Taxes 2025: 7 On Your Side, tax experts answer viewer questions
SAN FRANCISCO (KGO) -- Have a question about taxes or filing your tax returns? 7 On Your Side is here to help.
On Wednesday, March 5 from 3 to 7 PM, 7 On Your Side and a team of tax experts will answer your questions about changes to the tax law, new deductions, deadlines, and much more.
VIDEO: Here's a look at more tax questions answered during 2025 Seven On Your Side Tax Chat
We will post viewer questions and their answers on this page, so be on the lookout for your question right here -- plus you may learn new things through other people's questions!
Viewer name: Richard
Viewer question: I am a self employed contractor and I use my home as my office. Recently I had my water tested and found it contaminated with different particles. I had to install a water filtration and a reverse osmosis system. I had to do this to protect my health. It did cost thousands of dollars . Can I deduct this or any part of the cost on my taxes?
Volunteer name / organization: Norman M. Golden, EA California Society of Enrolled Agents
Answer: You should be currently depreciating a portion of your residence for the office in home based on the percentage of your home. The new filtration system would be a permanent improvement that should be capitalized and added to your basis. Your deduction will be the increase in your depreciation.
Viewer name: Grace
Viewer question: I have a rental property that has been vacant since early 2022. In 2024, I did $100,000 worth of renovations since it was vacant. Can I deduct insurance, property tax, and renovation costs on this year's rental property income tax schedule E even though I did not get any rental income?
Volunteer name / organization: Norman M. Golden, EA California Society of Enrolled Agents
Answer: As long as you are holding the rental property out for rent, you may continue to deduct the insurance and property tax. The renovation costs may have to be capitalized and deducted via depreciation expense.
Viewer name: Miriam
Viewer question: I am a preschool teacher in Alameda, California. My employer claims that a portion of my annual salary is not taxable for federal withholding. In 2024, $29,200 was not withheld for federal tax. It has been ongoing for 4 years, causing me to owe interest and penalties of $10,000 to the IRS, Please help.
Volunteer name / organization: Norman M. Golden, EA California Society of Enrolled Agents
Answer: First, I am not aware of how or why a portion of your salary isn't taxable. Second, I would need more information as to why there wasn't withholding.
Viewer name: Rainalda
Viewer question: Our CPA didn't file our tax returns for 2023. Every time I called the office I got some excuse ... I to this date have not had my calls returned. Yesterday, I went to the local IRS office in Santa Rosa and told them of my issue. They checked on line and told me that my taxes were not filed nor an extension. If you have any suggestions as to whom to contact, please let me know. I left messages that I was going to notify the Police, IRS and the California Board of Accounting. So far, I have only gone to the IRS.
Volunteer name / organization: Norman M. Golden, EA California Society of Enrolled Agents
Answer: I would go online to www.CSEA.org. On the Home Page is "Find an EA". You can enter your zip code and find a number of Enrolled Agents in your area who will be able to help you with your past and current taxes. Be patient and be prepared to possibly going on extension for your 2024 tax returns. The EA you find, with an IRS Power of Attorney, will be able to contact the IRS and buy you some more time for the 2023 returns, given the circumstances. Also, I would talk the the EA about filing a Form 14147 with the IRS, which will launch an investigation into your former CPA
Viewer name: Regina
Viewer question: We submitted an addendum paperwork in 2023 for having solar panels on our house using HR Block. In June 2024 , the IRS requested additional paperwork which we provided. Our HR Block representative told me he spoke with the IRS weekly to help resolve issues like this. By the end of July 2024 the IRS stopped talking to him about this issue. We still have not received our more than $8000 rebate. Can you please help us?
Volunteer name / organization: Chris Housh, EA, Esq.
Answer: There is a significant backlog in that unit of the IRS exams. Continue to monitor your mail for the IRS to respond. There have been instances where the IRS requests the information again or moves the case forward to a Notice of Deficiency, where you must respond appropriately to the new deadline.
Viewer name: Juliana
Viewer question: I just received a 1099-NEC tax form from them, but I've never worked for Uber in any capacity, which makes me think someone is using my Social Security number. I've searched everywhere but can't find a phone number or a real person to talk to. What should I do?
Volunteer name / organization: Loreley Fernandez-Davila, EA- California Society of Enrolled Agents
Answer:
Viewer name: Mary
Viewer question: Does the IRS have a payment plan, where you don't have to pay the full amount due right away? This is for a current amount due on 4/15/2025. I'm not asking about taxes that are delinquent.
Volunteer name / organization: Frank Hood EA
Answer: The IRS does offer payment plans. However your past due balance will still be subject to penalties and interest even if you have a payment plan in place. You will need to contact the IRS as your specific tax situation will determine which payment options are available to you. Depending on your tax situation, you may be able to apply for a payment plan online at IRS.gov.
Viewer name: Alisa
Viewer question: It's our first year filing in a registered domestic partnership and all the information is confusing. How, in simple plain English and in sequential steps do we file our state returns? I own a home (not community property) and itemize. No investment income, just one W2. He files 1040EZ standard deduction. Thank you.
Volunteer name / organization: Amanda Boston, EA California Society of Enrolled Agents
Answer: Filing as RDP in CA is THE MOST complicated tax filing. You file separate for federal and joint for the State of CA. All of my clients that were RDP before same sex marriage was acknowledged decided to just get married because it was SO Much easier. There is no "simple" way to explain how to file these returns. I suggest hiring a professional that specializes in your tax situation and pay them for their services. It will be worth it. You can fin an Enrolled agent here: https://www.csea.org/CSEA/FindaTaxExpert/Find_A_Tax_Expert.aspx
Viewer name: Tricia
Viewer question: My father receives $1505 social security benefits and $392 pension a month. Last year he earned $1580 interest from savings. Can I claim him as a dependent on my taxes?
Volunteer name / organization: Frank Hood EA
Answer: In terms of income, your father meets the qualifications to be your qualifying relative dependent. For tax year 2024, the income limit for qualifying relatives is $5,050 and this limit does not include nontaxable income. However to claim your father as a dependent there are additional conditions. You must have provided more than half his support for the year. He cannot be filing a tax return as married filing jointly unless only to claim a refund of taxes paid or withheld. He also must be a U.S. citizen, resident alien or national or a resident of Canada or Mexico, can't be claimed as a dependent on more than one tax return, and he can't claim a dependent on his tax return.
Viewer name: Raymond
Viewer question: If the IRS hasn't received our tax return sent on Feb 1, and 4 weeks have passed -- what is best thing to do? File for extension? Send a duplicate tax return? Just check daily to see if they received it? Do something else?
