Category Archives: Tax Related

Is There a Tax Penalty for Filing Jointly? – Kathy: “Dear Jim, im about to be married my fiance wants to know if there is a tax penalty when you file married filing jointly Kathy” The Answer: Thanks for your question Kathy. Your question: Is there a tax penalty when you file jointly? Almost always, it is more beneficial to file jointly to take advantage [...]
I Can’t Pay My Estimated Quarterly Taxes. – Heather: “Dear Jim, I’m a freelancer who recieves a 1099 and pays estimated quarterly taxes but last year I was unable to keep up with my payments due to medical bills and other hardships. I do not think I will have enough to pay my 2011 taxes owed by April 15th, as well as, paying my [...]
My Husband Passed Away. Can I File My Taxes as Single Now? – June: “Dear Jim, my husband passed away we always filed jointly..can I file as being single this year? will I have to file his income tax…what is the best root to pursue? June” The Answer: June: Thanks for your question. First of all, I am sorry for your loss. Your first question: Can I file jointly [...]
My Parents Are In Serious Debt. Should They Save for Retirement? – Elizabeth: My dad lost a job many years ago, and was depressed and didn’t file their income taxes for 10 years. They owe 77k to the government, and they put in an offer in compromise with the IRS, but were told that they should be able to pay they full amount. At this point they have [...]
My Company Has Lost Money For the Past 6 Years. What Will The IRS Think? – Wahi: “Dear Jim, I’ve a fulltime job as an IT consultant. I also have a food distribution business as well. Your Question * My company has lost every year for the past 6 years, and this year too, I’m in a loss. Since it’s an ‘S’ corp, I’ve been posting the loss on my personal, which [...]
I Don’t Know if I Have to File Taxes Because I Was in School. – Jone: “Dear Jim, I have always done my taxes my self, and I didn’t know if I had to file my taxes this year or not. In 2011 I was in school, but I was not working. I was collecting child support for my only income to live on. I received a W-2 from the school [...]
Homebuyer Credit and Taxes. Do We Have to Pay the IRS? – Theresia: “Dear Jim, We bought a house in 2008 and got the first time homebuyer credit of 7500$. We sold the house in 2009 due to expected military orders. (We ended up NOT getting military orders) We took a 14,000$ loss on the sale of the house. Last year we made an “installment” payment on the [...]
I Got a 1099-C On My House in Miami. How Do I Handle This? – Bill: “Dear Jim, Paid $200,000 for second home in miami in 2006. Got a 1099c for $80,000. This is for 2010, and i have not filed 2010 taxes. Just an extension. still can’t figure out how to handle 2010 taxes which i have not yet filed. I think i am too old for all of this. [...]
Can My Father Sell His Home Without Paying Taxes? – Eva: “Dear Jim, I am in charge of my dad’s property. My father 82 urs old, lives in Mexico and owns a 2 flat that he rents out here in the US , he has asked me to sell it. In order to take advantage of the 1 time tax free sale of a property for [...]
Can I Get Rid of Back Taxes in My Chapter 7 Bankruptcy? – Jacquelyn: “Dear Jim, I am converting from chapter 13 to a chapter 7 and I have owed federal taxes in it they will work with me on it won’t they? Will they work with me to pay back my taxes? Jacquelyn” The Answer: Dear Jacquelyn, Thanks for the question. Although bankruptcy is filed in federal US [...]
My Mother-In-Law Moved From Puerto Rico to the U.S. Does She Need to File a U.S. Tax Return? – Amy: “Dear Jim, My mother-in-law moved from Puerto Rico to the US and the only income she has is from a pension that she receives from a lifetime of teaching in PR. Even though she lives in the US, does she need to file a US tax return if she does not receive any US income? [...]
How Does My Husband Get Back His Tax Refund as an Injured Spouse? – Regina: “Dear Jim, I have lived in Phoenix arizona since 2003. Attended college in 2003 took a LOA went back in 2005. Have not had any income since 2003. I Was not able to complete course (I know has no bearing). I have been married for four years and I do not work and have no [...]
The Virginia Department of Taxation is Taking All of My Pay. – Leslie: “Dear Jim, I owe back taxes to the state of Virginia for ’06 and ’07. I neglected to pay only because I was dealing with a brain tumor. The VA Dept. of Taxation levied a garnishment of 100% of net. VA Dept. of Taxation uses federal tax exemptions not federal limits for garnishment. At least, [...]
The IRS is Taking Money Out of My SSI Payments. – Barbara: “Dear Jim, The IRS is taking money out of my SSI after I sent in the form to the collection agency that is is “supposedely” handling this case. They are G.C. Services out of TN. and I have another case with case citibannk but fortunately they are are still processing it. What can I do [...]
I Owe the IRS. Will They Settle for a Lesser Amount in an Offer in Compromise or Do I Need an Attorney? – Diana: “Dear Jim, I owe the IRS $26,000. There were some years I failed to file taxes and some years I filed and owed, but they said I never filed, I have the copies. I have all the information except one year. My question is will the IRS settle with me for a lesser amount or [...]