the country? In the past, I filed 1065 and K1. Thanks.
Asked Saturday, March 09, 2024 by Yuliana W.Sign in to Answer
Tax liability when LLC terminate
I established an LLC in October last year and terminated the company in March this year. The company has been inactive for the past period and has no revenue, expenses, or bank accounts. Do I still need to file a tax return with the IRS?
Asked Friday, March 08, 2024 by Jackie Z.Sign in to Answer
New clients
To whom it concerns: Do you accept new clients in order to get my taxes done? I am married and file jointly. How much do you charge to do my taxes? Please let me know. Sincerely, Catherine Molineux
Asked Thursday, March 07, 2024 by Catherine M.Sign in to Answer
BUSINESS FORMS REQUIRED FOR MY TAX FILING
I am a Single Member LLC in NJ. I did not file taxes because no revenue was made on my business and I was informed not. I did not file for 2022 & 2023. Do I need to still file for the those years? What documents do I need to file? My business is registered in the state of New Jersey.
Asked Thursday, March 07, 2024 by ALLISON R.Sign in to Answer