13 votes
Accepted

How does IRS know that I calculated tax using worksheet "Qualified Dividends and Capital Gain Tax Worksheet"

The Schedule D instructions specify under what circumstances (based on boxes checked and/or numbers entered on certain lines) you should use the worksheet. When the IRS processes your return, if you ...
user avatar
  • 28.5k
6 votes

Entity donates to a charity in exchange for my work: do I need report this to the IRS when filing for my taxes?

This is going to depend on the answer to a seemingly simple question: Will you, or anyone you are connected with, benefit from the donations made? In the "normal" circumstances, where the ...
user avatar
  • 30.1k
4 votes

Entity donates to a charity in exchange for my work: do I need report this to the IRS when filing for my taxes?

It appears that your employer is violating some laws, and possibly you do too, with this arrangement. It allows both of you to avoid the payroll/self-employment taxes, and allows you to be able to ...
user avatar
  • 129k
3 votes

Entity donates to a charity in exchange for my work: do I need report this to the IRS when filing for my taxes?

It is useful to separate the question of your tax obligations from any other concerns about the legitimacy of the arrangement. It seems the worst-case (for you) position that the IRS could take is ...
user avatar
  • 28.5k
3 votes
Accepted

Forgot to submit 2020 tax return, now file amendment?

If you have never filed a return - you just file a return. You have nothing to amend since you filed nothing. The longer you wait the closer you get to the statute of limitations running out. You ...
user avatar
  • 129k
2 votes

How to calculate effective rate of tax - UK

Most people will look at income tax, national insurance, and possibly dividend tax (as a small business owner). Calculating these from your gross income is slightly complicated, but not too difficult. ...
user avatar
  • 20.9k
2 votes
Accepted

Why would CP11 notice of incorrect Child Tax Credit have an amount that isn't a multiple of $500

Assuming this was for tax year 2021: You said in a comment that your joint income was below $200,000. However, the first phaseout of the child tax credit begins at $150,000 for married filing jointly. ...
user avatar
2 votes

Itemizing property tax deduction on California state taxes?

California doesn't conform and there's no limit. See here on the FTB FAQ: State and local taxes Federal law limits your state and local tax (SALT) deduction to $10,000 if single or married filing ...
user avatar
  • 129k
1 vote

Itemizing property tax deduction on California state taxes?

As littleadv's answer said, there is no $10,000 limit for real estate taxes on California itemized deductions. To see this, see for example the 2021 form 540 Schedule CA Part II. The net result for ...
user avatar
  • 15.7k
1 vote

Foreign Tax Credit for US Citizens: Levied/Accrued?

You deduct (or rather, take credit for on form 1116) A-B-C, and you need to have your German tax return ready by the time you prepare your US return. The deadline for US taxpayers abroad is extended ...
user avatar
  • 129k
1 vote
Accepted

Is this Class Action lawsuit settlement taxable as a long term capital gain?

The lawsuit is settled and the investor receives another check. It is my belief that this second check is taxable as a long term capital gain. Am I right about that? Yes. Note that the attorney fees ...
user avatar
  • 129k
1 vote
Accepted

How do I get the Social Security Administration to Issue a Corrected 1099?

I called the local Social Security office to make an appointment. They weren't taking appointments due to Covid, but they fixed it for me! I got a corrected SSA-1099 in the mail. The moral of the ...
user avatar
  • 1,613

Only top scored, non community-wiki answers of a minimum length are eligible