Tag Archives: Taxation in the United States

Tax on Required Minimum Distribution (RMD)

Today TaxMama® hears from “AReasonableMan” in the TaxQuips Forum, with a question about his wife’s inheritance.  Essentially, it boils down to this. His mother-in-law died. Among the items his wife inherited is an IRA. When a person is over age 70 ½, they are required to draw a certain amount out of their IRAs and […]

State Reciprocity

Today TaxMama® hears from Crazy4Cats in the TaxQuips Forum, with this a very long question. Let me summarize. “Her husband works in Illinois and they live in Wisconsin. When they started out, they went to a storefront preparer who told them there is reciprocity between the states, and apparently only prepared a WI tax return. She […]

Using Per Diems

Today TaxMama® hears from Raj in the TaxQuips Forum, with a common issue. Let me summarize. (You can read the discussion here ) His tax return is being audited and the IRS auditor wants copies of receipts for his hotel stays for all his travel. But he used the IRS per diem rates, so he […]

Theft Loss

Today TaxMama® hears from Pierre in the TaxQuips Forum, with this issue. “In 2012, an S-Corp had an employee who stole cash from them through the inventory and sales. They own a NAPA Auto Parts store. They have camera tapes on him and have reported the theft to NAPA. They did not report the theft […]

Settlement After Death

Today TaxMama® hears from Marisa in the TaxQuips Forum, with this problem.  Let me summarize. (You can read the details.) “After her father’s death, Marisa received a settlement from a drug company class action suit. It was not taxable in her state. But now she has a notice from the IRS demanding taxes, based on […]

Recipient Gift Tax

Today TaxMama® hears from RJ in the TaxQuips Forum, with this question.  “I just came across TaxMama’s 2012-09-04 TaxQuip to “Ivan” entitled “Late Gift Tax Return” (at TaxMamas TaxQuips : TaxMama’s Free Daily Tax Podcasts or Late Gift Tax Return | taxmama | taxquips), which says (in part): … 2) Did you know that if a gift tax […]

Short Sale

Today TaxMama® hears from YbSick in the TaxQuips Forum, with a common question.  “In a short sale where they abandoned the property and they receive a cancellation of debt, is it non-taxable since it was on their personal residence? Is there a time limit on how long after they move out of the property it […]

2006 Refund

Today TaxMama® hears from Harry in the TaxQuips Forum, who is frustrated.  “IRS is denying a refund for 2006 individual return. The individual Form 1040 return was filed in 2010 and most of the tax was paid through withholding. An amended return was filed in 2012, requesting a refund of all tax paid due to a […]

Separate While Incarcerated

Today TaxMama® hears from AShepherd in the TaxQuips Forum, with a sensible question. “I filed married filing separately this year because, at the time, my husband was incarcerated. He is out now. Can we file jointly still and if so, how can we ( will a 1040x do the job)? I couldn’t claim anything, our […]

IRS Missed It

Today TaxMama® hears from Jack in the TaxQuips Forum, who is frustrated. Let me summarize. After not filing for a while, he got caught up. Now, the IRS has sent his wife a notice saying she didn’t report the sales of her stock. Jack says all that information was right there on their joint return. […]

Research Grants

Today TaxMama® hears from a couple of people in the TaxQuips Forum, with similar questions. The second one combines both person’s concerns. “My wife is a graduate student who received a few research grants this year. Some of them want to give the money directly to her instead of through the university, and have asked […]

Living Tax-Free

Today TaxMama® hears from Clifford in the TaxQuips Forum, with an excellent question. “I was told in an investment class that dividend income and social security income could be “blended ” to reduce taxes. We were told that up to $70,700 dollars could be sheltered from taxes. When we asked how this could be done, […]