Volunteer name / organization: Amanda Boston, EA California Society of Enrolled Agents
Answer: I assume you mailed your return. You should in the future file electronically to avoid this issue. DO NOT file for an extension or duplicate return. Processing of mail is done by humans and takes a lot longer than e-filed returns. I would wait until March 15th and check back then to see if it has been received. If your return has still not been marked as received you should send a duplicate post marked before April 15th.
Viewer name: Ladeana
Viewer question: I filed my taxes and I didn't know what I was doing through Turbo Tax. I applied my personal expenses as business (like Bart fees, bus fees, gas fees) and now I'm being penalized. Can I do an amendment to pay the correct taxes instead of sending the proof receipts? I work from home so I thought those were my business expenses. Now I have a 44k bill with interest. This has turned my life upside down. Please help. My husband is in the military and we need to fix this.
Volunteer name / organization: Norman M. Golden, EA California Society of Enrolled Agents
Answer: I would go online to www.CSEA.org. On the Home Page is "Find an EA". You can enter your zip code and find a number of Enrolled Agents in your area who will be able to help you.
Viewer name: Lerry
Viewer question: Are there any savings renters can get on their taxes? One year a tax preparer told me yes then the next year it was no. Why are things so wishy-washy for people who rent, because we can't afford to buy in CA?
Volunteer name / organization: Frank Hood EA
Answer: The State of California has a renter's credit you may qualify for if:
-You paid rent in California for at least 1/2 the year
-The property was not tax exempt
-Your California income was:
$52,421 or less if your filing status is single or married/registered domestic partner (RDP) filing separately
$104,842 or less if you are married/RDP filing jointly, head of household, or qualified widow(er)
-You did not live with someone who can claim you as a dependent
-You or your spouse/RDP were not given a property tax exemption during the tax year
It is entirely possible that your eligibility for the credit will change from year to year.
Viewer name: Randal
Viewer question: I go gambling and I get a bunch of 1099 forms from the casino. I think I have over 100 this year. Do I need to enter these one at the time on my tax form or can I use the Win/Loss statement that the casino sends out? Or what is the correct way to enter these 1099 forms? Thank you.
Volunteer name / organization: Chris Housh, EA, Esq.
Answer: You can enter the total winnings on line 21 of the 1040. The losses are itemized deductions on Schedule A line 27. Do not try placing the net winnings on 1040 line 21, or the IRS will send you a letter claiming you did not declare all of the winnings.
Viewer name: Molly
Viewer question: The Windfall Elimination Provision (WEP) was a federal law that reduced Social Security benefits for some people with retirement pensions. The Social Security Fairness Act eliminated the WEP on January 5, 2025. This change does not impact CalPERS pensions, but it does impact Social Security benefits. It is retroactive to 1/24. Social Security is just paying out NOW for the past year. I just received my payment. QUESTION Do I now need a Revised SSA-1099 statement for 2024? Or because the actual payback is in 2025 - will it be accounted for on the 2025 statement & taxes?
Volunteer name / organization: Norman M. Golden, EA California Society of Enrolled Agents
Answer: Individual taxpayers are cash-basis taxpayers. Meaning that you recognize income when it is received, so it will be reported by SSA on a SSA-1099 for 2025 and go on your 2025 tax returns. Congratulations on finally getting the money you deserve.
Viewer name: Patricia
Viewer question: I filed my 2021 tax return but never received my funds. I went to Where Is My Refund: it says your return has been received, it's been that way for 2 years. Now when you go there the 2021 section isn't on the site. How do I get my refund?
Volunteer name / organization: Amanda Boston, EA Ca Society of Enrolled Agents
Answer: You need to call the IRS to ask them what is going on with your return. The deadline for 2021 filing for stimulus payments was just extended to April 15th of 2025. So they may reopen the data online, but you should call and plan to be on hold for at least 3 hours.
Viewer name: Edith
Viewer question: I won $1000 from the lottery and I'm on Social Security disability so I don't do my taxes. How do I pay taxes on this?
Volunteer name / organization: Frank Hood EA
Answer: It is likely you will not need to pay any taxes on the lottery winnings. Taxes are based on your income as a whole and you will only owe taxes if your total taxable income exceeds the standard deduction. The standard deduction amounts for 2024 are: $14,600 for Single, $21,900 for Head of Household, and $29,200 for Married Filing Jointly. Additionally, you do not need to file a tax return if your taxable income is below the standard deduction, as long as you are not married and filing separate tax returns.
Viewer name: Stephanie
Viewer question: Is there an easy way to know if I should file "Married filing jointly" or "Married filing separate", or is the only way to know to do them both ways and see which has the lower amount? From two very confused newlyweds.
Volunteer name / organization: Norman M. Golden, EA California Society of Enrolled Agents
Answer: It is not an easy answer. Yes, you should run the numbers both ways. What you have to understand is that California is a community property state, which means that from the date of your wedding half of your income is your spouse's income and vice versa, unless you have a pre-nuptial or post-nuptial agreement. In most cases for most people, Married Filing Joint will be the better way to go. Good luck.
Viewer name: Peter
Viewer question: What items qualify as business expenses?
Volunteer name / organization: Amanda Boston, EA CA Society of Enrolled Agents
Answer: Expenses used in your business that are ordinary and necessary for the production of income. If you get creative with your expenses the IRS or FTB may want to examine your return and your receipts to see why your expenses are higher or out of line with other business in your area and line of work.
Viewer name: Loretta
Viewer question: If I had a refund last year as a result of my 2023 taxes and had my accountant send in to apply to 2024 taxes- Should I be paying estimates or will I be penalized for not sending any estimates?
Volunteer name / organization: Norman M. Golden, EA California Society of Enrolled Agents
Answer: It depends. Tax law requires that during the year you pay at least 90% of your tax liability via a combination of withholding and estimated tax payments. If you don't and owe $1,000 or more, you may be subject to an underpayment penalty. One exception is if you pay 100% or 110% of the prior year's tax, then there is no penalty. Your accountant should have discussed this with you.
Viewer name: Bob
Viewer question: I filed an amended 2022 return it was received by the IRS on 4/30/24. I have been on website and called but all I get is that it's being processed and to wait. I just want them to tell me what's needed or in error so I can provide the correct information. Can you help me? Thanks
Volunteer name / organization: Chris Housh, EA, Esq.
Answer: Unfortunately the IRS is significantly behind schedule on processing amended returns (even before the recent staffing situations). If the IRS does not show the amended tax return as received, then you would need to resubmit. In your situation, the unit that you submitted the amended return to would be the only one that can review what the timeframe is for finalizing the review. (Some subjects on the amended returns are having more scrutiny than others.)
Viewer name: Linda
Viewer question: I contracted with a consulting group during 2024. I canceled my contract near the end of that year. I've not received a 1099 from that group for 2024 in spite of my contact attempts. What do do I then give my CPA for my 2024 tax return prep?
