If You Have Tax Questions...

1. 73

   KeithTaxposted 14 years ago

   I'll be happy to answer them. I have practiced in the tax field for 27 years and enjoy helping others resolve tax issues. If the question requires a large answer I will create a hub page.

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   1. 88

      SimeyCposted 14 years agoin reply to this

      This is a very kind offer!
      
      My daughter is having a baby (due in May 10)-  she is living at home and not providing for herself or her baby - I'm assuming I can claim both as a dependant on my return as support more than '50%'....
      
      (I think a 'tax advice' hub would be very useful especially with Tax Season around the corner!)

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      1. 73

         KeithTaxposted 14 years agoin reply to this

         It sounds like she has no income and you are providing 100% of support. You can claim your daughter and grandchild, even if she doesn't live with you, if you provide over half of her support. All bets are off if she is married. It sounds like she is single, so... you can claim her and her child.
         
         Note: If she is receiving support (child support, alimony, gifts,or government assistance) you need to consider as her providing this support.

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         1. 51

            PennyNposted 14 years agoin reply to this

            I don't think you can claim unborn children as stated above??? The child is not due until May....

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   2. 51

      natashiposted 14 years agoin reply to this

      If I received an inheritance (not from a relative) and inheritance taxes were taken out before I received the check, do I need to report this on my income tax return this year?

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   3. 53

      scarletaposted 14 years agoin reply to this

      I normally opt for the standard deduction on my taxes however this year for work I have accumlated taxi receipts and they add up to more than I usually get for a standard deduction. How can I claim my taxi receipts? Do I need to send the actual reciept to the irs? The reciepts I have are the standard blank receipts does it need to have the drivers signature .. or will a copy of my workschedule with the taxi receipt be sufficent?
      Also, if my husband is on SSI/Disability does he need to file? or does it automatically happen?
      thanks scarlet

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      1. 73

         KeithTaxposted 14 years agoin reply to this

         Commuting to work is not tax deductible. In most cases you and your husband will file joint.

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   4. 54

      RobbWposted 14 years agoin reply to this

      Hi Keith - First off, thank you for your kind offer to help with my tax question. 
      
      Essentially, I just have a real quick clarification I need to make on whether I can spread points out on a refi or not?
      
      We refi-d our first in 2009 and paid $7k in points. We had no cash out per se but then we ended up using the lowered monthly payment to afford $4k in home improvements (for tankless water heaters that are documented on our 1040 because of the energy credit).
      
      What we're trying to determine is whether that counts to let us amortize $4k of the $7k in year one, or if it literally HAD to be cash out directly from the loan to pay for the improvements (as opposed to us charging the heaters and paying it off with proceeds from our new lesser monthly payment)
      
      Thanks!!
      
      RobbW

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      1. 73

         KeithTaxposted 14 years agoin reply to this

         Here are the rules on points paid on a mortgage.
         
         Points are fully deductible on Schedule A for a mortgage to purchase your personal residence.
         
         Points on any refi is amortized over the life of the loan. If the loan is paid off early or refied again, the remaining points are deducted at that time.

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   5. 61

      Jennifer Bhalaposted 13 years agoin reply to this

      Hi KeithTax
      
      Can you explain the rules about taxes and life insurance.
      
      Scenario.
      
      Owner of policy is parent
      Insured of policy is child
      Beneficiary is parent and child
      
      If parent gifts whole life insurance policy to the child so the child becomes owner while parent ex-owner is alive, is this a taxable event?
      
      Also, if owner and insured are the same person, the parent, I am certain that in most cases the child beneficiary does not have to pay taxes on the proceeds if that parent passes away. But what if the parent once again is alive and gifts the policy to the child making the child the owner?
      
      Thank you.

