Unanswered Tax Questions

Questions Asked by Users That Have Not Recieved a CPA Response.

View All Tax Questions

Deductions and Write-Offs

Paying charities for advertising/affiliate referrals

Asked onThursday, June 29, 2023 by Jenn

I have a small online business (singer-member LLC) in Oregon selling pet products. I would like to set up an affiliate program and partner with animal shelters. The idea is to create a coupon code unique to a particularly animal shelter which the shelter can then share with their adopters. When someone uses the coupon code to buy from my website, the shopper would receive a 10% discount, and additionally, 10% of the sale would be given back to the shelter (via a check mailed out quarterly from my business bank account). So, this is a pretty standard affiliate program except that participation is limited to nonprofit organizations. How do I handle the tax side of this, and what headaches can I expect? My understanding is that my payment to the shelter would not be considered a donation, and I should just deduct it as a regular advertising expense. Is it that simple? Does it make any difference if the shelter is a 501(c)(3) or not? And how do I avoid creating any headaches for the shelter organization (accepting payments for services vs accepting donations)? Thank you for your time!


Payments and Penalties

PA penalty abatement for reasonable cause? (Not 1st-time abatement)

Asked onWednesday, June 28, 2023 by John

Hi. Does PA offer an abatement of penalties/interest for Reasonable Cause? (As opposed to a First-Time Abatement of penalties, which I'm not eligible for.)


Tax Filing Tips

W4 Status

Asked onWednesday, June 28, 2023 by Amy

I have a spouse who passed away in April of this year. We always filed jointly. I will be returning to the workforce next month and need to know how to fill out my w4 appropriately. Should I use single or married filing jointly for this year. I would prefer to not have to change it later if possible. We have no dependents.


Personal Taxes

Issue with offer in compromise

Asked onWednesday, June 28, 2023 by Alvin

I have an offer in compromise that was accepted by the IRS. I was told I have to stay in compliance with filing taxes for the next 5 years. In California we were given an extension to file taxes until October 16th, but I received a letter from the IRS saying I was not in compliance in filing my taxes by April 15th


Payments and Penalties

Help can I recover my money from another’s mistake

Asked onWednesday, June 28, 2023 by Richard

I am a independent contractor, a tax service prepared my taxes for the last two years I owe the IRS, a certain amount of money, and I do have an arrangement with them to pay the back taxes. the service I used made a mistake and it cost me over $6500 in over paid taxes. The IRS does not want to give me my money back because I owe them that much even though I unintentionally paid it due to the mistake of the tax preparer, my question is, do I have any recourse with the tax preparer to get my money back for their mistake, thanks for the help


Personal Taxes

Earning income different state than residing

Asked onTuesday, June 27, 2023 by Scott

If i earn $110,000 salary in georgia, but I live in south carolina what is my tax burden, filing married jointly, no kids, do not own a home? Do I have to file income taxes for both states?


Deductions and Write-Offs

Electric Vehicle Rebate/Grant Qualification Question

Asked onTuesday, June 27, 2023 by Matthew

Hi! I'm looking to purchase a Tesla Model 3, and I was wondering where I stand with the state, federal tax credits. I recently graduated from college and have been driving my 2009 Nissan Versa for the last 7 years. I was wondering if I qualify for the full $15,000 ($7,500 Federal Tax Credit for Plug-in Electric Vehicles + $5,500 - $7,500 California Clean Vehicle Rebate Project (CVRP) - Increased Rebate). My income for the last two years was just internship hours (summer) so my AGI: ~20,000, but I will start my FT job next week making about 110k base. So would I qualify for the grant for low income, by using my previous years income, and the tax credits by using my current year income since I’m purchasing this vehicle this year?


Family Issues

Taking RMD'S and still contributing to IRA

Asked onTuesday, June 27, 2023 by William

Im 73 and take RMD'S. My wife is 62, still works, and we pay for her health care. I have 18% taken out of RMD'S for federal and state taxes. Then I contribute $7500 back into Trad IRA to lower income so she can get a small health care subsidy and lower tax liability.. Does this make sense or would it be better to just put the $7500 into a Roth IRA with a 5% return?. I feel I'm going back and forth by taking taking RMD'S and then putting much of it back in. We are filing jointly and are in the 12% tax bracket.


Personal Taxes

Real estate Tax

Asked onTuesday, June 27, 2023 by Karl

Hello . I have a question regarding taxes for the sale of my primary property. I recently sold my townhome on 4/25/2023 (closing date) . I did own it for two years. My question is that do I need to file the sale of the property with my 2023 tax filings or should this be excluded. I read on your site about an ownership test which explains how a tax exclusion would work.


Personal Taxes

Husband died widower pension 902.00 only income now what withholding ? No withholding or standard

Asked onTuesday, June 27, 2023 by Janet

My husband just died, I have papers from his work for the widower pension, I will receive 902.00 and that is my only income, we have nothing else like annuities ect… the tax papers sent to me want me to pick what withholdings on the pension check, I want to say non because that’s all I will have, I don’t have a job I’m 61 and disabled, I receive no disability. Should I claim non or standard?