Tax Planning TurboTax Answers Most Commonly Asked Tax Questions Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by TurboTaxLisa Published Jan 26, 2024 - [Updated Jun 28, 2024] 7 min read Although the federal tax deadline is April 15, taxpayers are encouraged to file their taxes now to get their refund ASAP. Most people receive a tax refund each year, and last year, the average federal tax refund was more than 3,000. As taxpayers continue to file their taxes, we are seeing a wide range of tax questions which range from those asked routinely, “can I claim my boyfriend/girlfriend as a dependent?” to those specific to certain credits and deductions this year. To help make the filing process as easy as possible, we’ve answered the most commonly asked questions for this tax season. Table of Contents Who Can I Claim as a Dependent?What is the Earned Income Tax Credit and How Do I Claim it?Does Health Care Reform Still Impact My Taxes?Are Unemployment Benefits Taxable?Can I Deduct the Cost of Searching for a Job? Are Moving Expenses for My New Job Tax Deductible?What are the Tax Implications of Withdrawing Money Early from a Retirement Account to Pay Bills or Debt?I Was Impacted by a Natural Disaster in 2023. What Tax Breaks Are Available to Me?What are Qualified Education Expenses?I Started My Own Business. Can I Deduct My Home Office Expenses?What If I Still Have Questions? Who Can I Claim as a Dependent? Your significant other probably means many things to you—but are they also worth a deduction or credit? The question of who you can claim as a dependent has confused taxpayers for years. The short answer: You can claim a “qualifying child” or “qualifying relative” if they meet specific requirements related to residence, relationship to you, age, financial support provided, and income. You may also be able to claim your significant other or friend as a qualifying relative in some cases. You no longer get a dependent exemption for your dependents, but being able to claim them can also make you eligible for other tax benefits. You may be able to claim credits like the Child Tax Credit and the Earned Income Tax Credit (EITC) for your qualifying child and the Other Dependent Credit (ODC) for your qualifying relative. You may be able to take the Other Dependent Credit worth $500 if: You are providing support for a non-child dependent like another family member, boyfriend, girlfriend, domestic partner, or friend. You can also claim this credit for your kids 17 and over since you cannot claim the Child Tax Credit once they turn 17 for tax year 2023. They are a member of your household the entire year if they are a non-relative (relatives don’t need to live with you). The relationship between you and the dependent girlfriend/boyfriend does not violate the law; for example, you cannot still be married to someone else. (Also, check regarding your individual state law, as some states do not allow you to claim a boyfriend or girlfriend as a dependent even if your relationship doesn’t violate the law). You meet all the other criteria for “qualifying relatives” (gross income and support). What is the Earned Income Tax Credit and How Do I Claim it? The Earned Income Tax Credit is a tax credit for low to middle income wage earners that has lifted millions of people out of poverty, but many people still miss it. Why do so many people miss it? Many think they don’t make enough to file their taxes, so they don’t claim it, or their income changed, but they are not aware that they can qualify. You have to file to get this valuable tax credit, which may help a family with three children who qualify receive a credit worth up to $7,430 for 2023. Families without children may qualify for a credit up to $600. Does Health Care Reform Still Impact My Taxes? With tax reform enacted at the end of 2017, there have been questions around the requirements to have health care coverage. Under tax reform, effective as of tax year 2019, the tax penalty for not having health insurance is eliminated. Taxpayers will no longer be required to pay a tax penalty for not having health insurance. If you receive health insurance coverage in a qualified health insurance plan purchased from Healthcare.gov or through a State Marketplace, you may have received an Advanced Premium Tax Credit or subsidy to help you pay for your 2023 health insurance, which was based on your projection of your 2023 household income. If your actual income for the tax year is more than what was projected when you applied for health insurance in the Health Insurance Marketplace, then you are required to pay back a portion of the excess Advance Premium Tax Credit or subsidy that you received when you file your taxes. Are Unemployment Benefits Taxable? Typically, unemployment income is taxable and should be included in your income for the year. Some states may also count unemployment benefits as taxable income. When it’s time to file your taxes, you will receive Form 1099-G, which will show the amount of unemployment income you received. Form 1099-G will also show any federal taxes you had withheld from your unemployment pay. Can I Deduct the Cost of Searching for a Job? Are Moving Expenses for My New Job Tax Deductible? Unfortunately, for tax years 2018 through 2025, the tax deduction for job search expenses was eliminated on your federal taxes under tax reform, along with all miscellaneous itemized deductions. The tax deduction for moving expenses for non-military taxpayers was also eliminated. In order to deduct certain moving expenses, you must be an active member of the military and moving due to a permanent change of duty station. What are the Tax Implications of Withdrawing Money Early from a Retirement Account to Pay Bills or Debt? Typically, withdrawing money early from a retirement account comes with a 10 percent tax penalty if you withdraw your money before age 59-1/2 in addition to the regular income tax on the amount withdrawn. There can be other consequences, too. The retirement money may also bump you into a higher tax bracket, which can result in the taxation of other income, such as social security, that you may have not been taxed on otherwise. I Was Impacted by a Natural Disaster in 2023. What Tax Breaks Are Available to Me? Prior to tax reform, you were able to deduct most losses for uninsured casualty, disaster and theft losses. Under tax reform provisions, deductions for casualty and theft losses have changed for tax years 2018 through 2025. If you suffered a casualty or theft loss as a result of an unusual event like a flood, fire, or some other unforeseen event, you can deduct the loss if the casualty is within a federally declared disaster area or the theft occurred as a result of a federally declared disaster. The IRS may provide additional special tax provisions to help recover financially from the impact of a disaster when the federal government declares a certain location to be a major disaster area. Depending on the circumstances, relief may be additional time to file returns and pay taxes. What are Qualified Education Expenses? College tuition skyrockets every year, but the U.S. government provides incentives with education credits and deductions. For example, the American Opportunity Tax Credit benefits full-time and part-time college students in their first four years of college with a maximum $2,500 credit per student, provided you meet modified adjusted gross income requirements. You may also be eligible for the