My Social Security benefits aren’t taxable.
Depending on the amount of other income that a taxpayer has to report, their benefits may be taxable – but the maximum amount of Social Security benefits that must be included is 85 percent.
I don’t need to report stock sales if I bought other stocks with the proceeds.
Many taxpayers think that if they reinvested the money from a stock sale, or otherwise didn’t see any cash, that it doesn’t need to be reported. But stock sales outside of retirement accounts must be reported.
I’m a student and only work part-time, so I don’t have to file a return.
Filing requirements are based on filing status, dependency status, amount of income, and whether it is earned or unearned – not whether you’re a student.
My deadbeat cousin lives in one of my rental properties. He doesn’t pay much, but I can still treat it as a rental.
There are limits on how far below fair market rental value you can go – including the fact that expenses cannot exceed income. There may be other limits as well: The Tax Court has suggested that a fair rent for a family member could be up to 20 percent below market.
My spouse and I separated last year and lived apart for most of the year – so I can file Single.
Unless you were legally divorced or separated as of the end of the year, you cannot file as single.
I’m a signer on a foreign bank account, but not the owner – so I don’t need to disclose it.
This area is under particularly heavy scrutiny right now, according to the NAEA; and there are a number of factors that determine the need to disclose these accounts and/or the assets. Since the penalties for non-disclosure are pretty severe, clients will want to make absolutely sure that they don’t have a responsibility to report.
What you don’t know can hurt you. Clients are welcome to E-Mail us with questions.
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- Do you receive Social Security, Civil Service, or VA Benefits:
There's some good news and some bad news- November 23, 2020