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   6. 52

      RJFights54posted 12 years agoin reply to this

      Well I figure I will def get an answer to a tax question in September, its like 10 lil questions in one so let's start with the reason I am looking for answers in sept...I am self employed carpet layer in Ohio I make on avg 23000 a year every year my wife and me file differently depending on who does our taxes we hav 4 children total and 2 together, she makes about 19000 a year W-2 mine is a 1099, the new guy that I'm workin for told me I can get 55cents a mile as instead of the 6000 bucks in gas I usually get credit for is this true, if you sense excitement its cuz I drive 600 miles a week for the new guy, my math says that is over 15000 dollars a year, CATCH? Or legit, that's the main question if you wanna answer the lil ones in ALL the info I had to give to make sure I did my part (info wise) thx, and I won't hold ya to it, funny how I treat u as a TAX GOD but the idiots that do them, my wife just tells me what we owe and I pay the man, HELP ME do better please

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2. 89

   rmcrayneposted 14 years ago

   Do I understand correctly: 
   
   If I am divorced by 31 December, tax filing options are Married Filing Jointly OR I can file as Single. 
   
   If the divorce is not final by 31 December, tax filing options are Married Filing Jointly OR Married Filing Separate. 
   
   Joint filiing would be in California.  If I file single/separate, it will be in Texas.
   
   Thanks!

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   1. 73

      KeithTaxposted 14 years agoin reply to this

      For tax purposes, your filing status on December 31st is your status for the whole year.
      
      If the divorce is not final on or before December 31st, you are either MFJ, MFS, and possibly Head of Household. It is also possible to file as single in some cases.
      
      If you are divorced by Demeber 31st your are either single or head of household.

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3. 61

   Ron Montgomeryposted 14 years ago

   Can I file a form stating that I prefer not to pay taxes this year?

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   1. 73

      KeithTaxposted 14 years agoin reply to this

      Of course. After signing your name, add "under protest." You will have exercised your right to free speech. The IRS will audit you and it will be an ugly audit. You may even enjoy the comforts of a local or regional prison facility. But, yes, you can file a form stating you perfer not to pay taxes.

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      1. 61

         Ron Montgomeryposted 14 years agoin reply to this

         Cool!........wait, what exactly is an ugly audit?  Will there be a cavity search?

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         1. 73

            KeithTaxposted 14 years agoin reply to this

            Ron, remember what it looked like when the Colts pulled the starters? That ugly.

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4. 53

   sammyjh45posted 14 years ago

   I have a couple questions. Im so confused because theres so many different answers im hoping you can help me out. Im 19 and will be 20 this comming march. This past year i had three different jobs. One i kept the whole year and a few temp jobs. My income for one job was 12103, another was 1266 and the other job will probably be around 1000 if not less. One of my jobs i wasnt even paid minimum wage. I am also a full time student. Will it be in my best interest to claim myself or should my mom. Also do i need to claim my two low paying jobs? One had less then 100 in taxes even taken out. Also i had 6000 in student loans im not paying on them yet but is there a tax creddit i can file for? Thanks for your help

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   1. 73

      KeithTaxposted 14 years agoin reply to this

      You are REQUIRED to file a tax return and MUST include all income. As a student, your mom has first right to your exemption and it is probably more valuable to your mom than to you. You need to speak with the employemnt department of your state about not being paid minimum wage.

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5. 51

   PennyNposted 14 years ago

   It is our year to claim my step-daughter on our taxes. I received a call from her mom today stating that they were going to use her as a for earned income credit. She said she understood this was ok since the child resides in her home and that it would not effect us claiming her as a dependent on our taxes. We are not eligible for earned income. Is she correct are is her doing this going to disallow me to claim the child???
   
   Thanks
   
   Penny

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6. 73

   KeithTaxposted 14 years ago

   Before an exemption is allowed, the child must enter the world and have an SSN.
   
   Child needs to live with you over half the year to claim EIC.

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   1. 52

      flygirl48183posted 14 years agoin reply to this

      can my fiance who gets ssi claim our daughter?

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7. 49

   kaleysimoneposted 14 years ago

   Hi Keith,
   
   I am currently making payments on last years taxes and I still owe a balance, can I still file this years taxes electronically?