Lifetime Learning Credit up to $2,000, even if you take one college course. I Started My Own Business. Can I Deduct My Home Office Expenses? Many entrepreneurs are reluctant to write off the business use of their home for fear of being audited. But home office expenses are legitimate tax deductions you shouldn’t miss out on. Keep in mind the space you claim as a home office should be used exclusively and regularly for that purpose. Don’t forget to include the square footage of your home office used for product storage or inventory. What If I Still Have Questions? Don’t worry about knowing these tax laws. No matter what moves you made last year, TurboTax will make them count on your taxes. Whether you want to do your taxes yourself or have a TurboTax expert file for you, we’ll make sure you get every dollar you deserve and your biggest possible refund – guaranteed. Get started now Previous Post What is an Earned Income Tax Credit & Do You… Next Post What Medical Expenses are Tax Deductible? Written by Lisa Greene-Lewis Lisa has over 20 years of experience in tax preparation. Her success is attributed to being able to interpret tax laws and help clients better understand them. She has held positions as a public auditor, controller, and operations manager. Lisa has appeared on the Steve Harvey Show, the Ellen Show, and major news broadcast to break down tax laws and help taxpayers understand what tax laws mean to them. For Lisa, getting timely and accurate information out to taxpayers to help them keep more of their money is paramount. More from Lisa Greene-Lewis Follow Lisa Greene-Lewis on Twitter. 243 responses to “TurboTax Answers Most Commonly Asked Tax Questions” Newer Comments » Hey, Someone in my Facebook group shared this website with us so I came to give it a look. I’m enjoying the content! Outstanding blog Hello, I really love your site!! Impressive information on the page concept. Thanks my Va. state return keeps getting rejected because they say box 16 can not be greater than box 1 on my W-2 form. It is not,it’s the exact same number- what’s that all about? Hi – Due to the type of issue you have, it will be better for you to speak to an agent over the phone. Please click on this link for instructions on how to contact us: http://turbotax.intuit.com/support/go/GEN12151 Cheers… –Christopher A married couples filed jointly online, this was done yearly on turbo Tax website by the husband, My questions are, is it required by law that the wife must signed the finished printed tax copies? If yes, is it okay for the husband to signed/forged the wife’s signature? If no, will this be call a violation? if the husband signed electronically and the wife signed manually where will this signed copies send to? Hi – There is no need to sign (or mail) printed copies of your return if you are efiling a joint return. But you of course should print a copy for your records. Hope that clarifies! –Christopher I recently joined a medical practice where a percentage of my earnings goes back to the practice. How would I account for this, a Form 1099? Also, I’ve been told that the first 50K earned if self employed is not taxed. Is there any truth to that? If so, what if you are filling married filing jointly.Thank you! Hi Rick – You may be thinking of the the $49,000 exemption for the Alternative Minimum Tax. But that does not apply to the regular federal income tax — the same exemptions and deductions apply for the self-employed as for employees. As for how your reinvested earnings are reported, there are many different possibilities that depend on factors such as the business form of the practice (partnership, LLC, etc) and whether your “earnings” are wages or profits. You’ll need to ask your colleagues. Cheers… –Christopher What if we already received our taxes but didnt claim someone as a dependent can we still trifle for that? Hi – You would need to file an amended return to claim the dependent. You can start the process and see whether it would result in an additional refund. The attached link has detailed instructions. Hope it helps! –Christopher http://turbotax.intuit.com/support/go/GEN85210 I am a self employed non US Citizen living abroad and started doing business in 2012 with a US Company. Do I have to pay taxes for those payments I have received ? Thank you in advance !! Hi – It depends on whether the work took place within the U.S. If not, then you would likely not be subject to U.S. income tax. Hope that clarifies. –Christopher My friend does not own anything. He only made $12,500 but he did donate his car to the “Cars for Kids” not for profit agency. Does he claim the $500 tax credit or does that not apply because he does not really own anything? Hi! Do you mean he doesn’t owe anything (in taxes)? There’s no federal credit for donating a car to charity — only a deduction from taxable income. So if he has no tax liability, then the charitable donation won’t help his refund at all. The attached link has more details. Hope it helps! –Christopher When is the deadline for LLC? Here is the simple situation: Partnership with calendar fiscal year, owned 8% of another LLC. The % was set per the 2010 operating agreement of the LLC. Despite being in operation, the Company only started generating revenue in Q4 of 2012 (this was controlled by the states “go-live”, and in a panic (long story) the majority holders sold to private equity in December 2012 (prior to year-end). Our role was passive to organization. We were paid our pro-rata share prior to YE. Can I assume that this is a long-term capital gain reported on the 1065 on line 13. Just want to make certain it is LT capital gain. Hello James – Long-term or short-term gain is based on the date of the investment into the asset. As long as the actual investment into the Company was over 1 year, it would be considered LT gain. Thanks, Karen How many year can you take the depriciation for the roof and furnace. Can I use my adult brother as dependent for he is living free in my rental property. Hi – This link explains who can be a dependent: http://turbotax.intuit.com/support/go/GEN12426 –Christopher I am the only income earner of my family and employed in the United State My wife and Daughter are Canadian residence. Can I claim my wife and daughter on my 2012 tax returns with their Canadian NI numbers since they do not have their SSN yet in the US. Hi – You would need to obtain IRS Individual Taxpayer Identification Numbers for them. Details here: http://www.irs.gov/taxtopics/tc857.html –Christopher Hi, Will I benefit if I claim a friend I supported for nine months but owes the IRS? Or will the income tax return go towards his payment? First off, you can’t claim a non-relative unless they lived with you for all of 2012. Details here: http://turbotax.intuit.com/support/go/GEN12426 –Christopher IF YOU RECEIVE A 1098T AND THE GOVERNMENT PAYS $20000. FOR INTUITION AND YOU RECEIVE $25000. YOU DONT QUALIFY FOR A TAX CREDIT. You can review the rules for the education tax credits at this link: http://turbotax.intuit.com/support/go/GEN80424 –Christopher I have a friend that I have helped with her two grand children that she is raising and they live on there SS Checks and are both are disable to work. She told me she could not claim the Children for earned income tax because her husband no longer can work, so they don’t file income tax. When her husband was able to work they were able to claim the two boys. So they are having a real ruff time making