Volunteer name / organization: Amanda Boston, EA Ca Society of Enrolled Agents
Answer: You do not need the 1099 to report the income you received. You can go by deposits and bank statements to report your income. You should ask your CPA how they want the data, it could be a spreadsheet with full back up or just a number based on your deposits. We all collect data differently.
Viewer name: Randy
Viewer question: Sold stock acquired from previous employer last year - not confident I'll get a 1099-B - the company keeps procrastinating. How do I estimate the cost and cost basis as it was a stock option grant. Forms 8949 and 4852 don't appear to be the correct ones as suggested by the IRS. What's the best form or action next? Thanks.
Volunteer name / organization: Amanda Boston, EA Ca Society of Enrolled Agents
Answer: The 8949 is the form that you use to report the stock sale on your tax return. You can only calculate your gain based on what you paid for the stock and what was reported as income on your tax return. There are no forms to help you calculate your gain from the IRS, it would only be from your employer. The IRS rule is that if you cannot prove your basis then there is NO basis. So whatever you received when you received the stock is what you need to calculate basis. The 1099-B is required to report the sale to the IRS.
Viewer name: Candace
Viewer question: Why is interest paid on credit card debt not deductible (like other loans)? Banks are collecting tons of money on cards.
Volunteer name / organization: Chris Housh, EA, Esq
Answer: The law was changed in 1986 to make it where you could not deduct personal credit card interest or interest on personal loans. Business credit card interest is deductible. If your credit card is used for both personal and business, you will lose the ability to deduct the interest.
Viewer name: Charles
Viewer question: I want to sell a 1031 exchange property (I own) to my child. She has been renting from me for 1.5 years. Are there any IRS issues for her?. Will I owe capital gains on the original property exchange?
Volunteer name / organization: Frank Hood EA
Answer: You will owe capital gains tax on any gains from the sale of the property. The gains will be attributed to the tax year during which the sale is made. You will not owe taxes on the exchange directly, but rather will owe taxes on the amount the sales price of the property you received in the 1031 exchange exceeds the adjusted carry-over basis of the property you gave in the 1031 exchange. As your daughter is a related party you cannot claim a deduction for a loss on the sale.
Viewer name: Daniel
Viewer question: Hello, I have an issue concerning my Roth IRA contribution. Between raises from my old job and IHSS I ended up making too much for my 2024 Roth IRA limit, $146k. Unfortunately, I already contributed to my Roth IRA for 2024 in the 1st half of 2024. I made over the upper limit for any $ to stay in the Roth IRA and the whole $7k contributed for 2024 is in violation, assuming IHSS $ has to count toward the Roth IRA limit. BUT, I lost my old job and just have IHSS currently, and heard something about being able to count that 2024 contribution for 2025. I only have IHSS income now. Please help.
Volunteer name / organization: Norman M. Golden, EA California Society of Enrolled Agents
Answer: If you are ineligible for a Roth contribution for 2024, then you have to withdraw the $7,000 plus the earnings by April 15, 2025. You can then make a Roth contribution for 2025, if you are eligible. I always recommend to my clients to wait until the following year to make their IRA contributions to ensure that they are eligible. You have until April 15, 2026 to make your 2025 contribution.
Viewer name: Charlene
Viewer question: My property tax assessment includes "special tax assessments" for my solar panel purchase in ADDITION to the "AD VALOREM" taxes. Q: Are the tax assessments deductible along with the ad valorem on my federal income tax return?
Volunteer name / organization: Norman M. Golden, EA California Society of Enrolled Agents
Answer: Special assessments on your property are not deductible, but may be added to your basis.
Viewer name: Cathi
Viewer question: When my mother in law passes I will be in charge of dispensing inheritance funds. Will I need to file 1099's the following year for those funds?
Volunteer name / organization: Norman M. Golden, EA California Society of Enrolled Agents
Answer: No. Distributions of specific bequests are not reported on a 1099. If a beneficiary is to receive distributions that include a portion of the income that the estate earned after the decedent passed, then you may need to file a Form 1041 and issue Schedules K-1 to those beneficiaries. I advise you to seek the services of an Enrolled Agent or CPA who specializes in estate taxation.
Viewer name: Janice
Viewer question: I know eBay issues 1099-K for sales over $5k but do I need to file or report if my sales were around $700 for 2024? Do I use schedule C if I don't have a business tax ID?
Volunteer name / organization: Chris Housh, EA, Esq.
Answer: I would recommend reporting it on the Schedule D, showing the sale price, minus the purchase price to make it where you are taxed on the profit of the sale. The Schedule C for self-employed income should be used when you are making sales with intent of doing a business (IRS often looks at the number of hours you are involved during the year and if you can prove a profit motive to show Schedule C instead of a hobby).
Viewer name: Paula
Viewer question: My mother passed away 12/29/24. I have always done her taxes for her and manage all her online accounts as POA. I never received a 1099 from the Social Security admin and they appear to have cut off access to her online account. I waited on hold for 1.5 hours and gave up. How do I get this 1099? Do I need to go into an office?
Volunteer name / organization: Loreley Fernandez-Davila, EA- California Society of Enrolled Agents
Answer: Yes, you should go into an office to request one if you don't have online access. If that doesn't work, you can request an income transcript from the IRS. It will show social security income.
Viewer name: Kimberly
Viewer question: I had my identity stolen 3 years ago. I have been waiting for any information about what has been done. I have continued to file every year. I have yet to get a refund. What should I do?
Volunteer name / organization: Loreley Fernandez-Davila, EA- California Society of Enrolled Agents
Answer: Do you have an IP PIN? You have not received a refund for every year filed? We need more information, but you can file form 1310 to request the refund. For more information you can contact the IRS at 1-800-829-1040, be prepared to hold for a while.
Viewer name: Mitchell
Viewer question: How would you go about claiming an old tax refund? The online tax didn't get posted.
Volunteer name / organization: Loreley Fernandez-Davila, EA- California Society of Enrolled Agents
Answer: There is a statute of limitations of 4 years after the due date. If the return you filed is within that time, you could file Form 1310.
Viewer name: Christina
Viewer question: I noticed that there is no federal deductions from my payroll and I wanted to know what is a significant amount of a percentage to put down. on my federal tax exemption.
Volunteer name / organization: Frank Hood EA
Answer: If you do not have any federal income tax withheld from your pay you may end up owing taxes, and potentially penalties if the balance due exceeds $1000. IRS form W-4 can be used to adjust your federal withholdings to avoid having a balance due. The directions for form W-4 will guide you through calculating the correct withholding percentage for your situation.
