Question:

hi I just have a question about taxes will I have to pay taxes on a personal injury case my lawyer filed a law suit on someone and I received a settlement on will I owe taxes on this money that I received thank you

Answer:

Hi,…Damages arising out of personal injury, sickness, and an extension of that (wrongful death) are not taxable….(just about the ONLY type of award or settlement that isn't taxable)…Pain and suffering arising OUT OF physical injury or sickness are also not taxable….See this from IRS:…http://www.irs.gov/pub/irs-pdf/p4345.pdf

DOES AN ATTORNEY NEED TO PREPARE A 1099 FORM TO…

September 21, 2015

Question: Does an attorney need to prepare a 1099 form for payments to his client made from the client trust fund pursuant to a successful claim for damages which are taxable income to the client?

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I’M A CANADIAN CITIZEN LIVING IN USA SINCE 04/2014 WITH A TEMPORARY…

September 21, 2015

Question: I’m a Canadian citizen living in USA since 04/2014 with a temporary work visa. I’m selling my house in Canada.

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I HAVE RECEIVED A PENALTY DEPSOITNG 1042 TAX WITH…

September 21, 2015

Question: Hi I have received a penalty for not depsoitng 1042 tax with held in time.Can I claim relive under first time abatment This was the first time we withheld tax for form 1042 Answer: HelloYou may be allowed to receive an abatement of the penalty if you can show that the failure to deposit was not because of willful intention but rather a reasonable cause.”Normal business care and prudence followed, but taxpayer was still unable to comply due to circumstances beyond his or her control. Generally used when the taxpayer establishes a single circumstance prevented compliance””Records inaccessible / Unable to obtain records / Records destroyed by fire or other casualty”You would need to state the actual reason you were not able to meet the date and it must be due to circumstances beyond your control.

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MY SOLE INCOME IS SOCIAL SECURITY SO I PAY NO TAXES. ACCOUNTANT…

September 21, 2015

Question: My sole income is Social Security so I pay no taxes. Accountant that did my 2014 taxes said I could earn approx $9,000 before I would have to pay taxes.

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I AM SELLING A RENTAL HOUSE FOR $202K THAT I ORIGINALLY…

September 21, 2015

Question: Hello, I am selling a rental house for $202K that I originally purchased brand new in 2000 for $112K and I lived there until 2012, then last 2 years it became my rental house. I have refinanced that house in 2007 and my loan was at $240K

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G. A TAX QUESTION…

September 21, 2015

Question: For Stephen G. a tax question Answer: That is very generic question…How do you measure “a lot” ?If you meant everything – the answer is nobody knows everything.But I prefer to see your actual question and start our conversation from there.I hope that sounds reasonable?

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TOOK OUT $10,000 FROM IRA TIME HOME OWNER REASONS….

September 21, 2015

Question: Took out $10,000 from IRA for First time Home owner reasons. Received $7,000, $3,000 w/h for taxes, now want to put the $7,000 back into IRA as the purchase of first time home fell thru

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I WON $172000 LAST WEEK. WHAT CAN I DO TO REDUCE THE TAX…

September 21, 2015

Question: I won $172000 last week. What can I do to reduce the tax implications. The casino took out 25%

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I WOULD LIKE TO ASK A COUPLE OF QUESTIONS. BUT I HAVE…

September 21, 2015

Question: Hello, I would like to ask a couple of questions. But I have to provide some details beforehand. I apologize for the length of the story.

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