ends meet. I have helped them with the kids as much as I can. They have sole custody of the children. How can I help them? How can I help them. The money for the children would help with food and clothes for the children. Thank you for your sponse on this matter. Dorris Maggio Hi Doris – There’s not much help in the tax code for families like the one you describe. SSI, SSDI and disability benefits are already non-taxable, but one must must have earned income (i.e., be employed) to receive the Earned Income Credit. The attached link has more information. Best wishes… –Christopher http://turbotax.intuit.com/support/go/GEN80354 My son and his girlfriend live together and and she actually supports him. He already filed his taxes on Turbo Tax, when she went to do hers she listed him as a dependent. Hers came back as rejected. After checking for errors, no errors came up. Can she still claim him as a dependent? Hi – A non-relative must live with you all year and earn less than $3,800 to be a dependent. Details here: http://turbotax.intuit.com/support/go/GEN12426 Cheers… –Christopher I had an income of less than $5,000 last 2011 and didnt file it. In 2012 i had an income of less than $5,000 as well. Can i file for my income tax return then? Thanks. Hi – You can choose to file even if you don’t need to — perhaps to get back any withholding taken out of your paycheck, or to claim the Earned Income Credit. Note, though, that you would need a copy of TurboTax 2011 to prepare a 2011 return, you can’t use this year’s program. Hope that clarifies. Can i claim my parents as dependent? I support them financially regularly on a monthly basis. The question is are they qualied since they live overseas? Thank you. Hi – You probably can’t claim your overseas parents, unless they’re in Canada or Mexico. They must also have U.S. taxpayer IDs (SSN or ITIN). Details here: http://turbotax.intuit.com/support/go/GEN12426 –Christopher I worked out of town I traveled every weekend to come back home can I deduct the miles or gas that I send to get my work every week also I would like to claim lodge, meals and my work clothing? Hi – The general rule is that commuting costs are not deductible, no matter how far. Your work-related meals and uniforms might be deductible, however. Details at this link. Cheers… –Christopher http://turbotax.intuit.com/tax-tools/tax-tips/Tax-Deductions-and-Credits/Employees-Can-Deduct-Workplace-Expenses/INF13505.html I got a letter from the the irs saying i oew $680 for my 2012 tax year. This year I already filed for my 2013 tax and the $680 that i owe from last year was detucted. When i called the irs they said that the reason why i owe that amount is becausemy tax pre parer put my dad down as a non us citizen. My dad is a United Stated Citizen! How do i get this money back? I have his passport and ssn card who do i need to talk to in order to get this issue resolve! Please help! Hi – Sorry you’re having this issue! You’ll need to work directly with the IRS on your situation. Amending your prior-year return won’t help if the IRS has already applied the offset. You can find the IRS’ contact info at this link: http://www.irs.gov/uac/How-to-Contact-the-IRS-1 Good luck! –Christopher *= mi esposo trabajo y su empleador le pago en efectivo le mando la hoja 1099 de lo ganado al momento de reportar el impuesto le dijeron que no recibiria el credito de nuestros dos hijos por que el tine solo itin para la taxes quisiera saver si es cierto my wifes mother has dimensia and is in a care facility.my wife does her laundry sometimes we pay for in house haircuts but mostly its the fuel and wear on our car.my wife probably puts on a couple thousand miles a year.its almost 100 miles round trip to facility.can we claim anything.she is executor of will and the only sibling doing anything to help Hi – You may to consider trying to claim her as a dependent. If she has less than $3,800 in income other than Social Security, then you may be able to. If so, then you may also be able to claim the Child and Dependent Care Credit.Details here: http://turbotax.intuit.com/support/go/GEN12287 –Christopher I’ve been retired on SSDI since 2008 (“my” only income). My wife retired 11/11/11, drawing a pension & SSI for 2012. Her pension withheld “very little” for taxes in 2012 so for the 1st time, we owe a bundle [Married filing jointly with high itemized deductions]. Q- can we file “married filing separately” and I claim only my SSDI and she claim her pension, SDI and the itemized deductions? That should greatly lower our outrageous tax owed for 2012. Hi – You are certainly entitled to file as married Filing Separately, but most couples benefit from filing jointly. Filing separately reduces or even eliminates many deductions and credits. Also, special rules apply in community property states. The attached link has more details. Hope it helps! –Christopher http://turbotax.intuit.com/support/go/GEN83639 My son is a college student.His 1098 -T shows he got more scholarship and grants than his tuition fees. My question is if he is able get any kind of tax credit like hope and American education credit as he is my dependant.Thanks Hi – First, if he is your dependent, then you must claim the education tax credits on his behalf. Second, if all his qualified education expenses were covered by grants and scholarships, then you likely are not eligible for the credits anyway. Indeed, if he really received more in scholarships than he was billed in tuition, then the excess may be considered taxable income. He may want to confirm with the school that his Form 1098-T is correct. More information is available at this link: http://turbotax.intuit.com/support/go/GEN12259 –Christopher My wife received a lot of clothes and old items from a friend in a different state and donated them all to the local Good Will in that state. Can we claim the deduction on our tax return? Hi – Typically the thrift store will give you a receipt indicating the value of the items you donate. If you have that receipt, then you should be able to claim the value, especially if it’s a modest amount, say less than $250. The attached link has more details. –Christopher http://turbotax.intuit.com/support/go/GEN80369 We own a 2 family house and have a tenant that wasn’t able to work in 2012, so couldn’t pay rent. Is there a form we can use to file for utilities and repairs as we aren’t allowed to use schedule E because we didn’t collect any rent? Thank you, JC Hi – There’s no other way to report rental income and expenses other than Schedule E, but you may be able to carry over the losses to offset future income. So you should still enter those expenses, even if you collected no rent. The attached link has more information. –Christopher http://turbotax.intuit.com/support/go/GEN12255 Can I claim my son, he is 37 years old, unemployed, he staying in my house for last couple years. Thanks Hi – The basic rule for claiming an adult child is that they must be single, have less than $3,800 in income, and you must provide at least half their total support. Details here: http://turbotax.intuit.com/support/go/GEN12426 –Christopher Turbo Tax had computed our long and short term gains on stock investments. The long term gain should be taxed at 15% but Turbo Tax is showing it as earned income and lumped it together with everything else on the 1040 form. How can I be sure that Turbo Tax is only computing 15% on this portion of our income as our overall tax rate is closer