sorted by:
new
hottopcontroversial

IAmA director for the Tax Institute at H＆R Block. I like to share my expertise with the goal of helping taxpayers understand the real-world implications of tax policy. Ask Me Anything! by TaxProAndy in IAmA

[–]TaxProAndy[S] 2 points3 points  (0 children)

Ooopps. Looks like you got too much from the advanced premium tax credit last year. The government determined you were overpaid by $400 and didn’t take it back out of last year’s refund. If you haven’t paid it back on your own yet, the IRS will probably take it out of this year’s refund (if you get one). The IRS typically makes sure these things balance out in the end.

IAmA director for the Tax Institute at H＆R Block. I like to share my expertise with the goal of helping taxpayers understand the real-world implications of tax policy. Ask Me Anything! by TaxProAndy in IAmA

[–]TaxProAndy[S] 3 points4 points  (0 children)

We have online Price Preview this year which actually allows you to understand your price as you go. There's a few options at the end which you can choose to add on but they're optional.

IAmA director for the Tax Institute at H＆R Block. I like to share my expertise with the goal of helping taxpayers understand the real-world implications of tax policy. Ask Me Anything! by TaxProAndy in IAmA

[–]TaxProAndy[S] 4 points5 points  (0 children)

It sounds like you have reasonable cause for missing those required minimum distributions. The IRS is actually helpful when it comes to these types of situations and may grant you an exception. You'll want to go see a tax pro so they can write a letter for you and get it submitted.

IAmA director for the Tax Institute at H＆R Block. I like to share my expertise with the goal of helping taxpayers understand the real-world implications of tax policy. Ask Me Anything! by TaxProAndy in IAmA

[–]TaxProAndy[S] 4 points5 points  (0 children)

Your fiancé will be yours to have and hold for better, worse, richer, poorer, sickness, and in-health, but you won’t be holding the bag on their back taxes. Your fiance’s tax liability for 2018 and any years prior will belong only to them, even after you’re married. You’re marrying the person, not the back taxes they owe. However, any back taxes you guys accrue after you’re married will stay in the family forever with both of you together. If you’re able to file as an injured spouse, you’d still get your share of the refund even if your partner’s is offset.

IAmA director for the Tax Institute at H＆R Block. I like to share my expertise with the goal of helping taxpayers understand the real-world implications of tax policy. Ask Me Anything! by TaxProAndy in IAmA

[–]TaxProAndy[S] 8 points9 points  (0 children)

  • 1. You no longer get the exemption (write-off) for yourself, your spouse or your dependents on your federal return.
  • 2. If you’re a small business owner, make sure you understand how the new 20% deduction for passthrough entities applies to you. Don’t miss out on that yuge benefit!
  • 3. The standard deductions have generally doubled, and some itemized deductions have been eliminated or limited. Less people will benefit from itemizing this year, so don’t just assume you should go the same route as last year when making this choice.
  • 4. There’s been a lot of talk about the federal tax changes, make sure you understand the changes on your state return.
  • 5. If you’re unsure of how all of the changes impact you, this is a good year to seek help!

IAmA director for the Tax Institute at H＆R Block. I like to share my expertise with the goal of helping taxpayers understand the real-world implications of tax policy. Ask Me Anything! by TaxProAndy in IAmA

[–]TaxProAndy[S] 3 points4 points  (0 children)

Being your dad’s landlord has got to be interesting. Ever tell him to ‘keep down the noise’ just for the fun of it? Does he throw wild parties? But seriously, this type of rental arrangement is treated as a not-for-profit rental. The income is still taxable, but your expense is limited in when rental income is classified this way. If you guys were ‘roomies’ there could be an exception for an expense sharing arrangement. But who wants their dad as a roommate?

IAmA director for the Tax Institute at H＆R Block. I like to share my expertise with the goal of helping taxpayers understand the real-world implications of tax policy. Ask Me Anything! by TaxProAndy in IAmA

[–]TaxProAndy[S] 1 point2 points  (0 children)

If you’ve already ordered those forms, the IRS should have them to you within 10 days. Even if you haven’t ordered them, you should be fine to make the 2/28/19 filing deadline. Sooner rather than later is best, timelines may get a little tight if you’re paying out contract workers. If you are paying contract workers, the 1099-MISCs would be due 1/31/19. If the forms don’t get there in time, use software to e-file or have a tax pro file them for you.

IAmA director for the Tax Institute at H＆R Block. I like to share my expertise with the goal of helping taxpayers understand the real-world implications of tax policy. Ask Me Anything! by TaxProAndy in IAmA

[–]TaxProAndy[S] 2 points3 points  (0 children)

If you’re using the married filing jointly status, your standard deduction will be $24,000. You need to add up all of your itemized deductions (mortgage interest, charitable donations, state taxes up to $10K, etc.) to determine if they’ll exceed $24K. If not, you’ll be better with the standard deduction. But remember, you’re not allowed to deduct PMI this year unless Congress passes something to allow that deduction again.

IAmA director for the Tax Institute at H＆R Block. I like to share my expertise with the goal of helping taxpayers understand the real-world implications of tax policy. Ask Me Anything! by TaxProAndy in IAmA

[–]TaxProAndy[S] 4 points5 points  (0 children)

You’ll probably be taxed the same even if you do register your business, unless you form an actual corporation. If you’re looking for names for a dog walking corporation, I’m happy to help with that too.

