Answer: When determining whether you need to file a return, you don’t include tax-exempt income. In 2017 for example, if you are under age 65 and single, you must file a tax return if you earn $10,400 or more, which is the sum of the 2017 standard deduction for a single taxpayer plus one exemption.
Answer: To claim your child as your dependent, your child must meet either the qualifying child test or the qualifying relative test:
- To meet the qualifying child test, your child must be younger than you and either younger than 19 years old or be a “student” younger than 24 years old as of the end of the calendar year.
- There’s no age limit if your child is “permanently and totally disabled” or meets the qualifying relative test.
In addition to meeting the qualifying child or qualifying relative test, your child must also meet all of the other tests for claiming a dependent:
- Dependent taxpayer test
- Citizen or resident test, and
- Joint return test
Answer: Generally, to qualify for head of household, you must have a qualifying child or dependent. However, a custodial parent may be able to claim head of household filing status with a qualifying child even if he or she released a claim to exemption for the child.
Answer: It depends on the type of mistake you made:
- Many mathematical errors are caught during the processing of the tax return and corrected by the IRS, so you may not need to correct these mistakes.
- If you didn’t claim the correct filing status or you need to change your income, deductions, or credits, you should file an amended or corrected return
Answer: No, one of the conditions of your installment agreement is that any refund due to you, the IRS will automatically apply against taxes you owe. Because your refund isn’t applied toward your regular monthly payment, continue making your installment agreement payments as scheduled.
Answer: If you claim an exemption for your daughter as a dependent on your income tax return, she may not claim a personal exemption on her income tax return. Your daughter should check the box on her return indicating that someone else may claim her as a dependent.
Answer: You must make estimated tax payments for the current tax year if both of the following apply:
- You expect to owe at least $1,000 in tax for the current tax year after subtracting your withholding and refundable credits.
- You expect your withholding and refundable credits to be less than the smaller of:
- 90% of the tax to be shown on your current year’s tax return, or
- 100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months.)
There are special rules for:
- Farmers and fishermen
- Certain household employers
- Certain higher-income taxpayers
- Nonresident aliens
FAQ's from Realtors
There a quite a few things that a Realtor can write off on thier taxes. Below are just a few examples:
- Commissions Paid to others
- Legal & Professional Services
- Advertising expenses
- Home office deduction
- Education & Training
- Office rent & expenses
Crypto-Currency a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.
A few examples of Crypto- Currency are:
- Bitcoin Cash
- Etherum Classic
You owe taxes if you sold or spent crypto. … That gain can be taxed at different rates. If you held a virtual currency for over a year before selling or paying for something with it, you pay a capital gains tax, which can range from 0 percent to 20 percent.
Crypto-Currencies held as capital assets are taxed as property. If Crypto-Currency is held as a capital asset, you must treat them as property for tax purposes. … Like stocks or bonds, any gain or loss from the sale or exchange of the asset is taxed as a capital gain or loss.
Answer: You can’t legally do so. Even if your state has legal medical marijuana, it is still not legal under Federal law and therefore it does not qualify as a tax deductible expense.
Answer: The IRS has invoked drug laws to make it difficult for medical marijuana dispensaries to deduct their business expenses