to 23% Help…Help Hi – Due to the type of issue you have, it will be better for you to speak to an agent over the phone. Please click on this link for instructions on how to contact us: http://turbotax.intuit.com/support/go/GEN12151 –Christopher What educational expenses qualify for Lifetime Learning Credit for my children who are in grad schools full time. Only the ones from 1098T form or also the cost of the books purchased on line. What other cost qualify for that credit. Thanks. Hi – Qualified education expenses under the Lifetime Learning Credit include tuition, student-activity fees, and expenses for course-related books, supplies, and equipment — BUT ONLY if the fees and expenses must be paid directly to the institution as a condition of enrollment or attendance. The attached link has more details. –Christopher http://turbotax.intuit.com/support/go/GEN80422 My mother passed away August 2012. She was on Medicaid and had no money. I paid the $9000 for her funeral can I deduct that on my taxes. Sorry for your loss. Unfortunately, the estate is expected to pay funeral costs out of estate assets. Any costs paid by family or friends are unfortunately not deductible. –Christopher i have claimed my mother as a dependent for many years she passes away I paid cash for her funeral can I tak that expense off my tAXES SHE HAD NOTHING OR AN ESTATE No, but you can still deduct her as a dependant a s long as she qualifies or meet standards for support 51per cent that you paid include room and board. Taking her back and forth to doc. Hello, recently refi my home (Nov, 2012) and they reduce the price by $207K. Do I pay taxes on that amount? Also, my partner is not working and hasn’t work in over a year, can I claim them on my taxes as a dependent exemptions Hi – If you did not receive Form 1099-C showing the canceled or reduced debt, then you do not need to report it on your return (at least not yet). This link describes who can be claimed as a dependent. Hope it helps. –Christopher http://turbotax.intuit.com/support/go/GEN12426 Hi, my husband and myself would like to know is we can claim my parents. They both receive social security, but we have helped support them because they only receive 1500.00 a month and out of this they pay 500.00 for medical insurance to make up the difference from their Medicare Part B, car payment of 400.00 and insurance for car of 200.00. Their home was paid for but they have had to get a loan against it to have a new roof but on it. We send them money so that they are able to buy food and clothng. Hi – The general rule is that you can claim a parent if they have less than $3,800 in income NOT including Social Security and if you provide more than half their support. The attached link has more details. Hope it helps. –Christopher http://turbotax.intuit.com/support/go/GEN12426 I have purchased my house in 2008 when I filed my taxes I was told that I qualified for almost 8 thousand; I took it but I did not know that I have to pay it back; I have friends they purchased their house in 2009 they got the same amount of money but they do not have to pay back; how come these things happen we are all people suffer from this impact of the economy; why some have to pay back and some not; what can I do to be in the same spot as my friends I need that money the IRS are deducting from my taxes. Please let me know! Hi – Congress creates the tax code, not the IRS. And Congress, for whatever reason, decided that the 2008 Homebuyer Credit must be repaid over 15 years, but the 2009 and 2010 Homebuyer Credits do not need to repaid at all. Sorry if it seems unfair, but that’s indeed how the credits are structured. –Christopher I own my home so why can’t a person claim head of household even though they live alone? Hi – Congress creates the tax code, not the IRS. And Congress, for whatever reason, has decided that the special filing status, Head of Household, should require that a “Qualifying Person” (usually a dependent child) must live in the household. The attached link has more details. –Christopher http://turbotax.intuit.com/support/go/GEN84056 can i claim all my pharmacy expenses. all medications that were paid out of pocket in the year 2012 can i get a print out and put that on my taxes? never thought of that but someone told me i should. and also my car registration receipts? Hi – You can only claim your prescription medicines; over-the-counter medicines are no longer deductible. A more detailed list of qualified expenses is available here: http://turbotax.intuit.com/support/go/GEN80606 As for vehicle registration fees – it varies by state. You should ask your local DMV for guidance. –Christopher If I claim my unemployed boyfriend as a dependent, will I become liable for his previously unpaid taxes and penalties? Hi – The IRS does not apply refund offsets for delinquent debts owed by dependents, only the taxpayer. –Christopher Hi KarenL. We {my wife and I}filed our tax this year as married filing jointly through Turbo Tax and got the refund but told me she got nothing to give me, meaning she is taking all the money. Is there anything I can do? I am asking this beacuse if the refund is more than we are supposed to have, IRS we come after us to pay back and since I did not get my share of this year refund, I need to know what I should do. Someone told me to and report to the IRS. What do you think. Hi – If a married couple files an accurate return and the IRS issues the refund expected, then there’s nothing the IRS is going to do to resolve a dispute between the two spouses about who gets to keep the refund. That’s an issue between you and your spouse.Hope that answers your question.–Christopher Hi Christopher, And what happened if the refund was not accurate but the IRS had paid but one spouse kept all the money, will the IRS make both spouses pay back? Remember one of the spouses did not get a share of that refund IM 69 Im on S.S. I RECIVE 13,000 A YEAR DO INEED TO FILE TAXES ? Hi – If your only income is Social Security, then you do not need to file an income tax return. The attached link has the complete filing requirements. Cheers… –Christopher http://turbotax.intuit.com/support/go/GEN12413 My daughter is 26 and a full time student in Los Angeles, Calif. I live in North Carolina and have paid all her living expenses with the exception of $2000.00 during 2012. She lives in an apartment. All expenses were paid by me. Can I include her as a qualifying relative on my 2012 tax return. Hi – The general rule for claiming an adult child as a dependent is that they must be single, have less than $3,800 in income (not including Social Security), and that you must provide at least half their total support. The attached link has the complete requirements. Cheers… –Christopher http://turbotax.intuit.com/support/go/GEN12426 I could not figure out why my turbo tax I filed back on FEB 4 still is not in my acct. direct deposit I tried for weeks to get this answered. Finally I got a hold of IRS and they said my tax form is in a non postable acct due to wrong coding they said not my fault not turbo taxes fault but IRS fault. I said so I have to wait for someone to correct this IRS said yes. Someday I will get my money. IRS said due to changed tax laws. This I have never heard of and why does my return have to be coded? Experts can you answer this for me? Still waiting for my return. I should have had my return 21 days after filing for FEB 4. Thank you. My boyfriend and I work from