Viewer name: Steve
Viewer question: I heard the tax credit for energy upgrades (solar panels/battery storage) have been halted by the Trump administration. Will CA taxpayers receive the credit they are entitled too? Thanks
Volunteer name / organization: Frank Hood EA
Answer: The Residential Clean Energy Credit is currently still in effect, but any tax credit can be ended by new legislation. As the Residential Clean Energy Credit is a federal tax credit, state of residency has no effect on receiving the credit.
Viewer name: Cathy
Viewer question: My taxable income is $10,000 a year. Do I still do? I have to pay taxes on my Social Security benefits? Currently I received 35,000 approximately a year disability Social Security benefit. We file husband and wife.
Volunteer name / organization: Chris Housh, EA, Esq.
Answer: If your taxable income is less than $14,000 as a Single, or $29,200 for Married Filing Joint, you are not required to file the 2024 tax return (amount varies from year to year). There are some exceptions such as $400 in self-employed income, where you would still need to file the return. You can also consider filing the return if you are due a refund from the return.
Viewer name: Jane
Viewer question: We had investment losses during Covid totaling 25K for tax years 2021, 2022, and 2023. The account was closed in 2023 and 2023 losses were reported on 2024 returns, however prior losses were not accounted for due to difficulties finding a tax advisor during Covid. 1. What is the time limit for filing for prior losses in TY 2021 and 2022? 2. If losses are still reportable, do we need to amend 2021/2022 tax returns (and 2024 for carryover), or can all losses for the duration of the account be reported on a 2024 amended return or 2025 return? Thanks for your help!
Volunteer name / organization: Loreley Fernandez-Davila, EA- California Society of Enrolled Agents
Answer: Yes, you will need to amend 2021, 2022, 2023, and 2024. Losses from 2023 should not be reported in 2024. You should report the losses in the year they belong to.
Viewer name: Arika
Viewer question: My tax preparer utilized my stored bank information to pay for another client's tax payment, without my approval. I was told this was by error and that I would get a refund by my tax preparer. How can I confirm there was no fraudulent activity with my tax return or under my Identify?
Volunteer name / organization: Chris Housh, EA, Esq. Golden Gate Society of Enrolled Agents
Answer: I am sorry to hear that this happened to you. You can review your IRS and FTB transcripts by requesting access to your online records. The IRS uses ID.me to verify your identity and then give you access online to review your tax history. FTB uses a portal called myFTB for the same information. You should report the preparer using IRS Form 14157 for inappropriate behavior; of 14157-A to report fraudulent misbehavior.
Viewer name: Cynthia
Viewer question: Can I deduct over $60 thousand dollars I paid for my married daughter's dental work?
Volunteer name / organization: Amanda Boston, EA Ca Society of Enrolled Agents
Answer: You can only deduct medical expenses for yourself, your spouse and your dependents. Because your daughter is married she does not qualify as your dependent. I hope that you paid the medical facility directly otherwise you may have to file a 709 gift tax return to report the gift.
Viewer name: Stephen
Viewer question: I have been under going a medical situation and haven't filed my taxes since 2017. I am finally able to come to grips with the situation. So I have taxes to prepare/submit from 2018 to 2024. How should I procede ?
Volunteer name / organization: Loreley Fernandez-Davila, EA California Society of Enrolled Agents
Answer: You should file your 2018-2024 tax returns. First, file an extension for 2024. The 2024 extension due date is Oct 15, 2025. If you have a doctor's note, you may qualify for a first time penalty relief for reasonable cause. An IRS agent can determine if you qualify over the phone, if you don't, you can file form 843. Penalty relief is not guaranteed. There is no relief for tax owed.
Viewer name: Allison
Viewer question: I did a 1031 exchange in Nov 2021. What will be my tax responsibility if I sell the rental now?
Volunteer name / organization: Amanda Boston, EA Ca Society of Enrolled Agents
Answer: You will have to pay tax on the gain that was deferred from 2021 and any additional gain incurred.
Viewer name: Daryl
Viewer question: I had to sell Apple Stock to pay for renovations on my house last year. The house is now for sale. Can I claim these funds on my taxes?
Volunteer name / organization: Chris Housh, EA, Esq. Golden Gate Society of Enrolled Agents
Answer: This becomes a two part activity. The Apple stock sale has to be reported in the year you sold it on the Schedule D. The expenses of improvements on the house are able to be added to the cost basis of the house when you sell the house. But you should know that repairs and cosmetic renovations do not increase the cost basis; only improvements that increase the value of the property or extend the life of the property.
Viewer name: Roh
Viewer question: Hello I'm on disability and my income is 18,000 a year I had an accident and I got the settlement last year do I still need to flie my tax Thank you
Volunteer name / organization: Frank Hood EA
Answer: It depends on the nature of the settlement. Damages received on account of physical injuries are typically not includible in gross income and usually will not result in a filing requirement. However, punitive damages are included in gross income and can create a filing requirement. Additionally lawyer fees paid out of the settlement can be attributed as income to you. You will need to calculate your taxable income, and if it exceeds the standard deduction for your filing status, you will need to file an income tax return.
Viewer name: Gail
Viewer question: If I received an inheritance from my deceased parents, who died before I was married, is it considered joint income if my husband was not mentioned in their will.? This money was never co-mingled with my husband's account nor in a joint account.
Volunteer name / organization: Amanda Boston, EA Ca Society of EA and Chris Housh, Esq.
Answer: As long as the funds are not co-mingled with your spouse it remains separate property. The lawyer, Chris Housh, adds, "Inheritance received before marriage is not considered community property in California law. However, assets purchased during the marriage with funds from both spouses become community property."
Viewer name: Rick
Viewer question: Last year, I sold some stocks and had a high income year. This year, I 'MIGHT' sell some stocks during the 4th quarter. What do I do with the quarterly tax without penalty or over paying quarterly tax? IRS/CA State penalize you if you don't have 4 equal payments, correct?
Volunteer name / organization: Amanda Boston, EA Ca Society of Enrolled Agents
Answer: You must pay estimated tax payments based on your income and you can file a 2210 to report what months the income was received. This way if you receive the income in the end of the year - you can tell them exactly what quarter that income applies to.
Viewer name: Catherine
Viewer question: Can one claim caregiver services for someone who is disabled separate from the standard deduction?
Volunteer name / organization: Loreley Fernandez-Davila, EA California Society of Enrolled Agents
Answer: Short answer is no. The caregiver expenses are a deduction that you claim through itemizing. So, if you claim the standard deduction, then you are not itemizing.
Viewer name: Diane
Viewer question: My 3 year old granddaughter lives in another state, and has autism. Her parents have been informed that she isn't eligible for Supplemental Security Income (SSI) due to her father earning too much. Can I open a 529 college savings account for my granddaughter, and if she doesn't attend college due to her disability, would she be able to use the funds for living expenses (I understand that their would be an additional monetary penalty if the funds were not used for education expenses).