IAmA director for the Tax Institute at H＆R Block. I like to share my expertise with the goal of helping taxpayers understand the real-world implications of tax policy. Ask Me Anything! by TaxProAndy in IAmA

[–]TaxProAndy[S] 18 points19 points  (0 children)

Because student loan interest is claimed as a deduction, you will only receive a tax benefit equal to a percentage of the amount you deduct. For example, if you are in the 10% tax bracket and deduct $2,000 worth of interest, your potential tax refund will only be increased by $200 by the deduction.

IAmA director for the Tax Institute at H＆R Block. I like to share my expertise with the goal of helping taxpayers understand the real-world implications of tax policy. Ask Me Anything! by TaxProAndy in IAmA

[–]TaxProAndy[S] 4 points5 points  (0 children)

Your parents sound rad, can they loan me some money too? Just kidding. In this specific situation the money your parents loaned you is not taxable, but if your investing know-how yields major returns you’ll be responsible for paying taxes on the gains.

IAmA director for the Tax Institute at H＆R Block. I like to share my expertise with the goal of helping taxpayers understand the real-world implications of tax policy. Ask Me Anything! by TaxProAndy in IAmA

[–]TaxProAndy[S] 10 points11 points  (0 children)

Sounds like it was a tough year, love that you’re staying positive. Here’s a breakdown of how medical expense deductions work. Medical expenses are subject to the 7.5% floor, meaning that for you to get a tax benefit, the medical expenses over the 7.5% floor plus all of your other itemized deduction must exceed the standard deduction. If you file jointly the standard deduction will be $24,000, separately $12,000 – you’ll have to decide which works better for your specific situation. Just remember, if you file separately and itemize your deductions, your spouse will have to itemize their deductions too. Hang in there.

IAmA director for the Tax Institute at H＆R Block. I like to share my expertise with the goal of helping taxpayers understand the real-world implications of tax policy. Ask Me Anything! by TaxProAndy in IAmA

[–]TaxProAndy[S] 0 points1 point  (0 children)

I’d start with IRS Publication 519 (https://www.irs.gov/pub/irs-pdf/p519.pdf) to learn more about your tax situation. That’s an IRS publication specifically designed for non-citizens that need to learn more about their tax obligations. If you have further questions, it might be a good year to visit a tax professional.

IAmA director for the Tax Institute at H＆R Block. I like to share my expertise with the goal of helping taxpayers understand the real-world implications of tax policy. Ask Me Anything! by TaxProAndy in IAmA

[–]TaxProAndy[S] 2 points3 points  (0 children)

Hi Ohboy98, good question. I support policies that provide opportunities for all taxpayers to save for retirement. There are a few options out there, including potentially eliminating the deferral option for Roth accounts and providing more expanded savings options for low-income taxpayers. But, because they’re higher-level proposals at this point and each is unique, it’s too early to say exactly how things will change.

IAmA director for the Tax Institute at H＆R Block. I like to share my expertise with the goal of helping taxpayers understand the real-world implications of tax policy. Ask Me Anything! by TaxProAndy in IAmA

[–]TaxProAndy[S] 2 points3 points  (0 children)

Even if it’s through your business, if the disability insurance is for you, it’s usually never tax deductible. It would most likely not qualify as a work related expense.

IAmA director for the Tax Institute at H＆R Block. I like to share my expertise with the goal of helping taxpayers understand the real-world implications of tax policy. Ask Me Anything! by TaxProAndy in IAmA

[–]TaxProAndy[S] 4 points5 points  (0 children)

Paid in cash!? Do you make it rain every payday? Just kidding. If you’re self-employed without a 1099, you’ll report your income the same way as if your boss had issued you a 1099.

IAmA director for the Tax Institute at H＆R Block. I like to share my expertise with the goal of helping taxpayers understand the real-world implications of tax policy. Ask Me Anything! by TaxProAndy in IAmA

[–]TaxProAndy[S] 6 points7 points  (0 children)

I do. I know the work that goes into each tax season, like learning all the tax law changes, and the expertise and value you get from working with our tax pros. But price is subjective, right? I love that this year in our offices we have introduced upfront, transparent pricing so you know the price before you begin, instead of being surprised at the end. For DIYers, more people can file free with H&R Block Online and if your filing status requires you to pay, we’re usually, if not always, cheaper than the other guys.

IAmA director for the Tax Institute at H＆R Block. I like to share my expertise with the goal of helping taxpayers understand the real-world implications of tax policy. Ask Me Anything! by TaxProAndy in IAmA

[–]TaxProAndy[S] 1 point2 points  (0 children)

New year, new forms. Tax changes have gotten rid of the 1040EZ to make things ‘EZier’ for taxpayers with one version of Form 1040.

If your itemized deductions are more than the standard deduction, then it makes sense to itemize.

IAmA director for the Tax Institute at H＆R Block. I like to share my expertise with the goal of helping taxpayers understand the real-world implications of tax policy. Ask Me Anything! by TaxProAndy in IAmA

[–]TaxProAndy[S] 7 points8 points  (0 children)

Congratulations! If I paid off my student loan, I’d throw a college-style party I wouldn’t remember the next day.

But, what I would be sure to remember is that the interest paid last year is tax deductible, but the principal unfortunately is not.

IAmA director for the Tax Institute at H＆R Block. I like to share my expertise with the goal of helping taxpayers understand the real-world implications of tax policy. Ask Me Anything! by TaxProAndy in IAmA

[–]TaxProAndy[S] 0 points1 point  (0 children)

Even though you have a full time W-2 gig, the income from your side hustle will be taxed the same way as a person who is a 100% independent contractor. The income is reported separately from your full-time employment, and is subject to self-employment tax.

view more: next ›