Tuesday, January 28, 2014

Tax Form 8332 - Ask TaxGuru

Recently I remarried and changed my name, I havent changed the name on my social security card yet. A few years ago I signed the 8332 tax form for my ex-husband to claim our 4 children on his taxes for all furture years. After I change my name on my social security card do I need to sign another 8332 tax form with my new last name?
 
Answer:
 
#1;ok.however,just for reference, an 8332 signed for future years can be revoked by signing a different part of the form. It has to be given to the non-custodial parent, but it can be pretty hard to prove that it wasn't . You can also use Form 8832 to revoke a dependency exemption that you had previously released.A revocation is not immediate; it goes into effect for the year after you provide the noncustodial parent with a copy of the revocation.
 
#2;your ne name is not required to file form 8332 for yur ex; in lieu of form 8332, the noncustodial parent may attach a written declaration conforming to the substance of form 8332. To meet the requirements of IRC ,this statement must include the Name of the Click to Read More...

Monday, January 27, 2014

How to Calculate the Tax Liability for a Portion of Income - Ask TaxGuru

I'd like preface this by stating that I am not looking for any moral or ethical judgments. If you cannot offer me advice on calculating the taxes or other helpful information please do not respond. This may seem rude but I've found people on message boards can be extremely judgmental.

I need help calculating the tax consequences on a portion of my income. I was working as an independent contractor for a company my friend worked for. Through some lies and misrepresentations he convinced me to allow him to earn extra income under my name. I understand this was wrong and quite possibly illegal but I did not completely understand the situation at the time. The situation as since been rectified and will NEVER happen again. He earned $3,436.02 in my name. I earned a total of $4,854.03 from this company, none of which was taxed since I was an independent contractor.

How do I calculate the tax consequences for his portion of the earnings? He has agreed to pay me for this but I want to make sure I do the calculations myself so he cant screw me over any further.

I'm sure someone will need further information regarding my financial situation to answer this question but I am not sure what to provide. I can tell you I live in FL so I do not need to worry about state tax consequences. Please let me know what is needed and I will try to provide it.


Answer:

assume that, your net,NOT GROSS as I have no any info on your biz operating expenses, self employer’s income is 8290.05;$3436.02+$4854.03.however, you need to calculate the seca tax only on $3,436.02 that was earned in your name but it actuaaly belongs to your buddy. I assume that you file sch c /sch se to report your self employer income Read More Here...

Friday, January 24, 2014

I Wasn't Supposed To Pay State Taxes - Ask TaxGuru

I am an active duty service member currently residing in a U.S. state as a legal resident that filed income taxes last year and state taxes were deducted. While reviewing tax information and working on filing for this year, I had been informed (I had e-filed, both years) that as an active duty service member residing in this state that I do NOT pay state taxes. There have been zero changes to my living situation, marital status, state of residency etc. in the last year.

Who would I contact/how would I go about getting that money back from the state? Should I contact the IRS and take it up with them? I'm unsure of the process and am not having much luck researching the information.

Answer:

#1;Different states have different rules for taxing military pay. In general, UNLESS the state where you are residing is your home state, you are NOT subject to state tax to the state. Military personnel and their families have special rules for their state tax situation. You will pay taxes to your home state even you are stationed at another state. That is why, many in military claim Washington, Texas, Tennessee and Florida or etc. as their home state because these state have NO state income tax. However, if you earned income from outside job in another state, then, you need to report the income that you earned in the state to the State as a nonresident/ or a resident of the state and can claim the tax that you paid to the state on your home state return.
Note; the family member of the military person MUST pay taxes on income earned within the state borders of the state where the family is stationed. Most states have them report as residents, but some have them report as non-residents. It varies Visit This Link to Know More...

Thursday, January 23, 2014

Confused about 1098-T and 2012 - Ask TaxGuru

Hi basically I didn't file in 2012, and I'm not sure If I even had to because I only made about $5000. I was a student though and I think If I had filed I would have received a credit. I Have decided to file this year for 2013 I made even less though about $3400. I didn't attend any classes in 2013 though Although I did register. I was wondering if it is still possible to try to claim the credit in anyway or if I should try to file both 2012 and 2013, and how I would go about doing that. I'm pretty lost with all of this any help would be greatly appreciated.