home, we both have separate Ebay accounts. He has made over 20k and has received the 1099k from paypal, I have not. We are both completely lost as to what to do, what to file, who to talk to……we are both afraid were gonna go under!!!! Please HELP!!! Hi James – You must report the amount on Form 1099-K as self-employment income, but can offset that with your expenses from the eBay activity. The link below has more details. Hope it helps! –Christopher http://turbotax.intuit.com/support/go/GEN83598 I had a child in June, but have not yet applied for a SSN. Can I claim the Dependent and Child Care credit, or do I need to first obtain a SSN for my daughter? Hi Carl, Sorry unfortunately you have to have your daughter’s SSN in order to claim the credit as well as claiming her as a dependent and any other dependent related credits or tax deductions. Thank you, Lisa Greene-Lewis Can I file a separate return for my LLC business from me and my spouse? Hi Inewsom – It depends… If you are the only LLC member and have not elected to file as an S-Corp, then you will file a Schedule C with your individual return. That is easiest. If you are a multi-member LLC you will file as a Partnership (or S-Corp if you elected that) which will issue each member a K-1 form for their share of the profits/losses. If it you and your wife only on the LLC, then you will file as a Partnership or you can elect to file Schedule Cs if you live in a community property state. Please see this link http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Election-for-Husband-and-Wife-Unincor… Thanks, Karen Hi Mary Ann, It will not pick it up from the IRS. You will have to transfer it from your files. Here is a link that will help you out http://turbotax.intuit.com/support/iq/Transfer-from-last-year/Transferring-last-year-s-tax-files-in-TurboTax/GEN12073.html Thanks, Karen Where in TurboTax Deluxe do I input data from the 1099-B form I received which includes Form8949, both short (part1) and long (part 2) figures/ Hi John G. – You input your 1099-B in the Wages & Income area. Go to the Federal Taxes tab, Wages & Income, Explore On My Own, scroll down to Investment Income, then Stocks, Mutual Funds, Bonds, Other. The software will prepare the Schedule D and Form 8949 for you based on your input. Thanks, Karen where do do i go online to file my income tax? Hi Robert, You can go to http://turbotax.intuit.com/ Thank you, Lisa Greene-Lewis i have deluxe program. entered income from qualified pension plan. program asked how much is a RMD. RMDs are not required of a regular pension plan. What is going on?? Hi Jim – The RMD rules apply to all employer sponsored retirement plans, including pensions, profit-sharing plans, 401(k) plans, 403(b) plans, and 457(b) plans. The RMD rules also apply to traditional IRAs and IRA-based plans such as SEPs, SARSEPs, and SIMPLE IRAs. The software automatically asks about it when you turn 70 1/2. Your pension plan trustee automatically calculates the RMDs in their distribution. Hope that helps. Thanks, Karen I purchased the Primier Turbotax software, can I e-file my sons State tax also? Or can I only e-file my own Stae Tax return? Can I run his State tax with the same software and mail it? Hi Bonita – You can prepare and file up to 5 tax returns on the Desktop/CD version of TurboTax. Only one taxpayer is allowed for the online version. Thanks, Karen I am very frustrated. On my Federal Taxes I have an Error Check.Check This Entry Carryover Worksheet: Total Withheld Payments, Carryover Worksheet-1 should be equal to or greater than the sum of amount Paid with Extension and amount of Estimates Paid after 12/31. Total W/H Pmts I worked last night and today trying to figure out the problem but none of the help lists tell me what to do. Please Help We recently got a new computer. I saved Turbo Tax 2011 to a disk. Do I need to download that and 2011 Software before doing 2012. I want to be sure it picks all info from last year. Or does it automatically pick up the info from the IRS? I am a real dummmy when it comes to computers. Thank you for your help. Hi Mary Ann, It will not pick it up from the IRS. You will have to transfer it from your files. Here is a link that will help you out http://turbotax.intuit.com/support/iq/Transfer-from-last-year/Transferring-last-year-s-tax-files-in-TurboTax/GEN12073.html Thanks, Karen Newer Comments » Browse Related Articles Life Interest Rates, Inflation, and Your Taxes Investments Essential Tax Tips for Maximizing Investment Gains Uncategorized TurboTax is Partnering with Saweetie to Elevate Hoop Dr… Business Small Business Owners: Optimize Your Taxes with a Mid-Y… Small Business The Benefits of Employing Your Children and the Tax Bre… Income and Investments Are Olympics Winnings Taxed? Taxes 101 IRS Name Changes for Businesses in Just a Few Steps Student Athlete What are Alston Awards and the Tax Implications? Life Tax Audits Explained (Not As Scary As You Think) Income and Investments First Time Investors, Here’s What You Need To Know Ab…
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my Va. state return keeps getting rejected because they say box 16 can not be greater than box 1 on my W-2 form. It is not,it’s the exact same number- what’s that all about?
Hi – Due to the type of issue you have, it will be better for you to speak to an agent over the phone. Please click on this link for instructions on how to contact us: http://turbotax.intuit.com/support/go/GEN12151 Cheers… –Christopher
A married couples filed jointly online, this was done yearly on turbo Tax website by the husband, My questions are, is it required by law that the wife must signed the finished printed tax copies? If yes, is it okay for the husband to signed/forged the wife’s signature? If no, will this be call a violation? if the husband signed electronically and the wife signed manually where will this signed copies send to?
Hi – There is no need to sign (or mail) printed copies of your return if you are efiling a joint return. But you of course should print a copy for your records. Hope that clarifies! –Christopher
I recently joined a medical practice where a percentage of my earnings goes back to the practice. How would I account for this, a Form 1099? Also, I’ve been told that the first 50K earned if self employed is not taxed. Is there any truth to that? If so, what if you are filling married filing jointly.Thank you!
Hi Rick – You may be thinking of the the $49,000 exemption for the Alternative Minimum Tax. But that does not apply to the regular federal income tax — the same exemptions and deductions apply for the self-employed as for employees. As for how your reinvested earnings are reported, there are many different possibilities that depend on factors such as the business form of the practice (partnership, LLC, etc) and whether your “earnings” are wages or profits. You’ll need to ask your colleagues. Cheers… –Christopher
What if we already received our taxes but didnt claim someone as a dependent can we still trifle for that?
Hi – You would need to file an amended return to claim the dependent. You can start the process and see whether it would result in an additional refund. The attached link has detailed instructions. Hope it helps! –Christopher http://turbotax.intuit.com/support/go/GEN85210
I am a self employed non US Citizen living abroad and started doing business in 2012 with a US Company. Do I have to pay taxes for those payments I have received ? Thank you in advance !!