Volunteer name / organization: Chris Housh, EA, Esq. Golden Gate Society of Enrolled Agents
Answer: As her grandparents, you are allowed to create and contribute to her 529 plan. If she is deemed in the future to qualify for the ABLE plan, the 529 plan can be converted into being used for non-college expenses. (The answer is pending any future law changes to 529 plans or ABLE plans.)
Viewer name: Debbie
Viewer question: I'm a retired teacher, and I have a pension from CalSTRS. Before I retired, I contributed annually to a Roth IRA. Can I still contribute to it, even though I'm retired, since I'm receiving taxable compensation?
Volunteer name / organization: Frank Hood EA
Answer: Probably no. You could contribute to your Roth IRA if you do have taxable compensation for the year, but compensation is payments for services performed, such as W-2 wages, and does not include pension payments.
Viewer name: Maria
Viewer question: Do you need to do taxes if you get SSDI? If you get a lump sum for 3 different years ?
Volunteer name / organization: Norman M. Golden, EA California Society of Enrolled Agents
Answer: You may have to. SSDI benefits will be included in your Form SSA-1099 from the Social Security Administration. The taxable amount will be computed in the same way that regular Social Security benefits are.
Viewer name: John
Viewer question: My wife incurred a substantial loss before we were married due to a financial firm defrauding investors for several hundred thousands of dollars in 2010. The firm filed bankruptcy and she lost it all. Is there a way to recoup the looses? Is it too late? Do we have to refill all years since then? Would this be considered an ordinary loss? Any form suggestions? Thank you for you response.
Volunteer name / organization: Chris Housh, EA, Esq. Golden Gate Society of Enrolled Agents
Answer: If the investment was related to an actual fraud, you can take it as a business theft loss in the year that it is discovered, or when you reasonably decide that you can no longer recover the money. The date of bankruptcy of the business can be when it was no longer able to be retrieved or collected. If that date is on a tax return that has been filed for more than three years, you cannot get a refund on that tax year anymore. If the loss was large enough, it is possible that you could take it as an ordinary capital gains loss, but you have to run the loss from when it occurred; use it against any capital gains and then $3,000 against regular income for each year until it runs out (and the IRS will make you calculate the losses for the years that you are not amending to determine what you have remaining to use in the years that are eligible for refund.)
Viewer name: Ron
Viewer question: My daughter received a $1500 1099-NEC for tax year 2024 for one of her four unpaid veterinarian externships during her 4th year of Vet school. She did receive a $1500 check on the last day of that externship. Does she need to pay taxes (income or Social Security or Medicare) with that 1099-NEC? How do I deal with the 1099-NEC when I do her 2024 taxes with Turbotax?
Volunteer name / organization: Norman M. Golden, EA California Society of Enrolled Agents
Answer: A Form 1099-NEC is issued by the payor for Non-Employee Compensation". It is for compensation, so, yes, it will be subject to income tax and self-employment taxes, which are calculated on Schedule SE. If your daughter incurred and paid expenses. If so, then she should report the $1,500 on Schedule C and then list the expenses. This will reduce both her income and self-employment taxes.
Viewer name: Emma
Viewer question: I got married last year, 2024, we are both retired. I am 69 and he's 73. Can we just filed married, but filing separately? Does it matter, since we're both retired?
Volunteer name / organization: Frank Hood EA
Answer: It is your choice to file either Married Filing Jointly or Married Filing Separately, and depending on your situation either could be more beneficial. In general, Married Filing Jointly is the more beneficial filing status and is simpler than preparing separate returns. California is a community property state which can make determining ownership can be complex.
Viewer name: Graham
Viewer question: I have not worked in 10 years and not I am receiving SSDI income each month do I have to file taxes
Volunteer name / organization: Norman M. Golden, EA California Society of Enrolled Agents
Answer: You say you have not worked in 10 years, but do you have other income besides the SSDI benefits. If no, then you don't have a filing requirement.
Viewer name: Kelley
Viewer question: We lost several acres of forested property in a fire in 2022 that was declared a federal emergency and although PG&E has not admitted guilt for starting the fire, they have offered a settlement. Is this settlement money tax exempt from state and federal taxes? The settlement did not include punitive damages, only reimbursement for property lost and damages.
Volunteer name / organization: Frank Hood EA
Answer: The taxability of the settlement depends on the extent of your loss and your investment in the property. If the funds received exceed the decrease in the value of the property or exceed your basis in the property, the excess is likely taxable. Taxability of the excess may be avoidable by reinvesting the funds into the property. Additionally there may be interactions between the settlement and previously claimed disaster loss deductions.
Viewer name: Allen
Viewer question: My 20 yr old made $1500 for summer work. He will get a 10-99NEC. Has no other income. Wil he have to file a tax return
Volunteer name / organization: Norman M. Golden, EA California Society of Enrolled Agents
Answer: You have two questions. First, was your 20-year old an employee or paid as an independent contractor. If an employee, then he should have received a Form W-2. If an independent contractor, then he should have received a Form 1099-NEC. Will he? I don't know. Especially if he was paid as an independent contractor, it is up to the payor to comply with the law. Whether or not he receives a form, the $1,500 is reportable. If the $1,500 was his only income, he will still have to file a tax return, because it will be subject to self-employment tax, but the $1,500 will not be subject to regular income tax.
Viewer name: Bob
Viewer question: President trump say Social security income and Tip are no longer Taxed. So tax filing 2024 i can Pay no taxes ???
Volunteer name / organization: Loreley Fernandez-Davila, EA California Society of Enrolled Agents
Answer: These are proposed regulations and have not been passed through Congress. No changes has been that apply to 2024 tax year, so you should file your tax return if you are required to.
Viewer name: George
Viewer question: Background: I started a tax return on the IRS website: Free File. I clicked "submit", and then realized that I had made an error. Thankfully (I think) the return was rejected by the IRS. 1) Can I go back on the website and delete that filing? 2) Can I then use any program like TurboTax to "start over" and file anew as if I had never filed this year or do I need to correct & complete what I've already started? Thank you for your help.
Volunteer name / organization: Amanda Boston, EA Ca Society of Enrolled Agents
Answer: If the return was rejected then you are all good to start somewhere else. If the return was indeed filed, check with the IRS website to see the status of your return. Then you will want to file an amended return to fix the errors on your filing. If the errors will cause you to pay more money - you will want to get that done asap to avoid penalties and interest.
Viewer name: Lester
Viewer question: I filed with TurboTax. I bought a Tesla in December 2024 and didn't see any write off for an electric car. I now hear there's a $7000 write off. Is there any?