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   1. 73

      KeithTaxposted 14 years agoin reply to this

      You can efile even if you owe back taxes. If you use an online software program, the ACK from the IRS will have an "I" indicator, meaning your refund will be reduced by the amount owed.

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8. 0

   Justine76posted 14 years ago

   Wow tax guy. What happens if somebody gets something wrong....will you get in trouble? I hope not, thats super cool of you to offer free advice.

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   1. 73

      KeithTaxposted 14 years agoin reply to this

      I will not get in trouble giving tax advice any more than I would writing an article about taxes. No worries.

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      1. 0

         Justine76posted 14 years agoin reply to this

         just wondering...you know how people can be. Mine are done, but Ill remember you next year if I run into anything

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9. 0

   Justine76posted 14 years ago

   why are there so many new hubless faceless hubbers on this thread? hmmmm

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   1. 49

      kaleysimoneposted 14 years agoin reply to this

      Basically just about everyone is faceless, at least those that so not have a true picture of themselves.  Sometimes people take time to decide which pik to hang.

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10. 49

    kaleysimoneposted 14 years ago

    I see that only certain questions are answered.  Is this simply because you prefer not to answer or can't answer some to the questions/comments.

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    1. 73

       KeithTaxposted 14 years agoin reply to this

       I answer what I can. The problem is time. After a 14-16 hours day preparing taxes, I really need a break. Please understand.

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11. 49

    jokourposted 14 years ago

    Keith, First, you are super fly for sharing your knowledge and time with us!
    I went to school for 7 months full time as well as worked full time for six months. I have a 5 year old and am going through a separation. The new education grants have me baffled, as well as whether or not I should file with my husband. What would be more beneficial?

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    1. 73

       KeithTaxposted 14 years agoin reply to this

       Filing a joint return usually has a lower tax than separate.
       
       You will need to review all the education credits available. This year you can choose from the Lifetime learning Credit, Hope Credit, American Opportunity Credit, or a deduction. If you went to school in the Midwest Disaster Area you get a bigger credit. Your facts and circumstances will determine the best course.

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12. 50

    Eldo Reenyposted 14 years ago

    i would like know some details on capital gains.
    A land(normal)  was compulsorily take by Govt. TDS was deducted at the rate of 10%. Will i have to further tax

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    1. 73

       KeithTaxposted 14 years agoin reply to this

       Huh?
       
       I think you are asking: Can you owe more taxes than is withheld?
       
       The answer: Yes.

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13. 49

    ksally3posted 14 years ago

    Hi there, quick question.  My husband and I are about to get a new HVAC unit installed in our house (this week actually).  We already filed our taxes, but are wondering if we can file an amendment to receive the energy efficient tax credit to help pay off the unit we are installing, or do we need to wait until next year to receive the credit?
    
    Any help would be greatly appreciated!

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    1. 73

       KeithTaxposted 13 years agoin reply to this

       Next year.
       
       If it is installed in 2010, you claim it on 2010's return, due April 15, 2011.

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14. 65

    Aley Martinposted 14 years ago

    Excellent! I also am a tax professional, 21 years...

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15. 52

    SoCalDeeDeeposted 13 years ago

    Hi and thanks for answering all these questions.  Very kind.
    
    My question is:  Will a seller get a 1099 for the relieved amount on a Short Sale.
    
    My father has a home in So. Calif. and lost his job and his wife past away.  His home loans (first and second) total 400K, house is currently vacant and up for sale.  We got an offer for 300K and are dealing with bank (through Real Estate agent) to do a short sale.  If short sales goes through, will he receive a 1099 for relieved amount?  He is still current unemployed (age 67) and could not afford to pay taxes on 1099 if received.  What to do?  We have moved him into a senior mobile home park (husband and I bought the mobile) and will not be looking to buy another home.  Any help on our options would be so appreciated.  Thank you.

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16. 78

    MarloByDesignposted 12 years ago

    Can I deduct home office expenses for writing part-time? Thank you.

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