Hi – It depends on whether the work took place within the U.S. If not, then you would likely not be subject to U.S. income tax. Hope that clarifies. –Christopher
My friend does not own anything. He only made $12,500 but he did donate his car to the “Cars for Kids” not for profit agency. Does he claim the $500 tax credit or does that not apply because he does not really own anything?
Hi! Do you mean he doesn’t owe anything (in taxes)? There’s no federal credit for donating a car to charity — only a deduction from taxable income. So if he has no tax liability, then the charitable donation won’t help his refund at all. The attached link has more details. Hope it helps! –Christopher
Here is the simple situation: Partnership with calendar fiscal year, owned 8% of another LLC. The % was set per the 2010 operating agreement of the LLC. Despite being in operation, the Company only started generating revenue in Q4 of 2012 (this was controlled by the states “go-live”, and in a panic (long story) the majority holders sold to private equity in December 2012 (prior to year-end). Our role was passive to organization. We were paid our pro-rata share prior to YE. Can I assume that this is a long-term capital gain reported on the 1065 on line 13. Just want to make certain it is LT capital gain.
Hello James – Long-term or short-term gain is based on the date of the investment into the asset. As long as the actual investment into the Company was over 1 year, it would be considered LT gain. Thanks, Karen
How many year can you take the depriciation for the roof and furnace. Can I use my adult brother as dependent for he is living free in my rental property.
Hi – This link explains who can be a dependent: http://turbotax.intuit.com/support/go/GEN12426 –Christopher
I am the only income earner of my family and employed in the United State My wife and Daughter are Canadian residence. Can I claim my wife and daughter on my 2012 tax returns with their Canadian NI numbers since they do not have their SSN yet in the US.
Hi – You would need to obtain IRS Individual Taxpayer Identification Numbers for them. Details here: http://www.irs.gov/taxtopics/tc857.html –Christopher
Hi, Will I benefit if I claim a friend I supported for nine months but owes the IRS? Or will the income tax return go towards his payment?
First off, you can’t claim a non-relative unless they lived with you for all of 2012. Details here: http://turbotax.intuit.com/support/go/GEN12426 –Christopher
IF YOU RECEIVE A 1098T AND THE GOVERNMENT PAYS $20000. FOR INTUITION AND YOU RECEIVE $25000. YOU DONT QUALIFY FOR A TAX CREDIT.
You can review the rules for the education tax credits at this link: http://turbotax.intuit.com/support/go/GEN80424 –Christopher
I have a friend that I have helped with her two grand children that she is raising and they live on there SS Checks and are both are disable to work. She told me she could not claim the Children for earned income tax because her husband no longer can work, so they don’t file income tax. When her husband was able to work they were able to claim the two boys. So they are having a real ruff time making ends meet. I have helped them with the kids as much as I can. They have sole custody of the children. How can I help them? How can I help them. The money for the children would help with food and clothes for the children. Thank you for your sponse on this matter. Dorris Maggio
Hi Doris – There’s not much help in the tax code for families like the one you describe. SSI, SSDI and disability benefits are already non-taxable, but one must must have earned income (i.e., be employed) to receive the Earned Income Credit. The attached link has more information. Best wishes… –Christopher http://turbotax.intuit.com/support/go/GEN80354
My son and his girlfriend live together and and she actually supports him. He already filed his taxes on Turbo Tax, when she went to do hers she listed him as a dependent. Hers came back as rejected. After checking for errors, no errors came up. Can she still claim him as a dependent?
Hi – A non-relative must live with you all year and earn less than $3,800 to be a dependent. Details here: http://turbotax.intuit.com/support/go/GEN12426 Cheers… –Christopher
I had an income of less than $5,000 last 2011 and didnt file it. In 2012 i had an income of less than $5,000 as well. Can i file for my income tax return then? Thanks.
Hi – You can choose to file even if you don’t need to — perhaps to get back any withholding taken out of your paycheck, or to claim the Earned Income Credit. Note, though, that you would need a copy of TurboTax 2011 to prepare a 2011 return, you can’t use this year’s program. Hope that clarifies.
Can i claim my parents as dependent? I support them financially regularly on a monthly basis. The question is are they qualied since they live overseas? Thank you.
Hi – You probably can’t claim your overseas parents, unless they’re in Canada or Mexico. They must also have U.S. taxpayer IDs (SSN or ITIN). Details here: http://turbotax.intuit.com/support/go/GEN12426 –Christopher
I worked out of town I traveled every weekend to come back home can I deduct the miles or gas that I send to get my work every week also I would like to claim lodge, meals and my work clothing?
Hi – The general rule is that commuting costs are not deductible, no matter how far. Your work-related meals and uniforms might be deductible, however. Details at this link. Cheers… –Christopher http://turbotax.intuit.com/tax-tools/tax-tips/Tax-Deductions-and-Credits/Employees-Can-Deduct-Workplace-Expenses/INF13505.html
I got a letter from the the irs saying i oew $680 for my 2012 tax year. This year I already filed for my 2013 tax and the $680 that i owe from last year was detucted. When i called the irs they said that the reason why i owe that amount is becausemy tax pre parer put my dad down as a non us citizen. My dad is a United Stated Citizen! How do i get this money back? I have his passport and ssn card who do i need to talk to in order to get this issue resolve! Please help!
Hi – Sorry you’re having this issue! You’ll need to work directly with the IRS on your situation. Amending your prior-year return won’t help if the IRS has already applied the offset. You can find the IRS’ contact info at this link: http://www.irs.gov/uac/How-to-Contact-the-IRS-1 Good luck! –Christopher
*= mi esposo trabajo y su empleador le pago en efectivo le mando la hoja 1099 de lo ganado al momento de reportar el impuesto le dijeron que no recibiria el credito de nuestros dos hijos por que el tine solo itin para la taxes quisiera saver si es cierto
my wifes mother has dimensia and is in a care facility.my wife does her laundry sometimes we pay for in house haircuts but mostly its the fuel and wear on our car.my wife probably puts on a couple thousand miles a year.its almost 100 miles round trip to facility.can we claim anything.she is executor of will and the only sibling doing anything to help
Hi – You may to consider trying to claim her as a dependent. If she has less than $3,800 in income other than Social Security, then you may be able to. If so, then you may also be able to claim the Child and Dependent Care Credit.Details here: http://turbotax.intuit.com/support/go/GEN12287 –Christopher
I’ve been retired on SSDI since 2008 (“my” only income). My wife retired 11/11/11, drawing a pension & SSI for 2012. Her pension withheld “very little” for taxes in 2012 so for the 1st time, we owe a bundle [Married filing jointly with high itemized deductions]. Q- can we file “married filing separately” and I claim only my SSDI and she claim her pension, SDI and the itemized deductions? That should greatly lower our outrageous tax owed for 2012.