Volunteer name / organization: Amanda Boston, EA Ca Society of Enrolled Agents
Answer: The credit is based on each individual vehicle and where it was assembled and where the parts were manufactured. You will need to look up the VIN number on the IRS website to see if the vehicle you purchased qualifies for the credit which can be up to $7500. There are income caps on these credits, check to be sure you are not above the threshold.
Viewer name: Eileen
Viewer question: Where do box 2a capital gains distributions get included as income ? Are they added to sales transactions? And do qualified dividends also get added to capital gains? My total taxable cap gains are much higher than expected and trying to find out why.
Volunteer name / organization: Norman M. Golden, EA California Society of Enrolled Agents
Answer: The capital gains distributions should be listed on Schedule D in the long-term section.
Viewer name: Jonathan
Viewer question: Can I deduct interest and attorney fees on a settlement? What about a 1099-MISC tax settlement?
Volunteer name / organization: Loreley Fernandez-Davila, EA California Society of Enrolled Agents
Answer: There is no attorney fees deduction for non-taxable settlements. If it is a taxable settlement, there is no federal attorney fees deduction. California allows the attorney fees subject to a 2% AGI floor.
Viewer name: Betty
Viewer question: I had a quadriceps ligament repair. I went to the Jewish rehab facility. My insurance said I had had enough OT and PT. I then went to a a respite care facility for about five weeks. I paid for the respite care out of my own pocket. Can I deduct this under medical expenses?
Volunteer name / organization: Norman M. Golden, EA California Society of Enrolled Agents
Answer: Yes.
Viewer name: Bruce
Viewer question: My brother died last year (2024) I am the trustee of his estate and plan on doing his taxes for 2024 How do I sign his tax return? What is the third party designee?
Volunteer name / organization: Amanda Boston, EA Ca Society of Enrolled Agents
Answer: You would sign your return with your name as Trustee. The 3rd Party Designee is for a tax professional working on your behalf.
Viewer name: Grace
Viewer question: In previous years, I claimed my required license fee, continued education, and office expenses (that were not reimbursed by my company) on Schedule A. How can I claim these kind of expenses in this tax year?
Volunteer name / organization: Frank Hood EA
Answer: You cannot currently claim these kinds of expenses as a deduction on your federal return. The Tax Cuts and Jobs Act removed the federal tax deduction for employee expenses. California did not adopt the change and employee expenses continue to be deductible as an itemized deduction on your California return.
Viewer name: Susan
Viewer question: I have been waiting for a tax return on an abatement that was deed resolved by the IRS in Austin Texas. The letters I receive state they are busy working on my account and need 60 days to resolve. Every sixty days I sit with the HR block rep and we call them to ask where is this return. My latest phone call to them was in January 2025. I have sent them many certified letters. Currently they stop replying to me and want me to Waite another 60 days. What can I do to get them to return my money due?
Volunteer name / organization: Chris Housh, EA, Esq. Golden Gate Society of Enrolled Agents
Answer: Since it is a refund situation, I recommend filing the request for refund Form 843. This creates a legal deadline of 6 months for the IRS to respond. If the IRS does not provide a response in that time, you have a de facto denial. If the IRS denies the refund officially, or does not respond in the six months window, you have the right to sue the IRS for the refund in District Court or Federal Court of Appeals. The Form 843 needs to be filed before the statute of limitations on refunds (the later of 3 years from when the return was due to be filed, or 2 years from when the payment was received by the IRS).
Viewer name: Kenny
Viewer question: My brother and sister and I was given my mother's home. We split the money three ways. My half was in the amount of $168,000.00. I will be getting my taxes done pretty soon, do I need to report this to my accountant.
Volunteer name / organization: Amanda Boston, EA Ca Society of Enrolled Agents
Answer: The inheritance of the home is not taxable. You should advise to your tax preparer that you inherited the house. Did you receive a K-1 form? Or was the house distributed to each of you outright? A K-1 form or a 1099-S would need to be reported on your tax return and may reflect some income depending on how long it took for the sale of the home to happen. If there was an increase in value since the date of death, then the difference would be taxable as capital gain. The beneficiaries report the income or loss since the time of death each year.
Viewer name: Rick
Viewer question: I started renting a condo I own in Colorado. Can I take my travel expenses to Denver? I've done maintenance on the condo and have met with several companies, arranged for Radon Mitigation. Mitigation expense and repair expenses surely can be deducted. Does that qualify this year?
Volunteer name / organization: Norman M. Golden, EA California Society of Enrolled Agents
Answer: The travel expenses are deductible on Schedule E. I would need more information about the nature of the mitigation expenses. The question of the repairs, " Are the expenditures a repair or an improvement. If a repair, then yes. If an improvement, then they may have to be capitalized and depreciated like you are currently doing with the improvements.
Viewer name: Bob
Viewer question: I lost/misplaced one of my 1099 MISC tax forms. I've tried several times to get the issuer to s bd me a replacement but they haven't responded; what option(s) do I have to get the form so I can file my taxes. Thank you.
Volunteer name / organization: Chris Housh, EA, Esq. Golden Gate Society of Enrolled Agents
Answer: If you know the amount of income that you received, you should enter the information in the tax return without waiting for the 1099-MISC replacement. The return will be able to be e-filed without the 1099-MISC, but you want to make sure that you properly report the amount of income that was supposed to be reported on it. You are required to report all taxable income, even if a 1099-MISC was not issued.
Viewer name: Carnella
Viewer question: I had a lengthy illness last year and was bedridden most of the year. How can I file those taxes this year?
Volunteer name / organization: Amanda Boston, EA Ca Society of Enrolled Agents
Answer: File as you usually would. If you are late, you are late - you still need to file. After you file, you may be able to request penalty abatement for your illness with proof of illness.
Viewer name: Drea
Viewer question: My mother passed away in July 2024. I am trying to file her final tax return however I did not receive a 1099 from the Social Security administration. I've sat on hold multiple times for more than an hour trying to get through to the Social Security department to figure out what to do, but I've not been able to get any answers. What do I do?
Volunteer name / organization: Amanda Boston, EA Ca Society of Enrolled Agents
Answer: Take a day off work and go to your local SS office with her death certificate. They should be able to give you a copy of the 1099-SSA
Viewer name: Lisa
Viewer question: Hi there, Will Social Security payments be excluded from 2025 tax season?
Volunteer name / organization: Loreley Fernandez-Davila, EA California Society of Enrolled Agents
Answer: If you are referring to the suggestions our President has made, nothing has been passed by Congress. Currently, if Social Security income is your only source of income and you file single, 25k of SS is not taxable. Or, 32k if you file married filing jointly. If there are other sources of income, then your benefits may be taxable if the total of (1) one-half of your benefits, plus (2) all of your other income, including tax-exempt interest, is greater than the base amount for your filing status.
