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I overpaid Social Security taxes in 2020 to an employee who made 150,000 in 2020. I did not take into account the 137,000 limit on wages subject to SS withholding and paid based oin the 150,000.
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My father, a non-resident alien passed away and I have to file 706-NA for $65,000 cash he had in a US brokerage account. I understand that 60,000 is not taxable.


1. Table A—Unified Rate...

Wash Sales / Disallowed Loss Carry Forward

I would like to know if the deferred disallowed loss from the sale of stock can be applied to the replacement stocks if I sell them at the end of the...

1) How can someone that has a JTWROS Brokerage account "break" that account, or change that account to another type, like for instance Joint Account in Common. The goal is to protect the heirs from...

Hello,

We are a C Corp. hiring 2 perople, myself & my wife. I am the sole owner. We have a HRA plan, where the C Corp. reimburses the IRS-allowed medical & dental bills. Due to IRS Notice 2013...

Thanks!

I am about to receive a wire transfer from Argentina of around 500,000, which is a gift from my father, funds which I will later invest. I believe I must simply file F3520 with the IRS, since my...

Thank you so much!!

Do you mean that, since she is still our dependent, she will not claim personal exemptions, and therefore, will not be eligible for any education credits or deductions, correct?

Hi, I'm back. This is sort of a dumb obvious-reply question, but just in casee, here it goes...

Following the above topic, we agreed that my daughter will file her tax return, to try to get a...

Great!! Thank you so much for your help!

Gus

Great,. I use the PAID version of Taxact for our tax returns, so I am familiar with the program. So, you are saying that, even if we claim her as a dependant, she can also file her tax return and get...

Thank you for your reply, but my question would be then, if she is our dependent, can she still file a 1040?

My daughter is 19, she lives with us, is in college and only earned $1,800.00 in 2012. She received the W2 which shows Inc Tax Withholdings of around $120.00. We claim her as a dependent. How can she...

Thank you!

Gus

Thank you. To give you more informaton, these are shares from a company in Spain. At the time of paying dividends, they ask you to choose if you wish to receive the dividend either in a) Cash (Cash...

If I receive dividends in more shares of the company,.

a) How are they taxed?
b) When I sell those shares recveived as dividends, is the cost basis zero or the market value at the date I...

This is exactly what I also believe. Thank you!

How can I back this with any IRS code or rule which would explain this?

Here are 2 links, which quite show a cost basis calculation with 2...

Hello,

No, not reported on W-2, as it actually has nothing to do with wages nor the company I work at.

This proceed comes from an investment I have in Bk of Ireland shares (as ADRs, as I...

I never received anything else than a bank deposit for the total amount of the sale. Nothing reported in the 1099_DIV. No detail or breakdown whatsoever.

I called Etrade again today, and after a...

Thank you for your quick reply. You are right: it reads when distributed. The problem for me it how to determine this "value when distributed", so as to subtract it from the proceeds.

I actually...

Income from Sale of ADR Stock Rights? - Form 1099-B

My 2010 Form 1099-B shows Gross Proceeds from the sale of rights for ADR shares. I received these proceeds, as I had not exercised the right to...

Thanks, again!

Gus

Thank you. It did seem so, but was double checking. Thanks for the quick reply!

My daughter, 19 years old, has no earned or unearned income, and is a full time student 400 miles away from home. We pay 100% of all her bills: housing, food, books, tuition, etc... The rules seem to...

Scott,

Thank you very much for your reply. I also feel that it is risky and that the landlord's goal is to have several guarantors, in which case I will not take the risk. Thanks again!

I would like to know what is a Guarantor Joinder rental agreement? My daughter intends to rent a unit with 4 friends in a college apartment complex, off-campus, and the contract is named "Guarantor...

I am about to change the brake pads in my 2007 Jeep wrangler JK, 2WD, and notice that when I lift the jeep, and the wheels are off the ground so as to remove the wheels, the wheels do not rotate 100%...

In Corp. 1120 Inc Tax Form, Line 16 "Rents" seems to be for includeing Rent of a car or other capital assets, but should I also include in that box the rental I pay for my office & warehouse space?...

Thank you. I agree 100% with your opinion. I believe they just require it to have a formal "identification" document for each supplier. Of course, I do not want to ask each supplier and client for...

Well, I am not so sure about that. You see, I sell computer furniture, and I sell to many Fortune 500 corporations. They require me to send them a W-9. They know I am a corporation (and not a medical...

Morgaine,

Thank you for your reply. Also, I did not double-post. This is the original post.

It is not clear to me when I have to require a W-9. It seems clear when I use services preformed by an individual or business, but do I have to require one for every single payee?

Eg.

Phone...

I am not sure if I have to issue 1099 form to the following businesses to whom I made payments above $600 in 2009 for their services & products to my corporation:

1. Freightquote.com (an huge...

Thank you very much for further clarifying these complex concepts. I will do my homework and read your suggested material. Thanks again...

Thank you very much. This clarifies the issue quite a bit. I do have to read your suggested IRS material yet, but it seems that the goal for the IRS is to tax, at the C Corp level, all the profit (or...

Hello, ArcSine,

Thank you for the explanation. Honestly, I do not understand why the differences in the balance of AR & Inventories (not their values) represent a BIG or BIL. The balance changes...

Thank you. I had read that material already and everything I found online and on Internal Revenue Service about S Corps, corps, etc...

I could not find a clear definition to determine if the...

Thank you. I thought it was a bsic question.

Regards,

I own a FL C Corp since 2001, but am considering to elect S Corp tax status. I have read about eventual tax consequences of appreciated property and passive income when switching from C Corp to S...

Thank you for your point of view. The only reason that I want to change is that I just want to do it the correct way, so... if my accouting is Accrual Basis, I tend to believe that taxes should also...

Thank you very much for your quick and precise reply.

In our C Corp. we use the Accrual method of accounting. Nevertheless, in our past Federal Inc. tax returns, my accountant (actually, ex-accountant) has been deducting the State Inc. Taxes PAID in the...

Very interesting reply, and I also agree that many accountants must be using the cash method to simplify the job. In my particular case this FY, using the accrued tax is much more convenient, but if...

Very good points made. In addition, if I read the 1120 Instructions correctly, the State Income tax deductible is the accrued State Income Tax, not necessarily the PAID one (I use the accrued method...

I am preparing my 1120 Fed. Inc. Tax return and am a little confused about how State Income taxes accrued during the year play in the determination of the Federal Inc. Tax Payable.

Logically, it...

What would the correct Journal Entry be for an Inc. Tax Estimate deposit (Eg. 10,000.00):

Inc. Tax Paid in Advance (D) $10,000 (an Asset account, like pre-paid expenses)
Bank Account (C) $10,000...

Thank you, Morgain300. I did understand your point, which is clear after looking at Sch. M. and also very logical. Thanks again.

Pefect,. now I understand.

Thanks again for your clear explanations. Have a nice weekend!

Very clear. Thanks again.

I understand. So, if there were a journal entry for that Schedule M, would it be like this?

Retained Earnings 15,000 (Debit)
Income Tax 15,000 (Credit)

Thank you.