Hi – You are certainly entitled to file as married Filing Separately, but most couples benefit from filing jointly. Filing separately reduces or even eliminates many deductions and credits. Also, special rules apply in community property states. The attached link has more details. Hope it helps! –Christopher http://turbotax.intuit.com/support/go/GEN83639
My son is a college student.His 1098 -T shows he got more scholarship and grants than his tuition fees. My question is if he is able get any kind of tax credit like hope and American education credit as he is my dependant.Thanks
Hi – First, if he is your dependent, then you must claim the education tax credits on his behalf. Second, if all his qualified education expenses were covered by grants and scholarships, then you likely are not eligible for the credits anyway. Indeed, if he really received more in scholarships than he was billed in tuition, then the excess may be considered taxable income. He may want to confirm with the school that his Form 1098-T is correct. More information is available at this link: http://turbotax.intuit.com/support/go/GEN12259 –Christopher
My wife received a lot of clothes and old items from a friend in a different state and donated them all to the local Good Will in that state. Can we claim the deduction on our tax return?
Hi – Typically the thrift store will give you a receipt indicating the value of the items you donate. If you have that receipt, then you should be able to claim the value, especially if it’s a modest amount, say less than $250. The attached link has more details. –Christopher http://turbotax.intuit.com/support/go/GEN80369
We own a 2 family house and have a tenant that wasn’t able to work in 2012, so couldn’t pay rent. Is there a form we can use to file for utilities and repairs as we aren’t allowed to use schedule E because we didn’t collect any rent? Thank you, JC
Hi – There’s no other way to report rental income and expenses other than Schedule E, but you may be able to carry over the losses to offset future income. So you should still enter those expenses, even if you collected no rent. The attached link has more information. –Christopher http://turbotax.intuit.com/support/go/GEN12255
Can I claim my son, he is 37 years old, unemployed, he staying in my house for last couple years. Thanks
Hi – The basic rule for claiming an adult child is that they must be single, have less than $3,800 in income, and you must provide at least half their total support. Details here: http://turbotax.intuit.com/support/go/GEN12426 –Christopher
Turbo Tax had computed our long and short term gains on stock investments. The long term gain should be taxed at 15% but Turbo Tax is showing it as earned income and lumped it together with everything else on the 1040 form. How can I be sure that Turbo Tax is only computing 15% on this portion of our income as our overall tax rate is closer to 23% Help…Help
Hi – Due to the type of issue you have, it will be better for you to speak to an agent over the phone. Please click on this link for instructions on how to contact us: http://turbotax.intuit.com/support/go/GEN12151 –Christopher
What educational expenses qualify for Lifetime Learning Credit for my children who are in grad schools full time. Only the ones from 1098T form or also the cost of the books purchased on line. What other cost qualify for that credit. Thanks.
Hi – Qualified education expenses under the Lifetime Learning Credit include tuition, student-activity fees, and expenses for course-related books, supplies, and equipment — BUT ONLY if the fees and expenses must be paid directly to the institution as a condition of enrollment or attendance. The attached link has more details. –Christopher http://turbotax.intuit.com/support/go/GEN80422
My mother passed away August 2012. She was on Medicaid and had no money. I paid the $9000 for her funeral can I deduct that on my taxes.
Sorry for your loss. Unfortunately, the estate is expected to pay funeral costs out of estate assets. Any costs paid by family or friends are unfortunately not deductible. –Christopher
i have claimed my mother as a dependent for many years she passes away I paid cash for her funeral can I tak that expense off my tAXES
No, but you can still deduct her as a dependant a s long as she qualifies or meet standards for support 51per cent that you paid include room and board. Taking her back and forth to doc.
Hello, recently refi my home (Nov, 2012) and they reduce the price by $207K. Do I pay taxes on that amount? Also, my partner is not working and hasn’t work in over a year, can I claim them on my taxes as a dependent exemptions
Hi – If you did not receive Form 1099-C showing the canceled or reduced debt, then you do not need to report it on your return (at least not yet). This link describes who can be claimed as a dependent. Hope it helps. –Christopher http://turbotax.intuit.com/support/go/GEN12426
Hi, my husband and myself would like to know is we can claim my parents. They both receive social security, but we have helped support them because they only receive 1500.00 a month and out of this they pay 500.00 for medical insurance to make up the difference from their Medicare Part B, car payment of 400.00 and insurance for car of 200.00. Their home was paid for but they have had to get a loan against it to have a new roof but on it. We send them money so that they are able to buy food and clothng.
Hi – The general rule is that you can claim a parent if they have less than $3,800 in income NOT including Social Security and if you provide more than half their support. The attached link has more details. Hope it helps. –Christopher http://turbotax.intuit.com/support/go/GEN12426
I have purchased my house in 2008 when I filed my taxes I was told that I qualified for almost 8 thousand; I took it but I did not know that I have to pay it back; I have friends they purchased their house in 2009 they got the same amount of money but they do not have to pay back; how come these things happen we are all people suffer from this impact of the economy; why some have to pay back and some not; what can I do to be in the same spot as my friends I need that money the IRS are deducting from my taxes. Please let me know!
Hi – Congress creates the tax code, not the IRS. And Congress, for whatever reason, decided that the 2008 Homebuyer Credit must be repaid over 15 years, but the 2009 and 2010 Homebuyer Credits do not need to repaid at all. Sorry if it seems unfair, but that’s indeed how the credits are structured. –Christopher
Hi – Congress creates the tax code, not the IRS. And Congress, for whatever reason, has decided that the special filing status, Head of Household, should require that a “Qualifying Person” (usually a dependent child) must live in the household. The attached link has more details. –Christopher http://turbotax.intuit.com/support/go/GEN84056
can i claim all my pharmacy expenses. all medications that were paid out of pocket in the year 2012 can i get a print out and put that on my taxes? never thought of that but someone told me i should. and also my car registration receipts?