Viewer name: Dawn
Viewer question: My only income is Social Security. I made $25,125 last year. Do I have to file for taxes?
Volunteer name / organization: Frank Hood EA
Answer: You do not need to file an income tax return. Your social security benefit this year is not taxable income. As long as half your social security benefit plus your other income is less than $25,000, your social security is not taxable.
Viewer name: Gary
Viewer question: Do I need to file taxes on California state disability payments that I received?
Volunteer name / organization: Norman M. Golden, EA California Society of Enrolled Agents
Answer: No, SDI benefits are nontaxable, because you paid the premiums.
Viewer name: Gwen
Viewer question: I inherited my parents' estate. The finalization of their estate occurred after I was married. My husband was not named in their will - my siblings and I receive benefits. I never shared any portion of my inheritance with my husband. As a stay-at-home mother, I thought this would become my retirement nest egg. Twelve years later, my husband depleted his 401K, without my acknowledgment. He is unable to repay the penalty taxes on his withdrawal. The IRS & FTB keep trying to collect repayment from my personal bank account which I established before marriage. Can they do this? Can I stop this?
Volunteer name / organization: Chris Housh, EA, Esq. Golden Gate Society of Enrolled Agents
Answer: There are several elements that have to consider to give you proper advice. I do recommend that you seek out a tax professional that is experienced in IRS collection negotiations and in community property discussions. First consideration is whether or not the tax return with the 401(k) withdrawals was filed as Married Filing Joint or Married Filing Separately. If it is on a Married Filing Joint return, the liability is owed equally and severally by both of you. The inherited money is not community property, but if the bank account has money received during the marriage also, the IRS will not review what is community property versus pre-marriage money in that account while trying to collect the liability.
Viewer name: Tammi
Viewer question: Fire victims in the counties have been told they would need to re-file taxes since Biden signed something in 2025 in January. When will we find out additional information regarding refiling a back taxes for fire victims in Sonoma, Napa Lake counties, etc.? I've seen nothing on the IRS website.
Volunteer name / organization: Amanda Boston, EA Ca Society of Enrolled Agents
Answer: Effective December 12, 2024, federal law also excludes wildfire relief payments from taxable income. The Federal Disaster Tax Relief Act of 2023 (HR 5863) excludes from taxable income any amount received by an individual as a qualified wildfire relief payment. The law is effective for payments received after December 31, 2019 and before January 1, 2026.
You will need to file an amended return to get the taxes paid on these funds back.
Viewer name: George
Viewer question: My daughter is 25 and attends college full time. She received a 1098-T from her college for 2024 that says her grants and scholarships were $28K and her expenses ( tuition and fees were 15K. Can I still claim her on my return as an Other Dependent? If not is she required to file her own return?
Volunteer name / organization: Frank Hood EA
Answer: As your daughter is 25 she can only be claimed as a qualifying relative, and to qualify as such she needs to have gross income under $5,050. Gross income does include certain amounts received as scholarships, usually the extent the scholarships exceed tuition, fees, and necessary course materials, such as books. Your daughter is required to file her own income tax return as long as her income is not under the standard deduction, which is $14,600 for filing single.
Viewer name: Robert
Viewer question: Hi there, Had an auto lemon law buy back. Ford paid 105,000 to lawyer firm, they paid off the car 17k. I received a check from them for 55k, but received a 1099 from Ford for 105k....do I have to pay tax on the full 105k
Volunteer name / organization: Amanda Boston, EA Ca Society of Enrolled Agents
Answer: Yes
Viewer name: Jacqueline
Viewer question: I have been living with my boyfriend for 7 plus years, and have been together for over 10 years. We are buying g a home in California and need to figure out what the proper co ownership option would be. Joint tenancy, community property with a right of survivorship or tenants in common. We are steering g toward community property option but do t know of domestic partners are able to go that route and if we need to officially document our domestic partnership with the state.
Volunteer name / organization: Amanda Boston, EA Ca Society of Enrolled Agents
Answer: I cannot give legal advice. For tax advice - I do not recommend becoming Registered Domestic Partners. The tax filing for Fed and CA differs and is the most difficult filing status available due to the returns being filed differently.
Viewer name: Kurt
Viewer question: In box 12 on my W2, it shows $23k (401k investment). However, I put more funds into 401k ($5k over $23k) since I am over 50 years old. Is there some other form or location that indicates the amount over $23k I put into 401k?
Volunteer name / organization: Loreley Fernandez-Davila, EA California Society of Enrolled Agents
Answer: You could ask your retirement custodian to confirm the amount you contributed in 2024. W2 box 12 should only show your contribution, not employer match. If the number they provide does not match your W2, you should contact your employer.
Viewer name: Felecia
Viewer question: Do you have to report on your taxes a pay-out settlement received from your landlord for having to move out early?
Volunteer name / organization: Norman M. Golden, EA California Society of Enrolled Agents
Answer: Yes.
Viewer name: Sheri
Viewer question: My 8 yrs old nephew has a Youth Membership Savings account and CD that is attached to my savings account at my credit union. He received a 1099-Int for the interest on this account but does not file taxes since he does not have other income. Does he need to file taxes, or do his parents need to add this to their income, or am I responsible since it's attached to my account, even though I did not receive the 1099-Int or a copy of it to my address (I only became aware because his mother/my sister, mentioned it to me.
Volunteer name / organization: Norman M. Golden, EA California Society of Enrolled Agents
Answer: Because the Form 1099-INT was issued to him with his Social Security Number, there are two options. One, he can report it on his own Form 1040, or Two, have his parents report it on theirs. This is a discussion that should be made by his parents. Chances are that if your nephew does have any other income, no tax return no taxes.
Viewer name: Steve
Viewer question: I prepared 2024 taxes Feb. 14, as soon as I received last statements from broker. I used a "reputable" national preparer (one I'd used before). Preparer was great. No problem. I paid the company in full to see completed docs and related homework. Great. I chose to delay filing/paying for personal reasons, but received email notifications this past Sunday the company had FILED my unapproved tax reports; they'd been accepted by the IRS. No approval, no authorization. They independently submitted. Recourse? Legal? Advice
Volunteer name / organization: Norman M. Golden, EA California Society of Enrolled Agents
Answer: Ask the tax firm for a copy of the Form 8879 signed by you. If they don't, they have a lot of explaining to do. If you don't get satisfaction, then file Form 14147 with the IRS and report them. Before you do, tell the firm what you are going to do; they will give you satisfaction.
Viewer name: Larry
Viewer question: My wife's primary care doctor is a "concierge" physician. Is the $2000 annual subscription fee for this access deductible as a medical expense? As an aside, routine office visits and/or diagnostic tests are billed separately. Thank-you for your counsel.