Answer:

#1;I guess it depends; You must file a federal income tax return if your income is above a certain level; which varies depending on your filing status, age and the type of income you receive. There are some instances when you may want to file a tax return even though you are not required to do so. You should file to get money back if Federal Income Tax was withheld from your pay, you made estimated tax payments, or had a prior year 2011 overpayment applied to next year’s tax, 2012 or etc. You may qualify for EITC if you worked, but did not earn a lot of money.EITC is a refundable tax credit; which means you could qualify for a tax refund.

#2; You can claim the Lifetime Learning Credit on your tax return if you, your spouse, or your dependents are enrolled at an eligible educational institution and you were responsible for paying college expenses; It provides a tax credit of 20% of tuition expenses, with a maximum of $2K, 20%*10k in tax credits on the first $10K of college tuition; The American opportunity tax credit can be claimed for expenses for the first four years of post-secondary education. It is Click Here to Read More...

 

Wednesday, January 22, 2014

Tax Collection Statute of Limitations Filed Return 2004

I filed my taxes through H&R block in 2004 owing a few thousand dollars. I sent a check for the amount due but the check was never cashed by the IRS. I have filed my return every year since almost always getting money back. They have never said anything about the 2004 year. It has now been 10 years since then and still haven't received anything from them about 2004.

This year I owe a couple thousand and want to apply for the online payment plan. Will this be a red flag and cause the IRS to notice my 2004 taxes not being paid. Or should I not worry about it because the statute of limitation on collection of the return has been reached.

The reason they did not cash my check was due to my parents claiming me as a dependent even though I wasn't. My parents refiled their taxes not having me as a dependent leaving my tax return being true but they never cashed my check. I did not receive anything asking me to re-file.

Advice would be appreciated.

Thanks,


Answer:

#1;I don’t think applying for the online pmt plan ‘d be a red flag as long as you paid/filed the taxes on time 10 years ago; I mean you owe no back taxes to the irs.Individuals or businesses who have unpaid taxes to the IRS may wonder how long the government can continue to collect on this debt. The length of time allowed by law to file legal proceedings against a person is known as the SOL. While this definition applies to all types of legal proceedings, in Click To Read More...

Tuesday, January 21, 2014

Can I reclaim SE taxes I paid on a loss? - Ask TaxGuru

Last year I had 25k in income from partnership. I paid my federal taxes and SE employment taxes. This year, I have a 25k loss in the partnership. I see in my turbotax software the refund of federal taxes, but I am not seeing an SE taxes. Is there a way to get these back as well?

 Answer :

No you can’t get se taxes paid last year;on your last return, on your 1040, you deduct 50% of the se taxes paid to the IRS on 1040 line 27.


the tax deduction for SE taxes apply whether you choose to itemize your deductions or not, meaning all self-employed taxpayers stand to benefit from the deduction. The IRS states that the SE tax deduction does not apply to any taxes other than income taxes Click to Read More...

Monday, January 20, 2014

Louisiana State Tax - Ask TaxGuru

I live in Florida, work in Texas and the company I work for is based in Louisiana. My employer withheld $2400 in Louisiana state tax. H & R Block just did my taxes and I only got a $400 refund on the state taxes. Why did I have to pay $2000 in LA state taxes when I live and work in states that do not have a state tax? If this is a mistake how do I fix it? Thank you!
 
 
Answer : 
 
#1;Your ER made a mistake as you do not physically work in LA but you physically work in TX, you do not need to pay state tax to LA regardless of your ER’s location(LA in this case; however, you didn’t work in LA but you work in TX). You will not owe anything to LA as mentioned above. As you can see, there is no state tax in TX/FL.

#2;Since your employer had LA tax withheld, talk to someone in payroll immediately. In fact, print this answer and take it with you. They should refund any LA tax to you and do not need to start withholding TX/FL tax as there is no state tax in FL/TX. If they can't or won't refund the LA tax you had withheld, you will need to file a non-resident LA tax return for 2013 showing no income Read More...
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