Hi – You can only claim your prescription medicines; over-the-counter medicines are no longer deductible. A more detailed list of qualified expenses is available here: http://turbotax.intuit.com/support/go/GEN80606 As for vehicle registration fees – it varies by state. You should ask your local DMV for guidance. –Christopher
If I claim my unemployed boyfriend as a dependent, will I become liable for his previously unpaid taxes and penalties?
Hi – The IRS does not apply refund offsets for delinquent debts owed by dependents, only the taxpayer. –Christopher
Hi KarenL. We {my wife and I}filed our tax this year as married filing jointly through Turbo Tax and got the refund but told me she got nothing to give me, meaning she is taking all the money. Is there anything I can do? I am asking this beacuse if the refund is more than we are supposed to have, IRS we come after us to pay back and since I did not get my share of this year refund, I need to know what I should do. Someone told me to and report to the IRS. What do you think.
Hi – If a married couple files an accurate return and the IRS issues the refund expected, then there’s nothing the IRS is going to do to resolve a dispute between the two spouses about who gets to keep the refund. That’s an issue between you and your spouse.Hope that answers your question.–Christopher
Hi Christopher, And what happened if the refund was not accurate but the IRS had paid but one spouse kept all the money, will the IRS make both spouses pay back? Remember one of the spouses did not get a share of that refund
Hi – If your only income is Social Security, then you do not need to file an income tax return. The attached link has the complete filing requirements. Cheers… –Christopher http://turbotax.intuit.com/support/go/GEN12413
My daughter is 26 and a full time student in Los Angeles, Calif. I live in North Carolina and have paid all her living expenses with the exception of $2000.00 during 2012. She lives in an apartment. All expenses were paid by me. Can I include her as a qualifying relative on my 2012 tax return.
Hi – The general rule for claiming an adult child as a dependent is that they must be single, have less than $3,800 in income (not including Social Security), and that you must provide at least half their total support. The attached link has the complete requirements. Cheers… –Christopher http://turbotax.intuit.com/support/go/GEN12426
I could not figure out why my turbo tax I filed back on FEB 4 still is not in my acct. direct deposit I tried for weeks to get this answered. Finally I got a hold of IRS and they said my tax form is in a non postable acct due to wrong coding they said not my fault not turbo taxes fault but IRS fault. I said so I have to wait for someone to correct this IRS said yes. Someday I will get my money. IRS said due to changed tax laws. This I have never heard of and why does my return have to be coded? Experts can you answer this for me? Still waiting for my return. I should have had my return 21 days after filing for FEB 4. Thank you.
My boyfriend and I work from home, we both have separate Ebay accounts. He has made over 20k and has received the 1099k from paypal, I have not. We are both completely lost as to what to do, what to file, who to talk to……we are both afraid were gonna go under!!!! Please HELP!!!
Hi James – You must report the amount on Form 1099-K as self-employment income, but can offset that with your expenses from the eBay activity. The link below has more details. Hope it helps! –Christopher http://turbotax.intuit.com/support/go/GEN83598
I had a child in June, but have not yet applied for a SSN. Can I claim the Dependent and Child Care credit, or do I need to first obtain a SSN for my daughter?
Hi Carl, Sorry unfortunately you have to have your daughter’s SSN in order to claim the credit as well as claiming her as a dependent and any other dependent related credits or tax deductions. Thank you, Lisa Greene-Lewis
Hi Inewsom – It depends… If you are the only LLC member and have not elected to file as an S-Corp, then you will file a Schedule C with your individual return. That is easiest. If you are a multi-member LLC you will file as a Partnership (or S-Corp if you elected that) which will issue each member a K-1 form for their share of the profits/losses. If it you and your wife only on the LLC, then you will file as a Partnership or you can elect to file Schedule Cs if you live in a community property state. Please see this link http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Election-for-Husband-and-Wife-Unincor… Thanks, Karen
Hi Mary Ann, It will not pick it up from the IRS. You will have to transfer it from your files. Here is a link that will help you out http://turbotax.intuit.com/support/iq/Transfer-from-last-year/Transferring-last-year-s-tax-files-in-TurboTax/GEN12073.html Thanks, Karen
Where in TurboTax Deluxe do I input data from the 1099-B form I received which includes Form8949, both short (part1) and long (part 2) figures/
Hi John G. – You input your 1099-B in the Wages & Income area. Go to the Federal Taxes tab, Wages & Income, Explore On My Own, scroll down to Investment Income, then Stocks, Mutual Funds, Bonds, Other. The software will prepare the Schedule D and Form 8949 for you based on your input. Thanks, Karen
i have deluxe program. entered income from qualified pension plan. program asked how much is a RMD. RMDs are not required of a regular pension plan. What is going on??
Hi Jim – The RMD rules apply to all employer sponsored retirement plans, including pensions, profit-sharing plans, 401(k) plans, 403(b) plans, and 457(b) plans. The RMD rules also apply to traditional IRAs and IRA-based plans such as SEPs, SARSEPs, and SIMPLE IRAs. The software automatically asks about it when you turn 70 1/2. Your pension plan trustee automatically calculates the RMDs in their distribution. Hope that helps. Thanks, Karen
I purchased the Primier Turbotax software, can I e-file my sons State tax also? Or can I only e-file my own Stae Tax return? Can I run his State tax with the same software and mail it?
Hi Bonita – You can prepare and file up to 5 tax returns on the Desktop/CD version of TurboTax. Only one taxpayer is allowed for the online version. Thanks, Karen
I am very frustrated. On my Federal Taxes I have an Error Check.Check This Entry Carryover Worksheet: Total Withheld Payments, Carryover Worksheet-1 should be equal to or greater than the sum of amount Paid with Extension and amount of Estimates Paid after 12/31. Total W/H Pmts I worked last night and today trying to figure out the problem but none of the help lists tell me what to do. Please Help
We recently got a new computer. I saved Turbo Tax 2011 to a disk. Do I need to download that and 2011 Software before doing 2012. I want to be sure it picks all info from last year. Or does it automatically pick up the info from the IRS? I am a real dummmy when it comes to computers. Thank you for your help.
Hi Mary Ann, It will not pick it up from the IRS. You will have to transfer it from your files. Here is a link that will help you out http://turbotax.intuit.com/support/iq/Transfer-from-last-year/Transferring-last-year-s-tax-files-in-TurboTax/GEN12073.html Thanks, Karen