Volunteer name / organization: Amanda Boston, EA Ca Society of Enrolled Agents
Answer: Yes
Viewer name: Jan
Viewer question: Hi, my question is regarding state One-Time Penalty Abatement. Do I need to mail/pay the underpayment penalty first with the 540 form and FTB 2918. Then wait for the refund from the One-Time Penalty Abatement.
Volunteer name / organization: Amanda Boston, EA Ca Society of Enrolled Agents
Answer: Yes you send the payment first, then request abatement and wait to hear back.
Viewer name: Hawkeye
Viewer question: If my tax preparer makes an error on my taxes am I liable? Tks!
Volunteer name / organization: Frank Hood EA
Answer: Yes, you are liable for all taxes due and any associated interest and penalties, regardless of any errors made by tax preparers or software.
Viewer name: Yentel
Viewer question: I haven't filed my taxes since 2017, since my husband passed, but do pay both my federal and state taxes. I'm in my early 70s, retired and get less than $60,000 per annum. What's your advice
Volunteer name / organization: Chris Housh, EA, Esq. Golden Gate Society of Enrolled Agents
Answer: Yes, you need to file the returns, as your annual income is more than the threshold to not have a filing requirement. You have three years from the date the tax return was due to be filed to get a refund of the payments (4 years for California tax returns). Most tax professionals will recommend to file at least the last six years of tax returns to meet several legal requirements.
Viewer name: Deborah
Viewer question: I had been recvg. Soy. Sec. Disability since 2009. I was told at that time I didn't need to file taxes. Now I'm getting Soc sec retirement.I recv less than $1300 per month. Do i need to file taxes? thank you.
Volunteer name / organization: Loreley Fernandez-Davila, EA California Society of Enrolled Agents
Answer: You do not have a filing requirement as your social security income is below the 25k threshold for filing single. If filing married filing jointly, the threshold is 32k.
Viewer name: Elon
Viewer question: I filed my federal tax return electronically on January 27, 2025, and opted for direct deposit. As of March 5, 2025, I have yet to receive my refund. When I check the IRS "Where's My Refund?" tool, it indicates that my return has been received but provides no further updates. I called the IRS, but could only reach the automated system. Given that more than five weeks have passed, what steps should I take to resolve this delay? Thank you for your assistance.
Volunteer name / organization: Amanda Boston, EA Ca Society of Enrolled Agents
Answer: Typically this means that your return is being reviewed for some reason. You will just have to wait until someone gets to it. You can try to call the IRS and see what is happening - but I doubt they will be able to provide you with a reasonable answer. If you call, plan to be on hold for at least 2 hours. You might have to take a day off of work.
Viewer name: Janet
Viewer question: My son has lived in Japan for 15 years. He has not money in the US. Does he have to file taxes?
Volunteer name / organization: Norman M. Golden, EA California Society of Enrolled Agents
Answer: Yes he does. All US citizens are taxed on their "Worldwide Income", meaning that it does not matter where in the world the income is earned, it is reportable on his Form 1040.
Viewer name: Daniel
Viewer question: I have been having financial hardship these past years and have not been able to find a job. So, during 2024 I have been taking early withdrawals from my old employers' 401K. I am not 59 1/2 years old and I heard there will be 10% penalty for early withdrawal. My financial situation is really really bad and I would like to know if there is a way to avoid the 10% penalty? Any tax code or reasons that I can provide the IRS to avoid the penalty? Thank you very much
Volunteer name / organization: Frank Hood EA
Answer: There are exceptions to the 10% penalty. See https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-exceptions-to-tax-on-early-distributions for a list of potential exceptions to the penalty. Also note that there can be state tax penalty on the early distribution as well.
Viewer name: John
Viewer question: Currently, our townhouse is under both my name and my wife's in California. To avoid California state taxes when I retire, I plan to move to Texas. But my wife plans to stay living and working in California for the next 5+ years until she retires. We plan to file Married Filing Separately. Each year for the rest of my retired life, I plan to live in Texas for at least 7 months and to live in my California townhome for about 5 months during the hot Texas summers. Am I still a CA resident if I have my name in two properties? And do these 7 months need to be consecutive to be a nonCA resident?
Volunteer name / organization: Chris Housh, Esq., EA
Answer: In the past year, the California Office of Tax Appeals has issued several rulings that made it where returning to California on a consistent basis is a determining factor to deny the non-CA resident status. To be considered a non-resident you have to demonstrate that you are not intending to return to California. California will also say that having your spouse stay in California is an indicating that you are having community property rules in effect for any attempt at married filing separate returns.
Viewer name: Larry
Viewer question: Can you please let me know how I should file my taxes regarding shared expense for my son: - We share custody and expenses for our son. - My ex-wife claims him as a dependent on her taxes. - My son received a 1098-T Tuition Statement, this statement was sent to my son directly. Please let me know how I should address my son's 1098-Y Tuition Statement on my taxes. I really appreciate any information on this query. Thank you. Take care
Volunteer name / organization: Loreley Fernandez-Davila, EA California Society of Enrolled Agents
Answer: Only your ex-wife can report the 1098-T because she claims him as a dependent. In case she doesn't claim him, he would report the 1098-T in his tax return, if he files.
Viewer name: Joanie
Viewer question: What happens when your employer takes out payroll taxes but hasn't reported that or paid them? My refund was effected and ss is not showing in my eligible earnings
Volunteer name / organization: Amanda Boston, EA Ca Society of Enrolled Agents
Answer: They go to jail. You need to file a report with IRS and Social Security. If you have a W-2 that is good, but the funds not being paid into the IRS will cause you a major problem. You need to let the IRS and SS know that the funds were not paid and that you are not at fault. They should launch an investigation and go after them for the funds. Most likely you are not the only employee affected.
Viewer name: Chris
Viewer question: My spouse holds a green card and works offshore on a tax exempt boat, only coming home every 4 months. Do they need to file?
Volunteer name / organization: Loreley Fernandez-Davila, EA California Society of Enrolled Agents
Answer: If you are legally married, then most likely, yes. You have a filing requirement if your combined income is above $29,200.
Viewer name: Jodi
Viewer question: A special needs trust trustee DID NOT FILE TAXES FOR 8 years. What legal recourse do we have
Volunteer name / organization: Frank Hood EA
Answer: I cannot offer legal advice, but as for the tax matters, the statute of limitations for those years does not start until the tax returns are filed. Any returns that should have been filed should be filed when possible.
Viewer name: KG
Viewer question: If my Employer doesn't send my 1099 form, can I still file if my taxes are similar to last year?
Volunteer name / organization: Norman M. Golden, EA California Society of Enrolled Agents
Answer: Yes and no. You are required to report the income you receive, whether or not you receive a 1099. You are also required to keep good records.
Take a look at the questions and answers from last year's tax chat here.
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